Air India to buy 220 Boeing planes for $34 billion

United States President Joe Biden hailed Air India’s decision to purchase over 220 aircraft from Boeing and called it a “historic agreement between Tata-owned airlines and Boeing. This purchase will support over one million American jobs across 44 states, and many will not require a four-year college degree. This announcement also reflects the strength of US-India economic partnership,” Joe Biden said in an official statement.

Official Statement By The POTUS Joe Biden: The White House:

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Biden touts order: one million American jobs across 44 states:

In a statement, Biden said the sale would “support over one million American jobs across 44 states, and many will not require a four-year college degree.”

“This announcement also reflects the strength of the U.S.-India economic partnership,” Biden wrote. “Together with Prime Minister Modi, I look forward to deepening our partnership even further as we continue to confront shared global challenges — creating a more secure and prosperous future for all of our citizens.”

Production will support three separate U.S.-based manufacturing lines, have a total economic impact of $70 billion across the United States and support an estimated 1.47 million direct and indirect jobs, a White House official said.

India’s growing economic might:

India has been gaining some manufacturing business as Western tensions flare with China, including major companies that traditionally rely heavily on Chinese production. Apple is one such company, with Minister of Commerce and Industry Piyush Goyal saying the tech giant was already making between 5% and 7% of its products in India.

India is set to overtake China this year to become the world’s most populous country. The country’s massive and cheap labor force, which includes workers with key technical skills, is a big draw for manufacturers. Asia’s third-largest economy also offers a growing domestic market. In 2023, as global recession fears persist, India is expected to remain the fastest growing major economy in the world.

If it can sustain that momentum, India could become only the third country with GDP worth $10 trillion by 2035, according to the Centre for Economics and Business Research, after the US and China.

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More About The Tata and Boeing Deal:

Air India will purchase as many as 220 planes from Boeing for USD 34 billion, with an option to buy 70 more aircraft that could take the total transaction value to USD 45.9 billion.

The Air India order is Boeing’s third biggest sale ever in dollar value and second in terms of number of planes.

Air India’s Push Towards a Greater Scale:

Air India has agreed to buy 250 jets from Airbus, part of a mammoth deal for 470 planes that is also expected to include 220 Boeing jets, as the airline heralds a decades-long transformation under its new owners, Tata Group. The combined 470-jet order is the largest by a single airline. Coupled with roughly 25 more Airbus jets that Air India plans to lease to meet its immediate needs, it touches the 500-mark.

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