Wednesday, May 29, 2024

Air India-Airbus-Rolls Royce Mega Deal Groundbreaking For India, France & UK

By Aritra Banerjee

Air India has made a groundbreaking deal with Airbus, marking a turning point for the airline as it seeks to rebrand itself. The mammoth deal involves purchasing 250 aircraft and a total order of 470 planes. The agreement comprises 210 narrow-body and 40 wide-body aircraft, which Air India intends to fly on ultra-long routes globally.

“We have built a very good relationship with Airbus. Today I am happy to announce that we have signed a letter of intent to acquire 250 aircraft from Airbus,” said Natarajan Chandrasekaran, Chairman of Tata Sons, on this development.

The engines powering the A350 Airbus wide-body aircraft will be exclusively produced by Rolls-Royce, which is made in Derby, England. In addition to key stakeholders from India, France and the United Kingdom, Prime Minister Narendra Modi has congratulated Airbus on this “watershed moment” in Indian civil aviation.

British PM Rishi Sunak too welcomed the development describing it as a “landmark deal between Air India, Airbus and Rolls-Royce,” and highlighted the impact on the United Kingdom’s aerospace industry. PM Modi addressed significant stakeholders and highlighted major milestones in India’s aviation sector, and painted a picture of what it can become in the near future.

The purchase is also expected to include an order of 220 planes from Boeing, the first significant collaboration between Tata Group and Airbus. A significant portion of the aircraft manufacturing process is expected to take place in the UK, creating over 450 manufacturing jobs and an investment of over £100m in Wales.

The agreement, including the Airbus and Rolls-Royce deals, will support and create highly skilled jobs, boost exports and level up the UK economy, bolster Indian civil aviation and continue build strategic partnerships with France.

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