India is back on the world map, this time with a massive order of airplanes that should lift the spirits of a western world in fear of a recession. The Tata group-owned Air India has successfully sealed the world’s biggest ever commercial aviation deal by placing an order of 470 passenger aircraft from France’s Airbus and US’ Boeing.
The price for the entire 470-aircraft deal would be between $70 and $80 billion.
The record deal bolsters India’s position on the global platform as an emerging leader in the commercial aviation sector. It has also put Air India in the league of aspiring global carriers a much needed move for the country where the aviation sector is growing rapidly.
It has been reported that the deal was in the making for over a year. The talks began last summer and continued until days before Christmas when outlines were agreed upon. The deal was struck at St James’ Court – a luxury Victorian hotel near Buckingham Palace in London’s West End. The hotel is owned by the Tatas.
The negotiations were led by Air India’s chief commercial and transformation officer, Nipun Aggarwal, along with Yogesh Agarwal, head of aircraft operations. The negotiations often stretched into the night, with sellers churning out new “best offers” fuelled by room service.
“I am proud to announce today the purchase of over 200 American-made aircraft through a historic agreement between Air India and Boeing. This purchase will support over one million American jobs across 44 states, and many will not require a four-year college degree,” US President Joe Biden said in a statement .
Prime Minister Narendra Modi and Mr Biden spoke over the landmark agreement between Air India and Boeing. Both welcomed the deal as a “shining example of mutually beneficial cooperation”. There is an option for Air India to buy 70 more aircraft from Boeing.
