World’s Biggest Aviation Deal: Air India Acquires 470 Planes From Airbus, Boeing
Air India made the largest aviation deal by purchasing 470 planes from Airbus & Boeing worth $115 billion. The deal will help a lot to the US, UK, and France.
When was the last time that the US, France, and the UK, three developed nations, praised another nation for creating thousands of employment in their immediate vicinity? That was made possible by Air India’s $115 billion purchase of 470 planes, the greatest deal in aviation history, which furthered the notion that India is now at the forefront of the global economy.
Government representatives emphasised this and India’s expanding influence on the global scene by citing the remarks made by the Premiers of the 3 countries. US President Joe Biden remarked in a statement following the sale that “this purchase will sustain over one million American employment across 44 states, and many will not demand a four-year college degree.” Prime Minister Narendra Modi was hailed by French President Emmanuel Macron for “your faith in France and our industries.” The agreement, according to UK Prime Minister Rishi Sunak, will support jobs nationwide, boost the economy, and “level up the UK.”
Coincidentally, this occurs at a time when Pakistan, India’s neighbour, is vying for a $1.1 billion bailout from the International Monetary Fund (IMF), which has been postponed since December due to Pakistan’s failure to meet the conditions.
According to the AP, Pakistan will likely increase taxes significantly in exchange for the significant IMF bailout. The IMF predicted last month that India’s economy will grow at the quickest rate in the world, 6.1%.
According to India’s finance minister Nirmala Sitharaman, 7% growth is predicted for the Indian economy this fiscal year. Under the leadership of PM Modi, India has become the world’s greatest economic hope post-Covid, an official stated.
How The Deal Benefits the US, UK, and France?
With competitors Boeing of the US and Airbus of France, Air India has agreed to buy 470 jets, with 220 coming from Airbus and 250 from Boeing.
25 brand-new Boeing B737-800s and 6 brand-new Airbus A350-900s will be the first aircraft to arrive in the second half of 2023, with shipments picking up in 2025 and beyond.
The US president called the Air India-Boeing transaction “historic” and asserted that “The United States can and will lead in manufacturing.”
“This achievement indicates that Airbus and all its French associates are fully dedicated to developing new sectors of dedication with India,” the French President remarked.
In order to service jet engines, the French aerospace engine maker SAFRAN will also build its largest MRO facility in India.
The UK government stated in a statement that the Air India contract is worth billions of pounds to the UK as well.
“The agreement announced by Airbus and Rolls-Royce will assist and create new, highly skilled employment in Derbyshire and Wales, helping to increase exports, strengthen the economy, and level the playing field in the UK.
The UK is anticipated to host a sizable component of the new aircraft’s production process. The wings will be created in Filton and put together in Broughton, bringing 450 more manufacturing jobs and more than £100 million in investment to Wales.
Rolls-Royce XWB engines, which are manufactured and tested in Derby, are used exclusively to power the huge A350 aircraft, according to a detailed statement from the UK government.
India is expected to have the third-largest economy in the world by 2050, with a quarter of a billion middle-class consumers, according to the UK.
According to UK Business and Trade Secretary Kemi Badenoch MP, “this is a big win for the UK’s globally competitive aerospace sector and one that will help secure thousands of highly skilled jobs throughout the country and generate economic growth.”
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