According to reports, 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
US president Joe Biden made the announcement, adding that PM Modi is looking forward to deepen India-US ties.
The Air India order is Boeing’s third biggest sale of all time in dollar value and second of all time in quantity, Biden said.
This marks a day of major purchase announcements by the Tata Group. Earlier in the day, Tata Sons had announced that it has signed a letter of intent to acquire 250 aircraft from European manufacturer Airbus. Air India will buy 40 wide-body A350 planes and 210 narrow-body aircraft.
Air India had bought new aircraft over 16 years ago. Since 2005, the airline has not bought any aircraft. Tata Group, which took over Air India last year, has engaged with aircraft companies in order to revamp its fleet.
According to Air India, the first of the new aircraft will enter service in late 2023 and the bulk of the planes are to arrive from mid-2025 onwards. A350 will be utilised for an ultra-long haul. Boeing said it is also working closely with India to enable operational capabilities and mission readiness for its defence forces.
“We are working closely with our partners in India to enable exceptional operational capabilities and mission readiness for Indian Air Force and Indian Navy,” Boeing India said in a tweet on Thursday.
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