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Prime Minister Narendra Modi has said Air India’s deal to acquire 250 planes from Airbus was a landmark agreement showcasing the deepening of India-French relations and the successes and ambitions of India’s civil aviation sector.
“In the next 15 years, India will need over 2,000 aircraft. Today’s historic announcement will play a role in meeting the increased demand,” the Prime Minister said at a video conference with French President Emmanuel Macron on Tuesday, where the new partnership between Air India and Airbus was launched.
As part of the acquisition, the airline will purchase 40 wide-body A350 aircraft and 210 narrow-body planes, with options to increase the fleet order.
“This achievement shows that Airbus and all its French partners are fully dedicated to develop new areas of dedication with India,” Macron said at the video conference.
India will soon become the third largest market in civil aviation, Modi said, adding that the sector had become an inseparable part of India’s growth story and strengthening it was an important aspect of the National Infrastructure Strategy.
Under the UDAN scheme, remote areas in the country were getting air connectivity and people were reaping economic and social benefits, Modi said.
New opportunities in aerospace manufacturing were emerging under the ‘Make in India – Make for the World’ vision, he said, adding that the FDI policy for the sector was conducive and India could soon become a MRO (Maintenance & Repair Overhaul) hub for the world.
PTI adds: This is the first time in more than 17 years that Air India has placed an aircraft order. It is also the first order placed by the carrier under the ownership of Tata Group.
On Tuesday, Tata Sons Chairman N Chandrasekaran said Air India has signed a letter of intent to acquire 250 aircraft from Airbus. It will include 40 wide-body A350 planes for ultra-long haul flights and 210 narrow-body aircraft.
Since acquiring loss-making Air India from the government in January 2022, Tata Group has been taking various measures to revive the carrier.
The airline's last order was for 111 planes—68 from Boeing and 43 from Airbus—and that deal was worth $10.8 billion. The order was placed in 2005.
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