PM Modi, Joe Biden hail 'landmark' Air India-Boeing deal in phone conversation

The leaders welcomed the landmark agreement between Air India and Boeing as a shining example of mutually beneficial cooperation.

New Delhi, Feb 14: Prime Minister Narendra Modi held a telephone conversation with US President Joe Biden and expressed satisfaction at the deepening of the India-US Comprehensive Global Strategic Partnership.

"The two leaders welcome the first meeting of the initiative on Critical and Emerging Technologies (iCET) held recently in Washington DC and express a keen desire to strengthen bilateral cooperation in space, semiconductors, defence and other spheres," a statement from the PMO said.

"The leaders agree to bolster the vibrant and mutually beneficial people-to-people ties between the two countries. The leaders agree to remain in contact during India's ongoing G20 Presidency to ensure its success," it added.

The leaders welcomed the landmark agreement between Air India and Boeing as a shining example of mutually beneficial cooperation.

PM Modi invited Boeing and other US companies to make use of the opportunities arising due to the expanding civil aviation sector in India.

Air India will purchase 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, a deal that US President Joe Biden described as a "historic agreement".

As per the deal, Boeing and Air India have reached an agreement under which the airline will purchase 190 B737 MAX, 20 B787, and 10 B777X for a total of 220 firm order valued at USD 34 billion at list price.

The deal will also include customer options for an additional 50 Boeing 737 MAX and 20 Boeing 787, totalling 290 airplanes for a total of USD 45.9 billion at list price.

The Air India order is Boeing's third biggest sale ever in dollar value and second in terms of number of planes.

This purchase will support over one million American jobs across 44 states, and many will not require a four-year college degree, Biden said, adding that this announcement also reflects the strength of the US-India economic partnership.

Over the course of production and delivery, the agreement will have USD 70 billion in total economic impact across the United States and support an estimated 1.47 million direct and indirect jobs.

The production of the aircraft supports three separate US-based manufacturing lines that include aerospace suppliers across 44 different states.