What 'historic' Air India-Airbus deal means for India

As per the deal, the Tata-owned airline will buy 40 wide-body A350 planes and 210 narrow-body aircraft.

New Delhi, Feb 14: In what is billed as the largest aviation deal in the history, Air India signed a deal to acquire 250 aircraft, including 40 wide-body planes, from Airbus. As per the deal, the Tata-owned airline will buy 40 wide-body A350 planes and 210 narrow-body aircraft.

The deal is seen as a testament to the deepening relationship between India and France as well as the successes and ambitions of India's civil aviation industry.

What 'historic' Air India-Airbus deal means for India

The 'historic' Air India-Airbus deal will be help in meeting growing demand for aircrafts in India.

"Strengthening civil aviation is an important aspect of our National Infrastructure Strategy. In the last eight years, the number of airports in India have jumped from 74 to 147, almost double the increase. Through our regional connectivity scheme (UDAN), remote parts of the country are also getting linked via air connectivity, which is promoting the economic and social development of the people," Prime Minister Narendra Modi said.

India will soon become the third largest market in the aviation sector in the world. As per several estimates, the number of aircrafts needed in India in the next 15 years will be more than 2000. Today's historic announcement will be helpful in meeting this growing demand.

Under India's 'Make in India - Make for the World' vision, many new opportunities are opening up in aerospace manufacturing. A provision of 100% FDI via automatic route has been made for green field and brown field airports. Similarly, 100% FDI has also been allowed in ground handling services, maintenance, repair and overhaul i.e. MRO. India can become a hub of MRO for the entire region.

Air India-Airbus deal significance

The Air India-Airbus deal is significant as it represents a major investment by the government in upgrading Air India's aging fleet with new, fuel-efficient aircraft. The deal is likely to improve Air India's operational efficiency, reduce maintenance costs, and enhance passenger comfort.

In addition, the purchase of Airbus aircraft is seen as a way to strengthen the economic and trade ties between India and the European Union, where Airbus is based. The deal is also expected to create jobs and provide a boost to the aviation industry in both India and Europe.

The Air India-Airbus deal is seen as an important step towards modernizing India's aviation sector and promoting international cooperation in the aerospace industry.