Air India has agreed to purchase 220 Boeing jets in Boeing’s third-biggest deal of all time.
- Air India will purchase around 220 Boeing jets—an estimated value of approximately $34 billion.
- The airline will have the option to purchase another 70 jets, bringing the total list price to $45.9 billion.
- The deal includes 190 Boeing 737 MAXs, 20 Boeing 787s, and 10 Boeing 777Xs.
- This agreement marks the third-biggest sale in Boeing’s history.
- President Joe Biden officially announced the deal Tuesday as part of his U.S.-India initiative on Critical and Emerging Technology that launched last month. This initiative is intended to foster relationships between the universities, governments, and businesses of the U.S. and India.
Why it’s news
Boeing’s new deal is not only a historic moment for the company but will support more than 1 million jobs across the U.S., Forbes reports. The agreement is also a win for the Biden administration, which is trying to strengthen the U.S.-India relationship.
Air India’s purchase is part of the airline’s plan to recover its reputation after falling behind other airlines with newer planes. Last year, the airline had around 8.7% of the domestic market share. The company plans to eventually control a third of the domestic market.
In the last several years, Air India has retired much of its aging fleet. The purchase from Boeing will allow the airliner to replace the aged-out planes and position it to reclaim its position as a top airline.
In addition to the planes purchased from Boeing, Air India has also entered an agreement with France’s Airbus to purchase 250 planes, including 210 A32oneos and 40 widebody A350s.