Boeing, Airbus Sell 470 Planes to Air India in Record Deal
Carrier is seeking to reinvent itself as a rival to the world’s biggest airlines
Air India’s order marks the largest deal for commercial aircraft in aviation history.
Air India Ltd. ordered 470 jets from Boeing Co. BA 0.15%increase; green up pointing triangle and Airbus EADSY -1.38%decrease; red down pointing triangle SE, marking the largest deal for commercial aircraft in aviation history and coming as airlines scramble for jets to meet surging demand for air travel.
The airline said it has agreed to purchase 250 Airbus jets and 220 Boeing planes, surpassing a deal for 460 planes by American Airlines in 2011. The deal is aimed at providing more planes to supply India, which is expected to be the fastest-growing major aviation market in the world.
The Boeing orders, based on the planes’ list prices, came in at $45.9 billion, including options. Airbus no longer quotes list prices for its jets. Based on analysts’ estimates, the deal’s total value was around $85 billion before discounts. The previous record—a 2013 order for Boeing 777X jets by Emirates Airline—was valued at about $75 billion. Airlines don’t typically pay list price, instead benefiting from large, undisclosed discounts.
The Boeing order was first announced by the White House, with the Airbus deal unveiled by Indian Prime Minister Narendra Modi and French President Emmanuel Macron at a joint press conference. President Biden later discussed the deal with Mr. Modi, according to the White House.
Airbus, buoyed by the Air India deal, is planning to boost production rates of its two biggest models as it tries to capitalize on resurgent demand for long-haul travel, The Wall Street Journal separately reported. Boeing has pushed back planned production increases because of supplier shortages, though it still hopes to raise output this year.
Excerpt from WSJ
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