NEW DELHI: Air India has signed one of its biggest ever aircraft deals with Airbus to acquire 250 planes, Tata Sons chairman Natarajan Chandrasekaran said on Tuesday.
Announcing the deal in a virtual event that was attended by Prime Minister Narendra Modi as well as French President Emmanuel Macron, among others, Chandrasekaran said that Air India has signed a letter of intent with Airbus for the deal.
"We on our part are going through a massive transformation because we are committed to building a world class airline. One of the most important thing is a modern fleet which is efficient and can perform for all routes," Chandrasekaran said.
As part of the acquisition, the airline will purchase 40 widebody A350 aircraft and 210 narrow-body planes with options to increase the fleet order, the Tata Sons chief said.
'Deepening ties between India and France'Congratulating the Tata Group and Airbus on the successful agreement, PM Modi said that the deal reflects deepening ties between India and France, as well as the successes and aspirations of India's civil aviation sector.
"Our civil aviation sector is an integral part of India's development. Strengthening the civil aviation sector is an important aspect of our national infrastructure policy," he said.
In the last eight years, the number of airports has gone up from 74 to 147, Modi pointed out.
Through the scheme UDAN, remote parts of the country are also being connected through air connectivity, which is giving a boost to the economic and social development of the people, he said.
In the near future, India would become the third biggest market in the world in the aviation sector, he said.
In the next 15 years, over 2,000 aircraft would be required, he added.
"Many new opportunities are opening up in aerospace manufacturing under India's 'Make in India - Make for the World' vision," PM Modi noted.
On ties between India and France, PM Modi said: "Whether it is the issue of security and stability in the Indo-Pacific region, or global food security and health security, India and France together are making a positive contribution."
Meanwhile, French President Emmanuel Macron said France is deeply committed to provide the best technology avaiable to India.
"Air India-Airbus agreement shows that Airbus and its partners including Safran are keen on doing more business in India," Macron said.
Stating that the deal marks a milestone regarding ties between the two countries, Macron assured that French companies are working actively to help India in terms of energy transition and carbon neutrality.
Macron also said that France was committed to providing state-of-the-art, most efficient technology to India and that the end of the pandemic should lead to more exchanges between the two nations.
'Historic moment'Meanwhile, Airbus chief executive Guillaume Faury described the deal as a "historic moment" for India, for Air India and for Airbus.
"The magnitude of the Air India order... demonstrates the appetite for growth in the Indian aviation industry," he added.
According to a PTI report, 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.
The airline, which was under the ownership of the government had acquired new aircraft more than 17 years ago. Its 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.
On January 27, when the Tata Group completed the first year of taking over Air India, the airline had said it was "finalising a historic order of new aircraft to power future growth".
(With inputs from agencies)
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