The lives of one million American families and the American economy will be supported by India. The $34 billion deal for passenger aircraft, which includes Boeing, has suddenly turned into a financial favour for the United States. The decision is expected to have a total economic impact of $70 billion on the US, according to the White House.
Boeing has been issued a ticket to return significant losses by Ratan Tata’s Air India! Together with Boeing, Airbus also gets away!
One of Boeing’s largest Airbus orders in company history was placed by the Indian airline Tata’s Air India. The list price of the Boeing contract with Air India is $34 billion. Around $38 billion will be spent on Airbus by Air India.According to US President Joseph Biden, 1 million jobs would be created in 44 states of America as a result of these significant orders from India.
The fact that India made this order will be a testament to the strength of the economic ties between the US and India. The US-India alliance, according to Biden and Prime Minister Modi, should be strengthened. Three distinct US manufacturing sectors will emerge as a result of aircraft manufacture. According to Biden, the order will have a $70 billion overall economic impact on the US, creating 1.47 million direct and indirect jobs.
Air India ordered 220 firm planes from Boeing: 190 single-aisle Boeing 737 Max aircraft, 20 widebody 787 Dreamliner aircraft, and 10 of the newest 777X aircraft.
Another choice provided by Air India to Boeing is to purchase 290 aircraft, or 50 Boeing 737 Max and 20 Boeing 787s. That order’s value, at the preliminary list price, would be $45.9 billion.
It ranks as the third-largest order ever placed with Boeing.
Airbus revealed that Air India has ordered 250 aircraft total, including 140 A320neo, 70 A321neo single-aisle, 34 A350-1000, and six A350-900 widebodies. There, too, the generally loss-making Boeing has lagged behind. That illustrates the continuing competitive disadvantage Boeing experiences, particularly when it comes to selling single-aisle, narrow-body aircraft, a market sector currently dominated by Airbus.
Boeing reported a rise in commercial aircraft orders for 2022 to 808 net orders, up from 535 last year. However, Airbus outperformed this with 820 orders. Growing trade tensions between China and the United States have harmed Boeing for years. Another factor that has hurt Boeing is a 20-month decline in sales of its best-selling 737 Max. Notwithstanding the circumstances, the White House views this order from the Indian aircraft manufacturer favourably.
It’s a crucial giveaway for Boeing Co., which is still battling to recover from the spike in revenue and financial losses it endured during the previous four years.
