Air India orders 220 Boeing planes for $34 bn; Biden terms deal as 'historic'

Air India will purchase 220 planes from Boeing for USD 34 billion, with an option to buy 70 more aircraft that could take the total transaction value to USD 45.9 billion, a deal that US President Joe Biden described as a "historic agreement".

While announcing the Boeing-Air India deal on Tuesday, Biden also asserted that together with Prime Minister Narendra Modi, he was looking forward to deepen the ties between India and the US.

As per an announcement from the White House, Boeing and Air India have reached an agreement under which the airline will purchase 190 B737 MAX, 20 B787, and 10 B777X for a total of 220 firm order valued at USD 34 billion at list price.

Also read | Air India to buy 250 planes from Airbus

The deal will also include customer options for an additional 50 Boeing 737 MAX and 20 Boeing 787, totalling 290 airplanes for a total of USD 45.9 billion at list price.

"I am proud to announce today the purchase of over 200 American-made aircraft through a historic agreement between Air India and Boeing," Biden said.

The Air India order is Boeing's third biggest sale ever in dollar value and second in terms of number of planes.

This purchase will support over one million American jobs across 44 states, and many will not require a four-year college degree, Biden said, adding that this announcement also reflects the strength of the US-India economic partnership.

"Together with Prime Minister Modi, I look forward to deepening our partnership even further as we continue to confront shared global challenges -- creating a more secure and prosperous future for all of our citizens," Biden said.

This announcement follows the inaugural launch of the US-India initiative on Critical and Emerging Technology (iCET) last month. The initiative is aimed at expanding the strategic technology partnership and defense industrial cooperation between the governments, businesses, and universities of the two countries.

Biden and Modi announced the iCET in May 2022.

Biden's economic plan is about building an economy from the bottom up and the middle out, and revitalising American manufacturing, the White House said.

Over the course of production and delivery, the agreement will have USD 70 billion in total economic impact across the United States and support an estimated 1.47 million direct and indirect jobs.

The production of the aircraft supports three separate US-based manufacturing lines that include aerospace suppliers across 44 different states, the White House said.