- President Joe Biden will announce that Air India would purchase more than 200 aircraft from Boeing.
- For the aircraft manufacturer, it ranks as the third-largest transaction ever.
- As trade tensions between the United States and China have essentially stopped Boeing sales.
According to a White House official, President Joe Biden will announce Tuesday that Air India would purchase more than 200 aircraft from Boeing. For the aircraft manufacturer, it ranks as the third-largest transaction ever.
According to the official, the deal will cover 220 firm orders for a total of 190 Boeing 737 MAXs, 20 Boeing 787s, and 10 Boeing 777Xs, with a list price of $34 billion. Additionally, client options for an additional 50 Boeing 737 MAXs and 20 Boeing 787s will be included in the acquisition, for a total of 290 aircraft valued at $45.9 billion at list price.
The sale, according to a statement from Biden, “will support over one million American employment across 44 states, many of which will not require a four-year college degree.”
The president stated, “This declaration also highlights the strength of the U.S.-India economic alliance. “I look forward to extending our collaboration even more with Prime Minister Modi as we continue to address common global issues, fostering a more secure and prosperous future for all of our citizens,” he said.
According to a White House official, production will support three different U.S. manufacturing lines, have a $70 billion overall economic impact on the country, and sustain roughly 1.47 million direct and indirect jobs.
As tensions between the West and China rise, large corporations that have historically relied heavily on Chinese production are beginning to shift some of their manufacturing operations to India. One such business is Apple, which, according to Minister of Commerce and Industry Piyush Goyal, already manufactures between 5% and 7% of its goods in India.
This year, India is expected to surpass China as the world’s most populous nation. Manufacturers are attracted by the nation’s large and inexpensive labour supply, which includes individuals with important technological capabilities. The third-largest economy in Asia has a developing domestic market as well. India is anticipated to continue to grow at the highest rate among major economies in 2023, despite ongoing concerns about a global recession.
According to the Centre for Economics and Business Research, India might become only the third nation with a $10 trillion GDP if it can maintain its current pace.
Boeing woes
Despite the 737 Max’s (BA) numerous issues, manufacturing and orders have increased thanks in large part to a sizable order from United placed in the latter part of last year. For the first time since the March 2019 tragedy that killed all 157 persons on board and caused a 20-month grounding of the aircraft, Ethiopian Airlines received a 737 Max from Boeing in June.
The company has numerous additional issues in China, the largest aviation market in the world. As trade tensions between the United States and China have essentially stopped Boeing sales in the country for the past four years, it has been on the point of being practically shut out of the region. Since November 2017, the corporation has not disclosed any sales to a Chinese passenger airline, and the nation has had a long-standing ban on the Boeing 737 Max. The first Boeing 737 Max to take flight in China since 2019 did so in January.
Beyond the decline in demand for passenger jets brought on by the epidemic, Boeing has experienced a number of issues in recent years. Last year, widebody 787 Dreamliner deliveries picked back up again after being suspended owing to quality control difficulties.
[embedpost slug=”biden-lula-pledged-to-defend-democracy-in-americas/”]
