Air India to purchase 250 aircraft from Airbus

New Delhi: Air India will buy 250 aircraft from France's Airbus, in what is billed as the world's largest aviation deal in history. "We have built a very good relationship with Airbus. Today I am happy to announce that we have signed a letter of intent to acquire 250 aircraft from Airbus," said Tata Sons Chairman Natarajan Chandrasekaran at a virtual unveiling of the announcement in the presence of Prime Minister Narendra Modi and French President Emmanuel Macron.

Civil Aviation Minister Jyotiraditya Scindia, veteran industrialist Ratan Tata, and other leaders were present during the virtual conference.

The deal includes 40 A350 wide-body ultra-long-range aircraft. The rest will be narrow-body aircraft.

"We have significant options to increase the fleet orders once we grow," Chandrasekaran said.

Hailing the deal, Modi said the tie-up is an important milestone for the India-France strategic partnership. "This important deal reflects the deepening ties between India and France, as well as the successes and aspirations of India's civil aviation sector," the Prime Minister said.

Stressing the importance of air connectivity, the PM said, "Through our Regional Connectivity Scheme (UDAN), remote parts of the country are being connected through air connectivity, which is boosting the economic and social development of people."

Macron also hailed the Air India-Airbus deal saying that the "achievement shows that Airbus and all its French partners are fully dedicated to develop new areas of cooperation with India". "We've achieved so much with India. We've historic opportunity to go much further, given the potential of Indian people," Macron added.

"It is a historic moment for Airbus to help script Air India's revival," Airbus Chief Executive Guillaume Faury said in a video conference.