News Update

Air India-Airbus deal will create new jobs and boost exports: said UK Prime minister

• ByStartupStory     |    February 15, 2023

The Air India-Airbus deal for 250 aircraft was welcomed on Tuesday by UK Prime Minister Rishi Sunak, who said the contract will create new highly skilled jobs in Britain and help boost exports.

A British high commission statement said the Air India-Airbus deal is worth billions of pounds to the UK as a “significant portion of the manufacturing process for the new aircraft is expected to take place in the UK”.

Under the deal, Air India is set to procure 40 A350 wide-body aircraft and 210 A320 narrow-body aircraft. Wings and engines for the aircraft are set to be assembled or manufactured in the UK, which is expected to create hundreds of jobs and lead to significant investments.

The wings will be designed in Filton and assembled in Broughton, and this is expected to bring 450 manufacturing jobs and more than £100 million in investments to Wales, the statement said.

The A350 aircraft are powered by Rolls-Royce XWB engines, which are assembled and tested in Derby.

Sunak said the “landmark deal” will create “better-paid jobs and new opportunities in manufacturing hubs from Derby to Wales” so that the UK “can grow the economy and support our agenda to level up”.

He added, “The UK is already a top investment destination, and by building trade ties with growing economic powers like India we will ensure UK businesses remain at the forefront of global growth and innovation.”

UK trade secretary Kemi Badenoch also welcomed the deal and said: “We’re currently negotiating a trade deal with India which could boost trade by up to £28 billion a year by 2035. Export wins like this are another big step to our nations forming a closer trading relationship.”

This deal will help secure thousands of highly skilled jobs and is a shot in the arm for UK exports, Badenoch said.

Also US President Joe Biden on 14 February hailed Air India’s decision to purchase 220 Boeing aircraft and called it a ‘historic agreement’. The deal will create 1 million jobs in America , said Joe Biden.

 

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