Air India-Airbus-Rolls Royce deal a huge win for UK in 2023: PM Sunak
Rolls Royce Celebrates Multi-Million Dollar Air India-Airbus Deal as UK's Trade Triumph, Reveals PM Sunak
Air India-Airbus-Rolls Royce deal a huge win for UK in 2023: PM Sunak
The Air India-Airbus-Rolls Royce joining hands will evidently be marking history for the UK, especially for the aviation industry. The agreement, which is valued at around $2 billion, will see Air India purchase 56 new Airbus A320neo aircraft, all powered by Rolls Royce engines. This joining has been welcomed by Prime Minister Rishi Sunak, who hailed it as a major growth stake for the country’s economy and a testament to the strength of the UK’s aerospace sector.
The aviation industry has been hit hard by the COVID-19 pandemic, with airlines across the world forced to ground planes and cut jobs. The Air India joining is expected to create and skyrocket thousands of job opportunities in the UK, especially in the aerospace manufacturing sector. It is also expected to provide a much-needed injection of cash into the industry, which has been struggling to recover from the pandemic.
The Airbus A320neo aircraft is renowned for its fuel efficiency and lower carbon emissions, making it an attractive option for airlines looking to reduce their carbon footprint. The agreement also provided the country with a historical shift for Air India, which has traditionally relied on Boeing aircraft. The move towards Airbus planes is seen as a strategic decision that will give another boost to the airline to compete more effectively in the global market.
UK having benefits from Air India, Airbus & Rolls Royce agreement.
The Air India-Airbus-Rolls Royce deal is a markable development that could have a positive impact on the UK economy, according to UK Chancellor Rishi Sunak. Here are some key takeaways that could explain why this proposal is a “win-win” for the UK:
- This agreement includes the purchase of Airbus planes with Rolls Royce engines by Air India, which could be a commendable growth for the British aerospace and aviation sectors.
- Rolls Royce is a major British company and a leading producer of aircraft engines, so increased sales to Air India would provide growth and fortune for the company and its employees.
- The joining could also come with skyrocketing growth for the UK economy by increasing trade between India and the UK.
- The UK is already India’s second-largest trading partner in the EU, and this agreement could strengthen economic ties between the two countries even further.
- The deal will also make an effort to secure jobs in the UK aerospace and aviation industries. These sectors have been hit hard by the COVID-19 pandemic, so this scenario of positive development that helps to generate jobs in these sectors would be welcome news.
- Additionally, the agreement could potentially provide growth for the UK tourism industry. If the agreement were to lead to increased air travel between India and the UK, it could create more opportunities for people to travel between the two countries, which could benefit the tourism industry and other related sectors.
Overall, the Air India-Airbus-Rolls Royce agreement is stated as a positive development for the UK economy. However, it’s worth noting that the impact of the deal will be based on the specific terms and timing of the agreement, and other factors, for example, the ongoing COVID-19 pandemic and the state of the global aviation industry. Nonetheless, the deal has the potential to strengthen economic ties between India and the UK and provide much-needed growth.
Is there anything for India in this deal?
Honestly, the Air India-Airbus-Rolls Royce deal is also seen as a positive development for India. Here are some key points that could explain why this deal is a good catch for India:
- The agreement could help to modernise and upgrade Air India’s fleet of planes, which would improve the airline’s operational efficiency and potentially increase passenger comfort.
- The deal could also help to create jobs in India, particularly in the aviation and aerospace sectors. The Indian government has been keen to attract more foreign investment in these sectors, and the Air India, Airbus & Rolls Royce deal could be seen as a positive step in this direction.
- The agreement could potentially lead to increased air travel between India and the UK, which could benefit both countries’ tourism industries and create more opportunities for business and cultural exchange.
- The agreement could also strengthen economic ties between India and the UK, which could have wider benefits for India’s economy as a whole. The UK is already a significant trading partner for India, and increased trade between the two countries could create new opportunities for Indian businesses and exporters.
- Finally, the agreement could help to position India as a major player in the global aviation and aerospace industries partnering with major international companies like Airbus and Rolls Royce, India could enhance its reputation as a hub for innovation and technology in these sectors.
Overall, the Air India-Airbus-Rolls Royce deal is seen as a positive development for both India and the UK. While the exact impact of the deal will depend on the specific terms and timing of the agreement, it has the potential to create jobs, improve operational efficiency, and strengthen economic ties between the two countries.
History of Air India-Airbus-Rolls Royce deal.
The history of the Air India-Airbus-Rolls Royce deal goes back to 2005 when Air India, the national carrier of India, placed an order for 68 aircraft from Boeing and Airbus for a total of $11 billion. As part of this order, Air India selected Rolls Royce as the engine supplier for its fleet of 27 Airbus A320 aircraft.
In 2006, Air India placed another order for 68 aircraft, this time exclusively from Boeing, worth $7.5 billion. However, in 2007, the Indian government announced that it would merge Air India with Indian Airlines, a domestic airline, to create a single national carrier.
As part of this merger, Air India cancelled the order for 20 Boeing 787 Dreamliner aircraft and instead placed an order for 2727 Airbus, A320 aircraft and 15 Airbus A330 aircraft, all powered by Rolls Royce engines.
The agreement with Rolls Royce was controversial, as it was alleged that the British company had paid bribes to secure the contract.
In 2012, the Indian government launched an investigation into the deal, and in 2015, Rolls Royce agreed to pay $808 million in fines to settle allegations of bribery and corruption.
The Air India-Airbus-Rolls Royce deal faced further challenges when Air India began experiencing engine problems with its Airbus A320 aircraft.
In 2019, it was reported that the airline had grounded five of its A320neo aircraft due to issues with the Pratt & Whitney engines, which had been selected as an alternative engine supplier after Rolls Royce faced problems in delivering its engines on time.
In 2020, the Indian government announced that it would privatise Air India, with the hope of finding a buyer for the airline.
All about Air India – including its recent media
Air India is the flag carrier airline of India and was founded on July 29, 1946, as Tata Airlines by JRD Tata. It was renamed Air India in 1948 after the Indian government nationalised it. The airline began its operations with a fleet of two Lockheed Constellations, which were used to serve domestic routes.
In the early years of its operations, Air India focused on serving the domestic market and expanded its fleet with the acquisition of Douglas DC-3 aircraft. In 1954, the airline introduced its first international service with a flight from Mumbai to London via Cairo and Geneva.
Over the years, Air India continued to expand its route network and fleet. In 1960, it became the first Asian airline to introduce a jet aircraft, the Boeing 707. In 1971, it became the first airline in the world to operate a round-the-world flight, which flew from Mumbai to New York via London and Tokyo.
In the 1990s, Air India faced financial difficulties, and in 2007, it merged with Indian Airlines, a domestic airline, to create a single national carrier. The merger was intended to improve the financial performance of the airline, but it also resulted in operational and management challenges.
Air India in recent news
Privatisation process: In 2018, the Indian government announced its plans to sell its stake in Air India and complete the privatisation of the airline. The privatisation process has faced several delays due to various reasons, including the COVID-19 pandemic. However, it is still ongoing, and several potential bidders have shown interest in acquiring the airline.
COVID-19 impact: Like other airlines around the world, Air India has been impacted by the COVID-19 pandemic. The airline had to suspend its international operations for a few months in 2020 due to travel restrictions, and it has also faced financial losses. The Indian government provided financial support to the airline to help it navigate through the pandemic.
Air India Express crash: In August 2020, an Air India Express flight from Dubai to Kozhikode overshot the runway during landing and crashed, resulting in the death of 21 people. An investigation into the accident is ongoing.
Proposed Tata acquisition: As I mentioned earlier, the Tata Group, which founded Air India, is reportedly considering acquiring the airline again. However, there has been no official confirmation from either Tata Group or the Indian government regarding this.
edited and proofread by nikita sharma