Air India is set to buy 250 Airbus planes in a deal aimed at transforming the former national carrier. PM Modi says the deal reflects deepening ties between India and France.

Congratulating the Tata Group and Airbus on the successful agreement, PM Modi said that the deal reflects deepening ties between India and France, as well as the successes and aspirations of India’s civil aviation sector.

“Our civil aviation sector is an integral part of India’s development. Strengthening the civil aviation sector is an important aspect of our national infrastructure policy,” the PM added.

French President Emmanuel Macron said the deal highlighted the bond between Paris and New Delhi.

Air India chairman N Chandrasekaran’s announcement

Announcing the deal with French President Emmanuel Macron in virtual attendance, Air India chairman N Chandrasekaran said, “We are going through a massive transformation”. “One of the most important things is a modern fleet that can perform for all routes” he added.

Air India was founded by Tata Group in 1932 and the Indian government bought a majority stake after independence.

The airline’s first new aircraft purchase since 2006 is part of an ambitious plan to return to profitability in the world’s third-biggest air transport market.

According to Airbus forecasts, India’s air traffic is expected to grow 6.6 percent a year over the next two decades, almost twice the global average.

“Today is a historic moment for India, for Air India, and for Airbus,” said Airbus chief executive Guillaume Faury, saying the size of the order “demonstrates the appetite for growth in the Indian aviation industry”.

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