The UK government has welcomed what it hailed as a “momentous deal” in which Airbus and Rolls-Royce will provide new aircraft for Air India.
Air India agreed to buy 250 jets from Airbus and 220 planes from Boeing as part of its transformation plan under the Indian conglomerate Tata Group.
According to a press release, the deal will be worth billions of pounds to the UK and support the creation of jobs in Wales and the UK.
Wing assembly of the aircraft will be designed in Filton, near Bristol, and assembled in Broughton, North Wales, and is expected to generate an additional 450 manufacturing jobs and bring more than £100mln of investment to Wales.
The A350 Airbus aircraft’s engines are exclusively powered by Rolls-Royce XWB engines which are assembled and tested in Derby.
Prime Minister Rishi Sunak said the deal between the three parties highlights that the “sky’s the limit for the UK’s thriving aerospace sector.”
“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,” Sunak added.
In 2021, the UK aerospace sector added £10.6bn to the value of the UK economy, exporting roughly 70% of its output and employing 111,000 high-skilled people, largely outside of London and the southeast.
The UK government also said it is currently negotiating a free trade agreement with India, which it expects to be the third largest economy worldwide by 2050, that would boost its trading relationship by £29.6bn by 2035.
Business and trade secretary Kemi Badenoch said the deal is a “shot in the arm” for UK exports as the government aims to trade £1tln worth of goods and services internationally by 2030.