{"id":32811,"date":"2023-02-16T02:57:27","date_gmt":"2023-02-15T21:27:27","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=32811"},"modified":"2025-04-19T16:17:12","modified_gmt":"2025-04-19T10:47:12","slug":"air-indias-airbus-boeing-order-the-details-and-its-significance","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/air-indias-airbus-boeing-order-the-details-and-its-significance\/","title":{"rendered":"Air India\u2019s Airbus, Boeing Order \u2013 The Details and its Significance"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>Details of the Air India Order<\/strong><\/li>\n<li><strong>Global Significance of Air India Order<\/strong><\/li>\n<li><strong>About Indian Aviation Industry<\/strong><\/li>\n<li><strong>Government Initiatives for Aviation Sector<\/strong><\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><strong>Why in News?<\/strong><\/h2>\n<p>The Supreme Court issued notices to the Centre and five states \u2014 Rajasthan, Uttarakhand, Madhya Pradesh, Uttar Pradesh, and Jharkhand \u2014 over the failure to elect a Deputy Speaker.<\/p>\n<h2>\u00a0<\/h2>\n<h2><strong>Details of the Air India Order<\/strong><\/h2>\n<ul>\n<li>Air India\u2019s current fleet is estimated at <strong>140-aircrafts<\/strong>, with the majority being narrow-body planes.<\/li>\n<li>Currently, Air India largely depends on Airbus planes for domestic operations, while its wide-body fleet comprises Boeing aircraft.<\/li>\n<li>As part of the new deal, Air India will get <strong>250 Airbus planes<\/strong> &#8212; 210 single-aisle A320neos and 40 widebody A350s.<\/li>\n<li>Meanwhile, it will get <strong>220 Boeing aircraft<\/strong>, &#8212; 190 of its 737 MAX narrowbody jets, 20 787 wide-bodies and 10 777Xs.\n<ul>\n<li>The Boeing order includes an option for an addition 70-planes, taking the possible order size to <strong>540 aircrafts<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li>As per the timelines laid out by the company, the <i><strong>first new aircraft will enter service in late 2023, with the bulk expected to arrive from mid-2025 onwards<\/strong><\/i>.<\/li>\n<li>The order value is estimated <strong>between $70 billion and $80 billion<\/strong>.<\/li>\n<li>However, manufacturers usually offer heavy discounts on such large orders, so the actual deal size is likely to be considerably smaller.<\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>Global Significance of Air India Order<\/strong><\/h2>\n<ul>\n<li>The significance of the order goes far beyond Air India and India\u2019s aviation sector.<\/li>\n<li>This was underscored by the lead taken by global leaders Prime Minister <strong>Narendra Modi<\/strong>, French President <strong>Emmanuel Macron<\/strong>, and US President <strong>Joe Biden<\/strong> in making the announcement.<\/li>\n<li>The US President said that the deal will generate \u201cover one million jobs across 44 [US] states\u201d.\n<ul>\n<li>The Airbus (US) deal means big business for engine maker Rolls-Royce, and will create jobs in the UK where parts of the aircraft are expected to be manufactured.<\/li>\n<\/ul>\n<\/li>\n<li>Major Western economies are in the midst of an economic slowdown, and are looking to spur economic activity and support employment.<\/li>\n<li>The fact that the <i><strong>announcement has come in the year of India\u2019s G20 Presidency adds strategic value to the order<\/strong><\/i>.<\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>About Indian Aviation Industry<\/strong><\/h2>\n<ul>\n<li>India is currently the <i><strong>7<sup>th<\/sup> largest civil aviation market in the world<\/strong><\/i> and is expected to become the 3<sup>rd<\/sup> largest civil aviation market within the next 10 years.<\/li>\n<li>Further, the rising demand in the sector has pushed the number of airplanes operating in the sector. The <i><strong>number of airplanes is expected to reach 1,100 planes by 2027<\/strong><\/i>.<\/li>\n<li>India\u2019s passenger traffic stood at approximately <strong>15 crore<\/strong> in FY 2022-23 (April-September 2022).<\/li>\n<li><strong>Indigo Airlines<\/strong> is the largest airline company in India with the highest (55%) market share.<\/li>\n<li><strong>Key Investments \u2013<\/strong><\/li>\n<li>The government has allowed <strong>100% FDI under the automatic route<\/strong> in scheduled air transport service, regional air transport service and domestic scheduled passenger airline.<\/li>\n<li>FDI inflow in India\u2019s air transport sector (including air freight) reached <strong>USD 3.56 billion<\/strong> between April 2000-June 2022.<\/li>\n<li>India aims to have <i><strong>220 new airports by 2025<\/strong><\/i>.<\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>Government Initiatives for Aviation Sector<\/strong><\/h2>\n<ul>\n<li><strong>In the Union Budget 2022-23 \u2013<\/strong>\n<ul>\n<li>More than <strong>Rs. 10,000 crore<\/strong> has been allocated to the Ministry of Civil Aviation.<\/li>\n<li>The RCS (Regional Connectivity Scheme) <strong>UDAN Scheme<\/strong> which aims to stimulate regional air connectivity has been allocated approx. <strong>Rs 600 crore<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Krishi UDAN 2.0 Scheme \u2013<\/strong>\n<ul>\n<li>Ministry of Civil Aviation launched the Krishi UDAN 2.0 scheme in 2021.<\/li>\n<li>The scheme <i><strong>proposes assistance and incentive for movement of agri-produce by air transportation<\/strong><\/i>.<\/li>\n<\/ul>\n<\/li>\n<li>The Krishi UDAN 2.0 will be implemented at 53 airports across the country, largely focusing on Northeast and tribal regions, and is expected to benefit farmers, freight forwarders and airlines.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) Who controls all airports in India?<\/strong><\/h3>\n<p><strong>Airports Authority of India (AAI)<\/strong> was constituted by an Act of Parliament and came into being on 1st April 1995 by merging erstwhile National Airports Authority and International Airports Authority of India.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Q2)<\/strong> <strong>What is meant by UDAN scheme?<\/strong><\/h3>\n<p>UDAN is the abbreviation for &#8216;Ude Desh Ka Aam Naagrik&#8217;. Its goal is to make air travel affordable and improve economic development in India.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/air-indias-order-unpacked-biggest-order-for-passenger-aircraft-in-history-8447665\/#:~:text=Air%20India&#039;s%20mega%20order%20for,%2470%20billion%20and%20%2480%20billion.&amp;text=Tata%20Group%2Downed%20Air%20India,Co.%20of%20the%20United%20States\" target=\"_blank\" rel=\"nofollow noopener\"><u>Unpacking Air India\u2019s mega Airbus, Boeing order<\/u><\/a>\u00a0|\u00a0<a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/mega-maharaja-record-order-tatas-set-to-order-500-aircraft\/articleshow\/97807211.cms\" target=\"_blank\" rel=\"nofollow noopener\"><u>ToI<\/u><\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Air India placed an order of 250 planes with Airbus (Europe) and 220 planes with Boeing (US).<\/p>\n","protected":false},"author":5,"featured_media":32812,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-32811","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/32811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=32811"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/32811\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/32812"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=32811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=32811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=32811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}