The multi-billion pound deal inked by Airbus and Rolls-Royce to supply aircraft to Tata group-controlled Air India is a "landmark" moment for the United Kingdom's aerospace sector, British Prime Minister Rishi Sunak said on February 14.
The agreement, which involves Air India purchasing 250 Airbus jets, was announced by the three companies at the ongoing Aero India 2023 in Bengaluru.
"This landmark deal between Air India, Airbus and Rolls-Royce demonstrates that sky is the limit for the UK's thriving aerospace sector," Sunak said.
Both, Airbus and Rolls-Royce are UK-based companies, headquartered in Bristol and Derby, respectively.
"It will create better-paying jobs and new opportunities in manufacturing hubs from Derby to Wales, so we can grow the economy and support our agenda to level up," Sunak 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," he further said.
As per the agreement, Air India will purchase 250 Airbus planes -- 210 single-aisle A320neos and 40 widebody A350s powered by Rolls-Royce engines. The aircraft are worth more than $50 billion at list prices.
According to Downing Street, a significant portion of the manufacturing process for the new aircraft is expected to take place in the UK.
The wings will be designed at Filton and assembled at Broughton, which is expected to bring an additional 450 manufacturing jobs and more than GBP 100 million of investment to Wales.
"It's a shot in the arm for UK exports as we aim to sell GBP 1 trillion of goods and services a year to the world by the end of the decade. We're currently negotiating a trade deal with India which could boost trade by up to GBP 28 billion a year by 2035. Export wins like this are another big step to our nations forming a closer trading relationship," UK Trade Secretary Kemi Badenoch said.
Official figures for 2021 show that the UK's aerospace sector is a leading contributor to the country's economy, adding GBP 10.6 billion in value to the UK economy, exporting 70 percent of its domestic output and directly employing 111,000 high-skilled people.
With PTI inputs.
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