Air India-Airbus landmark deal to create jobs, boost UK exports: Rishi Sunak

A British high commission statement said the Air India-Airbus deal is worth billions of pounds to the UK as a “significant portion of the manufacturing process for the new aircraft is expected to take place in the UK”.

Published on: Feb 14, 2023, 20:31:46 IST

By Rezaul H Laskar

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NEW DELHI: The Air India-Airbus deal for 250 aircraft was welcomed on Tuesday by UK Prime Minister Rishi Sunak, who said the contract will create new highly skilled jobs in Britain and help boost exports.

Prime Minister Rishi Sunak said the “landmark deal” will create “better-paid jobs and new opportunities in manufacturing hubs from Derby to Wales. (via REUTERS)

Under the deal, Air India is set to procure 40 A350 wide-body aircraft and 210 A320 narrow-body aircraft. Wings and engines for the aircraft are set to be assembled or manufactured in the UK, which is expected to create hundreds of jobs and lead to significant investments.

A statement from the British high commission said the deal is worth billions of pounds to the UK as a “significant portion of the manufacturing process for the new aircraft is expected to take place in the UK”.

The wings will be designed in Filton and assembled in Broughton, and this is expected to bring 450 manufacturing jobs and more than £100 million in investments to Wales, the statement said.

The A350 aircraft are powered by Rolls-Royce XWB engines, which are assembled and tested in Derby.

Sunak said the “landmark deal” will create “better-paid jobs and new opportunities in manufacturing hubs from Derby to Wales” so that the UK “can grow the economy and support our agenda to level up”.

He 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.”

UK trade secretary Kemi Badenoch also welcomed the deal and said: “We’re currently negotiating a trade deal with India which could boost trade by up to £28 billion a year by 2035. Export wins like this are another big step to our nations forming a closer trading relationship.”

This deal will help secure thousands of highly skilled jobs and is a shot in the arm for UK exports, Badenoch said.

The statement described India as a major economic power that is projected to be the world’s third largest economy with a quarter of a billion middle class consumers by 2050. During 2021, the UK’s aerospace sector added £10.6bn to the British economy and directly employed 111,000 high-skilled people.

ABOUT THE AUTHOR
Rezaul H Laskar
Rezaul Hasan Laskar is Foreign Editor with the Hindustan Times, which he joined in 2015. He began as a journalist in his hometown of Shillong in northeast India and has worked in newspapers and wire services over the years. He moved to New Delhi in 1997 and initially focused on defence, national security, Jammu and Kashmir and the northeast, while also working of foreign policy and international relations. He has been part of the media delegation accompanying PMs on foreign visits and has reported from destinations ranging from Tibet to Ukraine. Between 2007 and 2013, he was the Press Trust of India correspondent in Pakistan, one of only two Indian journalists allowed to report from the country. He extensively covered Pakistan’s domestic politics and the life of the common people, as well as the fallout of the 2008 Mumbai attacks on India-Pakistan relations and the subsequent trial in Pakistan of the suspects involved in the attack. As part of his reportage in Pakistan, he travelled the breadth of the country, from the Swat Valley to Balochistan. Reza’s first gig in journalism was writing a weekly music column, and music – especially classic rock – remains a keen interest. He is also a movie buff and a keen photographer.Read More