Airbus and Rolls-Royce benefit as Air India makes record order for new planes

Airbus and Rolls-Royce have secured contracts to support a record order for new planes by Air India.

The order, for 220 Boeing and 250 Airbus aircraft over several years, will benefit both Airbus and engine supplier Rolls-Royce in the UK, the government said.

The Department for Business and Trade (DBT) said the wings, designed by Airbus at Filton near Bristol, will be assembled at the company's Broughton site in North Wales.

Rolls-Royce will provide engines for at least 40 of the aircraft.

They are assembled and tested in Derby.

Air India confirmed the order for 470 planes - the largest on record - beating the 460 aircraft ordered by American Airlines just over a decade ago.

The national flag carrier, owned by the Tata Group for just over a year, said the new planes - comprising various models - would replace its aging fleet and enable new routes to be established.

The UK government had said that the deal would result in 450 new jobs being created by Airbus in the UK but the company indicated that the work would support 450 new roles it announced last year.

In a statement, Prime Minister Rishi Sunak said: "This landmark deal between Air India, Airbus and Rolls-Royce demonstrates 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."

Business and Trade Secretary Kemi Badenoch said the agreement was "another big step" as the UK seeks to negotiate a free trade deal with India.

"This is a significant win for the UK's world-leading aerospace sector and one which will help to secure thousands of highly skilled jobs across the country and drive economic growth," she said.

"It's a shot in the arm for UK exports as we aim to sell £1trn of goods and services a year to the world by the end of the decade."