Rishi Sunak hails ‘landmark’ Airbus deal to supply Air India

The Government has hailed a “landmark” deal by Airbus and Rolls-Royce to supply new aircraft to Air India in an agreement expected to create and support hundreds of jobs in the UK.

The airline has reportedly agreed to buy 250 planes from the European aviation giant, with a significant proportion of the manufacturing process expected to take place in the UK.

The Department for Business and Trade said the wings, designed in Filton near Bristol, will be assembled in Broughton in North Wales, bringing 450 new manufacturing jobs and £100 million in additional investment to the region.

This is a significant win for the UK's world-leading aerospace sector

The wide-bodied Airbus A350 aircraft, which reportedly account for 40 of the aircraft in the new order, are powered by Rolls-Royce XWB engines assembled and tested in Derby.

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 £1 trillion of goods and services a year to the world by the end of the decade.”