particular for this whole area, that's what's good for us in india, that's 6 degrees above noble by day, most likely, barn arts as well. nothing in the weather. patterns like to change that property sees slowly rising sandwiches is no wind, no plan to stop it. ah . in a notorious waterside community, what kings and thugs will one theatre directive inches to stage a play their comics is added to empower the women? that old man sitting right i and redefine their status in society. missy, that nigeria is women, walk on water, witness on al jazeera, flying high indian national airline seals. the biggest deal in aviation history or

india is buying 470 jets from air bus. i'm boeing. will it be a game changer for its travel industry? i'm can the airline break the dominance of major gulf carriers? this is inside story. ah. hello and welcome to the program. i'm getting abigail. it's the biggest deal in the history of civil aviation. india's largest international carrier air india is seeking to reinvent itself by expanding its operations and modernizing its fleets. it's reached a multi $1000000000.00 landmark deal to buy $470.00 new aircraft from air bus. i'm boeing a record for the industry, the french president to my new one microphone called it a new success and an opportunity to develop new areas of cooperation with india.

the u. s. president joe biden echoed the sentiments saying the boeing order would support more than a 1000000 american jobs. poverty metal has more from new delhi. this is one of the was this ethel's hundreds of name static houses in and out of new jenny every day. yet he's one of the was largest asian markets and also one of the fastest growing. now it's all just a line. he thinks timing it's lead and india has please order $100.00 the names of 2 of the woods top aircraft manufacturers that each american boy and european joined above the deal is worth billions of dollars and is the largest india even does logic international ally and 2nd, largest domestic area and the order as part of ongoing effort to turn the airline around. it was run by the government for decades and was good and with head losses and did last year, one of induct order numbers. the total we took it over,

the company says it can expect the 1st batch of names to allied by the end of the poverty with those going type stories. so the deal struck by air india are part of an ambitious overhaul by the tato group. the country's largest conglomerate has ordered 250 planes from airbus and another 220 jets from boeing. and it's expecting demand to continue to rise. the new plains will be used to expand air india's footprint and add more long distance routes. boeing projects, passenger traffic, and india will increase 7 percent annually in the next 2 decades. all those comes as the nation's airline business is booming with the government planning to build 80 new airports in the next 5 years. ah, let's not bring in our gas. joining us from london is andrew charlton who's the managing director of aviation advocacy in new delhi. i. j. o. tony found are an

editor of live from a lounge. that's a news website on aviation and travel trends. and also in london as aviation and communications consultant dash cup were welcome to you all. thanks so much for your time with us on the inside story. ha. how significant is this deal for india? well, this is a massive deal by all shapes and sizes. it's the biggest commercial aviation in the history of ation. so yeah, it's not just significant for india, it's significant globally. and with respect to air india, the steel provides them with the equipment that they need for the group plans over the next 10 years or so. so this will help them repair, you know, replace the older craft that they've been operating, bring in a more modern and a more sustainable fleet as well as, you know, start more international flights to the us and europe and other parts of the world

. and so yeah, this is going to be significant for them. andrew charlton. do you agree this order is a step in the right direction? oh, i think there's a few things to say 1st of all, absolutely largest order in the history of the world. secondly, it's the 1st order for air india since 2005. so it's a huge replacement and refreshment of the fleet, which is absolutely necessary. and also, as i said, some of it is 4 short whole flying which both domestically within india, but also to the, to the near countries around india. but also a significant number of a craft can fly long haul to the united states to, to the u. k. to australia, places like that, where they can get to the quite large indian diaspora and which i think not only is significant for air in the or it also changes the balance for competition in the region as well. yeah. ok. all important points that we're going to get into shortly,

but let me just bring in the desk up poor. what do you think? i mean, ordering aircraft, i suppose is the easy part, but now comes the harder parts and the success is not really a done deal yet. so how big a battle is going to be for air india to turn things around? i think so, i'd like to say this is a big state, the intent by india and the indian government to actually support the growth of this airline, which has been stagnant for quite some time. what's really going to happen is, i mean, you've seen over the years how the gulf carriers catera ways that really shows this strength and then might and all 3 carriers in the middle east and be known to be carrying a lot of traffic from india. probably over 60 percent of the traffic that goes to europe and to the u. s. comes out of the gulf. so there's a big market. the area ticket has been missing out on most like mostly because it

doesn't have the, the way it's managed in previous years. but this is a big statement of intent to really take on the big boys in the go, but it's not going to be instant. this will take some time. i think one of the biggest things is this deal has actually injected the level of pride in indians in travelers to bring them back on board to fly air india. but it's a, it's going to take quite some time to actually overcome that sort of traffic flow via the gulf and go direct to other markets. ok, let's bring and andrew, how challenging do you think it's going to be for the area to compete against those gulf carrier is given their, their loyal base. it will be challenging this. not disputing it because yours you will fighting against 3 really high class airlines and really high quality airlines with a very established customer base on the upside down just to pick up on the last point . 60 percent of the traffic out of india too many long whole places goes with one stop over somewhere in the middle east doe to buy whatever. if you can start to off

the non stop services, then that's obviously better and that that's a direct improvement. and it will also, i think, stimuli competition and further growth for on the indian carries as will. we've seen already. indigo has announced a new deal with turkish airlines to try to expand its long hold international network to try to get into that huge indian diaspora and to try to build market share from there. so i think it's, i completely agree that it's a statement of attain intent and things will take time. but it's a really interesting time, ha, there was a report by aviation consultancy center for asian pacific aviation, which is estimating this, that indian carriers are expected to place orders for a 1502700 aircraft over the next 24 months. so clearly there is, there is more to come, how does all of this change the indian aviation landscape?

so, you know, a lot of the aircraft that we're talking about are going to be used for domestic and regional ation. you know, so like andrew mentioned, a lot of these aircraft would be perhaps used to fly between them by delhi. and the 100 efforts that we have in india at this point of time live. but then the same aircraft during the night or other parts of the day are also used to fly, let's say, to the middle east, into the pride, go on one side and singapore. on the other side, let's say. so all these aircraft that are coming in, i know, and in the us, canada indigo already has $500.00 aircraft due to the data to them, including some long range excellent aircraft acosta. which was a new airline which only started operations in august of last year. as already talking about the 2nd order, the place to 72 aircraft order with boeing already,

which fits them up for the next 4 or 5 years. but they're already talking about the 2nd order to be placed. so yeah, a lot of these, a crock will compensate, will be needed to fly to a lot more new greenfield and brownfield approach that are being constructed in india right now. and hopefully some of these will also be used to kind of, you know, bridge the traffic light to, to have people fly one hop, why india into the middle east or farther down into europe as well. but ha, the airline will also have a bit of a challenge in terms of when it comes to modernizing its operations, right? including software maintenance as well, assistance for the new aircraft, correct? how big a challenge is not going to be? so you know, a lot of work has been going on in the background. it has been a new one since india was acquired by the talk group which and so it does not

privatize area. and what i know is that all sorts of systems and processes that are being changed in there right now. so obviously, right from the software. migrations to new software, new s o p s, talked about establishing an aviation academy for instance, to be able to bring in more pilots to read through will captain and steer these aircraft. so it's a massive effort. and i think everybody who was anybody selling aircraft and software services in the ation business has made a trip to india the past one year trying to convince erin there to sign up with them. and i guess south that effort is already showing, but obviously it's a 5 turnaround plan. so we will see a lot more things change as time passes by and as those efforts start to kind of,

you know, show up for instance and, and there's already spending $400000000.00. they've committed to spending $400000000.00 to kind of, you know, modernize the other aircraft that they already have in the 77th, the triple 7 and so on. right. ok, are you optimistic that the india can improve it service because some reaction that i've seen at least is that critics say the product remains below sort of industry standards and expectations. at the end of the day, you're making a huge investment to new aircraft and, and refurbish your interior of existing aircraft. and there's a 5 year plan. as i just mentioned, there is a i or india, which is a 5 get transformation by nothing can be done overnight. so give them some time states, you know, at the end of the day, we don't want, we have an airline here, but had a long history of substantial service mismanagement for decades. tacos coming

a year ago, told months ago to really put things back on track. and then as i mentioned earlier, there is a statement of intent. they are going to make a ways so to give them a ways and they want to become a global career choice. that's the ultimate objective that will take time. it's not overnight, as i mentioned. so i think there are little skeptics in a lot of cynicism, but i'm very optimistic. i think this, this transformation program is the right step for the purchase 12 months ago. got a new seo you mention it to come to wilson is coming from southeast asia, a long history of running airlines, low cost and full service, so that she brought in talent to, to, to reinvent. i think, you know, let's give them a chance. let's, let's let everyone get behind that particular the indian to ask for one of the thing i have to say is in today's world where you're looking for connectivity, great connectivity,

all flights between different destinations. this is what everybody wants to do, be focus domestic operations. so they can then feed is international services like that, they are still really, really lagging behind to dash at this point. and, and also, and, you know, i'm glad you bring up the transformation plan because of the transfer mission plan is being kept somewhat close to close to their chest. what details do we actually know about that transformation plan? well, the transformation plan is that changing the processes internally within the airline, a lot of process, the need changing. they're looking at new service standards, whether it's catering, whether it's how the engineering works or carried out on the aircraft. the technical side, which i just talked about, the i t infrastructure, communications, marketing, sales network optimization. right now that network is optimize. i just give you an example in terms of what their operation is like. for example, in the us, they have 47 flights a week into the united states,

from delhi mom by and bangle of angular to 5 gateways in the u. s. now they really need to be felt that, that, that network to cover other places like co cutter and tonight into the u. s. and also europe as well, 47 flights to week, as opposed to en route, for example, which has over 100 flights a week from to buy it to the u. s. it to 11 gateways more than 11 gateways. that's the big difference. devise a small market so that taking that chunk of traffic away from india. so in this area is trying to do, it needs to build up that level of confidence with the order the new aircraft can open up numerous bilateral committee and really make, make a go for it. so it's sort of, it's will have to improve at the end of the day as well. ready and that there's a big task force internally within a range of looking at service. look, you have a market that their operations look at how they sell their operations. look at the distribution and distribution assets they have in terms of who they sell for

travel agents online direct the website. the website still has a long way to go to improve that level of service. but the task force, there's a number of task forces within that transformation program, looking at different areas of the business. ok, let me bring in andrew andrew. what about the actual infrastructure? it is and you have the adequate infrastructure and capacity to handle a large surge in passenger traffic. that's a fantastic question of really complicated quiz, not just pick up on the last points either a little bit. i think we've got to take some comfort from the fact that the transformation started a year ago, and it's only now that the aircraft order has been placed. it indicates that perhaps they putting the host before the cart because it's important that you get all the internal things right. and you certainly get them planned and mapped out before you throw a huge number of new a craft at the market. and yes, you're absolutely right. the infrastructure question is, is

a really vital one. but what's really interesting in that, i think is that india has, has not pulled it's white as an aviation mock. it has not pulled it's white in the way that really it or to, and really we can expect it to geographically. it's in a fantastic location. in terms of linking aist with west, it's got a huge domestic market. obviously it's got a huge d. s for a market as well as a huge tourism market. india should be and the and the market is growing. it's young. india should be a really strong ivy. i should playa and it can't be a strong ivy. i should playa, when 60 percent of its traffic has been carried by by carries outside of india. so yes, this is a statement of intent. yes it, it clearly wouldn't have happened without these full support of the government. and you're absolutely right. infrastructure is going to have to continue to grow and to continue to develop side the side that the entire system can work across. but it's

sort of a chicken and egg thing unless you've got the infrastructure, you can't have the aircraft. if you don't have the craft, you don't need the infrastructure. so this will really put the asset on everybody. but i actually think it's it, if it comes off, it'll be absolutely fantastic for india. ok, let's bring an edge from the deli and talk to us about the infrastructure and india's need to improve the infrastructure. so you know, guys as we speak, there are already in the past 2 months, we had a new airport come up, which is in the state of go up, which is already starting to handle a lot of domestic flights and is slated to start open for international play soon with them. there is a new terminal that launched in the metro balise of being a lulu and the 2 biggest gateways in india, which is deli and mom by they're getting 2nd airports. the construction is on 25 to 30 percent of the work is done, and i think the next one was happy as we see,

start seeing them going live as well. so as the their craft come in, we are actually working on the airport infrastructure as well. and these are the new modern airports with minimum connecting times being reduced and optimized for international traffic flow. the debbie airport, which is already existent, is also looking at a fort runway right now, which is due to go live anytime in the next 60 days, i believe. so yeah, the infrastructure is also being the effort infrastructure has been badly worked upon and right metro police enforced well. we will actually see the white bodies fly out of, you know, let's say to jeff gay, or to san francisco or other parts of europe. we'll all be able to cater to these requirements very, very soon. i mean to bring an answer for a 2nd because i see that you just wanted to respond not to respond, but to infect supplement. the other part of the infrastructure that people tend to

ignore is the traffic control. and i are the puts authority of india, which is responsible for indian a traffic control has also put in a remarkable upgrade recently and is rapidly developing so that it can handle the traffic because it's one thing to have the airplanes. it's another thing to have the courts, but you've also got to have the traffic control keeping pace with that. and we're seeing that happening in india at the moment. okay. how important is this for boeing, an air bus, obviously, but also for the suppliers, for example, like g e who is making the engines? absolutely. i as a huge deal, as i mentioned earlier on a lot of the supplies i've actually been flying into in the last few months just to try and think that deal. what's gonna happen now is because it's such a huge market, just like china, you're going to have the suppliers looking at setting up operations in india. some of them already have operations that they're gonna widen there. and obviously the supply chain as well. whether some nuts and bolts on the windows or,

or to tie the wheels and whatever. i mean, there are so many options, so many, so many options available. and i think that's what's gonna happen more and more of the next are effectively supplies already looking at india as, as a destination, as a place to actually set up manufacturing plants to improve that supply chain. so boeing an air bus, this is a massive daylight for the suppliers, also m a j for the, for movie himself. how is this a, a seen as a political when the fact that, as i looked at was, it was just saying countries will be looking towards india more than china is china's relations with the west are somewhat fraud. so you say it was a deal that had the president out front and the president of the united states, you know, and it's, it's, obviously the scale is massive of the steel. what is going to be the focus for the

indian bureaucracy and the administration is going to be to try and get much as much benefit out of this in domestic manufacturing as well. now one of the things that is usually noticed air bus manufacturer spots of the aircraft and india, which are fitted up on every $8020.00 or $21.00 that flies around the globe right now. we don't talk about it too much, but yeah, it's manufactured in india, the doors of the craft, i believe, to stock that roof, but you will have to remove himself. and as he succeeding here in leveraging india is sort of geopolitical position and economic promise to, to maintain good relations with the us and its allies. what's the political message that he's sending out? so at the point of time, there's no political message that has been sent out about from the fact that, you know, india as an economy superpower in the making. and obviously it has everyone to be

on the right side of india and deal with india in an appropriate fashion rather than as pushover. andrew, do you agree with that? rody is accused by some of cracking down on descent more recently. is this a way to sort of distract from these accusations? that's, that's a little bit of a long bow. i do think it's, it's interesting, it's interesting both are political level and at navy ation only level that the deal and almost every other law j craft or the you can think of splits quite equally between a bus and boeing from mighty perspective to be able to keep america on side to make an announcement with president biden. and then to make an announcement with president macro as will, will not do him any harm. and will not hom, india's i india in the eyes of, of europe and in the eyes of america. so from that perspective, it's always good,

but an aircraft older the size has very frequently, so the president get, tom wheeled out and to smell for the cameras. so at a politically, it certainly does him no harm at all. but interestingly, i think really fascinatingly and all this is that a boss and boeing the airlines clearly want competition between the mind fry manufacturers, both companies, mike excellent aeroplanes that are almost. and i realized there are some very fun nuances here. but, but, you know, are almost interchangeable, but yet a lines time after time split their orders even though that is less efficient because you need to have 2 sets of spanish in a tech, 2 sets of pilots and had to have 2 sets of engineers. and so on they, they split their orders $5050.00 because they really acknowledged that having fees, competition between a boss and on the $1.00 hand. and boeing on the other hand is good for them into the long term. there's never been a discussion about it on not for 2nd accusing. the aliens the growing this in some

way. but it's, it's very much the way in which it's done. and i find that completely fascinating about us. would you like to weigh in on what we just heard from andrew, and also comment on the political aspects of all of this for moody? i think he's supposed to be happy when they said both, boy, whether it's france, whether it's the u. s. or it is politically motivated as well, but at the end of the day, there are only 2 companies that can actually manufacture echo of the scale and boeing an air bus in france and in the u. s. so which way you go, could you support, who do you suppose? i think it's more of keeping both manufactures hand in hand rather than anything else and politically, well, yes, you could argue that it's politically motivated by so i still think that they have to make the order. they had to place the order who they place it with, which one? a j o u. s. how much does the air transport sector actually contribute to india

economy? well, i think ad transport sector is no more than 4 percent at this point of time of india is economy, but that's not absolutely just the only way of looking at it. you know, what we've seen over the past 1520 years as a traveler has kind of become mainstream compared to just being a luxury has been the fact that air travel really kind of there is a talk that i believe in time is money and basically air travel is cutting down those long journeys on the roads, which will take 16 hours into to flight now. so basically people are able to work more and more, you know, so that's ways, it's indirectly helping the economy by helping people to be in different places at the same time and close tourism. it's 10 percent of india is economy. so as air travel draws tourism grows as well from 10 percent to maybe 1415 percent up the fi

over time because as more people fly across the country and as more international to come into india, you know, we would be able to increase the share of gdp tourism as well, so it is indeed a big part of our india gdp contribution changes over the coming decades is already changing at this point of time as well. ok, andrew final where to go ahead. oh, i think you should. i think there's 2 more aspects to what i just said. the 1st one is, of course, when you take people off the roads and put them into the you've increase safety, you've improved people safety and that's good for the economy around. and then the other point that we haven't talked about yet, but we should, is that these new a craft are much more efficient and much late. they burn less fuel, they will have fewer emissions. so it's a good contribution towards buy sivilton easily growing the economy. but doing

something away, which is environmentally more conscious and more conscious and with lower with lower cost on his ability. yeah. important points, but i'm afraid we run out of time. we'll have to leave it there. thank you so much a to all my guess, andrew children, a. j. o tony, and jessica poor, thanks for joining us. thanks for watching. you can see the program again any time by visiting our website al jazeera dot com for further discussion. you can go to our facebook page, that's facebook dot com, forward slash ha, inside story, join the conversation on twitter as well or handle is adrian's. i story myself and the whole team here. and so how things are watching for bye, for now. ah ah

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