is dying down a bit still full of dust and sand. take the for sale even further into nigeria. but generally speaking, a dry and less windy picture in southern africa that has been very wet in south africa, less so now. but freddy psycho is about to hit madagascar. ah ah, a story of love, patience, and pay i know what forces me to live in that camp is my love for him. i'll just eat a world follows this trouble only a couple. trying to get buried and said how pill peanut palestinian refugee camp in booth for the next 2 months should meet and drink and go out or do anything just say chatty, let come. the price of love. oh no, just iraq. 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 and come the airline break the dominance of major gulf carriers? this is inside story. ah hello and welcome to the program. i'm debbie and 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 manual micro called it a new success and an opportunity to develop new areas of cooperation with india.

the u. s. president jo bite and echo 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 busiest efforts. hundreds of name, static houses, a passenger in and out of new day every day. it is one of the was not asian markets and also one of the fastest growing. now it's all just a line is expanding its lead, and india has ordered $100.00. this means we 2 of the was top aircraft manufacturers that each american boy and european join us. the dean is what billions of dollars and is the largest. and india even does logic international ally and 2nd largest domestic area. and this order is part of ongoing effort to turn the airline around. it was run by the government for decades and was burdened with heads losses and the last one in order to merge the part of

the company says it can expect the 1st batch of names to arrive by the end of the story. so the deal struck by air india are part of an ambitious overhaul by the tato group. the country's largest conglomerate has order 250 planes from air bus and another 220 jet 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 this comes as the nation's airline business is booming, with the government planning to build 80 new airports in the next 5 years. ah, that's not bringing our gas. joining us from london is andrew charlton who's the managing director of ation advocacy in new delhi. i. j. o, tawny founder,

an editor of lie from a lounge, that's a news website on a vacation and travel trends. and also in london as a nation and communications consultant desk up for a warm welcome to you. all. thanks so much for your time with us on inside story a j. how significant is this deal for air india? but this is a massive do you buy all shapes and sizes? it's the biggest commercial aviation deal in the history of innovation. so yeah, it's not just significant for india, it's significant globally and with respect to air and yeah, the steel provides them with the equipment that they need for the group plans in the next 10 years or so. so this will have them repairs, 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. andra. charlton, do you agree this order as stuff in the right direction? oh, i think there's a few things to say 1st of all. absolutely. it's the 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 flight which both domestically within india, but also to the, to the near countries around in the but also a significant number of a craft. the can fly long hold to the united states to, to the u. k. to australia, places like that, where i 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 1st of all, i'd like to say this is a big status. do intend to buy india and the indian government to actually support the growth of this airline, which has been started stagnant for quite some time. what's really going to happen is, i mean, you've seen over the years how the gulf carrier is katara ways that he had. and i'm really, really shown this strength and that might, and all 3 carriers in the middle east and be known to be carrying a lot of traffic from india, probably a to 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 actor didn'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 gulf, but it's not going to be instant. this will take some time. and i think one of the biggest things is this deal has actually injected the level of pride in indians indian travelers to bring them back on board to fly air india. but i say 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. there's no disputing it because your, your fighting against 3 really high class airlines and really high quality airlines with a very established customer base on the upside though, 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,

i'm done 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 carriers as well. we've seen already, indigo, has announced a new deal. we took a shale on auto expanded slung, wholly international network to try to get into that huge indian diaspora. and to try to build market share from this. so i think it's i completely agree that it's a statement of attent intent and things will take time. but it's a really interesting time, ha, there was a report by a vacation consultancy center for asian pacific a vacation, which is estimating this that indian carriers are expected to place orders for a 1502000 $700.00 aircrafts over the next 24 months so clearly there is, there's more to come, how does all of this change the indian aviation landscape?

so, you know, a lot of the aircraft that we are talking about are going to be used for domestic and regional mediation. you know, so like, and you mentioned a lot of these aircraft to be perhaps used to fly between them by delhi and the other 100 airports that we have in india at this point of time live. but then the same as crap during the night or other parts of the day. i also use reply, let's say to the middle east, into the by on one side and singapore. on the other side, let's say. so all these aircraft that are coming in, i know escalation on indigo already has $500.00 aircraft due to the data to them, including some long range exelon aircraft. acosta, which was a new airline which only started operations in august of last year, is already talking about the 2nd order, the place to 7, to do a craft order with boeing already,

which fills 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 products will compensate will be needed to fly to a lot, manu 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, let's say, 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 or 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 is not privatized area. and what i know is that all sorts of systems and processes that are being changed at area right now. so obviously, right from the software. migrations to new software, new s o p s. talk about establishing an aviation academy, for instance, to be able to bring in more pilots through will captain and steer these aircraft. so it's a massive effort. and i think everybody who is anybody selling aircraft and software services in the ation business has made a trip to india with 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 there's already spending $400000000.00. they've committed to spending $400000000.00 to kind of, you know, modernize the other aircraft that they're already having to feed the $77.00, the triple 7 and so on. right up there. are you optimistic that the india can improve the 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 phase. you know, at the end of the day, we don't want, we haven't a line here, but had a long history of substantial service mismanagement for decades. tacos coming

a year ago, 12 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 a lot of cynicism, i'm very optimistic, i think this transformation program is the right step for the purchase. 12 months ago. they've got a new c o, a right 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. and i think, you know, let's give them a chance and let's, let's let everyone get behind that particular the indian to ask for one of the thing i have to say is the, 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 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 are carried out on the aircraft in the technical side, which i just talked about, the i t infrastructure, communications marketing, sales network optimization. right now that network is optimized. 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 buy and, 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 tonight into the u. s. and also europe as well, 47 flights a week, as opposed to en route, for example, which has over 100 flights a week from dubai, into the u. s. it to 11 gateways more than 11 gateways. that's the big difference devise a small market. so the 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, committing 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, and that there's a big task force internally within a range. you're looking at service, look, you have a market that their operations look at how they sell their operations. look at the distribution or 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. can i 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 aircraft 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 ac 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 aviation playa and it can't be a strong ivy ashen player. 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 have the aircraft. if you don't have the craft, you don't need the infrastructure. so this will really put the acid 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 agent from natalie 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 plated to start opening for international play soon with them. there is a new terminal that launched in the metro balise of being a lou 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, the hoppey as we see,

start seeing them going live as well. so as the there 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. of the debbie airport, which is already existent, is also looking at afford 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 is being patterly 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, let me just bring an android for a 2nd because i, i see that you just want to respond not to respond,

but to in tech supplement. the other part of the infrastructure that people tend to ignore is the traffic control. and i are the ports authority of india, which is responsible for india and 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 airports, 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. ok. 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. 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 going to 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, but they going to widen there and obviously the supply chain as well. whether or

not some bolts on the windows or, or to turn the wheels on whatever. i mean, there are so many options, so many, so many options available. and i think that's what's going to happen more and more of the next are. in fact, some of the supplies are already looking at india as, as a destination is a place to actually set up manufacturing plants to improve that supply chain. so boeing an ed bus, this is a massive dale and the suppliers also m a j for modi himself. how is the same as seen as a political when the fact that, as it 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 for indian domestic manufacturing as well. now, one of the things that is usually noticed air bus manufacture 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 aircraft, i believe, to start with the roof, but also with moody 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 apart from the fact that it has 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 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 hom 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 seen 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 in all this is that a boss and boeing the airlines clearly want competition between the mind from manufacturers, both companies, mike excellent aeroplanes that are almost. and i realize there are some very fond nuances here. but, but, you know, are almost interchangeable, but yet airlines time off to time split their orders even though that is less efficient because, you know, to have to say it's a spanish, in a tech to set a pilot. and they'd have 2 sets of engineers in sullen they, they split their road is 5050 because they really acknowledged that having fees, competition between a boss and on the one hand and bowing 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 for 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 both happy when they said both boy, whether it's france, whether it's the u. s. which is, it is politically motivated as well. but at the end of the day, there are only 2 companies, the caching, manufactured echo of the scale, and boeing at us in france and in the us. so which way do you go? who do you support? who do you suppose? i think it's more of, 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 h 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 2 flights now. so basically people are able to work more and deliver 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 i'm a close tourism is 10 percent of india is economy. so as air travel draws tourism

grows as well from 10 percent to maybe 1415 percent up to fi over time because as more people fly across the country and there's more internation to come into india to be able to increase the share of gdp of tourism as well, so it is indeed a big part of our india g d. b contribution changes over the coming decades are, is already changing at this point in time as well. ok, andrew a final where to go ahead. i think yes sir. 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 increase safety, you've improved people safety, that's good for the economy or rent. and then the other point that we haven't talked about yet, but we should, is that these new a craft a much more efficient and much late, they burn less fuel, they will have fewer emissions. so it's a good contribution towards buy singleton easily growing the economy. but doing

something away, which is environmentally more concrete and more conscious and with lower with lower cost on the stand ability, important points. but i'm afraid we've run out of time will have to leave it there . thank you so much to all my guess. and children a, j o, tony and jessica for thanks for joining us. thanks for watching. you can see the program again anytime by visiting our website al jazeera dot com for further discussion. you can go to our facebook page at facebook dot com, forward slash ha inside story, join the conversation on twitter as well, or handle is aging and i story for myself and the whole team here in del hi, thanks for watching. bye bye. for now. the me ah, along with

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