'Why are we celebrating?': Manish Tewari says Air India's deal with Airbus, Boeing will create ZERO jobs in India

Tata-owned Air India's order for record 470 jets will create no manufacturing jobs in India as most of the planes are for replacements, Congress MP and former minister Manish Tewari said on Thursday, just two days after the airline announced its historic deal with Airbus and Boeing. 

Air India has struck two separate deals to buy 250 jets from Airbus and 220 from Boeing, becoming the first single airline to place the biggest order in the world.  

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Air India's deal with France-based Airbus was announced virtually by Tata Sons chairman N Chandrasekaran on February 14 in presence of Prime Minister Narendra Modi, French President Emmanuel Macron, former Tata Sons chairman Ratan Tata, and Airbus CEO Guillaume Faury. Later in the day, Air India also announced its deal with Boeing.

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The deal caught eyeballs due to its size as many said they had not expected Air India to place this big order considering its financial health just a year ago. It was also said that the induction of nearly 500 new planes would create new jobs for pilots and other professionals in India.

However, Tewari asked: "Those exulting about Tata's Air India buying 470 aircraft should answer one simple question - how many manufacturing or other jobs will the aircraft order create in India?" "Answer is Zero, then why are we celebrating?" he asked.

The former minister further said that most of these aircraft's buys are replacements for old jets, not for fleet argumentation. "Moreover @TataCompanies owned @airindiain is downsizing personnel- Employees to aircraft ratio. Workforce will come down," he said.

Though there are numbers floating around how many jobs these two deals may create, there has been no official word either from Air India or the government on employment generation. Only US President Joe Biden has said that Air India's deal with Boeing will "support over one million American jobs across 44 states".    

Air India and Airbus have signed a contract for the supply of 250 aircraft, 210 single-aisle A320neos, and 40 widebody A350s. Speaking at the event, PM Modi talked about the rapid expansion and growth of the civil aviation market in India, which he said will give impetus to greater connectivity and will in turn encourage tourism and business in India.

He also complimented the strong presence of French companies in India and recalled the recent decision by French aerospace engine manufacturer SAFRAN to set up its largest MRO facility in the country to service aircraft engines for both Indian and international carriers.

Air India's order comprises 40 Airbus A350s, 20 Boeing 787s, and 10 Boeing 777-9s widebody aircraft, as well as 210 Airbus A320/321 Neos and 190 Boeing 737 MAX single-aisle aircraft. The A350 aircraft will be powered by Rolls-Royce engines, and the B777/787s by engines from GE Aerospace, the airline said.

The first of the new aircraft will enter service in late-2023, with the bulk to arrive from mid-2025 onwards.