Boeing to buy back goods and services worth US$ 1.7 billion from India

Seattle: Boeing, which has bagged orders for 68 aircraft from Air India worth over US$ 11 billion at list prices, will now invest US$1.7 billion to buy goods and services from Indian companies, according to Boeing's senior vice president (sales), Dinesh Keskar.

Boeing has already agreed to create a Maintenance, Repair and Overhaul (MRO) facility in Nagpur, located in the central part of India, as part of its country commitments following the Air India order, besides set up a pilot training programme by funding some existing flying schools.

"The biggest piece is our commitment to India of US$ 1.7 billion as part of this deal where we will buy goods and services from companies in India," Dinesh Keskar told reporters.

"It is going to create a lot of potential jobs in India and at the same time transfer technology. We are working with quality companies in India like Infosys, Wipro, Satyam, HCL and we are also continuing to work with Hindustan Aeronautics Limited," he said.

Meanwhile, speaking on the occasion of the roll out of the US company's first new model in 13 years, the B-787 'Dreamliner', Air India chairman and managing director, V Thulsidas, said that the national flag carrier had chosen the aircraft as its work-horse keeping in mind concerns of economics and environment.

"We didn't actually chose Boeing as such. We chose the aircraft," Thulasidas said.

The B-787 made "better business sense" and the choice of engines was "actually a major step" in increasing fuel efficiency and savings, besides making flying eco-friendly.

Air India's order consists of 23 777s, including eight 777-200LR (Longer Range) Worldliners and 15 777-300Ers (Extended Range), and 27 787-8 Dreamliners.

Air India Express, its low fare operation, will receive 18 next generation 737-800s.