Aviation As Diplomacy: The Role Of Air India In Strengthening Global Ties

Author: Rohaan Mukul, B.A. LL.B (Hons.) 2023-28, MNLU Nagpur.
Description: The following blog is part of the collaboration between VidhiNama Education and Research Centre LLP with Think India – MNLU Nagpur Chapter for their inaugural Blog Writing Competition, themed “Contemporary Trends in India’s Foreign Policy”. The author of this blog, Rohaan Mukul, was the second Runner-Up of this competition.

Aviation is one of those disguised sectors which plays a vital role in strengthening a country’s global ties and plays a vital role in foreign policy of a country. It exposes the hidden geopolitical ambitions of nations vying for supremacy in space and it acts as a channel for ongoing communication between nations to communicate their goals for their foreign policies. After more than 69 years as a government-owned company, J. R. D. Tata’s formed Air India¹, which Tata recently repurchased representing a return to the original owner of the company. The new business has big goals in mind. Tata, India’s largest conglomerate, brought a new superlative to the Indian aviation industry with the acquisition of Air India and the largest order ever placed for 470 new commercial aircraft, valued at an astounding US$70 billion in 2023.²

Having just overtaken China in terms of population and a growing middle class, India has one of the fastest-growing aviation industries globally, currently ranking third among domestic aviation markets. Air India aims to leverage the immense potential of India for both domestic and international travel by utilising the country’s advantageous location, which places it in a prime position to act as a regional hub for underserved routes between the Africa, Middle East and , as well as its growing population.³

Prominent figures including, President of United States Joe Biden, French President Emmanuel Macron and British Prime Minister Rishi Sunak have all praised Air India for its unprecedented goals. The United States can and will lead the world in manufacturing, stated Biden in a White House statement. With Air India and Boeing  reaching a historic agreement for the purchase of more than 200 aircraft built in the United States, more than a million jobs in 44 states across the United States will be supported by this purchase, many of which won’t require a four-year degree. This announcement is indeed indicative of the robust economic connection between the United States and India. “Together with Prime Minister Modi, I look forward to deepening our partnership even further as we continue to confront shared global challenges—creating a more secure and prosperous future for all of our citizens,” said Biden. PM Modi and Biden held a “warm and productive phone call,” according to a statement from the Prime Minister’s Office, and they “expressed satisfaction at the deepening of the India-US Comprehensive Global Strategic Partnership, which has resulted in robust growth in all domains.” Modi referred to it as a “landmark agreement” and said it was a “significant achievement” for the strategic cooperation between France and India. The aerospace sector has seen new success, according to French President Emmanuel Macron, who also stated this deal between Airbus, an European Aerospace Company and Air India as a “landmark agreement”.⁴ Macron added that additional bilateral interactions should result from the pandemic’s end and reaffirmed France’s commitment to giving India access to the most advanced, effective technology available.⁵

The UK is even ecstatic about this arrangement. The wings and engines, in particular , will be manufactured in significant part in the UK. Rolls Royce , a British multinational aerospace company shall be supplying the engines for the 40 Airbus A350 aircraft,, part of striking deal of 470 aircrafts by the Air India .According to then Prime Minister of UK Rishi Sunak, this would lead to investments in the UK as well as hundreds of “better-paying” jobs and new opportunities across the country. Sunak believes that stronger trade relations with a rising economic power like India will guarantee the UK’s continued role in global development.

It is imperative to highlight that the orders with Airbus and Boeing were placed at a time when India was under diplomatic pressure from the West due to the increase in Russian energy imports following the conflict in Ukraine. The transaction had validated India’s long-stated foreign policy goal of strategic autonomy. The West will no longer be sceptical of India’s decisions, as India is prepared to strengthen its economic ties with any nation for the sake of its national interest. India’s discounted petroleum purchase from Russia had called into question India’s neutrality. Additionally, as part of a larger supply chain realignment following the COVID pandemic, there is a movement on both sides of the Atlantic to promote domestic manufacturing. The extensively maligned Dhandho, a Gujarati slang term meaning “endeavours to create wealth”, is once again on track to determine important decisions including foreign policy, instead of being restricted to trade policy.⁶

CEO of Air India, Campbell Wilson stated that the airline’s intentions to invest in new aircraft will be contingent upon the government’s stance on bilateral agreements and the amount of seats that are allocated. Wilson further added that the capacity of Indian airlines to fill seats on their aircraft would be impacted if hubs in other nations were to be allowed additional bilateral rights. He went on to say that giving such nations more bilateral rights would boost their economies in addition to India’s because they would take traffic from India and send 80–90% of it outside.

As part of its fleet overhaul, Air India has also purchased around 25,000 seats, spending $400 million on this improvement in addition to the purchase agreement of 470 aircrafts. Soon Vistara, one of the premium carriers in the Indian Aviation Industry will also be merging with Air India adding more aircrafts to the fleet of Air India, thereby serving more destinations across the globe.

The strategic significance of civil aviation in international relations has been very well acknowledged by the PM Modi led Government of India. The government wants to strengthen India’s position in the international aviation industry by growing Air India’s operations and raising the calibre of its services and has not held back when expressing its nationalist desire and support for the new project and ambitions of reviving the national carrier of the nation. Gulf carriers had made an effort to profit on India’s huge demand for air travel, but the Modi government took steps to limit their expansion and encourage the expansion of national carriers with the objective to make Air India a more important participant in the global aviation network.⁷ However, this move was not welcomed by the prominent gulf carriers like Emirates. It is obvious that India is defending the Vistara and Air India merger, said Tim Clark, president of Emirates, and further stated, “I know from years of experience that protecting your national carriers to the detriment of the particular country’s economy is not such a smart move.” As a result, the nation is giving travelers on foreign flights less options, which is endangering the health of its economy was the crux of his statement.⁸

It is anticipated that Air India’s current transformation will make the airline more competitive and able to satisfy the rising demand for foreign travel. In addition to improving Air India’s operational capabilities, this initiative aims to establish India as a significant player in the global aviation industry, which is crucial for attaining India’s foreign policy objectives.  Because of Tata’s close ties to the ruling party, Air India enjoys a considerable competitive edge over other participants in the industry. The Modi’s administration has demonstrated a tremendous willingness to promote Air India as a source of national pride and worldwide prestige.⁹ The government’s bet on Air India may have been misguided, given the growth of India’s low-cost aviation sector, but the Modi government places a high value on the symbolic significance of a strong national carrier.

1. Nand L. Dhameja, Air India Revival: Policy Makers Should Plan, 54 IJIR 163, 163 (2018).[↩]
2. Artemis Aerospace, The rapid rise of India’s aviation sector,  Aircraft Interiors International (Nov. 14, 2023), https://www.aircraftinteriorsinternational.com/features/the-rapid-rise-of-indias-aviation-sector.html.[↩]
3. Kazimier Lim, Tata’s Ambitious Plans for Indian Aviation: A Game Changer for Foreign Relations?, Australian Institute of International Affairs (May 11, 2023), https://www.internationalaffairs.org.au/australianoutlook/tatas-ambitious-plans-for-indian-aviation-a-game-changer-for-foreign-relations/.[↩]
4. Express News Services, Modi, Macron, Biden announce: 470 Airbus, Boeing planes for Air India, Indian Express (Feb. 15, 2023), https://indianexpress.com/article/business/air-india-to-buy-250-airbus-planes-8444906/.[↩]
5. Alex Richardson, France’s Macron says France committed to work with India beyond aircraft, Reuters (Feb. 14, 2023), https://www.reuters.com/world/india/frances-macron-says-france-committed-work-with-india-beyond-aircraft-2023-02-14/.[↩]
6. Harshil Mehta , Opinion | Air India’s Mega Aircraft Deal: ‘Dhandho’ has Become Part of ‘High Foreign Policy’, News 18 (March 1, 2023), https://www.news18.com/news/opinion/opinion-air-indias-mega-aircraft-deal-dhandho-has-become-part-of-high-foreign-policy-7194283.html.[↩]
7. Arindam Majumdar, Emirates is not a threat to Air India: Tim Clark, Economic Times (March 21, 2023), https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/emirates-is-not-a-threat-to-air-india-tim-clark/articleshow/98871299.cms?from=mdr.[↩]
8. Bulbul Dhawan, Air India CEO on Impact of Bilateral Rights on Indian Carriers’ Ability to Fill Seats, Skift (Jun. 6, 2024), https://skift.com/2024/06/06/air-india-ceo-on-impact-of-bilateral-rights-on-indian-carriers-ability-to-fill-seats/.[↩]
9. Lim, supra note 3.[↩]