Boeing announced an agreement sell more than 200 aircraft to Air India Tuesday morning. The $34 billion deal is one of the largest in the aircraft maker's history. Boeing stock, a Dow Jones industrial component, rose Tuesday following the news.
Per the deal, Air India — the country's largest international carrier — will buy 190 Boeing 737 MAXs, 20 787s and 10 777Xs, for a total of 220 aircraft, according to Tuesday's announcement. Air India also has the option to purchase an additional 50 737 MAXs and 20 787s.
The deal is the third largest in Boeing's history in terms of dollar value, and second-biggest in terms of volume.
Air India's purchase will support over 1 million U.S. jobs across 44 states, many of which will not require a college degree, according to a White House statement. In the release, President Joe Biden said the announcement reflects the strength of the U.S.-India economic partnership. "Together with Prime Minister Modi, I look forward to deepening our partnership even further," President Biden said.
The Air India deal comes just a few months after Boeing secured an agreement from United Airlines to purchase dozens of its 787 Dreamliner jets in early December.
Boeing Stock
Boeing stock slid 0.48% Wednesday after edging up 1.28% in a back-and-forth session Tuesday following the announcement. BA shares are trading in the profit-taking zone after ascending 26% following an early-November breakout. A gain of 20% or more following a breakout typically means it's time to take profits.
Aggressive investors might use the stock's rebound from support at its 21-day exponential moving average as a possible buy opportunity.
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