Boeing in India: multi-billion-dollar deal

Air-India approved on Tuesday the purchase of up to 50 long-range &to=http:// ' target=_blank>Boeing aircraft at a cost of about 300 billion rupees ($6.9 billion), the U.S. plane maker's second multi-billion-dollar deal in as many days.

The order, subject to Indian government approval, includes eight 777-200LR ultra-long-range aircraft, 15 777-300ER aircraft and 27 787 long-range aircraft, India's state-run international carrier said in a statement.

Shares in European aerospace group EADS, which owns 80 percent of Boeing's arch rival Airbus, were down 1 percent in Paris on Tuesday, while shares in Britain's BAE Systems Plc, which owns 20 percent, were down 1.8 percent.

Boeing shares, having climbed 3 percent on Monday, opened higher in New York. Boeing Co. had said it hoped to corner a big share of the estimated $35 billion market in India over the next 20 years.

U.S. Transportation Secretary, &to=http:// ' target=_blank>Norman Mineta, visited India earlier this month and said he expected India to give full consideration to the offer made by Boeing, reports Reuters. State-owned Air India said its board had approved the purchase of eight 777-300 long-haul jetliners, 15 737-200 medium range aircraft and 27 787s Chicago-based Boeing's newest jet, the Dreamliner.

According to Indian regulations, the decision requires the approval of Prime Minister Manmohan Singh's Cabinet. It was not immediately clear when that would happen.

The total cost of the planes is estimated to be about $6.8 billion (300 billion rupees), the company said. The delivery schedule would be decided only after government approvals were obtained.

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