Airbus enters its biggest pact with India so far

India is not just a market for us, India is a strategic hub, said Remi Maillard, President, and MD of Airbus India & South Asia.

“Last year we procured components and services worth $750 million, and our ambition is to double our sourcing in India to $1.5 billion,” he added.

Last year we signed contracts with various Indian companies like Tata, Mahindra, Aequs etc.

Earlier, Civil Aviation Minister Jyotiraditya Scindia on Thursday announced a new purchase pact between aircraft manufacturing company Airbus and Air India. This comes after Scindia met Airbus Global CEO Guillaume Faury on January 26 and discussed collaboration opportunities for manufacturing and designing of aircraft.

"Met Mr. Guillaume Faury, Global CEO, Airbus today and discussed further opportunities of collaboration for aircraft manufacturing and designing. As one of the fastest growing economies and with a focus on #MakeinIndia, India has huge potential to become a global aircraft manufacturing hub," Scindia wrote on social media site X, previously known as Twitter.

India is among the key markets for Airbus, which received orders from IndiGo and Air India for over 700 planes last year. IndiGo, India's largest airline, has only Airbus aircraft in its fleet.

While speaking at the "Wings India" event in Hyderabad last month, Remi Maillard, president and managing director of Airbus India and South Asia, said the global aircraft manufacturer is aiming to double the total value of procurement from India to $1.5 billion in next few years, as it looks forward to riding the boom in the fastest growing aviation market across the globe.

Maillard noted India's aviation sector will need 2,840 aircraft by 2035. He added that the country would require as many as 41,000 pilots and 47,000 technical staff in the next 20 years.

Airbus hopes for good demand for orders from the world's most populated country and expects to double its sourcing from $750 million at present to $1.5 billion.

Meanwhile, last month, it was reported that Airbus Helicopters would partner with the Tata Group to establish a final assembly line for helicopters in India. This development is expected to boost indigenous manufacturing activities.

After Gujarat's 'Make in India' C295 military aircraft manufacturing facility, this will be the second final assembly line being built by Airbus in the South Asian country.

In a statement, Airbus Helicopter earlier said that the Final Assembly Line (FAL) would make Airbus H125 helicopters from its civil range for India, aiming to export them to some of the neighbouring countries.

This will be the first instance of a private sector player setting up a helicopter manufacturing facility in India, read the statement, adding that it would provide a major boost to Prime Minister Narendra Modi-led government's 'AatmaNirbhar Bharat' programme.

While the Final Assembly Line is expected to be built in the next 24 months, the deliveries of the first 'Made in India' H125s may commence by 2026.

This shall be jointly decided by the Tata Group and Airbus. Financial details regarding the joint agreement have not been disclosed yet.

On the collaboration of Airbus and Air India, Scindia called it a "historic day" and said it would mark a significant milestone in promoting indigenous manufacturing and boosting the economy by creating diverse job opportunities, PTI reported.

The announcement by Air India and Airbus was made during French President Emmanuel Macron's two-day visit to India as chief guest for the Republic Day celebrations.

Under the partnership, Tata Advanced Systems Limited (TASL), a subsidiary of Tata Group, will set up the facility along with Airbus Helicopters, the statement said.

The Final Assembly Line in India will undertake the integration of the major component assemblies, avionics and mission systems, installation of electrical harnesses, hydraulic circuits, flight controls, dynamic components, fuel system, and the engine, Airbus Helicopters said.

Moreover, it will do testing, qualification, and delivery of the H125 to customers in India and the region.

“Helicopters are crucial for nation building. A ‘Made-in-India’ civil helicopter will not only be a symbol of the confident New India but will also unlock the true potential of the helicopter market in the country,” Guillaume Faury said.

N Chandrasekaran, Chairman of Tata Sons, said, “The Tata Group is delighted to set up India’s first helicopter assembly facility in the private sector. This facility will have the final assembly line in partnership with Airbus for the world’s bestselling Airbus H125 single-engine helicopter for the Indian as well as export markets.”

Airbus Helicopters stated that this multi-mission workhorse will revolutionise passenger and goods transportation and will also be used for segments such as emergency medical services (HEMS), disaster management, law enforcement, tourism, and aerial work missions.

Providing last-mile connectivity to remote areas, the H125 will significantly contribute to the regional connectivity scheme 'UDAN'- which will further promote the tourism sector in the country, it added.