Airbus, the European aerospace giant, has reinforced its commitment to the Indian market with a series of strategic moves during a high-profile four-day board visit to the country. This marks a significant milestone as it's the first time the Airbus board has convened in India since the company began operations over six decades ago.

High-Level Meetings and Facility Tours

Board Chairman Rene Obermann led the delegation in meetings with Prime Minister Narendra Modi and other government ministers. These discussions centered around potential investments and collaboration opportunities, underlining the importance of India in Airbus's global strategy.

The board's itinerary included tours of key manufacturing facilities:

• Tata Advanced Systems Ltd in Hyderabad
• Dynamatic Technologies in Bengaluru

These visits highlight Airbus's growing reliance on Indian manufacturing capabilities and its commitment to fostering partnerships with local industry leaders.

Major Joint Venture Announcement

In a move that underscores Airbus's long-term vision for India, the company, in collaboration with Air India, announced a joint venture for a state-of-the-art training facility in Haryana. Key points of this announcement include:

• Planned investment exceeding Rs 1,000 crore
• Focus on pilot training simulators for A320 and A350 aircraft
• Aims to address the growing demand for skilled aviation professionals in the region

Airbus's Expanding Footprint in India

The visit shed light on Airbus's significant and growing presence in India:

• Annual sourcing of components and services from India exceeds USD 1.40 billion
• Establishment of Final Assembly Lines in India:
  • H125 helicopters in Karnataka
  • C295 military aircraft in Gujarat
• Both assembly lines are being set up through partnerships with Tata Advanced Systems Ltd (TASL)

Strong Order Book from Indian Airlines

The Indian aviation market's importance to Airbus is evident from the substantial orders placed by major Indian carriers:

• IndiGo and Air India have collectively ordered more than 1,000 Airbus aircraft

This massive order book not only signifies the rapid growth of India's aviation sector but also cements Airbus's position as a key player in the country's aerospace industry.

The Airbus board's visit to India, coupled with the significant joint venture announcement and the company's expanding manufacturing footprint, demonstrates a strong, mutual commitment between Airbus and India. As the Indian aviation market continues its upward trajectory, Airbus appears well-positioned to play a crucial role in its growth and development.

Airbus, the European aerospace giant, is making significant strides in strengthening its presence in India, as evidenced by its first-ever annual strategy meeting held in Delhi. This move underscores the company's commitment to the rapidly growing Indian aviation market and aligns with the country's 'Make in India' initiative.

Board Meets Indian Officials and Executives

The Airbus board of directors is using this opportunity to engage with key stakeholders in the Indian aviation sector. Meetings are scheduled with government officials and executives from major Indian carriers, including IndiGo and Air India. These discussions are likely to focus on Airbus's expanding role in India's aerospace industry and potential collaborations.

Responding to India's Aviation Boom

The timing of this high-level meeting is strategic, coming as Indian carriers have placed orders for over 1,500 aircraft. This surge in demand has intensified pressure on Airbus to enhance its local presence and manufacturing capabilities in India.

Current and Future Sourcing Plans

Airbus currently sources components worth $1.40 billion annually from more than 40 Indian suppliers. The company aims to increase this figure to $2.00 billion by 2030, representing a significant scaling up of its Indian operations. Notably, Airbus has already tripled its Indian sourcing from $500.00 million in 2019 to $1.48 billion last year.

Visiting Key Suppliers

As part of their Delhi visit, the Airbus board will tour facilities of important Indian suppliers, including Tata Advanced Systems and Dynamatic Technologies. These visits are likely to focus on strengthening existing partnerships and exploring new opportunities for collaboration.

Airbus's Growing Footprint in India

Airbus's commitment to India extends beyond sourcing:

• The company directly employs over 3,600 people in the country
• It supports approximately 15,000 jobs in its supply chain
• Airbus is establishing two Final Assembly Lines in partnership with Tata:
  1. C-295 military transport aircraft
  2. H125 helicopters

These initiatives not only boost local manufacturing but also contribute to skill development and technology transfer in India's aerospace sector.

New Leadership for Indian Operations

In a move to further strengthen its Indian operations, Airbus has appointed Jürgen Westermeier as the new President and Managing Director for India and South Asia. This appointment is expected to drive the company's growth strategy in the region.

Conclusion

Airbus's decision to hold its annual strategy meeting in Delhi for the first time signals India's growing importance in the global aerospace industry. As the company aims to increase its sourcing from India to $2.00 billion by 2030 and expands its local manufacturing capabilities, it is poised to play a pivotal role in India's aviation growth story. This strategic move not only aligns with India's 'Make in India' campaign but also positions Airbus to capitalize on the country's booming aviation market.