In a recent discussion, Airbus CEO Guillaume Faury highlighted the company’s focus on leveraging India’s strengths in engineering and supply chains. Airbus aims for a production rate of 75 A320 aircraft per month, exploring future assembly locations in India while tackling current challenges. The demand for goods and services sourced from India is set to rise, reflecting the country’s growing aviation market and its capacity for innovation.

Guillaume Faury, CEO of Airbus, recently engaged in a discussion regarding the Final Assembly Line (FAL) in India, addressing critical topics such as current supply chain challenges and the broader contextual issues within the global aviation sector. His insights illuminate five significant areas regarding Airbus’s operations in India and the potential developments ahead.

Airbus intends to achieve a production rate of 75 aircraft monthly for the A320 family, with assembly operations distributed globally. Locations include Mobile in the USA, Tianjin in China, Toulouse in France, and Hamburg in Germany. Faury expressed concerns that further expansion could be counterproductive, emphasizing that the FAL contributes only 7% of the aircraft’s overall value, signifying that India’s role extends far beyond mere assembly.

Faury noted that while the establishment of a Final Assembly Line for next-generation aircraft in India is not ruled out, decisions will only be made when the aircraft is ready, potentially a decade from now. Airbus is currently concentrating on innovations in propulsion, wings, and fuels, aiming to finalize the next steps in their development process.

In considering future FAL locations within India, Faury highlighted the significance of logistical factors such as proximity to a harbor, a consideration that informed previous site selections in Mobile and Tianjin. Airbus aims to capitalize on India’s strengths in engineering, data, systems, and software excellence, with a notable increase in sourcing goods and services from India reached $1.4 billion in the past year. This figure is projected to rise to $2 billion by 2030.

India’s contributions to the aerospace sector are growing, with Indian companies not only enhancing local capabilities but also exploring opportunities in the European market through mergers and acquisitions. Faury acknowledged the impressive growth of the Indian aviation industry in passenger numbers and fleet size, while also recognizing challenges such as workforce training and expertise.

Airbus is committed to supporting key customers such as IndiGo and Air India, with special emphasis on IndiGo’s exclusive use of Airbus aircraft. When discussing engine-related challenges, Faury underscored the importance of collaboration between airlines and engine manufacturers to swiftly address issues, stressing the need for both operational efficiency and durability.

Faury anticipates improvements from engine options like CFM and the GTF Advantage from Pratt & Whitney, which are expected to enhance aircraft performance and durability in India’s challenging climate conditions. Addressing the comparison between India and China, Faury clarified that the expansion of the assembly line in China was a strategic decision, not a competitive choice between the two countries.

Faury differentiated between India and China, noting that China’s operations are primarily government-driven while India benefits from robust private-sector engagement. Indian firms are progressing beyond contract manufacturing to innovate significantly within engineering, data analytics, and software.

Airbus remains optimistic about its market position, supported by its comprehensive offerings across various aircraft segments. The company believes that ongoing supply chain constraints affecting delivery timelines will improve later this year, while monitoring new challenges such as tariffs and engine manufacturer issues.

As Airbus continues to advance its operations in India, it will strategically leverage the country’s unique strengths in engineering and innovation to drive future growth and development in the aerospace sector.

In summary, Airbus CEO Guillaume Faury outlined the company’s strategic vision for leveraging India’s strengths in the aerospace sector during a recent discussion. With plans for future developments, including potential Final Assembly Lines for next-generation aircraft, Airbus aims to enhance its operations while addressing supply chain challenges. Notably, India’s expanding role in aviation, marked by significant sourcing increases and the involvement of private enterprises, positions it as a key player in the global market. The emphasis on innovation, engineering excellence, and partnerships with local firms is integral to Airbus’s strategy moving forward.

Original Source: www.livemint.com

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