Airbus Eyes India for Future Final Assembly Line and Supply Chain Integration

The French Aerospace Industries Association (GIFAS) has led a delegation of over 100 high-profile representatives from 60 companies to India. This includes prime contractors, equipment manufacturers, MSMEs, and start-ups. The delegation, featuring notable figures such as Guillaume Faury, CEO of Airbus and Chairman of GIFAS, and Frédéric Parisot, CEO of GIFAS, took part in a seminar that explored potential business opportunities between the two nations. The discussions were centered around deepening ties within the aerospace supply chain and exploring the possibility of establishing an Airbus final assembly line (FAL) in India.

The Potential for a Final Assembly Line in India

During a seminar held on October 7, Faury and other delegates discussed how India could play a more significant role in Airbus’ aircraft production. The potential of setting up a final assembly line (FAL) in India was among the key points raised. When questioned about the feasibility of this, Faury indicated that although it’s a possibility, the timing and conditions must be right for such a venture.

“Other companies are also placing final assembly lines for engines or for other planes. So that’s really on the agenda. And there are other ideas in the field of regional aircraft where the French ecosystem, the French companies will be very happy to engage and see how they do this. We like this model but we do it where it makes sense when it makes sense,” Faury said, leaving room for future considerations based on market demands and infrastructure readiness.

India’s Growing Role in the Aircraft Supply Chain

The global supply chain for major aircraft manufacturers, including Airbus, is currently facing challenges in meeting demand. With Airbus maintaining a backlog of 8,600 planes and aiming to produce 770 aircraft this year, supply chain limitations are a critical issue. According to Faury, the focus is not just on fulfilling future orders, but on accelerating the production rate today, and this is where India could play a key role.

Faury emphasized India’s potential to alleviate some of these supply chain bottlenecks, particularly in terms of ramping up production. He noted, “In my view, India in particular can contribute to debottlenecking the supply chain in today’s environment… Actually today at Airbus, we are oversized in terms of the FAL system. And we can’t be taking more orders knowing that we are fully booked.”

India’s Ambitions in Aviation Manufacturing

India’s government, particularly its aviation ministry, has been pushing for the country to establish itself as a significant player in both commercial and military aircraft production. Former Civil Aviation Minister Jyotiraditya Scindia had previously highlighted that the time was ripe for manufacturing to gain momentum in India, signaling the country’s readiness to take on a more significant role in global aerospace.

In addition to large commercial planes, India is also eyeing the future of electric vertical take-off and landing (eVTOL) aircraft, a market that is gaining traction globally. The aviation ministry has already begun efforts to attract eVTOL companies to set up manufacturing plants within the country. This forward-looking approach shows India’s intention to not just be part of today’s supply chain, but to help shape the future of aviation as well.

The recent discussions between Airbus and Indian aerospace leaders represent a significant opportunity for both nations. With Airbus exploring the idea of establishing a final assembly line in India and tapping into the country’s potential for debottlenecking the global supply chain, the partnership between France and India could lead to substantial advancements in the aerospace sector. Moreover, India’s ambitions in aerospace manufacturing—whether in commercial aircraft or future technologies like eVTOL—position the country as an emerging leader in the global aviation landscape.

Youssef Yahya

Youssef Yahya is the CEO and Founder of Aviation for Aviators. He also serves as the Chief-in-Editor of the platform’s website, where he shares his passion for aviation and provides valuable resources for aviation enthusiasts and professionals alike. His love for aviation and entrepreneurial spirit drive him to create innovative solutions, making Aviation for Aviators a unique resource in the aviation sector.

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