Airbus plans to deepen its industrial presence in India, CEO Guillaume Faury said on Wednesday after meeting the country’s prime minister. “We will continue to support the growth of civil aviation and deepen our industrial footprint in India,” Faury said on Twitter alongside a photo of his meeting with Indian Prime Minister Narendra Modi. He did not provide further details.
Faury’s comments on the industrial presence come as India becomes increasingly involved in the civilian supply chain. A senior Boeing Co official told ET Infra in September that India has shown resilience during the pandemic and that Boeing and other companies will make more use of their suppliers. The meeting between the world’s largest civil aircraft maker and the leader of the world’s fastest-growing aviation market also coincides with a potentially major purchase of Air India jets, although industry sources said that was not the main focus of the visit.
Air India is in the advanced stages of negotiations for a major renewal and expansion of its fleet under new owner Tata Group, which industry sources say could include 250 Airbus aircraft, including just 200-210 A320neo-family aircraft and more than three dozen A350 aircraft. Airbus also hopes to secure a new home with Air India for six A350s originally destined for Russia’s Aeroflot, although it is unclear whether they are included in the main order.
Air India is also close to a deal to buy about 190 Boeing 737 MAX planes and 30 of its 787 Dreamliners in the same package, potentially close to 500 planes, Reuters reported last week. The deal could also include a handful of larger 777X aircraft. After intense negotiations last week, the package, worth tens of billions of dollars, is taking shape, but the timing of any announcement remains unclear, the sources said.
Big-ticket negotiations typically go down to the wire and can break down at the last minute over contractual details such as deposits and inflation clauses, they warned. Airbus declined to comment and the Tata Group was not immediately available for comment. In October, Tata Group and Airbus said they would manufacture the C-295 military transport aircraft in India. India, one of the world’s largest defense importers, is trying to reduce its dependence on foreign firms and increase local production. Aircraft, mainly for the armed forces, are currently produced only by the state-owned Hindustan Aeronautics Ltd.
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