Airbus to double procurement from India to $1.5 billion

FE Team | Published: January 20, 2024 00:21:11

HYDERABAD (India), Jan 19 (Reuters): Airbus, opens new tab expects to double the total value of procurement from India to $1.5 billion in the coming years, the planemaker's India president said on Thursday, as it looks to ride on the boom in the world's fastest growing aviation market.
Airbus also forecasts that the Indian aviation sector will need 2,840 aircraft by 2035, Remi Maillard, president and managing director of Airbus India and South Asia, said at the "Wings India" event in Hyderabad.
Maillard added that Airbus expects to double the company's sourcing from the country from $750 million at present.
Airbus has more than 40 suppliers in India, both public and private, who provide engineering, manufacturing, digital, innovation and customer services solutions to commercial, helicopter and defence platforms.
India is now the world's fastest-growing aviation market, investing close to $12 billion in building new airports and refurbishing existing ones, aiming to have about 200 airports within five years, up from 150 today.
At the summit, Civil Aviation Minister Jyotiraditya Scindia said he expects the country's fleet size to jump to 2,000 in the next decade from about 700 currently.
"We have Boeing and Airbus sourcing all kinds of parts," Scindia added. "The time is right for these majors to look at setting up a FAL (final assembly line) in India."
Airbus booked record orders from India last year at the Paris Airshow, following deals for 500 jets from budget carrier IndiGo, opens new tab and 250 from Air India.
On Thursday, India's Akasa Air said it has ordered 150 narrowbody planes from Boeing, opens new tab.
IndiGo, Air India and Akasa at present have orders pending for more than 1,500 planes.