Friday, Dec 08, 2006
Business
Airbus commits $1b investment http://www.hindu.com/2006/12/08/stories/2006120805261800.htm
Special Correspondent
To set up training centre, engineering centre and MRO facility
India's aircraft needs assessed Super jumbo demo flight next year
[- PHOTO: SHANKER CHAKRAVARTY
UPBEAT ON INDIA: John Leahy (right), Chief Operating Officer-Customers and Chief Commercial Officer, Airbus, with Kiran Rao, Executive Vice-President, Airbus-India, at a press conference in New Delhi on Thursday. - PHOTO: SHANKER CHAKRAVARTY]
NEW DELHI: Eyeing the growth potential of the Indian civil aviation market, the European aircraft manufacturer, Airbus, on Thursday said it had firmed up plans to invest about $1 billion in various projects in India over the next ten years.
"Considering the growth that the civil aviation sector is poised to witness in India and the requirements to meet the demands, we are committing about one billion dollars here for the next decade,'' Airbus Executive Vice-President (Marketing) and President of Airbus India Kiran Rao told reporters here.
The leading European aircraft manufacturer said it will invest about $300 million in setting up a training centre, another $250 million in an engineering centre in Bangalore, and will make equally heavy investment in setting up of a maintenance, repair and overhaul (MRO) facility.
"Our training centre for A-320 Airbus pilots will become operational next year starting with about four simulators, which can be then expanded up to eight over the next five years,'' Mr. Rao said. The training centre would cater to the needs of the Asia region for Airbus, he added.
Referring to the proposed MRO facility, Mr. Rao said the company was in talks with various partners, including two Indian firms.
"The facility is planned for the Asia region and we hope to finalise it soon,'' he said, but did not disclose any details. For the engineering and design centre in Bangalore, Airbus would relocate some French engineers to the high-tech city and would also recruit local talent. It would have a total strength of about 400 engineers, he added.
The European aerospace major had predicted that India would require passenger and freight aircraft, valued at $105 billion, to serve the strong demand by 2025.
In its latest global market forecast, Airbus said India will become the fastest growing country for air travel demand for the next decade.
India will require 1,100 passenger and freight aircraft by 2025, of which 935 would be passenger aircraft, while the remaining 165 would be freighters, Airbus projection said. It said India would have an average annual passenger traffic growth of 7.7 per cent until 2025, well above the world average of 4.8 per cent and China's 7.2 per cent.
Replying to queries on the super jumbo A-380 jetliner, which is running behind schedule by about two years, Airbus Chief Operating Officer (Customers) John Leahy said the world's largest passenger jet would make a demonstration flight to India in 2007.
He said all major airlines were waiting patiently for the delivery of A-380 which would revolutionise the way travellers fly today.
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