29.3.09

Airbus plans new base in India


A slowdown in the Indian aviation industry has failed to dampen the spirit of Airbus. The European aircraft manufacturer is planning to set up a manufacturing base in India. As part of its globalisation attempts, the company is planing to invest about $1 billion in India over the next 10 years and is looking for partnerships. “We plan to develop a manufacturing base in India in the next three-four years, but we are not going to copy what we have done in China. For India, the biggest development is in services and engineering,” Eric Zenin, head (business development and international cooperation), Airbus said. The company said that India continued to be one of the biggest emerging markets in aerospace. “The air traffic in India is expected to grow at 11.3 per cent compared with 11.1 per cent in China and 9.4 per cent in Eastern Europe. Over the next 20 years, Indian traffic growth at 6.4 per cent would be higher than the rest of the world, which is expected to grow at 4.4 per cent,” Christian Scherer, the executive vice-president of the company said.
The company is also looking at shifting part of its operations out of Europe. “We are planning to build up to 20 per cent of aero structures and 30 per cent of engineering sub-contracting offshore by 2020 and India will get a large chunk of this business,” Scherer said. Airbus has five engineering centres outside Europe — two in the US and one each in Bangalore, Beijing and Russia.
The Bangalore engineering centre began operations in 2007. The centre is already developing advanced capabilities in modelling and simulation, including areas such as flight management systems, aero dynamics and digital simulation with the current workforce of about 100 people. “We would hire about 300 more people over the next four years,” he added.

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