Airbus has chosen India as the venue for its annual off-site strategy session for the first time, underscoring the country’s rising importance in the global aerospace ecosystem. The meeting in Delhi is highly symbolic, as such strategy gatherings are typically held in Europe or in countries with major Airbus manufacturing bases. In 2018, for instance, the Airbus board convened in China, reflecting the establishment of its A320 assembly line there.

Strategic Engagement With India

The decision to hold the meeting in India comes against the backdrop of the country’s fast-growing aviation sector and the government’s push under the Make in India initiative to expand local manufacturing. India’s airline market is now one of Airbus’ largest, with over 1,500 commercial passenger and cargo aircraft on order with Indian carriers. This not only ensures long-term business for the company but also increases the strategic relevance of India as an operational hub.

Key Discussions And Stakeholder Engagement

Airbus board members will meet with senior Indian government officials as well as executives from IndiGo and Air India, which together account for more than 1,000 new Airbus aircraft orders. IndiGo, in particular, has placed a record-breaking order of 500 A320 family jets in 2023, marking the single largest order in aviation history. At the same time, Airbus is collaborating with Air India to establish a large pilot training centre in India that will host 10 full-flight simulators, addressing the country’s acute demand for trained pilots.

Visits To Indian Industry Partners

The board will also visit Tata Advanced Systems Ltd (TASL) in Hyderabad and Dynamatic Technologies in Karnataka, both of which are critical Tier 1 suppliers in Airbus’ global supply chain. TASL contributes to Airbus’ aerospace components and structures, while Dynamatic manufactures major parts for Airbus aircraft. Their participation highlights the strengthening of India’s role as a supplier of high-quality aerospace parts to Airbus.

Expanding Manufacturing Presence

Airbus has been gradually increasing its local production footprint in India. The company is setting up a C-295 military transport aircraft assembly line in Vadodara, Gujarat, in partnership with Tata Advanced Systems. Additionally, a civilian helicopter production facility is being established in Kolar, Karnataka. However, when it comes to large commercial aircraft assembly, Airbus has limited its India focus for now to component manufacturing and sourcing, rather than setting up a final assembly line similar to the one in Tianjin, China.

Supply Chain And Sourcing Targets

Currently, Airbus works with more than 40 suppliers across India, sourcing components worth approximately $1.4 billion annually. These include everything from airframe structures to avionics and engineering services. The company has set a target of increasing this figure to $2 billion annually by 2030, reflecting its growing reliance on India as a manufacturing base for its global operations.

Outlook On Future Assembly Lines

Airbus has indicated that a final assembly line in India may be considered for next-generation aircraft models, but the economics and scale of current aircraft programs make such an initiative impractical at the present time. By focusing on integration into its global value chain, Airbus aims to strengthen India’s aerospace ecosystem while preparing the ground for deeper engagement in the future.

The board’s first-ever strategy meeting in Delhi, along with visits to suppliers and discussions with key airline customers, signals Airbus’ intent to cement its role as a long-term partner in India’s aviation growth story. This event marks an important milestone in Airbus’ evolving engagement with one of the fastest-growing aviation markets in the world.

Based On TOI Report