Airbus is planning to increase its sourcing of components from India as the country has various opportunities for the aerospace giant, the company’s CEO Guillaume Faury stated. The European aircraft manufacturer has recently acquired several orders from Indian airlines like Air India and Indigo. As per the latest data, the company has already doubled its sourcing components and services from India to €1 billion from 2019 to 2023. At present, Airbus has a partnership with more than 100 suppliers in the country.
Airbus component sourcing in India
During a press conference in New Delhi, Faury who also holds the post of Chairman of the French Aerospace Industries Association (GIFAS) also mentioned that India has considerable potential for future growth. ”We will continue to expand our component sourcing, to double it each five years, maintaining a stable growth for next decade,” he added. For the first time in 2023, a major shift took place when the size of the equipment sourced for aircraft and helicopters crossed that of IT services. Faury also mentioned that this crossover was a crucial moment in Airbus’s sourcing plan. Companies associated with GIFAS obtained about $2 billion worth of goods on an annual basis from India. This also showcased the country’s increasing significance as a manufacturing hub.
Airbus orders from Indian Airlines
Airbus has a current order of 8,600 aircraft and is expected to manufacture around 770 planes by this year itself. Indigo and Air India played a major role in this growth, both of them together placed an order for more than 1,000 aircraft. Given these recent developments, a high-level representation from GIFAS that includes more than 60 companies and more than 100 representatives is currently in India to explore future opportunities and partnerships between the two countries. Airbus CEO also commented on India’s exponential development in the civil aviation sector and stated that it is the fastest-growing market in the world. He also noted that he is also aware of the fierce competition among the airlines.
(With inputs from PTI)