India Ready For Airbus, Boeing To Set Up Jet Assembly Plants: Report

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  • Airbus SE EADSY and Boeing Co BA are under increasing pressure to build jetliner plants in India.
  • India's civil aviation minister told Reuters the "time has come" to serve its surging demand with domestically produced aircraft.
  • According to Reuters, Jyotiraditya Scindia stated that the time was right for both jetmakers to "leap of faith" as India's rapidly expanding aerospace industry hits an "inflection point" - highlighted by plans to assemble Airbus C295 military transport planes locally in India.
  • Both Airbus and Boeing have emphasized the scale and technology of current investments in India. An Airbus-Tata alliance aims to construct 40 C295 planes in Gujarat.
  • Related: Boeing, Airbus Chase Highly Proficient Indian Talent To Tap The Recovery Led Boom At Competitive Costs
  • Tata-controlled Air India placed record orders for 470 aircraft from Airbus and Boeing last month, and reports claim that IndiGo, India's largest airline, is discussing 500 more aircraft.
  • Reuters added both Airbus and Boeing seem to have resisted India's calls for civil final assembly lines (FAL). Boeing buys $1 billion annually in parts and services from India, and Airbus claimed to spend $700 million.
  • Also Read: Airbus Expands Its Workforce To Boost Jet Manufacturing: Report
  • Recently, Boeing announced plans to build a facility in India where 737 passenger planes could be converted into freighters.
  • Price Action: BA shares are trading lower by 1.42% at $195.08 premarket on Friday. EADSY closed lower by 0.80% at $32.16 on Thursday.
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