New Delhi: Airbus SE, the European aerospace major, on Thursday signed a deal with Dynamatic Technologies for the production of door variants for the Airbus A220, the latest addition to its aircraft line-up.
The order value was not disclosed.
This marks Airbus’s second engagement with an Indian company for the manufacture of aircraft doors, following a contract in March last year with Tata Advanced Systems for the Airbus A320’s cargo doors.
Currently, Airbus sources components worth $750 million from India, with plans to increase this figure to $1.5 billion over the next few years. Indian firms manufacture fuselages, electrical wire harnesses, tailfin structures, emergency chutes, among others, for Airbus.
The A220, designed to accommodate 100-150 passengers, falls under the Airbus Canada Ltd Partnership, with Airbus holding a 75% stake and the Québec government owning the remaining 25%. The programme operates out of Mirabel, Quebec, encompassing programme management, engineering, customer support, and services, with Mirabel hosting the primary A220 final assembly line. Additionally, a secondary assembly line in Mobile, Alabama, caters to the US market.
Despite its global presence since 2016, with over 300 A220s currently in service and more than 900 orders placed, Indian carriers are yet to add the A220 to their fleets.
Bengaluru-based Dynamatic Technologies will likely deliver the first batch of aircraft doors by next year, as per officials.
The announcement came in the presence civil aviation minister Jyotiraditya Scindia, Airbus India president and South Asia managing director Rémi Maillard, Dynamatic chief executive and managing director Udayant Malhoutra, among others.
Scindia highlighted India’s dual strategy in aerospace manufacturing, which involves the establishment of final assembly lines in certain sectors while simultaneously developing an ancillary ecosystem poised for future assembly line expansions in other areas. Airbus already operates final assembly lines in India for the C295 transport aircraft and the H125 helicopter.
“This is the right time to be in India. This is the right time to invest in India,” Scindia emphasized, reflecting optimism for the aerospace sector’s growth in the country.
“The final assembly line represents 15% of the value. The real deep value lies in the supply chain from tier-1, 2, 3, and engineering chains,” said Malhoutra underscoring the importance of a robust supply chain in aerospace manufacturing.
Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!
Download The Mint News App to get Daily Market Updates & Live Business News.
Published: 08 Feb 2024, 03:57 PM IST