In a freewheeling discussion with a select audience, Airbus CEO Guillaume Faury addressed questions on topics ranging from the Final Assembly Line (FAL) in India to current supply chain issues and challenges in the aviation sector, both in India and globally, with a particular focus on Airbus.Here’s a look at the five major areas that Faury focused on and his thoughts on.Final Assembly LineAirbus is currently targeting a production rate of 75 aircraft per month for the A320 family, with assembly lines spread across the globe. These include two in Mobile, USA; two in Tianjin, China; two in Toulouse, France; and four in Hamburg, Germany. CEO Guillaume Faury believes this setup is already extensive, and any further expansion could be detrimental.“FAL sees only 7% of the value being added to the plane,” quipped Faury, emphasizing that India’s aviation story extends far beyond just a Final Assembly Line. He highlighted areas where India has greater strengths and can contribute significantly to the industry’s overall growth. Airbus already operates a C295 FAL in collaboration with the Tata Group in Vadodara and is also establishing an FAL for Airbus Helicopters.Also read: Indigo targets 200 mn fliers by 2030, but faces plane shortageHowever, Faury does not rule out the possibility of a Final Assembly Line (FAL) for next-generation aircraft in India. He stated that a decision would be made when the aircraft is ready, possibly a decade from now. Airbus is currently focused on propulsion, wings, and fuels to finalise the next steps and narrow down its options.In what could be a cue for locations that could be shortlisted if a FAL has to come up in India, Faury mentioned the need for a harbour, be it at Mobile in the US or Tianjin in China, as a major factor that played out for site selection and subsequent expansion to ensure that supply chains, which are already complex in nature, can be better handled.The India story is intact and growingAirbus finds India to be a powerhouse for Engineering, Data, Systems, and Software Excellence and wants to leverage the country’s strengths better. Last year, India’s supply base grew further, and Airbus sourced 1.4 billion USD worth of goods and services from India. The OEM (Original Equipment Manufacturer) expects this value to reach 2 billion USD before 2030, nearly 1.5 times in five years.India’s role is increasing rapidly in aerospace and systems, especially highly sophisticated ones. Indian companies are adding capabilities not only restricted to India but also looking to expand in the EU and explore M&A activity in the EU.Challenges in the Indian marketGuillaume Faury praised the Indian aviation market for its rapid growth in passenger numbers and fleet expansion. He was particularly struck by the ambitious plans for airport development over the next decade, signalling even greater potential. However, he acknowledged challenges such as workforce expertise, training, and onboarding.Airbus is actively
Airbus CEO Guillaume Faury stated that FAL will need to wait for the arrival of next-generation aircraft; however, the company is capitalizing on India’s strengths.
