New Delhi: In a major boost to India’s Atmanirbhar Bharat initiative, global aerospace giant Airbus announced plans to set up the Final Assembly Line (FAL) for H-125 helicopters in partnership with Tata by the coming winter. Olivier Michalon, Airbus Executive Vice President of Global Business, stated that the company has identified eight potential sites and will soon finalize the location for the final assembly line.

“We will begin setting up the final assembly line before winter starts in India,” Michalon said during a briefing. He emphasized that India represents a significant market for both aircraft and the growing sector of commercial helicopters. “India is the market of the future for helicopters. This is our analysis and our ambition—to be part of this transformation,” he added.

However, Michalon acknowledged that market regulations in India remain a challenge. “Regulations are somewhat restrictive, but we are optimistic that they will become more flexible and that the skies will progressively open up,” he claimed.

#WATCH | Marignane, France: Head of Airbus Helicopters in India and South Asia, Sunny Guglani says, “The plan is to have the first Made-in-India H125 rollout of the assembly line in 2026. That’s the plan we’re working on with TATA. This Final Assembly Line (FAL) will produce the… https://t.co/DwWMxRjt2k pic.twitter.com/o3oGmeDkHD
— ANI (@ANI) July 21, 2024

Despite these challenges, Michalon remains hopeful. “We can either wait for the sky to fully open or demonstrate our trust in India’s potential and continue to invest,” he said. Airbus anticipates a demand of up to 500 H-125 helicopters in India and neighboring countries. Michalon believes that India could become as significant a market as the United States for this type of helicopter.

The first Made-in-India helicopter is expected to be delivered in 2026, with an initial production capacity of 10 helicopters per year at the Indian final assembly line. This capacity could increase to 20, 30, or even 50 in the coming years. Airbus is encouraged by the success of its A-320 commercial aircraft and hopes that the H-125 will achieve similar success in the commercial helicopter market.

Currently, over 7,000 H-125 helicopters are operational worldwide, including in the highly competitive US market. “We sell and support solutions, and this is what we can provide for Make in India solutions,” Michalon added. Airbus is also focusing on South Asia as a major market for the H-125 helicopter. The primary users of helicopters in the region are industrial players, especially in the energy sector.

According to Sunny Guglani, head of Airbus Helicopters in India and South Asia, there are 350 civil and para-public helicopters across India, Bangladesh, Bhutan, Sri Lanka, and Nepal. Of these, fewer than 250 are currently in service in India—a relatively low number considering the country’s population and demographics.

Airbus holds a 40 percent market share in the commercial helicopter market. Out of the 350 helicopters, nearly 140 are Airbus, representing 40 percent market share. Airbus’s collaboration with India extends beyond manufacturing; the company is also developing a robust ecosystem for the maintenance, repair, and overhaul (MRO) of helicopters. In December 2023, Airbus partnered with Indamer to advance India’s helicopter MRO ambitions, offering advanced aftermarket services for Airbus helicopters at facilities in Mumbai, New Delhi, and Nagpur. This partnership enhances the operational efficiency and longevity of Airbus helicopters in India.

In the defense sector, Airbus has made notable contributions through the C295 program. Adding further, Airbus invests heavily in India’s digital and engineering capabilities. The Airbus India Engineering Centre and the Digital Centre in Bengaluru support Airbus’s global operations with high-tech aeronautical engineering and digital transformation projects, leveraging India’s talent pool to innovate and improve Airbus’s products and services.