Govt , EADS in talks for setting up assembly unit

New Delhi: Having emerged as a global small car manufacturing hub, India is now initiating steps to become a small aircraft production centre.
The government is in talks with European aviation behemoth European Aeronautic Defence and Space Company (EADS) –– the parent of Airbus and Eurocopter –– for setting up small and medium size aircraft assembly unit in the country.
The Prime Minister Office (PMO) convened a high-level meeting on April 1 with top officials of concerned ministries to work out a joint venture proposal for EADS.
The government is also open to the idea of nominating a private company to partner EADS and airlines would also be considered in view of the growing demand for aircraft from big carriers such as Jet Airways, Air India and Kingfisher.
Since India has placed orders for a large number of aircraft, the offset business emerging from these deals would facilitate the process.
EADS and Boeing have to bring in sizeable business into India to meet the ‘offset’ clause incorporated in these deals. Public sector carrier, now merged as Air-India, have placed orders for around $8 billion and more orders are in the pipeline.
If they get into an aircraft production JV, airlines would get price advantage ranging between 10% to 12% in purchase of aircraft produced by their unit.
As public sector Hindustan Aeronautics Ltd (HAL) is already manufacturing aircraft under various original manufacturer’s license, the public sector company is a potential candidate for the JV.
07/04/08 Nirbhay Kumar/Economic Times

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Categories: Foreign Apr 2008, Indian Aviation- In General Apr 2008, New Apr 2008