Adani-Embraer announce regional jets' final assembly line in India

NEW DELHI: India, the world’s fastest growing aviation market, will soon see its first fixed-wing commercial aircraft final assembly line (FAL) and the firs aircraft from there could roll out within five years. Brazilian aerospace major Embraer and Adani Group Tuesday announced their collaboration in this field, as first reported by TOI on Jan 8.

The most significant economic cooperation between India and Brazil will see the FAL be followed by a phased increase in indigenisation to advance the “regional transport aircraft” (RTA) programme here, in line with the aatmanirbhar Bharat vision of PM Modi — who is transforming India from just a consumer for aircraft to producers of the same.




Asked about the investment, timelines & locations of FAL, Adani group’s Jeet Adani said: “We expect all these things to be finalised within a couple of months. Simultaneously, we will finalise the location. We are looking at a couple of places. We are also looking at the demand side (meaning orders for this FAL) and are working on reaching an understanding with some customers too.”

Embraer, which makes upto 150-seater short to medium haul jets, and Adani Defence & Aerospace have signed a MoU to develop an integrated regional transport aircraft ecosystem in India. The companies aim to collaborate on opportunities in aircraft manufacturing, supply chain, aftermarket services, and pilot training. “The collaborative industrial partnership will aim to establish an assembly line,” they say.

Union aviation minister Ram Mohan Naidu said this MoU will ensure self reliance of the Indian aviation ecosystem and be a "milestone".

Aviation secretary Samir Sinha said as the fastest growing aviation market globally, Indian can't reply on imports alone. "We have to be a part of the global supply chain. Global original equipment manufacturers (OEMs) already do sourcing worth over $2 billion from India annually. The next logical step was civil aircraft manufacturing. Collaborating with global leaders means reducing development timelines. This (Adani-Embraer MoU) is a decisive step forward that will create a robust aviation supply chain here and will see technology transfer," Sinha said.

Embraer Commercial Aviation president & CEO Arjan Meijer said: “India is a pivotal market for Embraer, and this partnership combines our aerospace expertise with Adani’s strong industrial capabilities and commitment to indigenisation. Together, we will evaluate the most viable, advanced and efficient solutions in support of India’s RTA ambitions, and their potential for implementation.”

Adani Defence & Aerospace director Jeet Adani said: “Regional aviation is the backbone of economic expansion. With initiatives like UDAN transforming air connectivity across Tier 2 and Tier 3 cities, the need for an indigenous regional aviation ecosystem has become critical. This partnership will also strengthen strategic relations between India and Brazil, bringing complementary capabilities together.”

While 50 Embraer planes currently operate across commercial, defence and business aviation in India, the demand for regional jets is expected to boom here. India’s biggest regional airline Star Air currently operates a fleet of 13 Embraer E175 & ERJ145 aircraft. It is likely to order more of these planes this year. And India’s leading charter operator, Gautam Sahni of Subha Aviation, is planning to start an airline and is in talks with Embraer.

India is looking at fiscal incentives for customers ordering locally made aircraft, which could benefit both existing and upcoming airlines. This makes the Embraer-Adani samba a timely move that will get the first mover advantage. There are no Airbus or Boeing single aisles available till the middle of next decade for anyone placing orders now.

The Embraer-Adani partnership aims to leverage “Embraer’s deep engineering and aircraft manufacturing expertise alongside Adani’s aviation value-chain footprint that includes airport infrastructure, aerospace manufacturing, MRO services and pilot training,” the two companies said in a joint statement.