In a first, Adani, Embraer tie up to build commercial fixed-wing planes in India

NEW DELHI: India will soon join a select group of nations that have a final assembly line (FAL) for commercial fixed-wing aircraft. The Adani Group has tied up with Brazil's Embraer to make in India the latter's popular regional jets, which are operated on short- to medium-haul routes with seating capacity ranging from 70 to 146 passengers.

Last month, Adani Aerospace signed an MoU with Embraer in Brazil for the FAL, in the biggest boost for PM Modi's make-in-India programme in the aviation space. The two groups did not comment on the story.

Details such as the site and investment for the proposed FAL and when it will get operational are not yet known. A formal announcement is expected later this month at the Hyderabad air show.

Govt mulls sops for aircraft orders

Being the world’s fastest growing aviation market with over 1,800 planes on order from airlines, including Air India group, IndiGo and Akasa, govt has been keen that global aerospace majors set up final assembly lines (FALs) for commercial aircraft in India.

With Embraer taking the lead, govt is looking at ways to incentivise customers who order from India’s first major commercial aircraft FAL. Its success and the presence of an ecosystem for assembling commercial planes, govt feels, will nudge the big two — Airbus and Boeing — to follow suit instead of just focussing on increasing their sourcing from the country.

“Several things are under consideration, including fiscal incentives for those ordering from this FAL. Like any new programme, the idea is to give incentives on a reducing basis as the orders grow, say, after every 50 orders placed,” said an official.

Embraer has a footprint with nearly 50 aircraft of 11 types in India, covering commercial, defence, and business aviation.

At present, in the commercial airline space, Star Air uses Embraer and is likely to order more of these regional jets. With no Airbus and Boeing single-aisle aircraft available for delivery till almost the middle of next decade for fresh orders placed now, some startups in India are planning to launch operations with Embraer.

“There is a vast market for our capacity aircraft that ranges from 80 to 146 seaters. We believe India will require 500 such aircraft in the next 20 years,” Raul Villaron, Embraer senior VP, had said.

Gautam Sahni, MD of Subha Aviation and leading Indian charter operator for two decades, has sought govt nod for operator’s permit. Sahni is said to be in talks with Embraer.

“I am awaiting clearance from govt and can’t comment any further. But it’s a fact that the Indian regional aviation market is gearing up for massive growth thanks to new airports opening in tier II and III cities and the focus on the subsidised Udan scheme. Delhi and Mumbai getting secondary airports each will boost regional flights connectivity from these two mega urban centres,” said Sahni, who plans to have his base in the upcoming Noida Airport.

Last June, Embraer had told TOI it would increase sourcing and could even set up an FAL based on getting sizeable orders from India. It already has a fully owned Indian subsidiary to scout for business opportunities across defence, commercial aviation, business aviation, services & support space here.