AirBus sets up India arm for quicker growth

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Aircraft manufacturer Airbus has set up an Indian subsidiary, bringing all its domestic activities under one umbrella, taking a step towards exploring better opportunities in the country.

Under the reorganistion, the company has appointed Srinivasan Dwarakanath as the chief executive officer and Charles Champion as the chairman of the Indian unit.

While Indian carriers currently operate a fleet of over 170 made by Airbus aircraft, the company’s current market share of sales in India stands at over 60 per cent of the total aircraft backlog.

By establishing an Indian arm, Airbus hopes to foster innovation, respond quickly to growth and seek out new cooperation opportunities here, it said.

“Partnership is the binding ingredient for success, and the establishment of Airbus India underpins our strategy to foster even closer ties. Building on our significant engineering presence in India the new company structure will add a strong customer facing element making us more agile, bringing us closer to stakeholders, suppliers, and also to new talent,” the CEO of Airbus India said.

The cumulative turnover of Airbus generated work in India has tripled over the last three years (over €250 million in 2013) and is expected to grow significantly in the next ten years, Airbus said in a statement.

The subsidiary — Airbus India — will now look into strategy, customer services and procurement team. It would also look at establishing a Maintenance Repair and Overhaul (MRO), later. This apart, it would have customer facing centres in Delhi and Mumbai. Also, their liaison office located at New Delhi will be headed by Ajay Mehra.

“India has one of the world’s greatest aviation growth potentials and with an abundance of engineering talent is a strategically important market. Airbus has been extending its industrial cooperation partnerships with India for many years and today Indian engineering and manufacturing companies nationwide representing more than 5,000 people, contribute to all Airbus aircraft programmes,” said Kiran Rao, Airbus executive VP.


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