BUSINESS
To cater to the burgeoning demand for helicopters in South Asia, the proposed Airbus Helicopters-Tata Group final assembly line (FAL) in India will have the annual capacity to churn out 10 H125s — the most-sold helicopter in India and globally. Airbus estimates there will be a demand for around 500 H125 class single-engine helicopters in India and neighbouring countries in the next 20 years, around 90% of which will be in India alone. “I think on purpose we are being a bit conservative (on the demand), as potential is much greater than that. In seven to 10 years, I expect India to be as big a market as the US for this type of helicopters,” said Olivier Michalon, executive vice president, global business, for Airbus Helicopters. He, however, said Indian regulations have to adapt to support the demand for more helicopter services. The site of the FAL in India will be announced in consultation with Tata Group in a few months. The FAL was announced during the two-day visit of French President Emmanuel Macron to India for the Republic Day celebrations. Airbus Helicopters is estimated to have a 50% share in the commercial transportation/charter transportation category in India. A running FAL is expected to give it a competitive advantage when demand for the chopper rises. The H125 has the potential to revolutionise passenger and goods transportation, emergency medical services, disaster management, law enforcement, tourism and aerial work missions. There are approximately 350 civil and para-republic helicopters in India and South Asia, of which 257 are in service in India. Given the size, length and population of the country, the helicopter service penetration in India was considered very low, said Sunny Guglani, Head of Airbus Helicopters, South Asia. He said it was a supply-side problem, not a demand problem. “We plan to have the first made-in-India H125 helicopter roll out by 2026. The quality and price will be the same as the ones produced in France,” Guglani said. “Furthermore, customers buying helicopters will pay in Indian rupees, which will… lead to a reduction in the cost of acquisition for Indian customers.” A basic H125 may be priced starting around 3.2 million euros (`29 crore at current exchange rates). The FAL will undertake the integration of major component assemblies, avizonics and mission systems, installation of electrical harnesses, hydraulic circuits, flight controls, dynamic components, fuel system and the engine. It will also do testing, qualification, and delivery of the H125 in India and the region. (The writer was in France at the invitation of Airbus) None
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