Adani Group has partnered with a Brazilian multinational aerospace corporation, Embraer, to manufacture the company’s popular regional jets in India. The move is expected to give a much-needed boost to India’s aviation sector by improving regional air connectivity. With the deal, India will join the league of nations having a final assembly line (FAL) for commercial fixed-wing aircraft.
According to the Times of India, a memorandum of understanding was signed in December between the Adani Group and Embraer in Brazil. A formal announcement regarding the deal is expected to be made later this month at the Hyderabad Air Show. The jets are designed for short- to medium-haul routes and have the capacity to accommodate 70 to 146 passengers.
The Brazilian aircraft company has around 50 aircraft of 11 different kinds operating in India, across commercial, defence, and business aviation sectors. Currently, Star Air is using Embraer in the commercial airline industry and is expected to place an order for more regional jets. No Airbus and Boeing single-aisle aircraft are available for delivery till almost the middle of the next decade for the fresh orders placed now. This has given an opportunity to some Indian startups 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,” said Raul Villaron, Embraer senior VP.
As per the TOI, last year in June, Embraer had expressed the intention to increase sourcing and set up an FAL if it received sizeable orders from India. Embraer already has a fully-owned Indian subsidiary to attract business opportunities across defence, commercial aviation, business aviation, services and support space in India.
India currently is the world’s fastest-growing aviation market with over 1,800 planes on order from airlines, including Air India group, IndiGo and Akasa. The government has been emphasising the establishment of FAL for commercial aircraft in India by aerospace giants.
Besides, the Indian government is working to incentivise customers who order from India’s first major commercial aircraft FAL. The government is hopeful that if it is able to create an ecosystem for assembling commercial planes, it will attract aerospace majors like Airbus and Boeing to follow suit instead of solely focusing on increasing their sourcing from the country.
