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Airbus to fly half of new India?

New Delhi, June 21, 2005 (Reuters)

European jetmaker Airbus, flush with its success in India, aims to win at least half an estimated $55 billion worth of new aircraft orders expected to come from the country by 2023, an official said on Tuesday.

Airbus, majority-owned by European Aeronautic Defence & Space Co. NV, is flying high after the recent Paris Air Show, where Indian orders worth $13 billion helped it outsell rival Boeing Co. by a margin of more than two to one.

Responding to reports that Indian airports were not equipped to handle its new A380 superjumbo, Airbus said only modest changes would be needed to allow for its large turning circle.

"We recognise there is an issue with the infrastructure, but if we just sit back and wait for it to improve, no aircraft will be ordered," Kiran Rao, Airbus's senior vice president - marketing and pricing, told a news conference on Tuesday.

Among other big Airbus orders in Paris, Kingfisher Airlines ordered five A330s, five A350 jets and five A380s in a $3 billion deal. Airbus estimates India will eventually need 20 A380s.

Airbus said its squabble with state carrier Air-India over its plan to buy up to 50 long-range Boeing aircraft for $6.9 billion was over. Airbus is now focusing on growing its share of the Indian market and using it as a source for software services, design and composite materials.

That includes A320 passenger doors from state-owned Hindustan Aeronautics Ltd. (HAL) and software services from Infosys Technologies Ltd. and HCL Technologies Ltd.

HAL has a contract worth more than $80 million and Infosys worked on the design and development of the A380.

"Everyone knows the high-quality of work and the cheaper costs here. As an Indian at Airbus, I will encourage more outsourcing to India," Rao said.

     

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