Airbus Nearing Decision on H125 Helicopter Assembly Site in India

Airbus Helicopters is close to finalizing the location for its new final assembly line (FAL) in India, intended for the H125 helicopter. Eight potential sites are currently under evaluation, according to top Airbus Helicopters officials.

An Airbus H125 helicopter under production in Marignane, France.

Expansion Plans in India

The proposed FAL, a collaboration between Airbus Helicopters and Tata Advanced Systems Limited (TASL), aims to meet the growing demand in India and South Asia. The decision on the location is expected soon, with the groundbreaking ceremony planned for late 2024 and the first H125 helicopter rolling out by 2026.

Olivier Michalon, Executive Vice President Global Business of Airbus Helicopters, emphasized that the final decision will consider factors like employee attractiveness, industrial activity, logistics, and regulations. “We are still in the final assessment stage but stay tuned, we should be in a position to announce shortly,” Michalon told reporters at Airbus Helicopters’ headquarters in Marignane, near Marseille.

Strategic Partnership

This FAL will be the first in the private sector in India, marking a significant milestone for Airbus and TASL. It follows the announcement made on India’s Republic Day during the French President Emmanuel Macron’s state visit to India. This is the second aircraft FAL by Airbus and TASL, with the first being the C295 military aircraft FAL in Vadodara.

Production Capacity and Future Prospects

Initially, the India FAL will have an annual production capacity of 10 H125 helicopters. Currently, the H125 is manufactured at Airbus Helicopters’ headquarters in Marignane, as well as in the US and Brazil. Although starting with a modest production capacity, Michalon mentioned the potential for significant expansion based on market demand. “Starting from scratch, it is not negligible. It could very well be 20, 30, or 50 in some years,” he noted.

Market Potential in India

India’s civil helicopter market, while currently small, holds immense potential due to its large population and economic growth. Airbus anticipates that producing the H125 in India will boost the usage of helicopters across various sectors.

Sunny Guglani, Head of Airbus Helicopters South Asia, highlighted the flexibility to ramp up production in response to demand. He cited a projected demand for 500 H125 class helicopters in India and neighboring countries over the next 20 years. “We have approximately 140 Airbus Helicopters in the region, with 100 in India alone,” Guglani stated, noting Airbus’s 40% market share in civil and para-public helicopters in the region.

Broader Implications

Michalon described the current market as “embryonic” but ripe for expansion. He pointed out that India’s growing middle and upper classes will drive demand for various services, including emergency medical services, law enforcement, firefighting, and disaster management. “We had two possibilities: either we wait for the sky to fully open, or we demonstrate our trust and the recognition of the potential of India and be ready to invest,” Michalon explained.

The H125, known for its versatility in missions like emergency medical services, law enforcement, and aerial work, is well-suited to meet India’s diverse needs. With around 7,200 H125 helicopters in operation worldwide, it is one of Airbus Helicopters’ most popular models.

Looking Ahead

Although smaller in scale, the H125 FAL in India will adhere to the same processes and standards as Airbus’s flagship facility in Marignane. The helicopters produced will carry the European Union Aviation Safety Agency (EASA) certification and will be competitively priced. Airbus is confident that this strategic move will enhance its global footprint and address the growing demand in the South Asian region.

In conclusion, Airbus’s decision to establish an H125 FAL in India is a testament to the country’s potential as a major hub for helicopter manufacturing and use. Stay tuned for the official announcement of the site location, which promises to be a significant development in the aerospace industry.