In a strategic partnership between the TATA Group and European aviation giant Airbus, the Hyderabad-based facility has commenced manufacturing C-295 transport aircraft. This development comes as the Indian Air Force (IAF) seeks to replace its aging Avro fleet.
Recently, six pilots completed their training in Spain, and the first batch of IAF aircraft engineers is undergoing training to conduct maintenance for the aircraft stationed at 10 operating bases.
Moreover, the IAF and Airbus have entered into a five-year Performance-Based Logistics (PBL) agreement. This agreement obligates Airbus to ensure that 85% of the fleet remains operationally ready at any given time, signifying the aircraft’s high availability for deployment.
While the IAF has already ordered 56 C-295 aircraft, each with a capacity of carrying up to 9 tonnes of cargo, Airbus officials confirmed that discussions are underway with the Indian Navy and Indian Coast Guard to procure up to 15 additional aircraft. Out of these, nine will be dedicated to maritime surveillance operations.
Notably, the Border Security Force (BSF) and certain security agencies are also considering the acquisition of C-295 aircraft to strengthen their operations alongside other potential foreign markets.
The World Bank President, Ajay Banga, who recently took on his role, has expressed optimism about India’s potential to benefit from the “China Plus One” approach of global companies shifting their manufacturing bases away from China. He believes India has a three-to-five-year window to attract investments and secure its position as an attractive investment destination.
The first C-295 aircraft is expected to be handed over to the IAF in September, with the second one scheduled for delivery in May of the following year. As part of the Rs 21,000-crore deal with Airbus, the first 16 aircraft will be delivered in “fly-away” condition from Airbus’s final assembly line in Seville, Spain, by September 2025. Under an industrial partnership, the remaining 40 aircraft will be manufactured and assembled by Tata Advanced Systems Limited (TASL) in India.
The collaborative effort between Airbus and TATA involves extensive technology transfer, with approximately 90% of the technology being transferred to India. From the 30th aircraft onwards, the entire aircraft will be built in India, marking a significant milestone for Airbus.
Airbus officials highlighted that 14,000 parts of the C-295 aircraft are being indigenized by the TATA group at a rate of about 4,000 annually. Only non-Airbus parts, such as landing gear, engine, and avionics, will be procured from other sources.
Airbus is also establishing a training center with simulators in Agra for IAF personnel, set to be completed by the end of 2024. Additionally, Uttar Pradesh will host a warehouse for C-295 parts. Talks are also underway with Airbus to establish a maintenance repair and overhaul (MRO) hub for the aircraft, which several countries in the region operate.
