FAL has to wait for the next generation of aircraft, but we are taking advantage of India: Airbus CEO Guillaume Faury

In a free discussion with selected audiences, Airbus CEO Guillaume Faury has addressed issues on topics and focused on Airbus on a global scale in India and around the world.

Here are five main areas Faury focuses on and what he thinks.

Final assembly line

Airbus currently has a monthly productivity of 75 aircraft for the A320 family and has assembly lines all over the world. These include two in the United States; two in Tianjin, China; two in Toulouse, France; and four in Hamburg, Germany. CEO Guillaume Faury believes this setup is already widespread and any further expansion can be harmful.

“Only 7% of the value of FAL is added to the aircraft,” Faury said, stressing that India’s aviation story goes far beyond the final assembly line. He highlighted areas where India has greater advantages that can make a significant contribution to the overall growth of the industry. Airbus has partnered with Vadodara’s Tata Group to operate the C295 FAL and has also established the FAL for Airbus helicopters.

Also read: Indigo targets 200 MN flyers by 2030, but faces shortage of aircraft

However, Faury does not rule out the possibility of the final assembly line (FAL) of India’s next-generation aircraft. He said a decision will be made when the plane is ready, probably starting from now on a decade. Airbus is currently focusing on propulsion, wings and fuels to finalize the next step and narrow down its options.

If FAL must appear in India, then the tips for a location that may be shortlisted, Faury mentioned the need for a port, whether it is Mobile in the United States or Tianjin in China, which is a major factor to ensure that supply chains are already complex in nature and can be handled better.

The story of India is intact

Airbus believes India is a powerful force in engineering, data, systems and software excellence and hopes to better leverage the country’s strengths. Last year, India’s supply base grew further, with Airbus providing $1.4 billion in goods and services from India. OEMs (Original Equipment Manufacturer) expect that value will reach $2 billion by 2030, close to 1.5 times in five years.

India’s role in aerospace and systems, especially highly complex systems, is rapidly increasing. Indian companies are adding features not only to India, but also want to expand and explore EU M&A activities in the EU.

Challenges in the Indian market

Guillaume Faury praised the rapid growth of passenger numbers and fleet expansion in the Indian airline market. He was particularly shocked by ambitious airport development plans over the next decade, demonstrating greater potential. However, he acknowledges challenges such as workforce expertise, training and onboarding.

Airbus is actively supporting the industry, especially among Indigo and India Air as key customers. Faury has made a special emphasis on Indigo, given its exclusive reliance on Airbus aircraft

When asked about the engine challenge, Forre highlighted Airbus’ close collaboration with airlines and engine manufacturers to quickly resolve the issue. He stressed that while efficiency is crucial, durability is still an unnegotiable factor.

Faury expects the GTF advantages of CFM and Pratt & Whitney (two engine options for the A320Neo family) to be improved to stabilize operations. He believes that these enhancements will increase time on the wings, thereby solving persistence issues, especially in India’s hot and humid climates.

India v/s China?

When asked to compare India and China, Forrey quickly clarified that the decision to expand China’s assembly lines was never to choose one country over another. Instead, this is a logical move to expand existing lines in China rather than establishing new lines in India.

In addition to the final assembly line, Forret’s views on India and China also differ. He noted that China follows government-driven plans to implement precisely, while India stands out for its strong private sector involvement. Indian companies are not only engaged in contract manufacturing, but also contribute to innovation and leverage a highly skilled workforce in engineering, data analysis, software and systems.

Products in Market and Supply Chain Issues

Airbus believes it has strong products in the market, with ATR on one side (holding shares), and the A220 and A320 families in the middle have become the backbone of the expansion of Air India. Starting from the end of this year, supply chain restrictions on delayed delivery to customers (including those in India) will gradually ease. Meanwhile, the company maintains a guardian stance on newer challenges such as tariffs, engine manufacturers’ issues, and Spirit Aerosystems sales.