Airbus to invest $1bn in India

 The areas where the Toulouse-based aircraft maker is looking to invest in India include setting up of training centres, maintenance, repair and overhauling (MRO) facility, engineering centre and design centre.

 "We plan to have a training centre for A-320 Airbus by 2007 starting with about four simulators, which can be then expanded up to eight simulators over the next five years at an investment of about $300 million," Rao said.

 On the MRO facility, Rao said the company was in talks with various partners including two Indian forms. "The facility is planned for the Asia region, and we hope to finalise it soon," he said without divulging further details.

Predicting robust growth in the India civil aviation sector, Airbus today said India would require passenger and freight aircraft, valued at $105 billion, to serve the strong demand by 2025.

According to the latest Airbus global market forecast, India will become the fastest-growing country for air travel for the next decade. "Strong demand in India is being unleashed by Air transport deregulation, the emergence of a number of new operators, low fares and large untapped demand for air travel," Airbus COO (customers) John Leahy said today.

According to the forecast, India will require 1,100 passenger and freight aircrafts by 2025 of which 935 will be passenger aircraft. The number of passenger aircraft will increase five-fold from 190 aircrafts in service at the end of 2005.

Earlier, US major Boeing, a competitor of Airbus, had predicted similar growth in Indian aircraft demand.