Adani, Embraer sign MoU to establish aircraft making facility

Brazilian regional aircraft maker Embraer and Adani Defence & Aerospace on Tuesday signed a memorandum of understanding (MoU) to establish an aircraft manufacturing facility.

 

This would be the first commercial aircraft final assembly line (FAL) to be established in India.

 

“The companies, through this MoU, aim to collaborate on opportunities in aircraft manufacturing, supply chain, aftermarket services, and pilot training,” said Jeet Adani, Director, Adani Defence & Aerospace, after signing the partnership agreement with Arjan Meijer, President and CEO, Embraer Commercial Aviation in Delhi.

 

“We are looking at a few places for the location of the FAL. We expect everything to be finalised (location, which Embraer models to manufacture, etc) in the next couple of months. We will start construction work on the site as soon as it is finalised. The supply chain is ready to work,” Jeet Adani mentioned.

 

 

As of now, Embraer’s FALs are concentrated in two countries. In Brazil, the company runs its primary FALs at Sao Jose dos Campos and Gaviao Peixoto, which together handle the assembly and flight testing of its commercial aircraft as well as defence platforms such as the C-390 Millennium.

 

In the United States, Embraer operates FALs in Melbourne, Florida, focused on business jets, including the Phenom and Praetor families, and in Jacksonville, Florida, where it has carried out assembly of defence aircraft such as the A-29 Super Tucano.

 

Jeet Adani said that while the Adani Group and Embraer are finalising the location of the FAL in India, they are at the same time having discussions with prospective airline customers in India for an order. “Everything should be in place by the time planes are coming out of the FAL,” he added.

 

At present, Star Air is the only airline in India regularly operating Embraer regional aircraft, even as Embraer engages with other carriers such as IndiGo and Air India on potential future sales or fleet decisions.

 

When Meijer was asked if a fresh supply chain would be established in India to support the upcoming FAL, he replied: “We will initially be using our existing supply chain to support the final assembly in India. We want to make the supply chain indigenous too, but it will take time.”

 

Civil Aviation Minister Ram Mohan Naidu said that there was a strong need for a regional aircraft maker in India that can develop 80-150 seater planes. He said that the planes developed in the Indian FAL of Embraer would be exported as well.

 

The minister said that the Adani Group’s scale and capability to execute big aviation projects such as construction of Navi Mumbai airport was commendable and he had high expectations from the conglomerate.

 

India’s civil aviation market has expanded rapidly, with domestic airlines operating a combined fleet of around 800 aircraft and nearly 1,700 more on order. However, the regional aircraft segment remains largely untapped.

 

In a joint presentation, the two companies said regional aviation plays a catalytic role in economic development rather than merely responding to it, acting as a trigger for growth in smaller cities and underserved regions.

 

Regional aviation forms the backbone of the government’s UDAN scheme, where many routes have relatively low passenger demand and are not economically viable for large narrow-body aircraft such as the A320 or Boeing 737, they said.

 

Regional transport aircraft are better suited to these markets as they can operate efficiently from shorter runways and airports with limited infrastructure, enabling connectivity where it would otherwise not exist, they added. 

Joining hands

 

• This would be the first commercial aircraft final assembly line to be established in India
• Adani Group and Embraer are also having discussions with prospective airline customers in India for an order
• Embraer is engaging with IndiGo and Air India on potential future sales or fleet decisions
• Embraer will initially be using its existing supply chain to support the final assembly in India