Boeing’s track record in championing India’s “Make in India” and “Skill India” initiatives through substantial investments in manufacturing, co-production, skilling, engineering, and innovation has solidified its position as a key contributor to India’s growth.
In the wake of the Indian Prime Minister’s recent visit to the United States, there is a newfound vigor in strengthening bilateral collaborations spanning multiple sectors. These collaborations extend to defence, civil aviation, and advanced technology domains. Amid this renewed focus on fostering partnerships, Boeing, the American aerospace giant, stands uniquely poised to facilitate co-development initiatives. Boeing’s track record in championing India’s “Make in India” and “Skill India” initiatives through substantial investments in manufacturing, co-production, skilling, engineering, and innovation has solidified its position as a key contributor to India’s growth. Notably, Boeing’s investments have not only bolstered India’s defence capabilities, exemplified by world-class facilities like the C-17 MRO and training centre at Hindon and the P-8I training facility at Rajali, but also reinforced its status as a leading foreign Original Equipment Manufacturer (OEM) engaged in making, engineering, and sourcing from India.
Salil Gupte, President of Boeing India, underscores the pivotal role of these strategic investments in Boeing’s continued engagement in India.
In an exclusive interaction ahead of the G20 Summit, Gupte delves into Boeing’s contributions, its commitment to building local capabilities, and its vision for India’s aviation and defence sectors.
Following are excerpts from an exclusive interaction with Salil Gupte, President Boeing ahead of the G20 Summit.
The Indian Prime Minister’s visit to the US put the focus on aviation, including Boeing’s announcement of a US$100 million investment in infrastructure and pilot training programs in India, and the Air India deal. Can you expand on what this investment entails?
To support the demand for pilots and mechanics in the Indian aviation industry, Boeing will invest US$100 million, a portion of which will be allocated towards simulator infrastructure, software, and the creation of training curriculum through a partnership with CAE. Additionally, the investment will be directed towards supporting customer ambitions, such as Air India, which aims to establish its own training business. This expansive approach has been meticulously crafted to address the burgeoning need for skilled pilots in India, projected to exceed 31,000 within the next two decades. The impending deployment of these simulators over the forthcoming years, a direct result of this investment, is set to cover a substantial proportion of the anticipated demand.
In parallel to simulator infrastructure enhancement, Boeing has partnered with the Directorate General of Civil Aviation (DGCA) for a training curriculum known as Competency Based Training. The DGCA was one of the first regulators in the world to adopt competency-based pilot training and we’ve been working with the airlines to put forward training procedures that adhere to those curriculum requirements, and a part of the investment that we’re making is also to roll out competency-based training.
Are there similar investments being made on skilling in the defence sector?
Boeing Defence India focuses on building local capabilities, workforce training, and partnerships to ensure the Indian armed forces are always mission-ready. Inaugurated in 2023, the Ashok Roy Training Simulator Complex is the P-8I simulator facility at INS Rajali which reduces the use of actual aircraft for training. The simulator was built by Boeing for the Indian Navy as part of a training and support package contract signed in 2018. India is one of only four countries in the world and the first in Asia to have such a facility. The 60,000-square-foot (5,574-square-meter), state-of-the-art facility reduces the need to undertake training aboard actual aircraft, resulting in significantly improved availability for operational missions.
In 2021, we had also launched BIRDS hub – an in-country network and alliance of suppliers led by Boeing in India that envisions a competitive MRO ecosystem for engineering, maintenance, skilling, repair and sustainment services of defence and commercial aircraft. This network aims to drive high industry benchmarks in India for maintenance and repair, platform availability, customer satisfaction, quicker turnaround time. The initiative is designed to grow capabilities in India in the areas of heavy maintenance, component repairs, training and skilling. An important aspect of the hub is training programs to increase skilled manpower by developing sub-tier suppliers and MSMEs to build high quality MRO capabilities in India.
Boeing India’s strategic collaboration with Air Works was an important first step under the BIRDS hub that envisions a collaboration with key local companies and businesses to develop India into an aviation and defence repair and sustainment hub. In partnership with Air Works, we completed the eighth P-8I airframe Phase 32 heavy maintenance inspection for the Indian Navy – successfully returning all aircraft to service on time to ensure fleet readiness in support of India’s maritime defence.
What is the current outlook for the Indian aviation market, is demand back to pre-pandemic levels?
The Indian domestic passenger air traffic has already surpassed pre-pandemic levels. This is a testament to the pent-up demand for travel and the industry’s ability to adapt its operations to the new normal. India’s commercial aviation market is expected to become the third largest in the world by 2041, with a fleet size nearly quadrupling compared to 2019. As per the Boeing Commercial Market Outlook 2023, South Asia is expected to receive over 2,700 new airplanes over the next 20 years, of which a staggering 90 percent will be slated for India. To accommodate this significant expansion, the region will require approximately 37,000 pilots and 38,000 mechanics in the same period.
Can you provide more details about the Air India deal, its status, and how it will contribute to the growth of the Indian aviation industry?
Air India finalized its order for up to 290 new Boeing jets and expanded services. At the 2023 Paris Air Show, Boeing and Air India held a signing ceremony to celebrate the historic purchase to renew and expand Air India’s fleet. The order, which includes 190 737 MAXs, 20 787 Dreamliners and 10 777X jets with options for 50 737 MAXs and 20 787 Dreamliners, is Boeing’s largest order in South Asia and builds on our over 90-year partnership with Air India. Air India has selected these Boeing models to serve its strategy for growth, and our comprehensive set of aviation services will also enable Air India to sustainably expand its operations in the rapidly growing aviation market.
Are there plans underway to increase the production of 737 Max planes and 787 Dreamliners? How are you addressing the supply chain disruptions that are impacting backlogs?
Boeing continues to adapt to various challenges by collaborating closely with its customers, providing innovative solutions, and focusing on long-term sustainability and reliability in the aerospace sector. We understand that airlines may adjust their orders based on passenger demand and we, at Boeing, remain committed to supporting Indian airlines with the right solutions that align with their evolving needs.
Our focus remains on driving stability in our production system, including closely partnering with our suppliers to address challenges, meet our customer commitments and prepare for future rate increases. Our objective is unchanged: a healthy and stable production system. There’s progress in many areas of the supply base, however we expect our supply chain challenges to continue well into 2024. We continue to work through supply chain challenges on a case-by-case basis. We regularly monitor our suppliers across the globe, including our sub-tier supply chain, to ensure their deliveries support our current and future airplane production needs. This includes a variety of different approaches, from top leadership engagements to daily communications to onsite and embedded teams, all ensuring alignment and stable, predicable execution. We’ve also ramped up internal fabrication for surge capacity and we’ve increased inventory of select parts for risk protection.
Regarding the production of 737, the vast majority of our production system is operating at 38 aircraft per month, and we are transitioning to final assembly now. We are on track to reach 50 in the 2025/2026 timeframe. For the 787 – we’re producing at 4/month and still plan to reach 5/month by year-end.
With new players like Akasa already placing orders for four additional aircraft, do you believe there is still untapped potential in the Indian aviation space? How do you foresee your association with new players like Akasa progressing?
India will be one of the largest aviation markets in the world and is currently the fastest growing, with Akasa Air reflecting this potential. Akasa is one of the fastest growing start-ups in the history of aviation. We recently delivered Asia’s first 737-8-200 to Akasa Air. This was also the delivery of their 20th aircraft. Akasa has expanded at a rate unlike any other in aviation history. It’s gone from start-up operations to 20 aircraft in a year’s time, and that is really remarkable. They’ve done it all with the 737 MAX, which actually makes them the most sustainable airline as well, just because of the fuel efficiency of the aircraft.
With the order of four additional aircraft during Paris Air Show 2023, their order book comprises 76 jets, which includes 23 737-8s and 53 high-capacity 737-8-200 airplanes. We are excited as Akasa prepares for their foray into international routes.
https://www.financialexpress.com/business/defence-fe-exclusive-boeings-vision-for-india-a-partner-in-progress-across-sectors-3237450/