Local Manufacture with 51% Ownership Seen as Solution to Growing Pains in Indian Market

Indian stakeholders are looking into the construction of regional jets in their own backyard, courting aircraft manufacturers around the world with a 49% ownership scheme and technology transfer.

While plans stand at a nearly embryonic level, rumor has it that the aircraft would be produced in Prime Minister Narendra Modi's home region of Gujarat. The goal would be to provide fleets of smaller, more affordable aircraft to operate throughout the country's legions of small airports - an essential prospect in order to improve national connectivity in far-flung, rural areas. The majority of Indian airports would need considerable refurbishment and expansion in order to accommodate the usual narrowbody aircraft from Airbus and Boeing, a problem not entirely shared by capable, compact regional jets. India is on track to become one of, if not the world's fastest-growing aviation market in the coming years, and a gold rush of RJ production would help to facilitate tourism, access, and travel for the 1.4 billion-strong area. 

Currently, India requires 10% of domestic carrier capacity to be used on remote routes, a sometimes unpopular task with airlines when they see a fraction of their larger aircraft filled. Downsizing a portion of their fleet would cut expenses and open up a wider, more flexible field of routes at the same time. As a part of the regional access effort, India allocated $545 million to 100 smaller airports, which should open 1,000 new routes by 2024.

Possible partners for the RJ manufacturing scheme include Airbus, who estimated that the region would need more than 2,200 aircraft by 2040, the majority fo them regional jets. De Havilland has also signaled its interest in the area, claiming a target of 80% of the sub-20 seat aircraft market. Others in the running include Leonardo, ATR, and Embraer. Western brands aren't the only prospective partners, with Sukhoi having expressed their interest in getting a piece of the action. Only time will tell which company gets the brass ring.

FMI: www.embraer.com