FAL must wait for next-generation planes, but we are leveraging India’s strengths: Airbus CEO Guillaume Faury

In a freewheeling discussion with a select audience, Airbus CEO Guillaume Faury addressed questions on topics ranging from the Final Assembly Line (FAL) in India to current supply chain issues and challenges in the aviation sector, both in India and globally, with a particular focus on Airbus.

Here’s a look at the five major areas that Faury focused on and his thoughts on.

Final Assembly Line

Airbus is currently targeting a production rate of 75 aircraft per month for the A320 family, with assembly lines spread across the globe. These include two in Mobile, USA; two in Tianjin, China; two in Toulouse, France; and four in Hamburg, Germany. CEO Guillaume Faury believes this setup is already extensive, and any further expansion could be detrimental.

“FAL sees only 7% of the value being added to the plane,” quipped Faury, emphasizing that India’s aviation story extends far beyond just a Final Assembly Line. He highlighted areas where India has greater strengths and can contribute significantly to the industry’s overall growth. Airbus already operates a C295 FAL in collaboration with the Tata Group in Vadodara and is also establishing an FAL for Airbus Helicopters.

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However, Faury does not rule out the possibility of a Final Assembly Line (FAL) for next-generation aircraft in India. He stated that a decision would be made when the aircraft is ready, possibly a decade from now. Airbus is currently focused on propulsion, wings, and fuels to finalise the next steps and narrow down its options.

In what could be a cue for locations that could be shortlisted if a FAL has to come up in India, Faury mentioned the need for a harbour, be it at Mobile in the US or Tianjin in China, as a major factor that played out for site selection and subsequent expansion to ensure that supply chains, which are already complex in nature, can be better handled.

The India story is intact and growing

Airbus finds India to be a powerhouse for Engineering, Data, Systems, and Software Excellence and wants to leverage the country’s strengths better. Last year, India’s supply base grew further, and Airbus sourced 1.4 billion USD worth of goods and services from India. The OEM (Original Equipment Manufacturer) expects this value to reach 2 billion USD before 2030, nearly 1.5 times in five years.

India’s role is increasing rapidly in aerospace and systems, especially highly sophisticated ones. Indian companies are adding capabilities not only restricted to India but also looking to expand in the EU and explore M&A activity in the EU.

Challenges in the Indian market

Guillaume Faury praised the Indian aviation market for its rapid growth in passenger numbers and fleet expansion. He was particularly struck by the ambitious plans for airport development over the next decade, signalling even greater potential. However, he acknowledged challenges such as workforce expertise, training, and onboarding.

Airbus is actively supporting the industry, especially with IndiGo and Air India as key customers. Faury placed special emphasis on IndiGo, given its exclusive reliance on Airbus aircraft

When asked about engine challenges, Faury emphasized Airbus’s close collaboration with both airlines and engine manufacturers to resolve issues swiftly. He stressed that while efficiency is crucial, durability remains a non-negotiable factor.

Faury expects improvements from CFM and the GTF Advantage from Pratt & Whitney—the two engine options for the A320neo family—to stabilize operations. He believes these enhancements will increase time on the wing, addressing durability concerns, particularly in India’s hot and humid climate.

India v/s China?

When asked to compare India and China, Faury was quick to clarify that the decision to expand the assembly line in China was never about choosing one country over the other. Instead, it was a logical move to expand an existing line in China rather than setting up a new one in India.

Beyond the Final Assembly Line, Faury views India and China differently. He noted that China follows a government-driven plan executed with precision, whereas India stands out for its strong private-sector participation. Indian enterprises are not only engaged in contract manufacturing but also contribute to innovation, leveraging a highly skilled workforce across engineering, data analytics, software, and systems.

Offerings in the market & Supply Chain issues

Airbus believes it has strong offerings in the market, with ATR (in which it holds a stake) on one side, the A220 in the middle, and the A320 family, which has become the backbone of airline expansion in India. The supply chain constraints that have delayed deliveries to customers, including those in India, will gradually ease starting at the end of this year. Meanwhile, the company maintains a wait-and-watch stance on newer challenges, such as tariffs, issues with engine manufacturers, and the sale of Spirit AeroSystems.