New Delhi, India – In a move poised to reshape India's aviation landscape, the Adani Group and Brazilian aerospace giant Embraer have announced a strategic partnership to establish a regional aircraft manufacturing venture within India. The collaboration, announced Tuesday at a function at the civil aviation ministry in the national capital, aims to create a comprehensive regional transport aircraft (RTA) ecosystem, marking Adani Group's entry into aircraft manufacturing.
Jeet Adani, Director of Adani Airport Holdings Limited and Director of Adani Defence & Aerospace, hailed the partnership as a "landmark deal" that will "change India's aviation trajectory". He emphasized the intent to establish a state-of-the-art regional aircraft manufacturing facility and a unique aviation ecosystem within the country. "Together, we will establish a regional aircraft manufacturing facility in India and a one of its kind aviation ecosystem, a project that will redefine the future of aviation in our country,” Adani stated.
The collaboration between Adani and Embraer will focus on aircraft manufacturing, supply chain development, aftermarket services, and pilot training. The initial goal is to establish a final assembly line (FAL) in India for Embraer's regional jets, potentially rolling out the first aircraft within five years. Following the establishment of the FAL, the partnership intends to progressively increase the indigenization of aircraft components, aligning with the Indian government's "Aatmanirbhar Bharat" (self-reliant India) vision.
Civil Aviation Secretary Samir Kumar Sinha underscored the significance of the partnership, stating that it extends beyond mere assembly, encompassing technology transfer, skill development, and the establishment of a robust supply chain. Sinha envisions India becoming a trusted manufacturing hub for regional aircraft. He noted that India, as the world's fastest-growing aviation market, cannot solely rely on imports and must integrate into the global supply chain.
The Embraer-Adani partnership aims to leverage Embraer's deep engineering and aircraft manufacturing expertise with Adani's existing aviation infrastructure, which includes airport infrastructure, aerospace manufacturing capabilities, MRO (maintenance, repair, and overhaul) services, and pilot training facilities. This synergy seeks to create a favorable environment for the success of the RTA program. Embraer is known for manufacturing commercial jets with up to 150 seats, suitable for short to medium-haul routes, which aligns with India's growing need for enhanced connectivity to Tier 2 and Tier 3 cities.
With no Airbus or Boeing single-aisle aircraft available until the middle of the next decade, the Adani-Embraer partnership is a timely move that will get the first mover advantage.
According to a Times of India report, Adani Aerospace, a subsidiary of the Adani Group, has signed a memorandum of understanding with Embrier to set up a final assembly line (FAL) for these aircraft.
The investment, timelines, and specific locations for the FAL are expected to be finalized within the next couple of months. The Adani Group is currently evaluating potential locations and assessing demand to secure customer commitments for the locally manufactured aircraft. The government is also considering fiscal incentives for customers ordering aircraft made in India, which could benefit both existing and new airlines.
