Reuters India

Airbus plans $1 billion investment in Indian aviation

7 May 2007

NEW DELHI (Reuters) - European plane maker Airbus plans to invest more than $1 billion in the Indian aviation industry in the next 10 years, a senior executive said on Monday.

The investment would cover training, a maintenance facility, and a design and engineering centre.

"We have decided to invest over $1 billion in the next 10 years in Indian aviation," John Leahy, chief operating officer (customers) of Airbus, told a news conference.

An Airbus A380, the world's largest passenger aircraft, was in India recently on a promotional flight for India's Kingfisher Airlines.

Kingfisher, owned by the UB Group which also controls the country's top brewer and spirits maker, has placed an order for five A380 aircraft and has an option for five more.

Airbus, part of the EADS group, has said it expects Indian firms to place orders for 1,100 passenger and freighter aircraft valued at about $105 billion over 20 years.

India's booming economy has led to a sharp rise in air travel, with a number of private airlines starting operations in the past three years.

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