GURUGRAM- Air India (AI), under the ownership of Tata, is in the final phases of establishing a joint venture (JV) for Pilot Training with the prominent European aerospace company Airbus.
This collaboration aims to create a pilot training services facility anticipated to be the largest in the South Asian region.
Air India Airbus Pilot Training Facility
Sources familiar with the matter revealed that the overall investment in this facility is expected to amount to ₹3,500 crore, with both Air India and Airbus holding equal 50% stakes in the venture.
The initial phase of the facility will commence with six simulators catering to the Airbus A320 family and A350 aircraft types. However, it is designed with the potential to expand its capacity to accommodate up to 20 simulators, positioning it among the most extensive training facilities in the region.
The forthcoming facility is poised to address the training requirements of Air India while simultaneously extending its services to other Airbus customers, according to insider information.
This venture is set to compete with CSTPL, an existing joint venture between InterGlobe, the parent company of IndiGo (6E), and CAE Inc.
CSTPL presently dominates the flight simulation business in India and is actively seeking to augment its capabilities by adding an additional five simulators over the next two years, as per sources cited by ET.
L3 Harris JV for Boeing Pilots
In addition to the Airbus-focused initiative, Air India is in the final stages of solidifying another joint venture with L3 Harris, a U.S.-based entity, specifically for pilot training concerning Boeing aircraft like the 737, 777, and 787.
Former AirAsia India CEO Sunil Bhaskaran oversees the establishment of this JV.
An official involved in these developments emphasized the strategic investment in building a pilot training facility to meet the escalating demands arising from the expansion of Air India’s fleet and network.
Notably, this facility is intended not only for internal needs but is also envisioned to serve as a center of excellence for the broader aviation industry in the region.
Strong Demand Amid Record Orders
In February, Air India made a significant order for 470 planes.
In collaboration with Boeing, Air India has concluded agreements for the acquisition of a total of 290 new aircraft and the expansion of services. This comprehensive deal encompasses 190 Boeing 737 MAXs, 20 Boeing 787 Dreamliners, and 10 Boeing 777X jets, with an additional option for 50 more 737 MAXs and 20 Dreamliners.
Simultaneously, the arrangement with Airbus involves an order for 250 aircraft, comprising 140 A320neo and 70 A321neo single-aisle aircraft, along with a revised order for 20 A350-1000 and 20 A350-900 wide-body jets.
Another official familiar with the strategic planning stated that the forthcoming facility is designed to offer ab-initio, type-rated, and recurrent training.
Following global aviation training standards, pilots typically begin with ab-initio training to obtain a license. Subsequently, type-rated training is necessary for operating a specific aircraft type and acquiring the required license endorsements. Recurrent training, conducted annually, ensures that the pilot maintains the essential license endorsements.
The second official emphasized that revenue from other airlines will contribute to the facility’s financial viability. They noted that there is minimal cost difference between training pilots domestically or internationally as long as the accommodation costs align with their preferences.
The surge in aircraft orders from Indian airlines is anticipated to drive the demand for flight simulation centers.
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