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Airbus, Boeing announce major plans for India

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MRO facility, aeronautical and flight training centre on cards

New Delhi/Mumbai , Aug. 29

The world's two largest aircraft manufacturers, Airbus Industrie and Boeing, today announced major initiatives in India including setting up a technology centre and maintenance, repair and overhaul (MRO) facilities.

The European initiatives would be undertaken by EADS, an aerospace, Defence and related services company that is also part owner of Airbus Industrie.

Separately, at a function in Mumbai today, the Minister for Civil Aviation, Mr Praful Patel, announced that Boeing would invest $185 million to set up an MRO facility and aeronautical and flight training centre at Nagpur. The new facility would come up near the airport.

Speaking to newspersons, Mr Patel said that the MRO facility alone would cost an estimated $100 million, while the aeronautical training facility together with the pilot training centre would see an additional investment of $85 million.

Dr Dinesh Keskar, Senior Vice-President, Boeing, said that work on the MRO facility would begin in two weeks. "All the 68 new aircraft that AI has ordered would be serviced at the new facility."

Meanwhile, in New Delhi, EADS announced that it is looking to invest in a number of projects in India, including an Airbus engineering centre, all of which could generate downstream investments opportunities of up to two billion euros over 15 years.

The company's CEO, Mr Tom Enders, told newspersons, "India is priority country for EADS as it offers market potential and solid aerospace and Defence competencies. We will facilitate the creation in India of training centres for pilots, mechanics and spare part distribution centres."

Mr Enders is in India as a member of a German delegation led by the Minister for Economic Affairs, Mr Michael Glos.

The opening of the campus-style technology centre would bring the EADS subsidiaries and the Indian partners under the same roof, performing engineering and information technology services, the CEO added.

"The decision on the location will be made soon. Operations are expected to begin in the second quarter of next year and the entire campus would be inaugurated in early 2008.

"The centre would become a major employer of aerospace and Defence sectors with the potential to create 2,000 jobs," Mr Enders said.

He added that the engineering centre would focus on high-end engineering analysis and design and would eventually work closely with several Indian aeronautic suppliers. "The centre is expected to enter in to operations during the first half of next year."

Besides, EADS has also decided to launch an India sourcing office with branches in Delhi and Bangalore that should be operational by the end of this year.

"The aim of this is to support the EADS business units in sourcing, both for market access and cost reasons," Mr Enders added.

In addition, an earlier contract covering the joint development of a missile warning system of the Indian Air Force is expected to be operational next year.

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