Where Will Airbus Build the H125 Helicopter Final Assembly Line in India?

Airbus Plans Major Expansion in India with New H125 Helicopter Assembly Line

European aviation giant Airbus has shortlisted eight locations in India for establishing its final assembly line (FAL) for H125 helicopters, with the ground-breaking ceremony expected later this year.

This new facility, the fourth FAL for the single-engine H125, will initially produce up to 10 helicopters annually, with the potential to increase capacity based on market demand, according to Airbus officials.

“India is the market of the future for helicopters… currently, the market is in its infancy, much smaller than its potential,” said Olivier Michalon, Executive Vice President of Global Business at Airbus Helicopters.

The ground-breaking ceremony for the FAL is anticipated in October or November this year, and the facility is set to be operational in 2026, with deliveries expected to start towards the end of that year.

“We have identified eight sites which we are currently assessing. We are in the final assessment stage and should be able to announce the location shortly.

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“We aim to be in an ecosystem best suited for industrial activities, logistics, employees, and regulations,” Michalon stated during a briefing at Airbus Helicopters’ headquarters in Marignane.

The H125 is the most-sold helicopter in India and the South Asia region, with Airbus projecting a demand for 500 H125 helicopters in India and neighboring countries over the next 20 years.

“We are targeting 10 helicopters per year, with the ability to scale up as demand increases,” said Sunny Guglani, Head of Airbus Helicopters in India and South Asia, at the briefing.

Michalon emphasized that while 10 helicopters per year might not seem significant, the number could rise to 20, 30, or 50 in some years, depending on market demand.

“We manufacture, sell, and support helicopters. Additionally, we provide Make In India solutions,” Michalon said, highlighting the success of the A320 aircraft, referring to the H125 as their “A320.”

The H125 can carry up to six people.

Airbus is also setting up a FAL for the C295 aircraft in Vadodara, Gujarat.

There are around 350 civil and parapublic helicopters in India and South Asia (India, Nepal, Bhutan, Bangladesh, Sri Lanka, and Maldives). Of these, fewer than 250 helicopters are in service in India, according to Airbus.

In India, there are about 100 Airbus helicopters, primarily H125 and 130 models.

Globally, more than 4,300 H125 helicopters are in operation.

“The FAL in India will not only make us competitive in terms of lead time and delivery time, but it will also help us address the growth of the Indian market and potentially demand from neighboring nations. This strategic decision will impact our global footprint,” Michalon said.

A basic model of the H125 helicopter could cost around 3.2 million euros, according to a company official.

In India, helicopters are used for tourism, pilgrimage, medical services, and by the energy sector and private entities.

Once established, the FAL for H125 helicopters in India will handle the integration of major component assemblies, avionics, mission systems, installation of electrical harnesses, hydraulic circuits, flight controls, dynamic components, fuel systems, and engines. It will also conduct testing, qualification, and delivery of the H125 to customers in India and the region.

Regarding the Indian market, Michalon noted that current regulations are somewhat restrictive, but the company is preparing for potential regulatory easing and more open skies.

“Either we wait for fully open skies and face a rush from all helicopter manufacturers, or we demonstrate our trust and recognition of India’s potential and be ready to invest,” he said.

In January, Airbus and Tata Group announced a partnership to establish India’s first helicopter FAL in the private sector. This facility will be set up by Tata Advanced Systems Limited (TASL) in collaboration with Airbus Helicopters.