Even as Chinese airlines snubbed European Aeronautic Defence and Space Co (EADS) in favour of US-based manufacturer Boeing, India has emerged as a key market for EADS. Orders from India could go beyond $33 billion for EADS if it is successful in winning the Indian medium multi-role combat aircraft (MMRCA) deal.
At present, commercial plane orders itself from India airlines contribute over $22 billion for EADS. This includes IndiGo's order for 180 Airbus A320 NEO worth $15.6 billion and a further 72 Airbus A320 NEO order from GoAir for $6.6 billion. In fact, India's orders forms a third of the total global orders or commitments for the A320 NEO to date.
At the Paris Air Show, India emerged as the single largest market for Airbus with the maximum number of orders, even though Malaysian low-cost carrier, AirAsia stole the limelight with the largest order by a single airline by ordering 200 A320 NEO aircraft.
On the cards is another $11-billion deal for 126 MMRCA fighter jets for which EADS' Eurofighter Typhoon has been short listed along with Dassault Aviation's Rafale.
“The orders would make India a key market for EADS. The country would contribute to almost 10 per cent of the company's total orderbook,” said an industry official.
China snubs Europe
India's attraction to the European manufacturer comes along with China's snub to the continent. China's Hong Kong Airlines was supposed to place an order for $3.8 billion for 10 Airbus A380s but the deal was called off because of China's anger over European plans to charge airlines for emissions. The airline instead chose to go for Boeing's 747-8.
“India's relations with the European Union are very warm at the moment. The two countries are in discussions for a free trade agreement as well. Mega deals such as the ones announced at the Paris Air Show will only further strengthen relations between India and the EU as it is mutually beneficial,” said an analyst.