India Aloft: Airbus' Smartest [Recent] Move Yet …

It does not take much to improve on Airbus' recent strategic and operational blunders. Certainly, for Airbus, investing in the Indian market to develop local suppliers and to build engineering centers is a huge step in the right direction. According to news sources in India, Airbus will make investments in the region including "$250 million in an engineering center" in Bangalore. But the European air giant is not alone in the A&D world in turning to India both for talent and as an investment to build marketshare by localizing its supply chains within the region. Indeed, the growth potential for regional air passenger and cargo -- and hence, aircraft purchases -- within India is huge.

Heck, given India's huge infrastructure challenges, it's not impossible to imagine a scenario where internal air freight within the country becomes a financially viable alternative to ground transportation. I'd reckon that you might save in bribes, sitting in toll queues and replacing broken rims and flat tires what you'd pay in the added cost of fuel to move cargo across through the skies!

Jason Busch

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