Airbus Helicopters Signs Deal to Finance Helicopter Purchases in India

Airbus Helicopters has signed a Memorandum of Understanding (MoU) with the Small Industries Development Bank of India (SIDBI). With this partnership, Airbus’s rotary-wing branch aims to expand its presence in the Indian market. Purchasing and financing of aircraft is a hectic job in India. This agreement has been signed to ease the process.

SIDBI is a financial institution set up under the Government of India (GoI). It promotes and provides financial support to companies in the Micro, Small, and Medium Enterprise (MSME) sector.

Airbus Helicopters Signs MoU With SIDBI

Under the signed agreement, both parties have their assigned jobs. Both of them will first of all watch out for potential helicopter operators in the country, who are seeking financing services. Airbus will provide technical and industrial knowledge to SIDBI. Following this, SIDBI will assess all the prospects and finance these purchases exclusively for Airbus helicopters.

In the signing ceremony, key dignitaries from both parties were present. MoU was signed between:

• Chief General Manager, SIDBI, Rahul Priyadarshi
• Head of Airbus Helicopters for India and South Asia, Sunny Guglani

While addressing the event, Rahul Priyadarshi from SIDBI mentioned that this new financing initiative of Airbus Helicopters will open new opportunities for financing MSMEs in this sector. This is the first time that SIDBI is entering into the helicopter financing business. The helicopter market in India is growing rapidly. The aim is to address the financial and developmental needs of this sector.

India: Large Market for Airbus Helicopters

India is already a large market for Airbus’s helicopter business. This partnership will further enhance the accessibility of these helicopters in India. The products from Airbus and financing support from SIDBI are expected to increase the market share of Airbus in India.

Pawanhans, the state-owned helicopter airline operates a major fleet of Airbus Helicopters. At Wings India 2024, Heritage Aviation ordered two Helicopters, including one H125 and one H130. Currently, more than 100 Airbus helicopters are operational in India, including the H125, H130, H135, Dauphin, and H145.

Last year, in December, Airbus signed an MoU with Indamer Aviation to provide Maintenance, Repair, and Overhaul (MRO) services for Airbus helicopters in India. In March month, DGCA approved the new Airbus H160 helicopter.

TATA Group, in January, signed an agreement to manufacture H125 helicopters at the Vadodara facility in Gujarat. This will be the first Airbus Helicopter assembly line in India.

Airbus Expanding Its Presence in India

If we look at the fixed-wing aircraft market in India, Airbus has been the leader for many years now. All thanks to IndiGo, which operates a fleet of Airbus narrowbody jets. Other Airbus narrowbody operators in India include Vistara, Air India, and AirAsia India (now AIX Connect).

One market in which the European manufacturer has lacked is the widebody market. Boeing dominates in this market, with Air India and Vistara operating B777s and B787 Dreamliner jets. Since the demise of Jet Airways, there has not been a single Airbus widebody aircraft in India. But the table is slowly equaling.

In the past two years, Airbus has witnessed a significant turnaround in the widebody India segment. By garnering orders of 70 Airbus A350s from Air India and IndiGo, Airbus is gradually making a comeback in the widebody market. Air India has received delivery of the first set of Airbus A350s, while IndiGo will receive its first aircraft in 2027.

Conclusion

Airbus Helicopters has signed an MoU with the Small Industries Development Bank of India (SIDBI). Both will be squatting for helicopter operators seeking purchase financing. Airbus will provide technical details to SIDBI. After assessing those details, SIDBI will evaluate and provide financing services exclusively to Airbus.

What do you think about this MoU signed between Airbus Helicopters and SIDBI? Discuss in the comment section.