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HAL, Airbus sign MoU for freight-related operations

V C Bhaskaran in Bangalore

Hindustan Aeronautics Limited and Airbus Industrie have signed a memorandum of understanding to study freight carrying versions of the A-320 family.

Under the terms of the MoU, HAL and Airbus will work together in the initial phase to explore the commercial, technical and financial aspect of such a partnership. The MoU was signed by Bernard Amaye, vice president A-320 family programme, and Dr C G Krishnadas Nair, chairman of HAL.

There is already an arrangement between HAL and Airbus Industrie for manufacture of doors for A-320 aircraft. The deal is worth $ 50 million. Airbus hopes to bag to fifty per cent of the market for aircraft with a carrying capacity of between 100 and 180 passengers. This runs to hundreds of millions of dollars.

Neither HAL nor Airbus would specify the financial aspect of the proposed arrangement between the two. However, it was clarified by Airbus that the conversion work will be wholly carried out by HAL at Bangalore. In short, Airbus has identified India's premier aircraft manufacturing facility for manufacture of some doors for its aircraft of medium capacity. Today's MoU takes HAL a step forward from passenger doors to cargo doors.

The conversion will take about an hour. In other words, an A-320 carrying hundred to 180 passengers could be converted into a cargo plane in about an hour. It could be a passenger aircraft by day and a cargo plane by night. HAL's job, under the proposed arrangement, will be to fix cargo doors on the convertibles, while the plane itself will be manufactured in Toulose in France.

While Airbus is clear that HAL will have no role in the building of the A-320 quick conversion or A-320 QC, HAL chairman said HAL's role will be participation in the design of the conversion and building. He stressed that it would be a partnership and not a joint venture or subcontracting, like in the case of the passenger doors.

The first phase of the MoU is scheduled to take shape in 1999, Dr Nair said. Asked if the HAL's plan for manufacture of a 100-seater aircraft will be dovetailed into the MoU, Dr Nair said it was a stand-alone project.

But Kiran Rao, Airbus president for India, said there could be some similarities between the two. The A-320 QC could also have a military role. About one thousand DC nine aircraft are going to be replaced in the next 20 to 30 years and Airbus hopes to take half of that marketshare.

According to Airbus projections, India will require 215 aircraft worth $ 18.7 billion. India's own HAL is nowhere in the picture in that scenario, but virtually on the doorstep.

UNI

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