Boeing’s Commitment to India is Deep and Far-Reaching, Far Ahead of Any Foreign OEM in the Defence and Aerospace Sector
How did Boeing adapt to new realities dictated by the Covid-19 Pandemic? Nearly two years later, how does the company view the post pandemic world?
As our business has evolved, we have focused on long-term sustained growth that allows us to weather the industry’s historical cyclicality. Our disciplined forecasting has helped shape how we face short term challenges and enabled us to take tough but necessary actions to adapt our business to a changed marketplace.
We raised liquidity, suspended our dividend, terminated our share repurchase authorisation, reduced spending, cut overhead costs, streamlined reporting structures, and lowered commercial production rates and staffing levels. We also launched our full-scale business transformation effort to adapt to the new market reality and position the company to be sharper, more competitive and more resilient for the long term. As part of this effort, we shaped our infrastructure, streamlined our overhead and organisational structure, rebalanced our portfolio and investment mix, and strengthened the health of our supply chain.
Does Boeing anticipate any more P8I aircraft orders? Are there any other orders that the conglomerate await from the Indian side?
We believe there is a need for long-range maritime surveillance and ASW requirements in the Indian Ocean Region and the Indian Navy may have a requirement for more P-8Is and also more Harpoons and we stand ready to support them.
Today, India operates 11 C-17s, 22 AH-64 Apaches (with six more on order), 15 CH-47 Chinooks, 12 P-8Is, three VVIP aircraft and two Head of State aircraft. All of these are Boeing platforms. We regularly engage in discussions about the value our portfolio can deliver to develop capabilities they require for the execution of their missions. In the near-term, those capabilities include additional P-8Is, Apaches and Chinooks, the F/A-18 Super Hornet Block III, and additional training, sustainment, and performance-based logistics solutions.
Can you share an update on the Apache programme in India?
Boeing completed the deliveries of all 22 AH-64E Apache helicopters to the Indian Air Force (IAF) in 2020. India and the US also signed a contract for the acquisition of six Apaches for the Indian Army in 2020.The AH-64 Apache helicopters will be a force multiplier for the Indian Army, just as it is today for the IAF.
Boeing’s joint venture with Tata Advanced Systems Ltd. (TASL)—Tata Boeing Aerospace Limited (TBAL) in Hyderabad, is already in its seventh year of operation. Spread over 14,000 sqm, this state-of-the-art facility with over 900 engineers and technicians, demonstrates co-development of integrated systems in aerospace and defence in India—an example of Boeing’s commitment towards Make in India and Aatmanirbhar Bharat. The TBAL facility in Hyderabad manufactures aero-structures for Boeing’s AH-64 Apache helicopter, including fuselages, secondary structures, and vertical spar boxes for customers worldwide, including for the US Army. As of January 2023, more than 190 fuselages have been delivered by TBAL. More than 90 per cent of the parts used in these aerostructures assemblies are manufactured within India with over 100 MSME suppliers. On January 19, TBAL completed the delivery of the first fuselage for the Indian Army’s six AH-64 Apache attack helicopters.
How has the Boeing India technology centre contributed to Boeing’s India operations? What kind of work is being performed at the tech centre which contributed to cutting edge tech innovation for the sector?
The Boeing India Engineering & Technology Centre (BIETC) in India is leveraging a talented pool of 4,500 plus engineers and innovators across Bengaluru and Chennai to drive growth and innovation in aerospace. Boeing has had an engineering presence in the country since 2009, and BIETC was formally established in 2016.
The centre currently houses Boeing’s engineering, test, research and technology, information technology and digital analytics teams. These technologists undertake high-quality, advanced aerospace work and offer engineering expertise to Boeing’s defence, space, and commercial businesses, spanning engineering design of structures and systems, manufacturing support, developing systems to test our aircraft, and providing digital solutions to our airline customers.
Cutting-edge R&D in traditional and emerging areas is performed at the centre, including next-generation airplane health management, environment-friendly coatings, advanced networks and secure-communications where teams leverage new-age technologies such as Artificial Intelligence, Machine Learning, Internet-of-Things, Cloud, Model-Based Engineering, and Additive Manufacturing to enhance quality, safety, and productivity. Boeing is investing USD200M in a new 43-acre state-of-the-art wholly-owned engineering and technology campus in Bengaluru. This will be Boeing’s largest facility of its kind outside the US.
Could you talk about your various partnerships in India and how Boeing visualises supporting Prime Minister Modi’s ‘Aatmanirbhar Bharat’ vision for the defence sector?
Boeing is by far the largest foreign OEM in terms of sourcing from India, with over USD 1 billion annually through its large and growing network of 300 plus supplier partners—that are an integral part of our global supply base. These Indian companies are manufacturing and exporting systems and components for some of Boeing’s most advanced products from India to the world. In 2021, we added new suppliers, including several Micro, Small and Medium Enterprises (MSMEs) in support of our commitment to Aatmanirbhar Bharat. In fact, over 25 percent of our suppliers from India are MSMEs.
- Dynamatic Technologies has been manufacturing the ramp and complex aft pylon for Chinook heavy-lift helicopters, and P8 cabinets. They have recently won the contract to supply for the F-15EX Eagle II programme. This is a first where aerostructures for the latest and most advanced F-15EX Eagle II will be made in India.
- Rossell Techsys manufactures wire harness and electrical panel for the AH-64 Apache, and the harness for several BDS platforms including V-22 Osprey, CH-47 Chinook, F-15 and F/A-18 Super Hornet.
- SASMOS HET Technologies manufactures electrical panel assemblies for the F/A-18 Super Hornet and F-15 Strike Eagle.
- Hindustan Aeronautics Ltd (HAL) manufactures F/A-18 gun bay doors.
- Bharat Electronics Limited (BEL) manufactures IFF (Identify Friend/Foe) and speech secrecy system for the P-8I.
- Jaivel Aerospace has won a contract with Boeing to manufacture and supply aircraft protection system products for the Boeing T7A-Red Hawk aircraft.
- In 2022, Rossell Techsys entered into an agreement with Boeing to manufacture and supply wire harnesses for the T-7A Red Hawk platform. Rossell will be manufacturing Electrical Wiring and Interconnect System (EWIS) parts and the deliveries will continue through 2032, covering a total of 84 unique parts. All parts will be manufactured at Rossell’s Centre of Excellence (CoE) set-up exclusively for Boeing.
- Jaivel Aerospace will manufacture and supply aircraft protection system products for the Boeing T-7A Red Hawk aircraft. Working with the Boeing teams in India and the US, Jaivel Aerospace has developed entirely new capabilities for this product range, for the first time in India. These products will be manufactured at the company’s manufacturing facility at Sanand Industrial Estate in Ahmedabad.
- Tata Advanced Systems Limited (TASL) won the ‘supplier of the year’ award for 2022 from Boeing, from more than 11,000 suppliers worldwide.
- Our joint venture, Tata Boeing Aerospace Limited (TBAL) in Hyderabad, is already in its seventh year of operation. Spread over 14,000 sqm, this state-of-the-art facility with over 900 engineers and technicians, the facility manufactures aero-structures for Boeing’s AH-64 Apache helicopter, including fuselages, secondary structures, and vertical spar boxes for customers worldwide, including for the US Army. As of January 2023, more than 190 fuselages have been delivered by TBAL. More than 90 per cent of the parts used in these aerostructures assemblies are manufactured within India with over 100 MSME suppliers.
Boeing’s commitment to India is deep and far-reaching, far ahead of any foreign OEM in the defence and aerospace sector. Our vision has always been to bring the best of Boeing to India and take the best of India to the world.
Boeing recently announced that India would be key nation for its sustainable aerospace programme. Can you please elaborate on your initiatives to support this in India?
In 2021, Boeing committed to deliver its commercial airplanes capable and certified to fly on 100 per cent sustainable aviation fuel (SAF) by 2030. As part of this endeavour, Boeing India announced at Wings 2022 that it will work together with SpiceJet, and CSIR-IIP to explore opportunities for using SAF in the Indian aviation industry, in support of the organisations’ commitment to help reduce carbon emissions and to support the Indian government’s environmental goals. The collaboration with SpiceJet and CSIR-IIP is aimed at leveraging SAF supply from CSIR-IIP and its production partners and licensees to help SpiceJet decarbonise its fleet. This initiative builds on Boeing’s long-term industry leadership and investment to develop SAF around the world in partnership with airlines, fuel companies, governments and research institutions, to expand SAF supply and reduce its cost. Boeing is presently helping review and support the certification process for SAF samples being developed by CSIR-IIP.
As a member of this initiative, Boeing contributed to the first report ‘Deploying Sustainable Aviation Fuels at Scale in India’ in 2021 as a starting point for public-private taskforce to design an implementable policy framework for decarbonising aviation in India. Boeing continues to support the 2nd edition of the annual report as well. Through this initiative, WEF has convened an Indian SAF community of private and public institutions with the shared vision of transporting 100 million domestic passengers in India on SAF by 2030 on a 10 per cent blend (360,000 metric tons). India’s total expected domestic need for jet fuel is estimated to be approximately 8 million tons by 2030, flying an estimated 190 million domestic passengers a year.