Bengaluru-Based Dynamatic Technologies Wins Airbus Contract To Build Doors Of A220 Aircraft; India Dominates To Becoming The Fastest-Growing Civil Aviation Market In The World

In a big win, and a significant boost to India’s ‘Make in India initiative, Bengaluru-based Dynamatic Technologies has secured a contract from France-based Airbus to produce all the doors for its narrow-body A220 aircraft range.

Dynamatic Technologies specializes in precise engineering, serving industries such as aerospace, automotive, hydraulic, and security.

The company was established in 1973, with additional facilities in the United Kingdom and Germany; leading Dynamatic Technologies is Udayant Malhoutra, who serves as the CEO and Managing Director.

The contract was disclosed during an event attended by Civil Aviation Minister Jyotiraditya Scindia and Minister of State (MoS) Civil Aviation, Gen. VK Singh; however, the financial specifics of the deal have not been disclosed.

According to Remi Maillard, President of Airbus India, this contract represents one of the largest export agreements for an Indian aerospace manufacturing firm.

Significant Win For ‘Make in India’ Initiative
Airbus granted the contract to Dynamatic Technologies to manufacture all doors for its next-generation narrow-body A220 aircraft, signalling a significant advancement for the ‘Make in India’ initiative.

While the financial details remain undisclosed, Civil Aviation Minister Jyotiraditya Scindia hailed this as one of the largest export contracts for an Indian aerospace manufacturer, spotlighting India’s growing prominence as a center for aircraft component production.

With a target of ramping up component and service procurement from India to USD 1.5 billion in the coming years, Airbus affirmed that the contract will facilitate the expansion of the A220 program by augmenting existing manufacturing capabilities.

Dynamatic will undertake the production and assembly of cargo, passenger, and service doors, as well as over-wing emergency exit doors for the A220 family of aircraft, amounting to eight doors per aircraft.

The arrangement also includes the manufacture of intricate parts and components, opening avenues for other Indian suppliers downstream.

Dynamatic is already involved in producing the Flap Track Beam for Airbus A330 and A320 aircraft families, as well as the cockpit escape hatch door for A220 aircraft.

Strategic Importance of India
During an event in the national capital to announce the contract award to Dynamatic, Remi Maillard, President & Managing Director of Airbus India & South Asia, emphasized that India is not merely a market but a vital strategic resource hub for the company.

The company is expanding its industrial presence with activities such as aircraft assembly, component manufacturing, engineering design and development, MRO (Maintenance, Repair, and Overhaul) support, pilot and maintenance training, as well as academic partnerships to nurture human capital.

Maillard disclosed that Airbus’s procurement of components and services from India is set to double to USD 1.5 billion (as mentioned above) within the next few years, up from the current figure of around USD 750 million.

The release from the aircraft manufacturer stressed that components and technologies made in India are integrated into every Airbus commercial aircraft today.

Delivery Timeline and Aircraft Specifications
Meanwhile, CEO and Managing Director of Dynamatic Technologies, Udayant Malhoutra, anticipates the first door to be delivered by early 2025.

The A220 aircraft, designed for the 100-150 seats market, are suitable for both regional and long-distance routes, boasting features such as a 50% reduced noise footprint and up to 25% lower fuel burn per seat compared to previous-generation aircraft.

Strategic Investment Timing
At the same time, Scindia emphasized that it’s an opportune moment for Airbus to invest in India, citing the contract as a prime example of the ‘Make In India’ initiative, which promises substantial growth and employment opportunities for the nation.

According to Scindia, the contract will significantly contribute to bringing complete aircraft door-making technology into the Indian aerospace ecosystem, a first for Airbus commercial aircraft and helicopters, designed, manufactured, and maintained in India.

In addition to the A220 contract, Airbus is also constructing two Final Assembly Lines for the C295 military aircraft and the H125 helicopters.

Rapid Growth in Indian Aviation Sector
India stands as one of the fastest-growing civil aviation markets globally, attracting attention from major players like Airbus.

To put this in perspective, Domestic carriers such as IndiGo have placed substantial orders for aircraft to meet the escalating demand driven by the burgeoning air traffic.

Despite the challenges posed by the pandemic, Indian domestic air traffic has not only bounced back but has surpassed pre-pandemic levels, showcasing both pent-up travel demand and the adaptability of the aviation industry.

Predictions indicate that India’s commercial aviation market is poised to rank among the world’s top three by 2041, with the fleet size nearly quadrupling since 2019.

Booming Aviation Sector
According to the Boeing Commercial Market Outlook 2023, South Asia, particularly India, is slated to welcome over 2,700 new airplanes in the next two decades, with a significant portion earmarked for India.

This growth projection also necessitates a substantial increase in pilots and mechanics in the region, with India leading the surge.

India’s expanding middle class with rising disposable incomes is a primary driver of air travel demand, both domestically and internationally.

This growth has led airlines to expand their fleets, benefiting various sectors, including aircraft manufacturers, maintenance, repair, and overhaul (MRO) providers, and related service industries.

Additionally, the growth of e-commerce has fueled demand for narrowbody conversions, while the flourishing electronics manufacturing industry in higher-value segments has led to boosting cargo demand.

Government Initiatives and Global Positioning
The Indian Government’s regional connectivity schemes have been instrumental in opening up underserved markets, making air travel accessible to a broader population.

Moreover, India’s emergence as a global manufacturing hub promises increased investment in aerospace manufacturing.

Prospects for 2024
With provisional estimates projecting over 150 million domestic and 68 million international passengers taking flight in 2023, the total air passenger traffic is anticipated to surpass 225 million in the upcoming year, setting 2024 on track to be a landmark year for Indian aviation.

Yields remain vigorous, driven by several factors, including airline sector consolidation, weakened competitors, and challenges in the OEM supply chain.

The same has led to high demand competing for limited supply, although enthusiasm is tempered by considerations such as input costs, VISA processing times, operational hurdles, and global competition.

Looking ahead, all indicators suggest that travel demand will remain strong, with a particularly favourable outlook for air travel originating from India.

Internationally, travellers can expect expanded options as airlines like Indigo and Tata-owned carriers, including Air India, broaden their international networks.

The entry of Akasa into international operations and SpiceJet’s response with its own offerings has further enriched the aviation sector.

Air India is anticipated to refine its offerings. At the same time, there is speculation about whether Indigo’s newer aircraft will adopt a dual configuration to cater to premium demand, leveraging its market position.

All in all, it is an excellent outlook for the aviation sector in India.