Boeing To Establish Plane Conversion Unit In Hyderabad With Supplier GMR Aero Technic

In association with GMR Aero Technic, Boeing will soon erect an passenger to cargo plane conversion unit in Hyderabad, India.

Boeing, one of the largest aircraft manufacturers in the world, is now preparing to set up a new conversion line in India in association with its supplier - GMR Aero Technic. The line will be used to modify passenger aircrafts to freighters in a bid to cater the ever-increasing demand for cargo planes. The plane manufacturer revealed that GMR Aero Technic will be the company’s first supplier to facilitate this conversion for both domestic and international planes. This came out from Boeing after the manufacturer received the largest-ever order from an Indian carrier - Air India, for around 220 planes.

Without disclosing financial details, Boeing India President Salil Gupte said its cooperation with GMR Aero Technic supports the anticipated growth of the cargo sector in the region.

"Indian market is like no other maret because it combines both an incredible market with an incredible capability, both in civil and defence. There is synergy between civil and defence that is so valuable," Gupte told PTI here after the announcement.

Once the operation of the conversion line starts in Hyderabad, it will be for converting Boeing 737-800 passenger planes into freighters. Basically, the conversion will be of used aircraft, "usually mid-life asset", he said, adding that the work requires a very complex set of modifications. Both sides expect to start working on the conversion line over the next 18 months.

The latest collaboration adds to Boeing's investments to support the cargo growth and help expand complex aircraft modification capabilities and Maintenance, Repair and Overhaul (MRO) in the country. "The collaboration with Boeing reaffirms our capability to provide world class MRO services and further contribute to the 'Make in India' initiative," GMR Aero Technic CEO Ashok Gopinath said.

As per Boeing's forecast, India's air cargo growth is expected to average 6.3 per cent annually, driven by the country's manufacturing and e-commerce sectors. About the Indian market, Gupte said it is about combining the synergy and technological capability, such as from simple to complex assemblies and working with advanced composite materials.

Many components, including Apache fuselage and vertical fin of B737 plane are made in India by Boeing. "... You combine all of that together, you have the wonderful ecosystem that we and other OEMs (Original Equipment Manufacturers) can work with to make the next generation products of tomorrow. That really is what it is all about," he noted. According to him, as India gets into the higher value elements of manufacturing, it fits hand in glove with having more air cargo.

"India has a unique opportunity... The growth in higher manufacturing, higher value density, there is a significant opportunity (for entities) that (are) involved in manufacturing, in purchase of these goods to shorten the time to shorten the supply chain... By leveraging air cargo as opposed to alternate modes of transportation," Gupte said. To a query on whether Indian carriers are expected to place more orders, Gupte said, "we are always in talks for across our entire product portfolio".

Currently, the American plane manufacturer has more than 300 suppliers in India and makes sourcing worth over Rs 8,300 crore annually. According to Gupte, over 1,720 freighter conversions are required globally and a significant chunk of those will be in Asia and we believe India will play a big role in that as well. While emphasising that the time for the cargo market has come, he said, "so, it is only fair that we have a capability to have a line to make those freighters in India, not just for India but for the region".

On February 14, Air India announced placing orders for 220 planes from Boeing for USD 34 billion. The orders are for 190 B737 MAX, 20 B787, and 10 B777X. There will also be an option to buy 70 more aircraft that could take the total transaction value to USD 45.9 billion.

On the same day, Prime Minister Narendra Modi spoke with US President Joe Biden and the two leaders hailed the landmark agreement between Air India and Boeing as a shining example of mutually beneficial cooperation that will help create new employment opportunities in both countries. Modi had also invited Boeing and other US companies to make use of the opportunities arising due to the expanding civil aviation sector in India. Indian carriers, including Air India, SpiceJet, Akasa Air and Air India Express, operate around 160 Boeing planes. This includes freighters as well.