NEW DELHI, Jan 23 (Reuters) - Billionaire Gautam Adani's
aerospace and defence business and Brazil's Embraer ( EMBJ ) will
announce a tie-up next week to assemble commercial aircraft in
India, a source with direct knowledge of the matter said,
boosting the country's civil aviation industry.
Assembling aircraft in India would mark a significant win for
the Indian government, which has long urged planemakers to build
jets domestically, citing more than 1,500 aircraft orders from
Indian carriers. Planemakers have until now pushed back, arguing
in part that the business case did not add up.
Adani Aerospace has signed a memorandum of understanding
with Embraer ( EMBJ ), the world's third-largest planemaker
behind Airbus and Boeing ( BA ), to set up a final assembly line for
its regional jets in India, the source said.
Adani Aerospace and Embraer ( EMBJ ) sent invitations to the media
teasing a "historic" development in commercial aviation on
Tuesday. The announcement will be made at the office of India's
civil aviation ministry, the invitation said.
Embraer ( EMBJ ) declined to comment, while Adani Aerospace and
India's civil aviation ministry did not immediately respond to
requests for comment. The pact was earlier reported by The Times
of India newspaper.
Nearly 50 Embraer ( EMBJ ) aircraft of various types operate in
India, including civil aircraft flown by regional carrier Star
Air. The fleet is much smaller than the Airbus and Boeing ( BA )
aircraft that dominate Indian airlines' order books.
Embraer ( EMBJ ), which opened an office in New Delhi last year, has
forecast that the South Asian nation will need at least 500
aircraft in the 80- to 146-seat range over the next 20 years.