IBSA forum mulls making aircraft

India, Brazil and South Africa under the tri-lateral IBSA (India-Brazil-South Africa) Dialogue Forum, are looking at producing aircraft by pooling one another's expertise.

IBSA is exploring how it can pool its resources and technology to produce aircraft for civil aviation, said Anil Sooklal, deputy director general Asia & the Middle East, Department Foreign Affairs.

India became yet another battleground for global aviation majors Boeing and Airbus this month after the former bagged a Rs 30,000 crore (Rs 300 billion) order from Air-India for 50 aircraft.

IBSA was set up in the meeting of foreign ministers at Brasilia in June 2003 for the purpose of bringing together three of the largest democracies in three main continents for a greater south-south cooperation.

Science and Technology was one of the key areas identified for tri-lateral cooperation in the Brasilia Declaration.

"While we cannot compete on larger aircraft, as Boeing and Airbus have the monopoly, India and Brazil manufacture light aircraft and South Africa also manufactures components for Boeing," he told Business Standard in an exclusive interview in his office in Pretoria, South Africa.

Once the three countries cooperate and pool their technology, Sooklal said, "We do not need to be constantly dependent to buy from the North."

With the Indian aviation sector is set to boom with growth rate of 20 per cent, the initiative of the three governments assumes immense importance. In the recently concluded meeting, the countries discussed running direct flights between South Africa, India and Brazil, and establishing a sea transport corridor between the three countries.

The aviation ministries of the respective countries have already started dialogue, stated senior South African officials. New shipping links which are crucial to maritime countries, are being worked out as well, they added.

"The attempt is to see how the countries of the South can pool our resources and work together to address the common challenges and not depend on the north. We have not capitalised enough, and there is a need to synchronise our common resources and sharing of our resources," said Sooklal.

Meanwhile, the Indian avaiation sector has opened a host of opportuntities for global aircraft manufacturers. Aside from Air India's proposed acquisition, Indian Airlines had earlier this year acquired 43 A320 planes from Airbus for $2 billion.

Orders from low-cost airlines -- Deccan, Kingfisher and Air Express (belonging Indian Airlines) -- are likely to exceed $10 billion during the year.

The fact that India has less than 200 aircrafts catering to its over 1 billion population, affords a huge market for global players.

Contrast this with the US with a far smaller population of 300 million people but having 6,000 commercial aeroplanes! The idea is to sow one's seeds into the Indian market at the earliest, but the triparthie agreement might see in a sea change.