NEW DELHI: Airbus has for the first time indicated it is open to having a final assembly line (FAL) in India for its 50% owned ATR regional aircraft, given the Modi govt’s unprecedented push for enhancing aerial connectivity of small towns and cities. The European aerospace major is learnt to be in talks with stakeholders to see if a business case is made out for the same. As of now, it is the only player with two operational FALs in India in partnership with Tata Advanced Systems Limited (TASL), one for the 70-seater military transport aircraft C295 at Vadodara and the other for H125 commercial helicopter in Karnataka.ATR, jointly owned by European aeronautics players Airbus and Leonardo, has a significant presence in India with IndiGo operating 50 of those turboprops and Goa-based regional carrier FLY91 has a fleet of six at present which is expected to double this year.Being similar in capacity to the C295, the ATR has up to 78 seats. Airbus has a significant supply chain already in place here. The A220 family aircraft doors are made by Bengaluru-based Dynamatic Technologies and TASL makes bulk and cargo doors of the A320 family. Govt on Wednesday cleared a modified regional connectivity scheme (RCS) for a 10-year period with a budget outlay of Rs 28,840 crore under which 100 airstrips will be developed into airports and airlines will get subsidy for operating RCS routes. Bullish that international travel and regional connectivity will provide the next big push for air travel in India after the massive increase seen in domestic flights, sources say Airbus is closely examining two aspects for its proposed ATR FAL in India. “One is the operating cost for airlines which is very high in India and that issue needs to be tackled in terms of jet fuel pricing, airport and navigation charges. Some day RCS viability gap funding will stop and airlines should have a cost structure that keeps them viable when this scheme (which was initially supposed to be in force for three years when launched in 2016) eventually sunsets,” said sources. The other factor is acquisition cost for customer airlines. To reduce that, Airbus is looking at enhancing indigenisation of components in India leading upto a possible setting up of an ATR FAL. Govt has been very keen that Airbus has a FAL in India as the European aerospace major has massive orders from IndiGo — which is the world’s largest operator of its best-selling single aisle A320 family of aircraft — and Air India Group. Together these two have about 1,300 aircraft, mostly single aisles, worth billions of dollars on order from Airbus.Also pilot training (type rating) costs more for smaller planes like Embraer and ATR compared to Boeing 737 and Airbus A320,.for operators and student pilots in India. This is a critical issue that needs to be sorted for regional planes usage to grow in India.Recently Brazilian aerospace major Embraer announced it will set up a FAL with the Adani Group in India if it gets a firm order for 200 aircraft. Airbus India & South Asia president & MD Juergen Westermeier met Union aviation minister Ram Mohan Naidu on Tuesday where the proposed FAL and how it can become a reality in India is learnt to have been discussed. “Discussed Airbus operations and its growing footprint in India’s aviation ecosystem. Emphasised on further strengthening local manufacturing and enhancing component procurement from India, in line with PM Modi’s make in India vision,” the minister said on X Tuesday.Sources say Airbus could make a final announcement of the FAL in coming days if its math works out following the ongoing consultation. Airbus had set up the H125 FAL in India without a single order for the chopper from here. It is learnt the FAL announcement, if made, will also be an unconditional one and not be subject to subsequently receiving orders from Indian customers. Having locally-made ATR or Embraer will reduce cost of acquisition for operators as govt is planning fiscal incentives for them.