Airbus to spend $1bn in India

New Delhi: Airbus on Thursday said it plans to invest some $1 billion in India, setting up an engineering facility and a pilot training school.

The European airplane maker had committed to investing in India as part of a deal with the government, which is purchasing 43 Airbus aircraft for the state-run Indian Airlines in a deal valued at $2.25 billion.

However, Airbus plans to double the $500 million required under that agreement, Kiran Rao, Airbus' executive vice president of marketing told a news conference.

Some $300 million is to be invested in a pilot training centre and another $250 million in an engineering centre, both in the southern city of Bangalore.

Airbus also released a study predicting a huge growth in the Indian airline industry, saying that the country will need 1,100 airplanes worth $105 billion by 2025.