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EU and India Sign Aviation Production Working Arrangement in 2026

The EU and India agreed to align aerospace manufacturing standards, enabling Airbus H125 helicopter assembly in Karnataka by 2026.

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This article is based on an official press release from the European Union External Action Service (EEAS), supplemented by provided industry research.

On March 23, 2026, the European Union and India signed a landmark Working Arrangement to deepen cooperation in industrial aviation production. Officially announced on March 27, the agreement between the European Union Aviation Safety Agency (EASA) and India’s Directorate General of Civil Aviation (DGCA) aims to align Indian aerospace manufacturing with global safety standards.

According to the official press release and accompanying research, a central pillar of this pact is the support for India’s “Make in India” initiative. Specifically, the arrangement facilitates the assembly of Airbus H125 helicopters in Karnataka under stringent EU standards, marking a significant step in localizing aviation production and strengthening strategic aerospace ties between the two regions.

We at AirPro News view this development as a critical milestone in the long-standing strategic partnership between the EU and India, directly building upon commitments made during the EU-India Summit in January 2026, where civil aviation safety was identified as a high-priority focus area.

Harmonizing Regulatory Frameworks

The core objective of the newly signed agreement is to support industrial cooperation by ensuring domestic manufacturing practices in India align with European norms. The EEAS press release highlights that this regulatory harmonization will make global market access easier for Indian aerospace products, ensuring that safety and sustainability remain central to the rapid growth of the aviation sector.

The Airbus H125 Project in Karnataka

The most prominent project enabled by this working arrangement is the final assembly of Airbus H125 helicopters. According to industry research, India’s first private-sector helicopter Final Assembly Line (FAL) has been established by Tata Advanced Systems Limited (TASL) in partnership with Airbus at the Vemagal Industrial Area in Karnataka’s Kolar district.

The facility, which was virtually inaugurated in February 2026 by Indian Prime Minister Narendra Modi and French President Emmanuel Macron, is expected to become operational in April 2026. Production timelines indicate that the first “Made in India” H125 helicopter is projected for delivery in early 2027. The H125 is recognized as the world’s best-selling single-engine helicopter, known for its ability to operate in extreme, high-altitude environments.

Regional Collaboration and Export Potential

The signing of the working arrangement preceded the EU-South Asia Aviation Partnership Project Workshop, held in New Delhi from March 24 to 26, 2026. Organized by EASA in close cooperation with the DGCA and supported by European turboprop manufacturer ATR, the workshop focused on strengthening practical collaboration and addressing day-to-day flight operations across the South Asian region.

Expanding Global Reach

By aligning with the 27-member bloc’s safety standards, India is positioning itself as a key exporter in the aerospace sector. The Karnataka facility is expected to serve not only the domestic market but also export to the broader South Asian region.

“Aligning Indian production with the 27-member bloc’s safety standards and export certificates will help deliver aircraft products manufactured in India to the global market,” noted EU Ambassador Hervé Delphin, according to the provided research report.

AirPro News analysis

We assess that this working arrangement represents a landmark step toward self-reliance in aerospace and defense for India. By localizing the assembly of critical aerospace assets, India is significantly expanding its manufacturing ecosystem, following the previous Tata-Airbus joint venture for the C-295 military transport aircraft in Gujarat.

Furthermore, the mutual commitment to safe, resilient, and sustainable air transport underscores the increasing operational and environmental challenges facing the global aviation industry. The integration of EU safety standards will likely bolster supply chain resilience for both regions while opening new avenues for military and civil aviation logistics.

Frequently Asked Questions

What is the EU-India Working Arrangement on Industrial Aviation Production?

It is an agreement signed on March 23, 2026, between the European Union Aviation Safety Agency (EASA) and India’s Directorate General of Civil Aviation (DGCA) to align Indian aerospace manufacturing with European safety standards.

When will the Airbus H125 facility in Karnataka become operational?

According to industry timelines, the Tata-Airbus facility is expected to become operational in April 2026, with the first helicopter delivery anticipated in early 2027.

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Photo Credit: The CSR Journal

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MRO & Manufacturing

Altitude Engineering Wins Xiamen Airlines 787 MRO Contract at LHR

Altitude Engineering secures long-term Boeing 787 line maintenance contract with Xiamen Airlines at London Heathrow from September 2026.

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Dublin-based independent maintenance provider Altitude Engineering has secured a long-term contract to provide scheduled line maintenance for Xiamen Airlines (MF) Boeing 787 Dreamliner operations at London Heathrow Airport (LHR).

The agreement commenced in September 2026 to support the Chinese carrier as it launches a new direct route connecting London and Xiamen. The contract was announced in a company press release issued by Altitude Engineering.

Scope of the maintenance agreement

Under the terms of the contract, Altitude Engineering will perform routine line maintenance checks and defect rectification for the Xiamen Air widebody fleet at LHR. The dedicated technical support is designed to maintain dispatch reliability for the long-haul operation.

Altitude Engineering Head of Commercial James Keable noted the company is focused on delivering top-tier support to ensure smooth operations for the new route, highlighting the strategic value of the contract for the Dublin-based firm.

Welcoming Xiamen Air to our operation is a fantastic milestone for us. This partnership allows us to further strengthen our exposure to airlines in the region while successfully adding to our customer portfolio at Heathrow, which continues to grow year on year at a steady, sustainable rate.

Strategic expansion at London Heathrow

The contract represents a notable expansion for Altitude Engineering at one of Europe’s busiest international hubs. Securing a widebody operator like Xiamen Air bolsters the maintenance provider’s portfolio of international clients requiring dedicated technical support on the ground.

The aviation sector connecting Europe and Asia is currently navigating complex geopolitical challenges, including airspace restrictions over Russia. These logistical hurdles have prompted airlines to seek highly reliable operational and technical support at major international hubs to mitigate potential disruptions, according to industry reporting from AviTrader.

AirPro News analysis

We view this agreement as a strategic win for Altitude Engineering in the highly competitive European line maintenance market. Independent maintenance, repair, and overhaul (MRO) providers at slot-constrained hubs like LHR must demonstrate high dispatch reliability to win widebody contracts from major international carriers. For Xiamen Air, partnering with an established local provider reduces the operational risk associated with launching a long-haul route in a complex airspace environment.

Sources: Altitude Engineering

Photo Credit: Altitude Engineering

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MRO & Manufacturing

Vietjet and Thales Sign MRO and Digital Aviation Agreements

Vietjet and Thales finalized a Repair-By-The-Hour maintenance contract and an AI and cybersecurity MoU in September 2026.

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Vietjet Aviation Joint Stock Company (Vietjet) and Thales Group have finalized a long-term component maintenance agreement and a digital transformation pact, securing aftermarket support for the carrier’s expanding Airbus fleet while integrating artificial intelligence and cybersecurity into its operations.

In a press release issued on September 15, 2026, Thales announced that the “Repair-By-The-Hour” (RBTH) contract and a concurrent Memorandum of Understanding (MoU) were signed on September 10, 2026. The signing took place at the Élysée Palace in Paris during a Vietnamese state delegation visit, overseen by French President Emmanuel Macron and Vietnamese General Secretary and President To Lam.

Maintenance and fleet support

The RBTH contract provides Vietjet with long-term component maintenance services covering its Airbus A320 family and Airbus A330 family aircraft. The agreement is designed to optimize fleet availability and lower operational lifecycle costs as the Airlines scales its flight schedule to meet regional and international demand.

Vietjet has recorded substantial operational growth throughout the year. According to reporting by TechNode Global, the airline generated consolidated revenue of VND51.54 trillion ($2 billion) in the first half of 2026, representing a 44 percent year-over-year increase. During that six-month period, Vietjet carried 13.4 million passengers across approximately 72,000 flights.

The Thales agreement is part of a broader procurement and maintenance strategy executed during the September 2026 state visit. TTR Weekly reported that Vietjet also signed a Letter of Intent with CFM International to assess engine support and maintenance capabilities, further solidifying its European aerospace supply chain.

Digital aviation and cybersecurity

Alongside the maintenance contract, the two companies signed an MoU focused on digital aviation. The agreement outlines cooperation in connectivity, cybersecurity, and AI applied directly to airline operations. The initiative aims to protect critical aviation systems while advancing the carrier’s digital transformation.

Thales brings established regional infrastructure to the partnership. The technology firm has maintained a corporate presence in Vietnam for 30 years and currently employs a workforce that includes 800 AI experts.

“Our partnership with Thales will not only enhance the reliability, safety and operational efficiency of Vietjet’s fleet, but also open up new areas of cooperation in digital technology, AI and cybersecurity,” said Nguyen Thanh Son, CEO of Vietjet. “Together with leading French partners, we look forward to connecting technological expertise with a dynamic aviation market, contributing to stronger trade, investment and ties between Vietnam and France.”

Pascale Sourisse, CEO of Thales International, stated that the company intends to support the airline’s next phase of growth through advanced technology and operational excellence.

Bilateral aerospace cooperation

The finalized contracts reinforce the Comprehensive Strategic Partnership established between France and Vietnam in October 2024. That diplomatic framework explicitly identified aviation as a key pillar of bilateral cooperation, paving the way for state-backed commercial agreements between Vietnamese operators and French aerospace Manufacturers.

AirPro News analysis

We view Vietjet’s concurrent agreements with European aerospace firms as a calculated move to stabilize its operational foundation amid rapid network expansion. By locking in long-term, predictable MRO costs through the Thales RBTH contract and the CFM International engine support assessment, the carrier is mitigating the Supply-Chain volatility that has constrained global fleet availability. The formal integration of cybersecurity and AI initiatives indicates a maturation of Vietjet’s operational infrastructure, aligning its technological capabilities with its high-growth financial trajectory.

Sources: Thales Group

Photo Credit: Thales Group

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TARMAC Aerosave and AerFin to Dismantle 10 A320neo and 737 MAX

TARMAC Aerosave and AerFin will teardown 10+ A320neo and 737 MAX aircraft by end of 2026 amid global parts shortages.

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TARMAC Aerosave and aviation asset management specialist AerFin will dismantle more than 10 new-generation narrow-body aircraft, including the Airbus A320neo and Boeing 737 MAX, before the end of 2026. The move highlights a growing industry trend where young airframes are scrapped to harvest high-value components amid ongoing global supply chain constraints.

In a press release issued on September 11, 2026, TARMAC Aerosave announced the strengthening of its 10-year partnership with AerFin to meet unprecedented aftermarket demand. To process the aircraft, TARMAC Aerosave has established a dedicated operational line tailored to AerFin’s specific teardown requirements.

Dedicated teardown operations

The new operational structure focuses on specialized extraction needs to accelerate the return of serviceable material to the market. TARMAC Aerosave has assigned a dedicated team to handle cabin removal, landing gear extraction, and the management of priority and standard parts lists.

“With more than 10 aircraft projects again this year for AerFin, this collaboration confirms our position as a leading player in the dismantling and recycling market,” stated Christian Ceruti, Chief Commercial Officer of TARMAC Aerosave. “Our dedicated organisation allows us to respond with the responsiveness that this high-demand market requires today.”

AerFin Chief Operating Officer Simon Bayliss noted that the program reflects the value the partnership creates for customers as the demand for new-generation aircraft material continues to grow. The companies confirmed that additional joint dismantling projects are already in preparation for 2027.

The economics of scrapping young aircraft

The aviation industry is currently experiencing a severe shortage of spare parts and engines, driven by manufacturing delays and maintenance backlogs. Engine durability issues, particularly with powerplants like the Pratt & Whitney Geared Turbofan (GTF), have left many operators searching for replacement components to keep their fleets active.

According to reporting by AeroCorner, this environment has led to young aircraft being scrapped for parts. In 2026, two Airbus A320neo aircraft previously operated by Spirit Airlines were recycled at just three and four years of age. The components and engines of these young jets proved more valuable on the secondary market than the intact airframes.

AirPro News analysis

We are witnessing a structural shift in aircraft lifecycle management. Historically, commercial airframes operated for 20 to 25 years before facing the recycler’s torch. The current supply chain environment has inverted this economic model for certain fleets. When a three-year-old Airbus A320neo is worth more as a collection of spare parts than as a flying asset, it underscores the severity of the engine maintenance backlog and the premium operators place on immediate parts availability. This collaboration between TARMAC Aerosave and AerFin is a direct market response to these constraints, and we expect similar teardown programs to accelerate through 2027 as long as original equipment manufacturer (OEMs) bottlenecks persist.

Sources: TARMAC Aerosave and AerFin, AeroCorner, Aviation Week

Photo Credit: TARMAC Aerosave

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