Looking ahead, Neumann sees India as a vital supply chain hub and remains committed to “furthering our engagement in its aerospace ecosystem.” | Photo Credit: KARTHIKEYAN G
India has emerged as a key growth market as well as a hub for the global supply chain in the aerospace sector, said Nico Neumann, co-CEO of Deutsche Aircraft.
Speaking to businessline, Neumann said that the Germany-based regional aircraft manufacturer views India as playing a crucial role in the ‘D328eco’ aircraft’s manufacturing footprint.
“We have partnered with Dynamatic Technologies, which manufactures the rear fuselage in strong collaboration with IT major Cyient, which provides design engineering support,” Neumann said.
“This collaboration is not just a strategic step for Deutsche Aircraft but a testament to India’s growing aerospace manufacturing capabilities. Having key private players contributing to the production of a critical primary structure of a regional aircraft is a first for the country.”
Accordingly, the design support from Cyient includes engineering expertise in advanced technical documentation, AI-driven solutions, aircraft systems, structural design, and manufacturing. Besides, Cyient DLM contributes to the design and manufacturing of the ‘Cabin Management System’, enhancing both passenger experience and operational efficiency.
Looking ahead, Neumann sees India as a vital supply chain hub and remains committed to “furthering our engagement in its aerospace ecosystem.”
On the prospects of the company’s regional aircraft in India, he said that the success of the UDAN scheme depends on having the right aircraft for regional operations.
“The 40-seater D328eco is purpose-built for regional connectivity… Building on the Dornier 328 legacy, the D328eco is a next-generation turboprop designed for India’s diverse operational landscape, from the North-east to the Lakshadweep Islands. It enables airlines to expand networks efficiently and bring air travel to underserved regions,” he said.
“The aircraft’s ability to serve remote regions like the North-east, Lakshadweep, and Kerala’s underserved airports has garnered strong interest from both established and emerging regional carriers.”
The regional air connectivity scheme, UDAN, was launched in 2016 for a period of 10 years. In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman proposed to launch a modified version of the scheme. Notably, businessline was the first to report that the Finance Minister is considering proposing the new iteration of the scheme.
As of now, the market-driven model of the first UDAN scheme allows airlines to assess demand on specific routes and submit proposals during bidding rounds. The scheme incentivises the creation of new airports as well as the refurbishment and expansion of existing facilities.
Besides, airlines are supported to connect underserved regions by offering them Viability Gap Funding (VGF) and various concessions provided by airport operators and the central and state governments.
According to Neumann, the UDAN scheme has transformed India’s regional aviation landscape.
“We view India as a vital growth market in the region, with the UDAN scheme serving as a catalyst for this development. As demand for regional aircraft increases, we anticipate significant opportunities for fleet expansion in India,” he said.
“We are committed to playing a major role in the future of regional aviation and enhancing connectivity throughout the country.”
In addition, Neumann said that the aircraft manufacturer is in active discussions with several new airlines that are in the final stages of incorporation in India.
“With strong economic growth and government support, India presents one of the most promising markets for regional aviation, and we are positioning ourselves accordingly,” he said.
Published on April 17, 2025