HAL charts civil aviation expansion to reduce defence revenue dependence
Hyderabad: Hindustan Aeronautics Limited (HAL) announced a structured expansion into civil aviation to reduce its heavy dependence on defence manufacturing, which contributes nearly 97 per cent of its revenues.
Addressing the Wings India event in Hyderabad, HAL Chairman and Managing Director Dr D.K. Sunil outlined a long-term civil aviation roadmap. Accordingly, HAL will focus on regional fixed-wing aircraft, civil helicopters, and short-haul regional jets.
As part of this strategy, HAL re-certified the Hindustan 228 for civilian operations under DGCA norms. Meanwhile, Dr Sunil said Guyana inducted the aircraft, with two units delivered and contracts signed for two more.
He added that HAL expects steady demand from island nations and archipelagic regions. In particular, Southeast Asia and the Caribbean remain key target markets.
HAL expands footprint in civil helicopter segment
In the rotary-wing segment, HAL is nearing certification of the civil variant of the Dhruv helicopter. Recently, the aircraft completed its first flight under the Ministry of Civil Aviation framework.
Dr Sunil said HAL expects certification in the coming months. At the same time, the company secured its first major civil helicopter order from Pawan Hans Limited.
Under the contract, HAL will supply ten helicopters for ONGC offshore operations. Additionally, the company is targeting roles in border security, high-altitude missions, tourism, emergency medical services, and disaster response.
Dr Sunil said fuel and maintenance costs remain the main drivers of costs in regional aviation. Therefore, HAL plans to localise manufacturing and spare parts production.
The company will work with the private industry and use its existing facilities. As a result, it aims to reduce acquisition and lifecycle costs.
Dr Sunil added that the Ministry of Civil Aviation has expressed support for HAL’s programme. Notably, the support includes help with certification and steps to address viability gaps in domestic aircraft manufacturing.