Tata-owned Air India is on the verge of finalising negotiations with European aerospace giant Airbus to establish the largest pilot training center in South Asia, according to a report by Indian news portal Swarajya.

The joint venture, set to involve a substantial investment of approximately Rs 3,500 crore ($420m), positions both Air India and Airbus with an equal 50 per cent stake in the newly-formed company.

Initially outfitted with six simulators catering to Airbus A320 family and A350 aircraft types, the facility has the potential to expand to accommodate up to 20 simulators, the report said.

While the primary focus is to address the pilot training needs of Air India, the facility will also extend its services to other Airbus customers, serving as a valuable resource for aviation training in the South Asian market.

Swarajya said Air India was also in the finalization stages of another joint venture with US-based L3 Harris, focusing on pilot training for Boeing aircraft, including the 737, 777, and 787 models.

With the surge in aircraft orders by Indian airlines, the demand for flight simulation centers is expected to escalate, underscoring the strategic significance of Air India's ventures in the field of pilot training.