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Air India plans 4 MROs, 3rd-party play

Air India is looking to develop a major third party maintenance, repair and overhaul (MRO) facility in the next two years.

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Will have facilities running in 2 yrs, take in aircraft of other carriers as well

NEW DELHI: Air India is looking to develop a major third party maintenance, repair and overhaul (MRO) facility in the next two years.

An MRO is like a car repair shop where aircraft of all shapes and sizes can be repaired and India has been generally lacking in MRO facilities. Most airlines send their aircraft to the US, Europe or Gulf countries for regular maintenance now, but a domestic third party MRO facility could mean up to 60% cost savings on maintenance and repair.

Now that the aviation sector is booming, Air India has decided to set up four such testing and repair facilities. These would cater to not only the national carrier’s captive maintenance and repair requirements, but also service aircraft of other airlines.

Vipin Sharma, SBU head-MRO (engine & components), said, “Air India wants to develop the MRO segment big time. Not only captive MRO business, we are also establishing third party facilities. All the four MROs we are planning should be up and running within the next two years.”

The airline has already signed separate MoUs with Boeing Co and Airbus Industrie for setting up airframe MROs. While its equal-stakes joint venture with Boeing is coming up at Nagpur, the airline is still scouting for a JV partner for the second facility since Airbus would not participate directly in this venture.

The facility at Nagpur would be capable of handling current generation aircraft such as B777s and B787s. It will have a component overhaul division and electronics and avionics shops, besides offering structural repair and interior modifications.

Besides the two airframe MROs, it is also putting up facilities for components and engine and auxiliary power units. AI has already invested Rs16 crore in setting up the automatic testing equipment computer (ATEC) Series 6 at Delhi International Airport, which can test most electronic equipment of Airbus and Boeing aircraft.

Sharma said, given the market expansion projections, AI’s MRO plans should generate adequate additional revenue. According to AI estimates, carriers operating in India would have as many as 650 narrow body aircraft and 150 wide-body ones within the next decade, making India one of the large MRO markets in the world.

Within AI also, the need for such a facility has been increasing felt. From just 21 wide-body aircraft now, the carrier’s fleet would have close to 90 in the next two years. From just 65 narrow-body aircraft now, it would have over 100 within the same time period.

b_sindhu@dnaindia.net

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