MRO sector braces up for consolidation

Mumbai: The MRO (maintenance, repair and overhaul) segment in the Indian aviation sector is revving up for significant consolidation in the months to come, fuelled by a surge in demand.
The estimated $800-million MRO market within the aviation sector is, indeed, set to balloon, with independent foreign MRO companies eyeing India as a potential destination.
After Boeing's proposed Rs 450-crore MRO facility in India, other companies such as Singapore Airlines, ST Aerospace, Lufthansa Technik of Germany and El Al Israel Airlines Ltd are also looking seriously at the growing MRO market in the country, industry sources say. Even engine manufacturers, such as GE, Rolls Royce, Snecma and Pratt & Whitney, are considering setting up MRO facilities in India, according to the sources.
Normally, about 20 to 30 per cent of the cost of operating an aircraft is spent on MRO services. The surge in air traffic in India, fuelled by the emergence of low-cost carriers, has perked up fleet utilisation. "The Indian MRO market is growing at about 8 per cent annually. In fact, the entire Asia-Pacific aircraft and engine MRO market totalled $8.71 billion in 2005 and is estimated to touch $12.90 billion in 2011 ", says Mr Subhranshu Sekhar Das, Frost & Sullivan's Industry Manager and a MRO analyst.
13/04/06 Amit Mitra/Hindu Business Line

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