India can become an MRO hub

India could soon emerge the civil aviation maintenance, repair and operations (MRO) hub for Asia-Pacific. With the Indian market growing at around 8% annually, the civil aviation ministry is expected to actively pursue foreign investment in MROs, so large deals and joint ventures with global aviation majors may be expected soon.
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. Many foreign as well as Indian companies are looking to set up MROs in India. In recent months, three different joint ventures between Indian companies and foreign companies like Airbus, Boeing and SIA Engineering have embarked upon setting up MROs. It is learnt that Global Vectra, the second largest helicopter operator in India, plans to set up an MRO facility in Mumbai.
The government will consider the allocation of land for hangars, reasonable and realistic lease rentals, long-term lease periods, and revoking royalty on aviation activities to encourage the creation of MRO hubs in the country. It would also consider outsourcing line maintenance by domestic and international airlines to MROs. Greenfield and modernisation projects of existing airports will also have provision for hangars and space for MROs.
12/09/07 Oineetom Ojah/Financial Express

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Categories: General Aviation Sep 2007