HAL finalises partner to set up MRO business

Bangalore: The public sector Hindustan Aeronautics Limited (HAL), which had a sales turnover of more than $2 billion in 2007-08, will soon sign up with a partner for the setting up of its long-awaited, full-fledged commercial aircraft maintenance, repair and overhaul (MRO) business. This could happen in “a month or two,” according to the HAL sources.
The sources said that an American company, a worldwide leader in the commercial aviation MRO business, had agreed to partner the HAL in the $75-million venture. Said an official: “Final talks on sewing up the partnership are going on, we shall make an announcement soon.”
The HAL is likely to contribute 45 per cent of the required capital with the American company putting up the rest.
The American company has been chosen after the HAL evaluated offers from a handful of major commercial aircraft MRO players, including Singapore Airlines, Germany’s Lufthansa and Israeli’s Bedek Aviation.
The MRO will be equipped to service both the Boeing and the Airbus families of commercial aircraft. And will be operable for both wide-bodied and single-aisle aircraft. The HAL expects sufficient business opportunities at the MRO with around 25 to 30 aircraft being serviced during the initial years of operation. It will also be looking to ramp up the two-bay hangar MRO to a four-bay hangar operation in the next phase.
13/07/08 Ravi Sharma/The Hindu

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Categories: Foreign Jul 2008, Indian Aviation- In General Jul 2008