Aircraft maintenance has $1-bn business potential in India

Singapore: Indian aviation industry may be going through turbulent weather, yet experts see a growing potential for the maintenance, repair and o
verhaul (MRO) segment of the industry, with projected revenue of $1.07 billion by 2013.
Many companies, including Boeing in a tie-up with the state-run Air India, have announced joint ventures in MRO business and others are waiting in the wings for the government to address some tax issues to jump into the market, the experts added.
Speaking during an MRO Asia symposium here, C.S. Tomar, vice president of engineering and maintenance for Kingfisher Airlines, said the MRO market in the country was currently valued at $405 million with a potential for $1.6 billion by 2018.
"It makes economical sense for us to set up an MRO facility," Sitham Nadarajah, vice president for technical development with Jet Airways, told IANS. "With volumes increasing, we will be looking at D-checks for narrow bodied aircraft like Boeing-737s."
The D-checks are done on aircraft every four-five years, during which the aircraft is completely stripped, checked and then restored.
With India's current fleet of 907 including helicopters, business jets and 395 commercial aircraft, it makes a business case for the MRO industry, the experts said, adding some issues remained to make it a more viable proposition.
22/10/08 IANS/Economic Times

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Categories: Indian Aviation- In General Oct 2008