 "Air India MRO aims to double third-party revenue")
Air India's aircraft maintenance repair and overhaul unit (MRO) aims to nearly double its third-party business revenue to Rs 130 crore in FY2017. It also plans to hire 150 engineers and 450 technicians to cater to growth and replace 15-20 engineers retiring each month.
Air India's engineering services was hived off as a separate subsidiary in 2013 as part of its turnaround plan and last January it received approval from the Directorate General of Civil Aviation (DGCA). Last year, the MRO earned about Rs 65-70 crore from third party business and it largely caters to Air India's engineering requirement.
The MRO unit has been unable to secure substantial third-party business till now and has grappled with labour issues and an unsuccessful litigation against the hive off of the unit.
But the management is now making renewed efforts to attract business from private airlines and secure certification from Federal Aviation Administration and European Aviation Safety Agency for its facilities in Nagpur and Thiruvananthapuram.
Air India Engineering Services is currently undertaking a 'C' check (heavy maintenance check carried after about 2 years) on Jet Airways Boeing 777 aircraft. This is the first 'C' check being carried out by Air India for a private airline though it carries out routine maintenance and minor repair works for several years now.
At present, Indian carriers outsource about 90% of their repair and maintenance work to companies abroad. This is partly because of the limited capabilities of domestic service providers and partly because of the high tax structure in India. In order for a MRO to be successful, it needs to be cost competitive and work on quick turnaround times. Air India management hopes the engineering arm will be able to achieve that.
"We carry out landing gear change and engine replacement work for GoAir. We are also looking for long-term contracts with other private airlines," said HR Jagannath, CEO of Air India Engineering Services.
“GoAir has full capability and approval from DGCA for carrying out all land maintenance activities. However, occasionally we do take assistance from other service providers like Air India for undertaking work like landing gear change etc," a GoAir spokesperson said.