Indian Aero charts out Rs 2,000 cr MRO plan

Indian Aero Ventures (IAV), the aviation venture holding company floated by Rajeev Chandrasekhar, has chalked out Rs 2,000 crore future plan.

The company plans to have its presence in the entire lifecycle support system for an aircraft, including training pilots and MRO (maintenance, repair and overhaul) facilities.

Rajeev Chandrasekhar, MP, has shown interest in infrastructure, media and aviation support businesses after selling BPL Mobile for an enterprise valuation of over $1 billion. IAV is planning to raise funds through equity and debt.

EADS, the parent company of Airbus, has invested around $40 million in this venture. The MRO facility being set up by IAV in Delhi in association with National Aviation Company of India (NACIL) is expected to have a captive customer base of NACIL, which was formed after the merger of Air India and Indian Airlines.

According to industry estimates, nearly 60 per cent of the 250 aircraft owned by Indian operators are Airbus jets. Ravi Narayanan, CEO & MD, Jupiter Aviation, the operating company of IAV, said: "The strategy is to be a vertically integrated aircraft lifecycle support company. We are planning a parts centre and a component overhaul centre near the international airport at Devanahalli in Bangalore. Our engineering services software firm will support these activities."

"Having Airbus as our strategic partner is an advantage. There will be a place for three major players in this sector as the number of aircraft is growing in India," Narayanan added.

The company is also planning an aviation institute in Hassan in Karnataka to train pilots, ATC staff and mechanics. The project, spread over 960 acres, recently received the concession agreement.