MROs in talks for foreign alliances

Attracted by growing opportunity in the Indian aircraft maintenance industry, global majors are making a beeline to strike deals with domestic airlines.

Domestic maintenance, repair and overhaul (MRO) players are also busy in talks with their global counterparts to set full-fledged facilities to cash in on the civil aviation boom in the country.

Industry sources estimated over Rs 1,200 crore is flowing to overseas maintenance and repair market due to absence of full-fledged MRO facilities in India.

"This amount is going to rise in coming days with more domestic carriers enhancing their fleet. With the delivery of Boeing aircraft starting in October for national flag carrier Air-India (A-I), the MRO market is going to be important industry in the country," analysts said.

Mumbai-based Air Works India, Max Aerospace & Aviation, Indamer and Bangalore-based Taneja Aerospace and Aviation (TAAL) are the leading domestic MROs in the country.

"We are keen on entering into strategic alliances with independent international MRO major to set up full-fledged maintenance and repair facilities.

We are now in discussions with some of leading global players. We will soon strike a deal with them," said Air Works India Director Ravi Menon.

Max Aerospace and Aviation, which is having leading domestic and international carriers as its customers, also confirmed that it is in talks with international MRO companies.

"We cannot disclose the name of the companies due to the non-disclosure agreement," said Max Aerospace Chairman and Managing Director Bharat Malkani.

Taneja Aerospace is also scouting for Indian or international partners for its MRO. Sources said that company is in advanced talks with leading MRO players.

However, industry analysts pointed out, 100 per cent foreign direct investment (FDI) in the sector will hurt the growth of domestic aircraft maintenance industry.

Meanwhile, US aircraft manufacturer Boeing and French aircraft maker Airbus are setting up MRO with an investment of $100 million each in the country.

In addition, to these majors, companies such as Jordan Aircraft Maintenance Ltd (JorAMCo), Singapore Technologies Aerospace (ST Aerospace), German company Lufthansa Technik AG and Singapore International Airlines Engineering Company (SIAEC) are in talks with domestic airlines for setting up of MRO in the country.