SIA-Wadia JV eyes 8 airports

The joint venture (JV) company set up by the Wadia group and Singapore Airlines Engineering Company has identified eight airports where it will provide line maintenance services to aircraft. The JV will also start an aerospace academy with a capacity to train 100 technicians and 50 engineers.

The Rs 130 crore maintenance, repair and overhaul (MRO) JV will initially provide services at airports in Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad and Thiruvananthapuram.

"The line maintenance services will start by November this year. We will expand this facility to around 25-30 airports across the country by 2011," Peck Yong Chia, spokesperson, SIA Engineering Company told Business Standard.

The service will initially be provided to the Wadia Group promoted GoAir's aircraft. "This will be later expanded to other domestic and international carriers," Chia said.

Apart from line maintenance projects, the JV will also set up a heavy maintenance facility. "The location for heavy maintenance facility is not yet finalised. This is expected to be functional by 2007," said Chia.

The heavy maintenance facility will initially service Airbus A320 and next generation Boeing 737 aircraft and later be upgraded to other aircraft. The heavy maintenance facility will serve both Indian as well as international airlines.

As a part of the memorandum of understanding (MoU) signed by the Wadia Group and Singapore Airlines' engineering arm in July this year, the JV will also set up an aerospace training institute.

Chia said, "The institute will be co-located with the heavy maintenance facility and will train about 50 engineers and 100 technicians annually."

Though SIA Engineering Company was unwilling to reveal details like the course duration and certification, it did say that it hopes to draw most of its technical staff from the aerospace institute.

However, the top level managerial and technical staff required in the initial stages will be brought in from Singapore and some of them will be hired from India.

SIA Engineering Company and the Wadia Group will invest nearly Rs 100 crore and will ramp it up to Rs 130 crore by 2009 for these projects. SIA Engineering Company holds a majority 51 per cent stake in the joint venture, while the balance 49 per cent stake is held by the Wadia Group.

Chia added, "SIA Engineering Company will manage the greenfield facility and provide all the required technical assistance. We have good relations with other equipment manufacturers and we will bring that in later."