Wadias, SIA Engg team up for MRO

The Wadia group, the promoter of low-cost airline GoAir, and Singapore Airlines engineering arm SIA Engineering Company today signed an agreement to float a joint venture company to offer maintenance, repair and overhaul (MRO) services in India.

The initial capital for the MRO would be $30 million. The Wadia gGroup will hold 49 per cent stake in the joint venture, while the SIA Engineering will have 51 per cent and will manage the greenfield facility.

The proposed joint venture, which plans to initially offer line maintenance services at eight major airports and expanding to more airports subsequently, aims to provide engineering services to both narrow and wide body aircraft in India.

This facility would be ready by November while heavy maintenance would be ready in an years time.

There are also plans to develop the joint venture company into a centre of excellence for airframe maintenance of Airbus aircraft A320 and Boeing B737 next generation airliners and the establishment of a leading aerospace training institute.

"We have not yet finalised the location for heavy maintenance. This facility will offer services to foreign carriers as well as Indian planes. The MRO facility will result in substantial cost savings for GoAir," said Jeh Wadia, managing director, GoAir.

SIA Engineering president and chief executive officer Tan Seng Koon William said there are over 500 to 600 aircraft would be joining fleet of domestic airlines companies. "This would require the support of modern and world class MRO facilities," he said.

Wadia said the MRO will have initially 100 engineering personnel and would increase up to 500 by 2010. "The Wadia group and SIA Engineering will proceed to work out the details of the definitive agreement for the transaction in the near future," Wadia added.

SIA Engineering has a client base of more than 80 international carriers and aerospace equipment manufacturers. It provides line maintenance services at Singapore Changi Airport for more than 60 international carriers, as well as airframe and component overhaul on some of the most advanced and widely used commercial aircraft.

GoAir, a no-frill airline, is operating with three Airbus A 320 covering 13 airports with 26 flights a day.