Boeing to begin work on MRO unit

US aircraft maker Boeing today said it will this year begin work on its $100 million maintenance, repair and overhaul (MRO) facility in India, while raising the projection for the country's requirement for jets to 911 in the next two decades.

"We have figured out the corners of the 75 acres in Nagpur in a special economic zone. We will do the ground-breaking later this year, and have a projected investment of $100 million," Dinesh Keskar, vice president (sales), Boeing, said.

Boeing, Air India and a yet to be selected third partner would run the MRO unit, he said, adding "we are in talks with several companies which have experience with MROs."

The MRO, which will be capable of carrying heavy checks and repairs of aircraft, is part of the offset provisions in the aircraft maker's deal to supply 68 planes to Air India.

Keskar said the MRO would bring down maintenance and repair cost of Indian carriers as it would not only serve AI, but also other carriers which operate Boeing planes in India.

Boeing already has 141 aircraft on firm order from Indian carriers like AI, Jet Airways, SpiceJet and JetLite (erstwhile Air Sahara). The Indian Air Force has also ordered three 737 Boeing Business Jets for VIP travel.

Raising the company's projections regarding India's aircraft needs over the 20 years, Keskar said 911 new planes worth over $86 billion would be  needed. It had last year predicted that India would require 856 aircraft.

The revision was on account of high GDP growth and rise in air travel, he said. Most of this increase is projected in twin-aisle aircraft demand, which grew from an estimated 120 planes in 2006 to 173 this year.