Civil Aviation Minister Ajit Singh today unveiled the GMR group’s maintenance repair and overhaul unit (MRO) at Hyderabad, boosting the aspirations for the city as an aviation hub. “An MRO has great synergies with an airport. It will also help build a relationship with airlines,” a senior GMR executive said, on the rationale behind this venture.
More, it would create an alternate revenue stream for the airport developer. For three consecutive quarters, the group’s airport division has made a loss, largely due to Delhi International Airport Ltd. In the past two quarters, the division’s losses have been in excess of Rs 200 crore. But Hyderabad airport is faring well and is expected to post a net profit of Rs 20 crore in 2011-12.
Built at a cost of Rs 300 crore, the first phase of the MRO is spread over 30 acres and has three hangars for maintenance work. The MRO has been developed on a 50:50 basis by GMR Hyderabad Airport Ltd and Malayasian Aerospace Engineering. There was to be a third partner in Jet Airways but the latter backed out last year.
