Air India and American aircraft maker Boeing?s maintenance, repair and overhaul facility, which is being built at Nagpur, is expected to be functional by December with over 60% of site work being completed.
The MRO facility will be one of the most modern facilities in the South Asian region and will service Boeing 737, 777 and 787 aircraft of Indian and international carriers in the region. Air India, however, will be able to use the facilities for free as part of Boeing?s offset obligation.
?The facility will have two wide body hangars, GE90/GENX engine overhaul facility,? said a senior official of Air India. ?The work is progressing at a rapid pace and will be completed by December.?
?The MRO will not only add to our revenues as it will take third-party business but it will also help reduce our cost of maintenance,? the official added.
Boeing is investing $100 million in the facility and the investment is being undertaken directly by Boeing on the infrastructure, plant, machinery and tooling of the facility.
As on date, the land has been acquired for the facility and unit holder approval from SEZ authorities have been obtained. Registration of lease deed for 50 acre has been completed with the Maharashtra Airport Development Corporation. Infrastructure major L&T has been hired as contractors for the project.
The MRO will be part of the newly formed Air India subsidiary Air India Engineering Services. Nearly 7,400 employees of Air India will be transferred to the engineering subsidiary on existing terms of employment. The MRO is the result of Boeing?s commitment when Air India purchased 68 aircraft from the aircraft major in 2005-06.