The much awaited MRO (maintenance, repair and overhaul) facility, a joint venture between flag carrier Air India and US-based aircraft manufacturer Boeing at Nagpur has hit a roadblock. According to a source, both Air India and Boeing had plans to approach
Germany-based MRO players Lufthansa Technik, amongst others, but due to the global recession leading to a dip in air travel, none of the players want to enter India currently. The venture was to kickstart at the end of the current fiscal with an initial investment of $100 million.
Said a source, ?Instead of investing in an MRO at a time when there is a downtrend, the players would very well invest in assets that can reap results.? Commenting on the same, Kiran Yadav, an aviation analyst and managing director, Aerobiz India says, ?Though, the sector is under-performing currently, it is a passing phase for the sector. The market condition will improve in the medium-term and the MRO sector will see huge investments from global players in the times to come. ?Also, all the major carriers have placed huge orders for aircraft with Boeing and European aircraft manufacturer Airbus, which shall be delivered in phases. There will be over 1,000 aircraft in the domestic skies by 2010,? said Yadav.
However, Dinesh Keskar, senior vice president, sales, Boeing told FE, ?We are awaiting basic environment clearances from the government of India to start the construction for the facility at Nagpur. We may start the construction soon. We do not need a private party for the venture.? He further added the goal of this venture is to reduce maintenance costs for the airlines and improve their profitability.? He said the facility will be capable of handling current-generation aircraft such as the B777s as well as B787s. It will have a component overhaul division, electronics and avionics shops and will offer C and D checks in addition to structural repair and interior modifications.
Meanwhile, there are two MRO facilities in India, with one each in Delhi and Mumbai. These are run by Air India and Blue Dart. Earlier, experts had predicted the domestic MRO market to grow at an annual rate of about 15% at $10 billion by 2010.