GMR in tie-up to offer MRO services in Hyd

Written by fe Bureau | Hyderabad | Updated: Mar 1 2009, 04:06am hrs
GMR Hyderabad International Airport Ltd (GHIAL) and MAS Aerospace Engineering (MAE), a wholly-owned subsidiary of Malaysian Airlines, have signed a 50:50 joint venture agreement for setting up an airframe maintenance, repair and overhaul (MRO) facility in Hyderabad.

This is part of the Rs 400-crore aerospace park in Hyderabad and GHIAL-MAE MRO would become the first tenant with an initial investment of about $50- $60 million on nearly 10 acres in the first phase.

About the joint venture company, known as MAS-GMR, GM Rao, GMR group chairman, said, We expect more than 200 new aircraft to head for India in the next few years. This is estimated to go up by 2,000 new planes in 10-15 years. He hoped the JV will break even in three years.

The MRO business is currently estimated around $450 million in India and $60 billion globally with an estimated growth of 11-135%.

We aim to position the JV company as a leading MRO player and the facility would cater to both narrow and wide-bodied aircraft. It is expected to be operational by the third quarter of 2010 and has the capacity to service between 80 aircraft annually, Sadasivan, deputy chairman, Malaysian Airlines, said. He added that many airlines have expressed interest in MRO services. However, details are yet to be finalised.

The facility is expected to provide base maintenance services starting with C-checks for narrow-bodied aircraft like Airbus A-320 and Boeing B-737 Classic and B-737 next generation aircraft. He said that the downtime for an aircraft in India for maintenance is between four to 10 days. Among the services provided are A,B C, D checks besides engineering services, technical training and aircraft modification. In the process, there could be savings close to $35 million mandays.

The Aerospace SEZ is starting off with an airframe MRO as its first foray followed by aviation training, design and engineering services. In the second phase, it is eyeing engine and component MRO, besides manufacturing. Both the phases are expected to be completed in the next 24-30 months. Meanwhile, GMR group is also looking at developing a second multi-product SEZ which would be a transshipment hub for cargo and logistics facility.

Sky bound

The facility is expected to provide base maintenance services starting with C-checks for narrow-bodied aircraft

Among the services provided are A,B C, D checks besides engineering services, technical training and aircraft modification. In the process, there could be savings close to $35 million mandays