Global airframe MRO majors set focus on India

Munich, June 8: After years of under-investment, Indian aviation industry's MRO (maintenance, repair and overhaul) sector is preparing to boom.

The field is experiencing a surge of interest as foreign companies negotiate with domestic airlines and infrastructure entities to establish joint venture facilities across the country.

The first international company to start large-scale maintenance operations is likely to be Lufthansa Technik which has scheduled to open its MRO at Hyderabad airport by next year.

It has pledged 23 million dollars (about Rs 100 crore) in initial phase towards the venture of which it will own 75 per cent and the concessionaire GMR Hyderabad International Airport Limited (GHIAL) holding the remainder.

The facility designed to undertake more labour and infrastructure intensive (and lucrative) C and D checks will focus on narrow-bodied Boeing737 and Airbus320 planes. It has already tied up with Air Deccan, Kingfisher, Jet Airways and GoAir.

''India is one of the fastest growing aviation markets in the world,'' said chairman of Lufthansa Technik's executive board August Henningsen.

The number of aircraft in operation across the country now stands at 312, up from 170 two years ago. With 444 aircraft on firm order, the number can be expected to exceed 500 in near future.

Of the original equipment manufacturers (OEMs), Boeing seems to be moving fast, pushing forward with its plan to institute a 100 million dollar (about Rs 425 crore) facility spread across 120 acres in Nagpur.

It aims to have a functioning unit by 2009 and double the investment figure eventually. Boeing is looking for another investment partner to join Air India which will contribute its staff and existing maintenance infrastructure to the MRO venture.

Airbus parent EADS has authorised Bangalore-based Jupiter Aviation and Logistics to enter into a joint venture with Indian (Airlines) to set up 70-million-dollar (about Rs 300 crore) MRO facility to be set up most likely in Bangalore. The facility will start its first major C-check early next year. It will cover A320 family aircraft and service planes from neighbouring countries as well.

Sabena Technics has independently announced plans to participate in the MRO market for ATR planes with a facility in Krishnagiri district of Tamil Nadu. It will initially service ATR-42s and ATR-72s before eventually widening its scope to include narrow-bodied jets.

Even though Bombardier has had limited success penetrating the Indian market with either its turboprops or regional jets, its MRO and training facility in Mumbai or Bangalore could be operational by the year-end.

Corporate jet maker Raytheon has plans to facilitate the continuing boom in private aircraft ownership by constructing its own maintenance facility.

Meanwhile, GoAir has signed an agreement with Singapore Airlines Engineering Company (SIAEC) and Kingfisher is in talks with Abu Dhabi-based GAMCO about an India-based joint venture to service A320s. GAMCO already has a contract with Kingfisher for A320 work out of Abu Dhabi.

Air Deccan plans to spin its MRO unit off into a separate company and is evaluating the strengths of Lufthansa Technik and SIAEC. Jet Airways is also in discussion with Lufthansa Technik for the installation of an MRO.

As the fleet inductions bring total number of aircraft in service to just under 370 before 2007 runs out, Boeing and Airbus predict that Indian carriers will add between 850 and 935 new jets by 2025.

UNI