Air India, Indigo, and Akasa Air have collectively placed orders for approximately 1,200 aircraft to be delivered in the coming years, creating a $5 billion opportunity for India’s aircraft maintenance industry.
A C check typically grounds an aircraft for 4 to 5 days. Utilizing domestic MROs not only proves cost-effective for airlines but also ensures a quicker turnaround compared to outsourcing to foreign facilities.
However, the AAR-Indamer facility currently focuses on airframe checks, representing only 10 to 15% of the overall maintenance process. The remaining 85% involves overseas MROs, covering critical components such as engines, aircraft landing gears, thrust reverse systems, and radomes—areas that domestic players are aiming to address.
Rahul Shah of AAR Corporation outlined plans for expansion, including the construction of a 15-acre facility with additional hangars and capabilities for more extensive repairs.
He stated, “If you look at our business plan, once this joint venture turns profitable, we will build another 15-acre facility which may have another 7 hangars with component capability or more extensive repairs done in-house. The objective is to do everything in India, not send anything abroad.”
The cost breakdown of MRO services indicates potential savings for airlines using Indian facilities, particularly due to the lower cost of skilled labour. Industry estimates suggest that skilled labour, which may cost $80 per hour in the US, can be obtained for approximately $30 per hour in India.
Experts believe that with these favourable conditions, India has the necessary elements to establish itself as a global hub for aircraft maintenance.
First Published: Jan 30, 2024 11:57 PM IST
