- India’s MRO industry has an opportunity to emerge as a regional leader in airframe maintenance and repair.
India’s domestic aircraft Maintenance, Repair and Overhaul (MRO) industry will soon have access to much needed economies of scale due to the large number of aircraft being inducted into service by airlines in the country. With well over 1,000 commercial aircraft on order, Indian carriers will need to be supported by a domestic MRO industry that is not only cost-efficient but can turnaround aircraft in quick time. It is this demand that is driving forecasts that predict that the Indian MRO industry will grow in size to Rs 33,000 crore by 2031.
The large number of commercial aircraft entering service and in operation with Indian carriers will drive the maturation and development of the local MRO sector to deliver higher operability to airline operators. Presently, MRO’s in the country are focussed on Line Maintenance and Component Support, which includes aircraft defect resolution and the maintenance, repair and refurbishment of aircraft components, respectively. MRO work related to engines and landing gear, which requires heavy investments, will require some time to mature. Airframe MRO, which comprises overhauling and repair work of the overall aircraft structure, is an area where domestic MROs could grow their market share significantly. This will involve performing aircraft maintenance checks, wing installation and repairs, landing gear and thrust reverser inspection, cleaning, miscellaneous inspections and repairs, corrosion maintenance and aircraft painting, fuel tank maintenance, repairs, inspections and renovation of aircraft interiors, etc.
Air India Growing In-house MRO
In September, Air India Group began construction of a mega MRO facility that is being built on a 35-acre land parcel at the Bangalore International Airport. Air India had inked a Memorandum of Understanding (MoU) this February with the Government of Karnataka to establish MRO facilities in Bengaluru. The Tata owned airline has entered into an agreement with SIA Engineering Company (SIAEC), which will be a strategic partner for the development of this MRO facility. ‘The Bengaluru MRO facility is coming up at an opportune time to help strengthen India’s aviation ecosystem while enhancing our in-house capabilities to maintain our fleet. This is a step ahead in our mission to make Air India a world-class airline,’ said Campbell Wilson, Chief Executive Officer & Managing Director, Air India.
Air India has plans to make Bengaluru as one of its key hubs, which this MRO facility will support. According to company officials, this MRO facility will be setting a new standard in aviation maintenance that is at par with any MRO in the world. The Bengaluru MRO facility, expansion of in-housed Line Maintenance, new facilities across the network, and the recently refurbished widebody aircraft hangar in Mumbai will make Air India even more self-reliant in the maintenance of its entire fleet from 2025. The new mega MRO facility is slated to be complete and operational in the second half of 2026.
Air India is constructing a massive hangar that will accommodate widebody and narrowbody aircraft requiring Base Maintenance. A new widebody hangar is also planned for Air India in Delhi to cater to its Line Maintenance requirements. As a result of these facilities, Air India will have developed a complete maintenance ecosystem at all major Indian airports.
Additional hangars will also be built at the Bengaluru MRO facility for servicing more aircraft, and a paint hangar will also be installed and the MRO facility will be equipped with the latest aircraft maintenance technology, including overhead tele platforms, cranes, universal docking systems, and the largest vertical lift hangar doors in the country. Once completed, the new MRO facility will support over 200 SMEs in Karnataka and will likely generate jobs for over 1,200 aviation engineers and provide an estimated 25,000 indirect job opportunities.
Air India is working hard to ensure the availability of trained type-rated personnel for maintenance functions of different types of fleets by obtaining approval for CAR-147 for its training academy. The carrier also plans to open a Basic Maintenance Training Organisation (BMTO) in 2025, in Bengaluru, to ensure continuous inflow of trained personnel for aircraft maintenance and engineering activities. This will create opportunities for engineering students to receive training to become type-rated engineer for certification.
To strengthen its operational capabilities, Air India has recently also entered into strategic agreements, including the 12-year Inventory Technical Management (ITM) agreement with SIAEC to support its Airbus A320 family fleet, improving component reliability and support. The airline has entered into a multi-year agreement with Lufthansa Technik for Total Component Support (TCS) for its Boeing 777 fleet, in addition to a long-term agreement with Honeywell for Auxiliary Power Unit (APU) aftermarket support for its existing and new aircraft.
Air India also announced the commencement of its over US$400m refit programme this September. The phased revamp of 67 legacy aircraft in its fleet will result in the aircraft being refreshed with a modern three-cabin configuration, new seats, new carpets, curtains and upholstery. The refit programme will start with the 27 narrowbody Airbus A320neo aircraft, followed by the 40 widebody Boeing aircraft. VT-EXN, a single-aisle A320neo narrowbody aircraft, has already begun its refit, and the aircraft is expected to re-enter commercial service in December 2024, joining the eight recently delivered and operational Air India A320neo aircraft. Following VT-EXN, between three and four aircraft per month will undergo retrofit, with the upgradation of the full narrowbody fleet expected by the middle of 2025. The refit project coordinated by Air India’s Engineering team will see the installation of over 15,000 next-generation seats across Premium Economy, Business and Economy Class in partnership with leading global OEMs in such as Collins, Astronics and Thales among others.
AAR Indamer Seeking MRO Growth
One of the major domestic MRO companies that is expected to benefit from increased demand for Line Maintenance and Airframe Maintenance is Nagpur-based AAR Indamer Technics Pvt. Ltd (AAR Indamer) It was in February 2018 that AAR, a global provider of aviation services to commercial airlines, announced its Joint Venture (JV) with Indamer Aviation for the development of a new airframe MRO facility in Nagpur.
The MRO facility comprises of four narrowbody bays, including one bay for paint and was completed in 2021 at a cost of approximately Rs. 450 crore. Earlier this year in January, AAR Indamer had announced plans to double the size of its Nagpur MRO facility. As per its original plans, AAR Indamer had planned for a total of 16 bays, as well as component repair shops at the Nagpur MRO facility. AAR Indamer will now add six more bays (including widebody), which will allow it to triple its MRO capacity. The expansion work is expected to begin later this year. Including the expansion cost, AAR Indamer will have invested over 1,000 crore in its Nagpur MRO facility and will soon also offer component repair services. The MRO provider completed the major check (C check) for its 100th aircraft, an IndiGo Airbus A320 in Jan 2024.
Airbus Helicopters and Indamer had also inaugurated a new MRO facility at Nagpur for Airbus helicopters in December, last year. “Building and supporting a sustainable end-to-end rotary-wing aviation ecosystem in India is key for Airbus Helicopters. With Indamer, we aim to cater to our growing fleet in India and the future potential while at the same time bring in the technical competencies that will help advance India’s helicopter MRO ambitions,” said Romain Trapp, Executive Vice-President, Customer Support & Services for Airbus Helicopters.
The Indamer-Airbus Helicopters MRO will provide a faster turnaround for servicing and help create an efficient aftermarket experience for Airbus Helicopters customers not only in India but also in the wider South Asia region. Indamer had made the strategic decision to establish its rotary-wing MRO division over a decade ago, concentrating on addressing the increasing demands of Indian helicopters operators. Indamer is India’s largest MRO operator for helicopters in India with presence in multiple locations, including Nagpur, Mumbai, Pune and New Delhi.
Belgaum Based Aequs Eyeing MRO Entry
Aequs a unique, diversified manufacturing company providing solutions to customers in aerospace and consumer industries with manufacturing facilities in India, France, and the USA announced in July, this year, that it was exploring setting up an Engine MRO business in India with UK based global aerospace company Magellan Aerospace Corporation. The two companies have entered into a MoU to explore the development of a business plan for a jointly-owned engine MRO business in the Aequs Special Economic Zone at Belagavi in Karnataka, India. Magellan and Aequs will work together to evaluate the market for business, commercial, and military aircraft engine MRO services and develop a comprehensive business plan before entering the sector. Aequs has had a successful relationship with Magellan Aerospace for the past 15 years. Phillip Underwood, President and CEO, Magellan Aerospace said the potential engine MRO venture for the Indian market will focus on infrastructure development, cost advantages, and strategic initiatives.
‘This facility is expected to have the ability to strip, rebuild, and test engines to help alleviate existing capacity constraints. This JV will leverage the vertically integrated Aerospace manufacturing ecosystem at Aequs SEZ and, coupled with Magellan’s global presence and expertise across product lines, will be best suited to provide engine MRO services to domestic and international business, commercial and military aircraft users,’ said Aravind Melligeri, Chairman and CEO, Aequs. Aequs and Magellan had established Aerospace Processing India (API), a JV in 2008, that was the first Airbus and Boeing approved plant in India, providing OEMs aerospace surface treatments, which were not readily available in India at the time. This successful venture has flourished and grown to be the largest in India, processing more than 1.5 million parts per year.
AIESL Growing MRO Presence
Air India Engineering Services Limited (AIESL) which remains under Government control as part of AI Assets Holding Ltd and has access to some of the most comprehensive MRO facilities and infrastructure among MRO firms in India. AIESL provides Line Maintenance Services to Air India, Go Air, SpiceJet and Fly Big in addition to international carriers such as Jazeera Airways, Oman Airways, Malaysian Airlines, Kuwait Airways, Tiger Scoot, China Airlines, MA Indo Airlines, Egypt Air, etc. AIESL has played a major role in recovering grounded GoFirst jetliners and returning them to the air.
In September, it announced the successful recovery and departure of its third GoFirst aircraft (VT CFP). The aircraft had been grounded for an extended period and required significant work to be made airworthy and then returned to the original lessor. The MRO provider recently also undertook the successful replacement of the landing gear on a Pradhaan Airways A320 freighter aircraft. In May this year, AIESL’s Nagpur MRO facility became the 1st Indian MRO to perform a C-check on a Boeing B777 in a remarkable 15 days. AIESL has now successfully completed various maintenance checks on over 200 aircraft at its Nagpur MRO facility.
In August this year, AIESL announced that it had partnered with Boeing to provide in-country overhaul services of critical components for the Indian Navy’s fleet of 12 Boeing P-8I aircraft. The first landing gear overhaul of a P-8I aircraft has already been completed by AIESL at INS Rajali in a first for an Indian MRO firm. “Through this partnership with AIESL, we continue to make strategic investments in India’s MRO capabilities that enhance mission readiness rates for the Indian Navy. Developing local MRO capabilities is critical for reducing repair turnaround time and aircraft downtime, thereby improving the mission readiness of customer fleets,” said Salil Gupte, president, Boeing India and South Asia. The Boeing India – AIESL partnership is the latest development under the Boeing India Repair Development and Sustainment (BIRDS) hub programme and includes partnerships with other MRO providers such as Air Works and Horizon Aerospace.
Hindustan Aeronautics Eyes MRO Entry
The state-owned Defence Public Sector Undertaking (DPSU) Hindustan Aeronautics Limited (HAL) is also planning to strengthen its MRO services. In November last year, Airbus is partnered with HAL to support their entry into servicing of commercial aircraft. “HAL has the vision to establish an integrated MRO hub in the country and provide airlines with an effective MRO solution. This step by HAL Nashik is also aligned to civil-military convergence and the Make in India mission of the Government of India” said Saket Chaturvedi, CEO (MiG Complex), HAL. Airbus will support HAL’s efforts to tap into growing demand for MRO services for A320 family jetliners. ‘An indigenous MRO infrastructure will not only help airlines streamline their aircraft operations but also support the government’s aim of making India a global aviation hub. And HAL, with its deep experience in the aerospace industry, is well positioned to trigger the growth of this sector,’ said Rémi Maillard, President and Managing Director, Airbus India and South Asia. Airbus will provide HAL with a A320 family tool package and also offer specialised consulting services to HAL to set up an MRO. The French airframer will also offer HAL access to AirbusWorld, a digital platform that offers support, technical data and training solutions.
