Page 18 - AAA SEPTEMBER - OCTOBER 2014 Online Magazine

TURE
MRO INFRASTRUC
MRO INFRASTRUCTURE

Small Steps

India has the potential to emerge as a Maintenance, Repair and Overhaul hub in the
Asian region, writes Jay Menon

IndIA’S AIRCRAFT mAInTEnAnCE estimates indicate. However, India has only
and overhaul business is showing signs an insignificant one percent of the about
of revving up, but lack of adequate $45 billion global MRO market.
infrastructure facilities and severe tax India has the potential to be an MRO hub
policies are preventing a smooth take-off. due to the growing aircraft fleet, location
Albeit debate and speculations as to advantage and availability of talent. Given
whether India has the potential to develop the growth of Indian aviation, it is logical to
as a Maintenance, Repair and Overhaul encourage MRO infrastructure to support
(MRO) hub in the Asian region are rife, the the growth in the sector. Moreover, low
industry is constrained with no definite cost carriers would also prefer servicing of
strategy for developing global standards aircrafts locally to save cost and time in a
of excellence to attract business into the highly competitive market.
country. “Understanding what prevents India
The MRO spend by airlines in India from becoming a MRO or an aviation hub is
currently is over $800 million, and is the need of the hour. Though the mid-long
likely to grow to over $1.5 billion by 2020, term fundamentals are robust, the lack of
18 ASIAN AIRLINES & AIRPORTS SEPTEMBER / OCTOBER 2014 WWW.ASIANAIRLINES-AIRPORTS.COM