Page 20 - AAA SEPTEMBER - OCTOBER 2014 Online Magazine

MRO INFRASTRUCTURE

“In the absence of quality infrastructure, The leasing method requires
airlines (in India) were forced to carry out maintenance and re-delivery checks and
maintenance outside India a the nearest since most of the leasing companies
available MRO locations such as (South are either European or American, it is
East Asia, the Middle East and even Europe), imperative for the Indian MRO companies
incurring a ferry flight, logistics costs and to have global certifications to perform
engine hours...This is slowly changing,” MRO activities.
says Vivek Gour, Managing Director of Air The clear benefits for the domestic
Works, one of the leading independent airlines in availing the MRO services
general aviation and airline MRO firm in offered in India include cost advantage and
the country. faster turnaround time, says Ravi Menon,
Having the flexibility to get the aircraft Executive Director of Air Works.
serviced at a local MRO, with European “The ferry time of getting the aircraft
Aviation Safety Agency (EASA) approved serviced in India is another advantage,
facilities in India, results in 30%-40% which will save valuable fuel, logistic
savings in aircraft maintenance costs for costs, lost opportunity, engine, auxiliary
an airline, despite the tax regime on import power unit and component hours. This in
of spares into the country which makes turn translates into more revenue for the Labour costs in India are
around $30 to $35 per
them 30% more expensive as compared to airlines. A major reason why the airlines man-hour , compared to
international MROs, he says. continue to look towards international $55 to $60 in Southeast
The fleet of various airlines include market is because of the perceived quality Asia and the Middle East
a mix of directly purchased aircraft and of service...but then the safety standards and even higher in the US
airplanes that are leased. are the same globally,” Menon says. and Europe

20 ASIAN AIRLINES & AIRPORTS SEPTEMBER / OCTOBER 2014 WWW.ASIANAIRLINES-AIRPORTS.COM