Indian Airlines floats MRO joint venture

Mumbai: Indian Airlines has signed a tripartite agreement with Airbus and Bangalore-based Jupiter Aviation to form a maintenance, repair and overhaul (MRO) joint venture. Jupiter Aviation is the exclusive strategic partner of EADS (holding company of Airbus) in India. The joint venture is for MRO and life cycle support of commercial aircraft.
As per the tripartite term sheet, the MRO venture will begin its activities in Delhi with two A320 hangars with a third hangar being added in due course. The facility will cater to major maintenance of A320 fleet of Indian Airlines followed by checks maintenance of ATR and other A320 fleet in India. The Phase II of expansion will cater to wide-body and other aircraft types.
By the third year, the joint venture will have facilities to cater to over 200 aircraft of single aisle and wide-body aircraft belonging to various customers from India and abroad.
The first phase, to service Airbus and ATR aircraft, and the second phase for wide body aircraft, will each cost around Rs. 150 crore to set up. Neither Indian Airlines nor Airbus will contribute anything in terms of equity to the MRO with investment coming from the strategic partner. The first aircraft at the MRO is likely to be serviced by October 1.
11/05/07 The Hindu

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Categories: Foreign May 2007, Indian May 2007, New May 2007