AI, Boeing fail to agree on MRO JV's equity structure

NEW DELHI: Air india and US aircraft manufacturer Boeing have locked horns over a majority stake in the proposed joint-venture for a maintenance, repair and overhaul (MRO) facility.
While the two companies are yet to find a third partner for the proposed JV, the row over the equity structure in the new firm may delay the engineering project. It’s learnt that Air India and Boeing are in the initial phase of discussion with leading MRO players such as Lufthansa Technik, Essar Group and the Singapore Airlines’ engineering arm SIA Engineering for a tie-up.
“We have insisted on a majority stake in the proposed JV for MRO. So has Boeing, but the issue is expected to be sorted out. We are expected to sign a MoU within the next three months for the proposed project. The engineering venture would take off by October this year,” said an Air India official.
09/05/08 Nirbhay Kumar & Chanchal Pal Chauhan/Economic Times

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Categories: Foreign May 2008, NACIL May 2008, New May 2008