Global MRO major Lufthansa Technik to set foot on Indian soil

New Delhi: Lufthansa Technik, the world’ s largest maintenance, repair and overhaul (MRO) company, will set up a facility in the country, in a joint venture with the Hyderabad-based GMR group. This will be the country’s first foreign-owned, airport maintenance facility.
In the joint venture, Lufthansa Technik will have a 75%, stake, while the rest will be held by its Indian partner. Both the Companies are expected to invest Rs 100 crore in the venture in the initial phase. The 20,000 square meter facility will be located at the New Hyderabad International Airport in Shamshabad, Andhra Pradesh.
The facility will provide base maintenance services (including C- and D-checks) for Airbus A320 family and Boeing 737 aircraft—including 737 Classic and 737 NG (next generation) and is expected to commence operations by the end of 2008. At present, Lufthansa Technik serves the Indian carriers through its facilities outside the country. The Indian MRO market is projected at around $100 million a year at present, and is expected to grow by at least 15% over the next three years.
An MRO ideally needs around 200 aircraft to be viable A report by Ernst & Young has stated that the aviation sector in India, is slated to draw an investment of more than $120 billion by 2020.
24/06/08 Shauvik Ghosh/Financial Express

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Categories: Foreign Jun 2008, Indian Aviation- In General Jun 2008, New Jun 2008