Lufthansa Moves Out of MRO Deal With GMR

New Delhi: The slowdown in aviation and poor financial health of airlines are now casting its shadow on big deals that Indian companies had stuck with global majors.
German carrier Lufthansa's $5 billion technical support arm, Lufthansa Technik, has pulled out of a tie-up with GMR Group, inked in April 2007, to set up a $20 million maintenance, repair and overhaul (MRO) facility at the new airport in Hyderabad. The GMR Group is now talking to some leading Asian carriers for the proposed MRO.
The deal aimed to ready the MRO facility by this year-end, with Lufthansa arm contributing 75% of the investment and Indian carrier the rest. Sources close to the deal said Lufthansa Technik was in talks with a leading Indian carrier to maintain their fleet of Boeing 737s and Airbus A 320s at the proposed site so that it has an assured fleet to service. But in this cost-hostile environment, this did not happen and the MRO deal fell through.
A GMR official said they had to do land leveling and prepare parking bays at the airport.
28/06/08 Saurabh Sinha/RedOrbit, USA

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Categories: Airports Jun 2008, Foreign Jun 2008