HAL plans MRO at old Bangalore airport with Rs 120 crore

Bangalore: Hindustan Aeronautics (HAL) is looking at setting up a maintenance, repair and overhaul (MRO) facility to leverage its Bangalore airport asset, which is now closed to commercial aircraft.
Along with the MRO plan, HAL is also combing across its business segments to expand revenue to make up for the loss in earnings from airport operations. The airport revenue, in the region of Rs 250 crore, is not a significant portion of the over Rs 8,500-crore entity, but it is by no means small enough to be glossed over.
HAL director (planning) M Fakruddin said the profitability from the airport business was very healthy. “We will look at expanding revenues from our existing line of businesses,” he told ET . HAL is in advanced stages of finalising a joint venture partner who will bring the licence for civil aircraft maintenance. Budgeting an investment of Rs 120 crore, the scalable model will start with two hangars with a capacity to handle 50 aircraft per annum.
HAL is also advancing on its plans to create a civil aircraft that is in the 100-seater configuration.
In fact, it is collaborating with National Aerospace Labs on the concept for design and manufacture of a regional jet. The Rs 2,000-crore plan will pit HAL against global aircraft manufacturers such as ATR, Embraer and Bombardier.
31/07/08 J Padmapriya/Economic Times

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Categories: Airports Jul 2008, Indian Aviation- In General Jul 2008, New Jul 2008