Jet may take 24% in GMR’s repair facility

Mumbai: India’s largest private airline, Jet Airways Ltd, is in talks with with Bangalore-based infrastructure developer GMR Group to buy a stake of at least 24% in a proposed aircraft maintenance, repair and overhaul, or MRO, venture being set up at Rajiv Gandhi International Airport in Hyderabad, a senior Jet Airways executive said.
GMR Hyderabad International Airport Ltd, or Ghial, a company started by GMR to run the airport, is building the facility in partnership with Malaysia Airlines Ltd to provide maintenance services on narrow- and wide-body aircraft.
Earlier, GMR had tied up with Lufthansa Technik AG for a venture in which the latter would have held a 75% stake. However, Lufthansa later backed out for undisclosed reasons.
“We are very keen on (the) MRO project at Hyderabad airport,” said the senior Jet Airways executive, on condition on anonymity. “It makes commercial sense to have a repair centre nearby and stake in that. Besides making financial investment, Jet Airways can also pick up stake through offering guaranteed slots of airplanes for repair,” he added. Jet Airways, along with its subsidiary JetLite Ltd, operates 109 planes.
According to data on the website of India’s Directorate General of Civil Aviation, there are 311 passenger aircraft in operation in the country. More than 200 new aircraft will be headed for India in the next two years, while 2,000 new planes are expected in the next 8-10 years, said an August joint statement by Malaysian Airlines and Ghial announcing the project.
Tan Wai Fong, head of media relations at Malaysia Airlines, declined comment.
A GMR Group spokesperson confirmed the development.
15/09/08 P.R. Sanjai/Livemint

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Categories: Jet Airways Sep 2008