Aviation MRO segment poised to grow

As a support service to the aviation industry, India’s MRO (Maintenance, Repair & Overhaul) segment is estimated to grow at 10 per cent and reach $1.17 billion by 2010 and $2.6 billion by 2020, according to Changing Dynamics, a study on India’s aerospace industry undertaken jointly by the Confederation of Indian Industry and PricewaterhouseCoopers.
The globalisation of MRO services, manpower cost arbitrage, the availability of talent, locational advantages and the presence of specialist capabilities all combine to make India a potential global/regional MRO hub, the study observes.
The MRO manpower costs in India vary from $30 to $35 per hour which is almost 60 per cent cheaper that that in Western Europe and the US though not significantly lower than the manpower costs in other Asian countries such as China and Indonesia.
Another advantage for India has been its large pool of technical manpower. There is a shortage of skilled workforce in developed countries as the existing workforce is ageing while new talent is not becoming available.
Indian MRO companies can also leverage the country’s inherent geographic advantage of being located between Europe and the Asia Pacific region. Currently there is not a single MRO active in the area falling within a five-hour flying zone of India. India’s domestic market being substantial, right now the domestic carriers are required to go to either Dubai or Singapore.
16/03/09 Santanu Sanyal/Business Line/Sify

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Categories: Indian Aviation- In General Mar 2009