Global aviation cos eye India to outsource maintenance work

Bangalore: Maintaining aircraft is costly business. Consider this. If a plane needs to be serviced it has to be flown into specific maintenance, repair and overhaul (MRO) hubs, which could cost the airlines around $4,000 per hour.
Labour costs are equally exorbitant — as high as $55 to $60 per man-hour in South East Asia and the Middle East, compared to the $30-35 per man-hour in India.
The global aviation industry, caught in a thick air-pocket, is trying to cut costs by increasingly looking to outsource their maintenance and overhaul work to India.
This has opened a plethora of opportunities for small companies such as Air Works, Varman Aviation, Jupiter Aviation and IT giants like Wipro, who are actively chasing outsourcing contracts, as Indian commercial aviation MRO alone is expected to reach $1.06 billion by 2015 .Experts from Frost & Sullivan say the maintenance cycle and MRO service requirements in India are expected to grow at a CAGR of 13.5% between 2009 and 2015.
Wipro Technologies has come to an understanding with All Nippon Airways (ANA) of Japan for three years to deliver material management system. With a fleet of 209 aircraft, ANA is the first airline in the world to procure the Boeing 787 Dreamliner. Wipro has undertaken the task of transforming its legacy material management system to support the new fleet, in line with the expansion of its business at Tokyo’s Haneda Airport with its upcoming fourth runway in 2010.
23/10/09 Peerzada Abrar/Economic Times

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Categories: Foreign Oct 2009, Indian Aviation- In General Oct 2009