Aerostar alliance begins to generate revenues for Air India

Mumbai: National carrier Air India (AI), which is in the process of hiving off its engineering division into a separate subsidiary, on Wednesday said it has earned nearly $3,00,000 (Rs 1.46 crore) in December through its alliance with Dubai-based Aerostar Asset management company which provides engine repair management solutions mainly to the West Asia market. Although, this is a modest beginning, the carrier is pinning high hopes of generating as much as Rs 3,000 crore annually from its engineering facility which is four times more than it does currently. Currently, the public sector airline services approximately 100 planes annually.
Recently, AI's engine overhaul facility, and Aerostar Asset Management, Sharjah, UAE, created an engine MRO brand called 'The A Team.' Targeted at the Middle East market, this initiative will provide engine repair and management solutions to all airline operators of the region. Gradually, the venture aims to spread its wings to the Asia-Pacific, Europe and other key regions.
For AI, this venture is a smart business preposition since the passenger fleet in the Middle East region is expected to treble to 1,681 from the 586 passenger aircraft recorded at the beginning of 2009. The region is set to take delivery of 730 aircraft by 2018, with a further 689 on order up until 2028, as per the study done by European aircraft manufacturer Airbus.
07/01/10 Financial Express

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Categories: Foreign Jan 2010, NACIL Jan 2010, New Jan 2010