MAG signs 10-year deal with Jet Airways

Chennai: MAS-GMR Aerospace Engineering Co Ltd (MAG) yesterday signed a memorandum of understanding (MOU) with Jet Airways for an exclusive 10-year deal with an option for another five years, for the provision of maintenance, repair and overhaul (MRO) services for the latter’s entire fleet of aircraft in India.
This is the first major deal in India for MAG, which is a 50:50 joint venture between MAS Aerospace Engineering (MAE), a wholly-owned subsidiary of Malaysia Airlines, and GMR Hyderabad International Airport Ltd (GHIAL). It is expected to take effect from the second quarter of next year upon the completion of the first phase of MAG’s facility in the Rajiv Gandhi International Airport in Hyderabad.
The deal with Jet Airways is seen as setting the stage for MAE to build its presence in the fast-growing Indian market, where airline fleets are expected to triple in the next 10 years. MAE had earlier this week signed a three-year maintenance support agreement with SpiceJet for its fleet of Boeing 737.
While the value of the MRO deal with Jet Airways was not disclosed, GHIAL chief operating officer of aviation and aerospece business D. Ravindran told reporters that works for Jet Airways were expected to constitute around 55% of MAG’s business.
23/01/10 Cecilia Kok/The Star Online

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Categories: Foreign Jan 2010, Jet Airways Jan 2010