MAS unit makes major inroads into India’s MRO sector

Chennai: MAS Aerospace Engineering Sdn Bhd (MAE), a unit of Malaysia Airlines, is making major inroads into one of the fastest-growing maintenance, repair and overhaul (MRO) market in the world through its 50:50 joint venture with GMR Hyderabad International Airport Ltd (GHIAL) in India.
Formed last year, the joint-venture company, MAS-GMR Aerospace Engineering Co Ltd (MAG) has signed MRO deals with two major airlines in the country this month.
One of them is with low-cost carrier SpiceJet while the other is with Jet Airways group. And these agreements were signed despite the fact that MAG’s MRO facilities are currently still under construction.
The facilities at Rajiv Gandhi International Airport in Hyderabad will be completed in the second quarter next year.
The values of the agreements are not stated, but it is believed they will bring in quite siginificant revenues for MAG once the agreements come into effect.
This is particularly so with the works to be done for Jet Airways group.
Jet Airways operates a fleet of more than 100 aircraft of various models. It is the second-largest airline in India after Air India.
It was a win-win situation as the MRO agreement with MAG could result in a cost-savings of up to US$820mil for Jet Airways over the span of 10 years, said Jet Airways executive director Saroj K. Datta.
The agreements with SpiceJet, which involves three years of maintenance and support works, could come with a value ranging from US$4mil to US$12mil.
25/01/10 Cecilia Kok/The Star, Malaysia

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Categories: Foreign Jan 2010, Indian Aviation- In General Jan 2010, New Jan 2010