GMR likely to set up MRO unit without Jet Airways

Hyderabad: Infrastructure major GMR is all set to go ahead with its aircraft maintenance, repair and overhaul (MRO) facility in the vicinity of the Hyderabad international airport, but without one of its earlier key stakeholders - Jet Airways.
GMR has been working on setting up the MRO jointly with Malaysian Aerospace Engineering, a subsidiary of Malaysia Airlines System (MAS) and Jet Airways.
Through this deal, Jet Airways was also seen to become the anchor client to make use of the MRO facility to maintain its over 100 aircraft fleet. However, the MRO facility will now start functioning without Jet Airways participating in it.
“It is not that the doors are completely closed for Jet. For now, their participation in the project as a stakeholder is on hold,” a source said.
GMR and MAS are jointly setting up the MRO facility with an outlay of over Rs300 crore including an equity component of about Rs77 crore.
With Jet, which was to acquire about 26% equity, not coming forward, the project is being executed as a 50:50 joint venture between GMR and MAS.
01/11/11 KV Ramana/Daily News & Analysis

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Categories: airports Nov 2011, Indian Aviation- In General Nov 2011, Jet Airways Nov 2011