Bengaluru: Royalty charges imposed by domestic airports are a big spoiler for the emergence of the Indian MRO (maintenance, repair and operations) industry, say experts.
“The Indian MRO industry has the advantage of a large market, and lower cost and easily trainable manpower,” said Amber Dubey, Partner and Head (Aerospace), KPMG.
“Factors like royalty charges, policy apathy, a distortionary taxation structure, cumbersome procedures for import of components, and movement of foreign experts, are hurting the industry,” he added.
Poor infrastructure
Also, the lack of scale and adequate infrastructure are issues that have prevented India from becoming an affordable MRO hub.
Indian carriers find it cost-effective to fly empty aircraft and crew to overseas MRO hubs. At present 90 per cent of the MRO spend by Indian carriers is outside the country.
Earlier, speaking at the India MRO 2015 Aerospace & Defence Conference organised by the MRO Association of India, Dubey pointed out that the domestic MRO industry is highly fragmented, and this has prevented the development of large players with an end-to-end services portfolio.
“Component contracts help airlines reduce inventory holding costs, but no single MRO or supplier in India is able to provide such massive support,” he added.
02/12/15 Business Line
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“The Indian MRO industry has the advantage of a large market, and lower cost and easily trainable manpower,” said Amber Dubey, Partner and Head (Aerospace), KPMG.
“Factors like royalty charges, policy apathy, a distortionary taxation structure, cumbersome procedures for import of components, and movement of foreign experts, are hurting the industry,” he added.
Poor infrastructure
Also, the lack of scale and adequate infrastructure are issues that have prevented India from becoming an affordable MRO hub.
Indian carriers find it cost-effective to fly empty aircraft and crew to overseas MRO hubs. At present 90 per cent of the MRO spend by Indian carriers is outside the country.
Earlier, speaking at the India MRO 2015 Aerospace & Defence Conference organised by the MRO Association of India, Dubey pointed out that the domestic MRO industry is highly fragmented, and this has prevented the development of large players with an end-to-end services portfolio.
“Component contracts help airlines reduce inventory holding costs, but no single MRO or supplier in India is able to provide such massive support,” he added.
02/12/15 Business Line
