Wednesday, August 16, 2017

Air India’s MRO: Traffic, tax incentives imperative for Nagpur facility to take off

Nagpur: The Indian air travel market, which is currently witnessing a 20 per cent annual growth in domestic passenger traffic, is pegged to be one of the fastest growing markets in the world. However, to sustain this growth, it is also deemed essential for the country’s aviation infrastructure to grow. Although various parties are putting their weight behind the front-end infrastructure such as airport terminals and runways, the back-end infrastructure, a major part of which is aircraft maintenance, is still a laggard compared with its global peers.
Air India Engineering Services Ltd’s (AIESL) Nagpur maintenance, repair and overhaul (MRO) facility is a step in the direction to correct this issue. However, the growth and commercial viability of the facility depends on a number of factors such as air traffic growth at Nagpur, having better commercial sense for private airlines, and fiscal incentives to the unit to make it competitive with other MRO companies in India and other key locations spread across Asia.
16/08/17  Pranav Mukul/Indian Express