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Indian Airlines floats MRO joint venture

Staff Correspondent

Signs tripartite agreement with Airbus and Jupiter Aviation
FOR SAFETY IN THE SKIES: (from left) Ravi Narayanan, CEO and Managing Director, Jupiter Aviation, Kiran Rao, Executive Vice-President, Marketing and Contracts, Airbus, Vishwapati Trivedi, Chairman and Managing Director, Indian Airlines, and John Leahy, Chief Operating Officer, Customers, Airbus, at a press conference in Mumbai on Thursday.
 

MUMBAI: Indian Airlines has signed a tripartite agreement with Airbus and Bangalore-based Jupiter Aviation to form a maintenance, repair and overhaul (MRO) joint venture. Jupiter Aviation is the exclusive strategic partner of EADS (holding company of Airbus) in India. The joint venture is for MRO and life cycle support of commercial aircraft.

As per the tripartite term sheet, the MRO venture will begin its activities in Delhi with two A320 hangars with a third hangar being added in due course. The facility will cater to major maintenance of A320 fleet of Indian Airlines followed by checks maintenance of ATR and other A320 fleet in India. The Phase II of expansion will cater to wide-body and other aircraft types.

By the third year, the joint venture will have facilities to cater to over 200 aircraft of single aisle and wide-body aircraft belonging to various customers from India and abroad.

Addressing the media here on Thursday, Vishwapati Trivedi, Chairman and Managing Director, Indian Airlines, said, "This is the first of its kind in the Indian aviation industry. At Indian Airlines, we do a lot of in-house MRO activities and Airbus will bring in technology as a partner. The joint venture is at a formulation stage and a number of things have yet to be tied up.''

Kiran Rao, Executive Vice-President, Marketing and Contracts, Airbus, said, "This joint venture will be fully supported by Airbus and this will help us fulfil the MRO obligation arising out of sale of Airbus aircraft to Indian Airlines.

The first phase, to service Airbus and ATR aircraft, and the second phase for wide body aircraft, will each cost around Rs. 150 crore to set up. Neither Indian Airlines nor Airbus will contribute anything in terms of equity to the MRO with investment coming from the strategic partner.'' The first aircraft at the MRO is likely to be serviced by October 1.

     
 
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