MAS' MRO Venture In India Poised For More Business Opportunities

M.Saraswathi HYDERABAD, March 14 (Bernama) – Malaysia Airlines' (MAS) venture into airframe maintenance, repair and overhaul (MRO) business in Hyderabad, India, is set for greater business opportunities amid its strategic location and the growing aviation sector here. Located at Rajiv Gandhi International Airport, the MAS GMR Aero Technic Ltd (MGAT), is just two hours away from all the major Indian metros and less than four hours away from all the South Asian Association for Regional Cooperation, which is an economic and political organisation of eight countries in Southern Asia. The facility has the capacity to service an estimated 60-80 aircraft annually and is the first third-party aircraft MRO facility of its scale in India. “The current India-wide fleet is estimated at 410 aircraft and this number is expected to triple in the next 10 years, making the country a huge market for MRO business,” MAS Aerospace Engineering (MAE)’s chief executive officer, Azhari Mohd Dahlan said at MGAT official launch, here, Tuesday. It is understood that Asia-Pacific, China and India already account for a combined 23 per cent of total MRO expenditure, equivalent to RM29.6 billion (US$1=RM3.02). Also present at the event was High Commissioner of Malaysia in India, Tan Seng Sung, Chief Minister of Andhra Pradesh, Kiran Kumar Reddy and Union Minister for Civil Aviation, Ajit Singh. MAE, a unit of MAS, has expanded its MRO activities internationally via a joint-venture with GMR Hyderabad International Airport Ltd (GHIAL) in India to form MAS GMR Aerospace Engineering Co Ltd (MGAE). MGAT is a 100 per cent-owned subsidiary and the MRO Operating Unit of MGAE. Malaysia Airports Holdings Bhd has 11 per cent stake in GHIAL. The total investment to set-up the MRO business was US$64 million, of which MAS' investment was US$8 million. Azhari said MGAT customers would enjoy highly competitive fees and reduced downtime for each aircraft. On average, the downtime for an aircraft leaving Indian shores for maintenance is between four and 10 days. MGAT will provide base maintenance services starting with “C” check – routine check and “D” check - major checks for narrow-bodied aircraft like Airbus A320 and Boeing 737 next-generation aircraft and subsequently wide-body aircraft such as Airbus A330 and Boeing 777. In January 2010, MAE sealed a three-year maintenance support agreement with India's low-cost carrier, SpiceJet, for its fleet of 19 Boeing 737 New Generation series aircraft. MGAT’s chief financial officer, Suppiah Subramanian said the facility has complied with regulatory requirements of Directorate General of Civil Aviation of India and European Aviation Safety Agency (EASA). Complying with EASA is important, he said, as a large number of aircraft in India are leased from Europe-based companies, and complying with it will enable MGAT to provide MRO services for such aircraft. Further development in MGAT will involve another US$6 million in investment on a 250-acre land including an aviation training centre, a supply chain centre, an engine MRO and a component MRO, said Suppiah. “Moving forward, we will work harder to ensure that the facility become one of the world’s most sought-after MRO operations,” Azhari added. -- BERNAMA