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    MRO Status in India, Rev 00

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    mahin nanayakkara
    The Indian MRO industry was estimated at $800 million before the pandemic but has struggled due to reduced air travel. However, the need for MRO services in India is expected to greatly increase as the country's commercial airline fleet expands over the next 10-20 years. While the pandemic impacted the aviation industry, the Indian government has implemented measures like reducing GST and waiving import duties to support growth of the domestic MRO sector. As global MRO companies plan partnerships with Indian firms and existing MROs expand facilities, the Indian MRO industry has potential to rise and better serve the growing regional demand despite the challenges of the pandemic.

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    MRO Status in India, Rev 00

    Uploaded by

    mahin nanayakkara
    29 views2 pages
    The Indian MRO industry was estimated at $800 million before the pandemic but has struggled due to reduced air travel. However, the need for MRO services in India is expected to greatly increase as the country's commercial airline fleet expands over the next 10-20 years. While the pandemic impacted the aviation industry, the Indian government has implemented measures like reducing GST and waiving import duties to support growth of the domestic MRO sector. As global MRO companies plan partnerships with Indian firms and existing MROs expand facilities, the Indian MRO industry has potential to rise and better serve the growing regional demand despite the challenges of the pandemic.

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    MRO Status in India, rev 00

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    The Indian MRO industry was estimated at $800 million before the pandemic but has struggled due to reduced air travel. However, the need for MRO services in India is expected to greatly increase as the country's commercial airline fleet expands over the next 10-20 years. While the pandemic impacted the aviation industry, the Indian government has implemented measures like reducing GST and waiving import duties to support growth of the domestic MRO sector. As global MRO companies plan partnerships with Indian firms and existing MROs expand facilities, the Indian MRO industry has potential to rise and better serve the growing regional demand despite the challenges of the pandemic.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    29 views2 pages

    MRO Status in India, Rev 00

    Uploaded by

    mahin nanayakkara
    The Indian MRO industry was estimated at $800 million before the pandemic but has struggled due to reduced air travel. However, the need for MRO services in India is expected to greatly increase as the country's commercial airline fleet expands over the next 10-20 years. While the pandemic impacted the aviation industry, the Indian government has implemented measures like reducing GST and waiving import duties to support growth of the domestic MRO sector. As global MRO companies plan partnerships with Indian firms and existing MROs expand facilities, the Indian MRO industry has potential to rise and better serve the growing regional demand despite the challenges of the pandemic.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    WILL INDIAN MRO INDUSTRY RISE AMID CORONA

    PANDEMIC…?
    The Aircraft Maintenance-Repair-Overhaul (MRO) industry is predominantly taking part in Commercial
    Aviation over decades. The Aviation Business Market is more concerned about the MRO availability within
    the vicinity of Airlines. The main reason is that the overall revenue gained from airlines will be affected
    by the aircraft maintenance cost which is considered as the second highest cost factor after fuel. So,
    Domestic aircraft operators tends to find feasible MRO within their territory rather than going away from
    the Country. This indeed a cost-effective practice. But this will become applicable when the domestic
    MRO sector offers their service at a competitive level by giving Domestic Airlines their quality service at
    considerable rates. So, this chain of actions within the Aviation Market in a country give wings to rise
    the Aviation Business Market and able to cope up even in a pandemic situation.

    When considering Indian Commercial Aviation, same context discussed above is applicable. As a fastest
    growing industry, Indian Aviation Market needs to prepare for the expansion of Indian fleet as more
    A320 family and Boeing 737 series coming over next few years. These giants to be maintained airworthy
    to roar in the skies over next 10-20 years. Therefore, necessity of better MRO facility is a crucial factor
    for Indian Aviation which is soon becoming the third largest Civil Aviation Market in Aviation industry.

    Before the pandemic condition, Indian MRO Market estimated to be around $800 million which was
    growing at about 8% annually against global market. Air India Engineering Services, Air Works, Taneja
    Aerospace & Aviation, Max Aerospace and Aviation, GMR Aero Technic and SpiceJet Technic are main
    MRO players currently dominating Domestic airline sector. But after the pandemic attack the aviation
    market went unpredictable due to reduction of international and domestic air passenger service. During
    last year, the Indian Airlines and airports incurred financial losses worth RS 22,400 crore. The
    government reports the domestic air passenger throughout declined by 0.3% in 2019-20 and 2021 by
    61.7%. Even though the pandemic adversely affects the growth in Indian Aviation Sector the
    government has put measures to trigger the growth of the MRO sector by reducing GST from 18% to
    5% and waving custom duty on imported tools, kits and spare parts. This enables export of MRO service
    to foreign countries more as local MRO was costlier than the MRO providers in region earlier. but it will
    only benefit the foreign sectors at the expense of Indian MROs.
    Though India owns one of best MRO services, yet there will be shortage of MRO service due to expected
    increase of Indian fleet of 600-700 to 2000 in next 10 years. Many global MRO companies are planning
    to offer Engineering services by performing joint ventures with domestic firms due to high demand in
    MRO sector. Few Indian MROs provide heavy maintenance and Engine overhaul facility apart from line
    maintenance and minor inspections. Air Works, AIESL are among them. Allocating facility for heavy
    maintenance tasks and engine overhaul facilities within the country with a quality infrastructure and
    certified staff will limit the maintenance carrying outside the country. These results saving 30%-40%
    aircraft maintenance cost for airline. The governing bodies, Aerospace and Aviation Sector Skill Council
    (AASSC), Hindustan Aeronautics Limited is setting up trained employees on various job positions in MRO
    space. This will reduce the shortage of skilled manpower and thus enables to offer quality service. Air
    Works which is a major MRO has invested in building heavy maintenance facility at Kochi airport and
    further increase a bay at its Hosur MRO. Not only that GMR Aero Technic is developing an “inflatable
    hangar” which will allow to offer 4-5 end of lease checks per year between 15 to 20 base maintenance
    checks. Help hand from the government exempting IGST on parts imported for Indian MROs will certainly
    strengthen the goal of better Regional MRO business and will able to rise above shadows of the covid
    pandemic era.

    REFERENCE:

    1. https://www.financialexpress.com/industry/govt-mulling-certain-support-measures-for-mro-
    industry/1863388/
    2. https://www.sps-aviation.com/story/?id=2758&h=Current-Scenario-in-India
    3. https://www.thehindu.com/business/Industry/mro-growth-to-help-create-jobs-skill-
    council/article34275162.ece
    4. https://www.thehindubusinessline.com/specials/flight-plan/a-lift-for-mro/article34998721.ece
    5. https://economictimes.indiatimes.com/topic/Indian-MRO-market/news
    6. http://www.businessworld.in/article/Will-The-Indian-MRO-Industry-Finally-Take-Off-/08-06-
    2020-194634/
    7. https://www.moneycontrol.com/news/business/a-passage-to-india-heres-how-indian-mros-
    could-end-up-servicing-the-worlds-aircraft-6607871.html

    IMAGE REFERENCE:

    1. MRO India Special – PressReader, pressreader.com


    2. https://www.oliverwyman.com/our-expertise/insights/2019/jan/global-fleet-mro-market-
    forecast-commentary-2019-2029.html

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