Airbus in talks with HAL for MRO facility

The rush to float new aircraft repair facilities in India is getting thicker. European aircraft maker Airbus Industrie is in talks with state-owned Hindustan Aeronautics Ltd (HAL) to set up a maintenance, repair and overhaul (MRO) facility for aircraft airframes. And, Airports Authority of India (AAI) has also initiated talks with Indian Airlines for setting up a similar facility in a JV at the existing Hyderabad airport. "With the number of aircraft flying in the country rising, MROs for both engines and airframes are turning out to be a big business opportunities here. It's a $800 million and growing market, and companies are now rushing in to cash in on this potential demand," a source said. Sources said Airbus is exploring avenues for an alliance with HAL as part of its couter-trade initiatives for winning the $2.2-billion Indian Airlines aircraft order. Airbus had also been in talks with Indian for a similar venture, and is now also looking at HAL as part of plans to have a more comprehensive alliance in the market.

A final decision on the alliance partner will be made early next year. "The decision to initiate talks with HAL doesn't mean that we have decided to tie-up with them. We have also held discussions with Indian. We hope to put everything together by early next year so as to make a formal announcement," Airbus India president Kiran Rao said. Sources said even this venture is expected to based in south India with Bangalore being the most likely candidate as the current airport would offer huge tracts of land once commercial flights are shifted to the new airport next yearend. Prior to this, the Ruias-promoted Essar group had also proposed to set up an aircraft MRO to tap the growing need for aircraft maintenance and service. The company has already shortlisted Thiruvananthapuram as the site for the facility, and proposes to establish it along with AAI. With this facility, Essar intends to also tap the demand from nearby markets like Gulf.

visit us @ http://www.silkrouteholidays.com