Transforming India's Aviation Sector: The Rising Role of the MRO Industry

Introduction

India's aviation industry is growing quickly, and the part that takes care of fixing and maintaining aeroplanes (MRO industry) is becoming very important. This article talks about how the MRO industry is helping India become a big player in global aviation. It discusses the current situation of the MRO and aviation markets in India, talks about the costs, challenges, and opportunities, and looks into the future of this industry.

Overview of the Aviation Market in India

India's aviation market is growing very fast and is set to become the third-biggest domestic aviation market by 2024. The number of aeroplanes is expected to double in the next ten years, with Indian airlines ordering more than 1,500 new aircraft. This shows the importance of having a strong MRO system to take care of all these planes.

Importance of MRO in the Aviation Sector

The MRO industry helps keep aeroplanes safe, reliable, and working well. It also helps airlines save money, makes sure planes are available when needed, and improves safety. In India, a strong MRO industry is very important for the growing aviation market and is a valuable asset.

Current State of the MRO Market in India

In 2024, the MRO industry in India is worth about 1.7 billion, and it could grow to 4 billion by 2030. Even though it's growing well, India's MRO market is still small compared to the global MRO industry, which is around $90 billion. High costs in India were due to things like taxes on spare parts and high GST rates. However, the government has started making changes to reduce these costs, like lowering the GST on MRO services from 18% to 5%, making Indian MROs more competitive.

Key MRO Locations and Competencies

In India, important MRO activities are focused in a few main places:

1. Nagpur: Air India Limited has a big facility known for fixing aeroplane bodies and engines.

2. Hyderabad: GMR Aero Technic does a lot of services for different types of aeroplanes.

3. Bengaluru: IndiGo (InterGlobe Aviation Ltd) and Air Works Group offer different services from basic maintenance to complex repairs.

4. Delhi: Indamer Aviation Pvt. Ltd. and Max MRO work on both civilian and military planes. Indian #MRO providers can do basic maintenance, engine repairs, and part fixes, but major repairs are still done outside India.

Many skilled workers are employed in this sector, but we need more trained technicians and engineers to keep up with the increasing demand.

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Major players in the Indian MRO market include:?

1. Air India Engineering Services Ltd. (AIESL): They provide services for both commercial and military planes.

2. GMR Aero Technic: They are in Hyderabad and offer services for different airlines.

3. Indamer Aviation Pvt. Ltd.: They are one of the oldest MRO companies in India and work on business jets, helicopters, and general aviation.

4. Tata-SIA (Vistara): Tata has invested in the MRO sector for Vistara.

5. Air Works: They work on both commercial and defence MRO services.

6. HAECO: Based in Hong Kong, HAECO is in India through partnerships, offering various MRO services.

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Challenges:

1. High Costs: Even with tax cuts, MRO work in India is expensive due to infrastructure and labour costs. Indian airlines spend over $1.4 billion yearly on MRO services, often with foreign providers.

2. Lack of Skilled Workers: We need more trained technicians and engineers as the demand for MRO services grows.

3. Regulations: Complicated rules and long approval processes can slow down the industry's progress.

Opportunities:

1. To overcome these challenges, the government and private companies need to work together.

2.? Improving infrastructure, investing in training programs, and partnering with global MRO providers are important steps.

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Existing Gaps in the Indian MRO Sector

In the Indian MRO sector, there are still some important things missing:

1. Major Repairs: India doesn't have enough big facilities for thorough aeroplane checks and complete overhauls, so airlines have to go to foreign MRO providers for these services.

2. Advanced Engine Repairs: India is not well-equipped for advanced engine maintenance, especially for the newest jet engines.

3. Research and Innovation: There isn't enough focus on research, development, and innovation, which are needed to build local capabilities and reduce reliance on imports.

4. Regulations and Taxes: High taxes on MRO services and imported parts make it harder for Indian MRO services to compete globally.

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Maintenance and Repair Practices in India

Maintaining and fixing commercial aeroplanes in India involves a mix of local and international services:

1. Line Maintenance: Basic checks and small repairs done at Indian airports by MRO companies or airline-owned MRO while the plane is in use.

2. Heavy Maintenance: Major checks are done abroad since India has limited facilities. Airlines often send planes to countries like Singapore, Malaysia, or the UAE.

3. Engine Overhaul: Some engine work is done in India, but for complex jobs, airlines usually turn to foreign MRO providers because India's capabilities are limited.

Strategic Requirements and Government Policy Support?

To compete worldwide, India needs to invest in better infrastructure and simplify regulations to reduce taxes. It's important to train more skilled workers and support local production of spare parts to cut costs and reduce reliance on imports. In the future, the Indian MRO industry should focus on:

1. Making more parts locally to save money and lessen the need for imports.

2. Training more technicians and engineers to meet demand.

3. Building new advanced MRO facilities across India.

4. Working with global MRO companies to bring advanced technologies and practices to India.

Conclusion

India's aviation industry is important for the country's economy, creating many jobs, boosting trade and tourism, and connecting India globally. To become a major player in aviation, India needs a strong MRO industry. With the right investments, government support, and planning, India's MRO market can not only meet local needs but also become a centre for MRO services in Asia and beyond. As the aviation sector grows, the MRO industry will be crucial in keeping India's planes flying smoothly.

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