Maintenance - MRO in India

The number of civilian aircraft has gone up dramatically in the last five years. The year 2003 was a benchmark for Indian civil aviation. Where there were only four major scheduled operators at the beginning of 2003, two each in the public and private sectors, the number went up to 11 by mid-2007.

There is an increasing need for Maintenance, Repair and Overhaul (MRO) facilities in India. The number of civilian aircraft has gone up dramatically in the last five years. The year 2003 was a benchmark for Indian Civil Aviation. Where there were only four major scheduled operators in the country at the beginning of 2003, two each in the public and private sectors, the number went up to 11 by mid 2007. Of these, Indus Airways closed down a few months after launch. With a number of Mergers and Acquisitions (M&A) witnessed in 2007, the ten scheduled airlines are now operating as seven entities. However, there is no reduction in the total fleet strength as a result of the M&A. On the contrary, airlines continue to induct aircraft at the rate of five to six per month.

By early 2003, the four scheduled airlines operated just over 100 commercial aircraft on domestic and international routes. Today, there are over 325 commercial airliners criss-crossing the Indian skies – three times the number just five years ago. Besides, the airlines have government sanction to import another 72 aircraft within the next 12 months. This rate of induction, driven primarily by the growth in demand, is likely to be sustained, trebling the fleet from its current level of holdings by the end of the next decade. A bulk of the aircraft inducted is from one of two major aircraft manufacturers – Boeing or Airbus. Others include ATRs from Europe, Embraers from Brazil and CRJs from Canada.

Driven by the economic boom of the 21st century, Business Aviation has also thrived. From a mere 50 aircraft at the turn of the century in the non-scheduled operators’ category, the fleet strength now stands at over 200 with several more on order. This is despite impediments such as paucity of parking space at metros where demand is high and crushing burden of import duty on privately owned aircraft imposed by the budget for financial year 2007-08.