Home' Asian Aviation : AAV July August 2011 Contents 38 AsianAviation | JULY-AUGUST 2011
new aircra , driven by the demand for both the
commercial aviation sector and the business aviation
sector," says Gaurav Burman, managing director
of private equity rm Elephant Capital. In May,
Elephant acquired a 4.8 percent stake in Air Works
at a cost of about US$3.9 million, in the rst tranche
of a two-tier transaction.
Air Works India Engineering says it has raised a
total of 1.25 billion rupees from private equity rms
to build up new facilities and fund acquisitions as
part of its growth strateg y.
"Air Works has recently closed equity funding
of about 1,250 million rupees from two, top-tier
private-equity funds---NEA and Elephant Capital.
is equity infusion is a critical step for ward to fund
the growth and modernisation of Air Works," says
the MRO provider s Managing Director Vivek Gour.
"India has all that it takes to develop as an MRO
hub in the region," Gour adds. "[A] great geographic
location, technically oriented and educated talent
pool and competitive labour costs are some of the
advantageous factors enjoyed by India."
New painting facility
India s rst state-of-the-art aircra -painting facility,
equipped to handle both widebody and narrowbody
aircraft , is expected to become operational
sometime this year at Air Works airline MRO
facility at Hosur, near Bangalore. Air Works,
which has a 30 percent share of India s MRO
market, will take advantage of the repainting,
interior-repair and refurbishment expertise of
UK-based Air Livery, in which Air Works holds
a controlling stake, for its new facility.
The paint hangar will have capacity for
two narrowbody or one widebody aircraft,
up to the size of the Airbus A340-600. Once
commissioned, this facility will obviate the need
for Indian carriers to send their aircra overseas
But Indian MRO industry leaders complain
that high taxes on the sector
are a major hindrance. " is
reduces the competitiveness
of the sector compared to
global peers based out of
[the] Middle East or South-
East Asia," says Gour.
K V Krishnan, vice-
president of the Airlines
MRO division of Air Works,
agrees that high taxes, along
with a lack of support
from the government and
the absence of an industry
regulator have all conspired
to slow the growth of India s
Krishnan points out that
most Indian carriers continue to send aircra abroad
for high-end checks, even though Air Works is quite
capable of handling this kind of work. He says that
the company is ready to build on its expertise in
the business-jet eld by investing in airliner heavy-
maintenance capabilities. Having the work done
locally should save carriers both time and money,
reducing turnaround times and increasing the
amount of time aircra spend earning money for
Air Works -- which is certi cated by the European
Air Safety Agency (EASA) to carry out maintenance
of models such as the ATR 42 and 72 turboprop
airliner, as well as narrowbody Airbus A320 and
Boeing 737 jetliners -- maintains more than 50 types
of aircra for 100 customers from 12 locations.
Krishnan says the Indian Government should take
action to promote the MRO industry in the same way
as it has for the country s information technology and
telecommunications sectors. He also stresses the need
to establish a regulatory authority to guide the growth
of the MRO sector.
Industry executives say the Government must
push for Indian MRO companies to work towards
achieving globally recognized certi cation. Since
most aircraft in ser vice with Indian airlines are
built in either the United States or Europe, Indian
MROs need to have either US Federal Aviation
Administration (FAA) or EASA certi cation to carry
out the work.
Mumbai-based MRO provider Max Aerospace
and Aviation is scaling up its ser vices by o ering its
customers new engineering support solutions.
e company recently unveiled a new, state-of-
the art hangar and maintenance facility covering
30,000 square feet at Juhu aerodrome, Mumbai.
It has also won a contract for the modi cation and
refurbishment of a safety and emergency-evacuation
training simulator, installed at the Gulf Air Safety and
Sur vival training school in Bahrain.
MAS GMR Aerospace Engineering , a 50-50 joint
venture of GMR Hyderabad International Airport
and Malaysia Airlines MAS Aerospace Engineering
(MAE) subsidiary, has set up an airframe MRO
facility in the Hyderabad SEZ, close to the city s Rajiv
Gandhi International Airport. e site is expected
become operational this year.
As currently envisaged, the facility will perform
base-maintenance checks Boeing 737NG and Airbus
A320 narrowbodies, ATR turboprops, and widebodies
such as the A330 and Boeing 777. GMR is also in talks
with major engine manufacturers to set up an engine
MRO facility at the same location.
Hyderabad Aircra Maintenance (HAMCO) o ers
a full range of MRO ser vices, from line maintenance
to comprehensive C- and D-checks, as well as major
repairs -- including accident damage. e company
also carries out structural life-extension work and
o ers customised maintenance programmes.
Boeing is proposing to set up an MRO venture
together with national carrier Air India at the
central city of Nagpur. e facility, set to become
operational by 2014, is part of an o set deal that
accompanied India s acquisition in 2006 of 68
Boeing aircra .
Separately, India s state-owned aircraft
manufacturer Hindustan Aeronautics (HAL)
is also considering setting up a high-end MRO
facility in Bangalore.
High taxation "reduces the competitiveness of the sector
compared to global peers based out of [the] Middle East or
South-East Asia." -- Air Works Managing Director Vivek Gour
MAS GMR Aerospace
Engineering will offer
MRO services for aircraft
types including Airbus's
single-aisle A320 family.
Air Works has obtained money from investors
to fund new facilities and acquisitions.
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