EADS and NACIL Joint Ventrue for MRO

National Aviation Company of India Limited (NACIL) and European Aeronautic Defence and Space Company (EADS), signed (16-Oct-08) a Joint Venture Agreement for creation of an Aircraft Maintenance, Repair and Overhaul (MRO) Centre in Hyderabad. This new MRO Centre after it receives the approval of the Government, will start its operations with effect from early 2009 at Indira Gandhi International Airport, Delhi.

It would become a Member of the Airbus MRO Network. As per the Agreement, the Joint Venture will undertake airframe maintenance and repair of Airbus aircraft of NACIL to begin with. Later, it will extend the facility to other types of aircraft (e.g. ATR) and aircraft of other airlines as also to aircraft other than the Airbus family and to component maintenance business. NACIL is a major operator of Airbus aircraft and is currently inducting 43 new A320 family aircraft into its fleet. The induction programme started with effect from mid 2007 and would continue till early 2010. Currently, it operates 43 A320s, 11 A319s, 10 A321s, eight A310s and two A330s of Airbus family aircraft.

EADS said, “This is a new milestone in the long history of cooperation between India and EADS. For the last three years, we have continued to expand our industrial relationship by launching several initiatives between different EADS’ divisions and the Indian Industry. EADS is keen to support the fast-developing aeronautic al sector in India.”

The facility would also cater to the markets in South Asia Region and neighbouring countries. By 2013, over one hundred single aisle aircraft and around ten wide body aircraft per year would be maintained and the centre would employ 250 to 300 Indian technical personnel.

NACIL said, “This first of a kind Joint Venture Airframe MRO in the country is of immense importance in today’s growing aviation market. With the setting up of this facility in Delhi, NACIL will see an increased availability of aircraft following reduction in major maintenance check times through enhanced productivity. Besides catering to our Airbus family aircraft, the facility will also be able to attract other airline’s jobs, thus not only leading to savings but also generate earnings for the Company.”

EADS added, “We are excited about this public-private partnership which is a milestone, being the first of its kind in the MRO field in India. The growth in the aviation sector is creating the need for world-class providers of services and we think our partnership will deliver the same to NACIL.”

In addition to the DGCA approvals, the MRO will also obtain approvals from FAA / EASA which will help it undertake outside party work. Both NACIL and EADS are initially 50-50 equity partners in the Joint Venture. A third Airbus network partner and local affiliate EADS Company would be inducted soon. The total project cost has been estimated at USD 40 million spread over five years which includes new wide body aircraft hangars, equipment, etc.