Air India signs MoU to help build MRO facility at Dubai airport

Air India Engineering Services Limited (AIESL) has signed a memorandum of understanding (MoU) with Delhi-based aircraft services firm, Haveus Aerotech, to provide technical assistance to develop Maintenance Repair and Overhaul (MRO) facilities at Dubai's Al Maktoum International Airport. AIESL is a subsidiary of Air India.

According to the understanding, AIESL will provide its pool of engineers, manpower and technical know-how in building the MRO facility. The total project is spread over an area of 9,000 sq metres and will need an investment of $100 million, said Anshul Bhargava, MD, Haveus Aerotech India.

"The MRO facility will be able to service 100 engines in a year," Bhargava said.

At present, Indian carriers outsource about 90 per cent of their repair and maintenance work to companies abroad. This is partly because of the limited capabilities of domestic service providers and partly because of the high tax structure in India.

At present, engine servicing is only provided by Air India in the country. The public sector company is also expanding its infrastructure to service Boeing planes by building a new facility at Nagpur, which will be ready by 2018.

In order to boost the MRO industry, the Ministry of Civil Aviation has proposed sops in the draft civil aviation policy. Some of them include tax breaks, zero service tax on MROs, simplification of import processes for aircraft spares and exemptions on customs duty on maintenance tools and tool kits.

The new MRO will usher in a new aviation technology in Dubai with the Al Maktoum airport witnessing massive aviation activities, the firm said.