Nacil, EADS to set up MRO unit in Delhi

About $40 million will be invested in the 50:50 joint venture.

Air India has signed an agreement with European Aeronautic Defence and Space Company (EADS), the manufacturer of Airbus, for setting up an aircraft maintenance, repair and overhaul (MRO) facility in New Delhi.

Addressing a press conference at the ongoing India Aviation 2008 here, Air India Director Bhargav Jitender said about $40 million (Rs 192 crore) would be invested in the 50:50 equity joint venture. The MRO, which would be a member of the Airbus MRO network, would begin operations in early 2009.

Air India has also signed an agreement with Boeing for another MRO unit in Nagpur. Besides, it has proposed to set up two more MROs — one for engines and the other for components.

The MRO will gradually cater to markets in South Asia. By 2013, about 100 single-aisle aircraft and about ten wide-body aircraft would be maintained at the facility, which would employ about 250 people.

The proposed centre would start operations from early 2009 after formal approval from the central government, said a press release. According to the agreement, the joint venture would initially undertake airframe maintenance and repair of Airbus aircraft of National Aviation Company of India Ltd (Nacil). Later, it would extend the facility to other aircraft like ATR and other airlines.

Nacil is a major operator of Airbus aircraft and is inducting 43 new A320s into its fleet. The induction programme, which began in mid-2007, would continue till 2010, the press release added.

The joint venture was a new milestone in the long history of co-operation between India and EADS, the company said, adding that it was keen to support the fast-developing aeronautical sector in India.