Indian MROs: Problem or Paradise?

Maintenance and Repair Operations (MRO) within the country are a major concern for many aviation operators. As Anurag Srivastava, CEO, Bird- Execujet said during the BizAV India 2018 conference, “Nobody likes to send their jets outside for maintenance.” And, Pradeep Panicker, Deputy CEO, GMR Hyderabad International Airport, seems to echo his sentiments. He says, “The MRO industry is being killed in India. As we speak, an airline has 1.5 thousand crore worth of maintenance to be done and has to resort going to MROs abroad.”

“Nobody likes to send their jets outside for maintenance,” Anurag Srivastava, CEO, Bird-Execujet

SEEING THE GLASS HALF FULL

However, on Day 1 of the ongoing Wings India 2018, Secretary in the Ministry of Civil Aviation R.N. Choubey seemed to be hopeful about the MRO situation. While addressing the media, he said, “There’s absolutely no problem. We have enough capacity in MROs today to make it flourish even more. Actually till now, the MRO capacity was under utilised in putt country. So, luckily the capacity is not a problem anymore.” He also said that the situation of aircraft seeking maintenance abroad is purely the operator’s decision since the prices will affect consumers too. “At the end of the day, the airline must decide where they can get the cheapest services. Please remember if the MRO service is expensive, the cost will also have to be borne by you and me as air passengers.”

TAXATION-RELAXATION

Although, according to the minister, airlines may have to decide on whether to avail MRO services within or outside the country, he did acknowledge the taxation troubles. He said, “Taxation matters are really important and in several cases we have obtained taxation-relaxation from the Ministry of Finance. Still, there are elements of taxation that are making it difficult for the domestic MROs and those matters are being pursued.”