The chairman of Sky One reiterates that a strong MRO sector is critical to ensuring aircraft longevity, operational efficiency and safety.
A recent Deloitte report titled ‘MRO in India – Poised to Take Off’ states that with over 1,000 aircraft currently on order, India is expected to become the world’s third-largest buyer of commercial passenger planes, following the US and China. This growth is projected to drive demand for 200–300 major maintenance checks annually. Moreover, the replacement of ageing aircraft in several airline fleets creates plenty of opportunities for the Maintenance, Repair, and Overhaul (MRO) sector to meet redelivery contract requirements.
MRO ensures the airworthiness of aircraft while improving operational efficiency. With the current growth and expansion, industry experts believe India has the potential to become a major MRO hub in the near future, catering to the needs of emerging markets in the Asia-Pacific region.
“The MRO sector may not often be the focus of aviation news, but for airlines, it serves as the backbone of their operations. An efficient MRO is critical to ensuring aircraft longevity, operational efficiency, and most importantly, safety. Aircraft maintenance involves four levels, like A, B, C, and D checks, each varying in time and complexity. With Indian carriers planning significant fleet expansions and placing large orders for the next decade, developing a robust MRO sector in India is crucial,” says Jaideep Mirchandani, group chairman of Sky One.
At present, most of India’s MRO needs are met through imports. “However, India’s indigenous MRO sector is in a growth phase and we have seen some key decisions from the government to support it. Major carriers and even global players have already announced plans to set up MRO facilities in India, which is a positive sign. Gradually, our dependence on foreign MROs is likely to reduce, and India’s domestic MRO industry can catch up with global counterparts in terms of scale and certified services,” adds Mr Mirchandani.
He also refers to recent developments, including the Civil Aviation Ministry’s decision to introduce a uniform five per cent IGST rate on MRO services. Previously, varying GST rates of 5pc, 12pc, 18pc and 28pc on aircraft components created challenges, such as an inverted duty structure and GST accumulation in MRO accounts. Mr. Mirchandani believes the new policy addresses these disparities, simplifies the tax structure, and bodes well for the MRO sector.
Recently, Air India initiated work on a mega MRO facility spanning 35 acres at Bangalore International Airport. The chairman of Sky One says that such developments could serve as a major hub for not only the carrier but also aircraft maintenance operations in the region. “This will create new job opportunities for skilled aviation engineers in India and position the country as a key MRO hub in the Asia-Pacific (APAC) region. Moreover, emerging markets in the APAC aviation sector, such as Vietnam, Indonesia, and the Philippines, with significant ties to Indian carriers, may increasingly rely on India as a major MRO support hub for their repair needs in the future,” he concludes.
