WILL INDIAN MRO INDUSTRY RISE AMID CORONA

PANDEMIC…?
The Aircraft Maintenance-Repair-Overhaul (MRO) industry is predominantly taking part in Commercial
Aviation over decades. The Aviation Business Market is more concerned about the MRO availability within
the vicinity of Airlines. The main reason is that the overall revenue gained from airlines will be affected
by the aircraft maintenance cost which is considered as the second highest cost factor after fuel. So,
Domestic aircraft operators tends to find feasible MRO within their territory rather than going away from
the Country. This indeed a cost-effective practice. But this will become applicable when the domestic
MRO sector offers their service at a competitive level by giving Domestic Airlines their quality service at
considerable rates. So, this chain of actions within the Aviation Market in a country give wings to rise
the Aviation Business Market and able to cope up even in a pandemic situation.

When considering Indian Commercial Aviation, same context discussed above is applicable. As a fastest
growing industry, Indian Aviation Market needs to prepare for the expansion of Indian fleet as more
A320 family and Boeing 737 series coming over next few years. These giants to be maintained airworthy
to roar in the skies over next 10-20 years. Therefore, necessity of better MRO facility is a crucial factor
for Indian Aviation which is soon becoming the third largest Civil Aviation Market in Aviation industry.

Before the pandemic condition, Indian MRO Market estimated to be around $800 million which was
growing at about 8% annually against global market. Air India Engineering Services, Air Works, Taneja
Aerospace & Aviation, Max Aerospace and Aviation, GMR Aero Technic and SpiceJet Technic are main
MRO players currently dominating Domestic airline sector. But after the pandemic attack the aviation
market went unpredictable due to reduction of international and domestic air passenger service. During
last year, the Indian Airlines and airports incurred financial losses worth RS 22,400 crore. The
government reports the domestic air passenger throughout declined by 0.3% in 2019-20 and 2021 by
61.7%. Even though the pandemic adversely affects the growth in Indian Aviation Sector the
government has put measures to trigger the growth of the MRO sector by reducing GST from 18% to
5% and waving custom duty on imported tools, kits and spare parts. This enables export of MRO service
to foreign countries more as local MRO was costlier than the MRO providers in region earlier. but it will
only benefit the foreign sectors at the expense of Indian MROs.
Though India owns one of best MRO services, yet there will be shortage of MRO service due to expected
increase of Indian fleet of 600-700 to 2000 in next 10 years. Many global MRO companies are planning
to offer Engineering services by performing joint ventures with domestic firms due to high demand in
MRO sector. Few Indian MROs provide heavy maintenance and Engine overhaul facility apart from line
maintenance and minor inspections. Air Works, AIESL are among them. Allocating facility for heavy
maintenance tasks and engine overhaul facilities within the country with a quality infrastructure and
certified staff will limit the maintenance carrying outside the country. These results saving 30%-40%
aircraft maintenance cost for airline. The governing bodies, Aerospace and Aviation Sector Skill Council
(AASSC), Hindustan Aeronautics Limited is setting up trained employees on various job positions in MRO
space. This will reduce the shortage of skilled manpower and thus enables to offer quality service. Air
Works which is a major MRO has invested in building heavy maintenance facility at Kochi airport and
further increase a bay at its Hosur MRO. Not only that GMR Aero Technic is developing an “inflatable
hangar” which will allow to offer 4-5 end of lease checks per year between 15 to 20 base maintenance
checks. Help hand from the government exempting IGST on parts imported for Indian MROs will certainly
strengthen the goal of better Regional MRO business and will able to rise above shadows of the covid
pandemic era.

REFERENCE:

1. https://www.financialexpress.com/industry/govt-mulling-certain-support-measures-for-mro-
industry/1863388/
2. https://www.sps-aviation.com/story/?id=2758&h=Current-Scenario-in-India
3. https://www.thehindu.com/business/Industry/mro-growth-to-help-create-jobs-skill-
council/article34275162.ece
4. https://www.thehindubusinessline.com/specials/flight-plan/a-lift-for-mro/article34998721.ece
5. https://economictimes.indiatimes.com/topic/Indian-MRO-market/news
6. http://www.businessworld.in/article/Will-The-Indian-MRO-Industry-Finally-Take-Off-/08-06-
2020-194634/
7. https://www.moneycontrol.com/news/business/a-passage-to-india-heres-how-indian-mros-
could-end-up-servicing-the-worlds-aircraft-6607871.html

IMAGE REFERENCE:

1. MRO India Special – PressReader, pressreader.com

2. https://www.oliverwyman.com/our-expertise/insights/2019/jan/global-fleet-mro-market-
forecast-commentary-2019-2029.html