Maintaining the Status Quo

This article describes the current shortage of domestic maintenance, repair and overhaul (MRO) operators in India, even though it has been among the fastest-growing markets for airline passenger traffic in the past three years. There is a captive market of about 10 domestic carriers, but there is not a single third-party MRO of any significant size in the country. The nearest are in Dubai to the west and Singapore to the east, despite a large domestic workforce of trained engineers. One potential new entrant is a firm in Mumbai, which is making the transition to larger aircraft. A big obstacle is a tax code that imposes a 12.5 percent service tax on work done by domestic MRO firms, an incentive for airline operators to take the work overseas. However, new incentives are attracting interest from outside investors. Among them are Lufthansa Technik, the airline’s MRO unit, and a joint project of Boeing and Air India. The latter, though, has been slow to take off. Other potential firms are also discussed.


  • English

Media Info

  • Media Type: Print
  • Features: Photos;
  • Pagination: pp 67-70
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 01103833
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Jun 30 2008 8:28AM