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November 04, 2006

MRO business takes off

Businessworld has an article on the growth of the aircraft maintenance, repair and overhaul (MRO) business in India.
There are about 300-odd third-party MRO units worldwide, of which more than 65 are located in the Asia-Pacific region. But none in India. Even the existing in-house units have a long way to go before they will meet global standards. For now, the domestic market and sheer growth prediction is in itself a sizeable market to cater to. A look at the numbers.

Assuming 1,000 aircraft in 2012 (both commercial and business), there would be a need for roughly, 50,000 weekly checks, 3,500 A level checks, and millions of night halts. Corroborates Prasad: “Given 52 weeks in a year, we expect 50,000 weekly checks. An aircraft undergoes a check after 600 flying hours. And even if an aircraft flies the minimum of 12-14 hours a day, on an average it flies nothing less than 2,500 hours annually, which implies that one aircraft will go for a check 3-4 times a year.”

Arun Natarajan is the Founder of Venture Intelligence, which tracks private equity and venture capital in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.