Tuesday November 3, 02:48 AM

Source: Indian Express Finance

AI-Aerostar tieup for MRO services

By fe Bureaus
National carrier Air India has entered into an alliance with Aerostar Asset Management, Sharjah (UAE), to launch an engine maintenance, repair and overhaul brand, The A Team. The new brand, to be launched at the Dubai Air show (November 15-19), will use the existing engine overhaul facilities of Air India at Mumbai and the marketing set up of Aerostar in the Middle East. Given the huge opportunity in the region, the services of the Air India-Aerostar alliance will be directed initially at the Middle East market. Analysts say with the increasing popularity of Middle Eastern airports as hubs for connecting flights, there is a corresponding rise in demand for maintenance, repair and overhaul services in the Middle East, higher than the expected demand in any other region. According to Changing Dynamics, a study on India s aerospace industry by the Confederation of Indian Industry and PricewaterhouseCoopers, manpower cost arbitrage, locational advantages and specialist capabilities make India a potential regional MRO hub. The study estimates India s MRO industry to grow at 10% to reach $1.17 billion by 2010 and $2.6 billion by 2020. The Air India-Aerostar alliance will offer repair services for jet engines such as GE CF6-50 and 80 series, P&W 4000 series, GE-90 series and CFM56-7 series, covering CFM56-5 series engine in the near future. This engine repair management will reduce cost of ownership for engines operators. According to a media statement, this initiative will result in additional revenue earnings for Air India. Air India s engine overhaul facility, established in 1966, has been catering to third party MRO services since 1999. The facility is approved by director general of civil aviation (India), federal aviation administration (USA) and European aviation safety agency. Aerostar Asset Management is a company promoted by the ETA Star Group which has a strong presence in the Middle East. It has been involved in jet engine management since 2005.