The GMR group plans to set up hangars to service widebody aircraft and is tapping new customers in Africa and Central Asia to grow its maintenance-repair-overhaul (MRO) business.
GMR's MRO has capabilities to service and overhaul turboprop and narrow body planes including Airbus A320 and Boeing 737s. It derives a majority of its business from airlines in Asia and is eyeing opportunities from elsewhere too amid traffic recovery and new orders for bigger planes.
GMR Aero Technic president Ashok Gopinath said that the MRO has four hangars which accommodate 9-10 aircraft. “We have designated an area specifically for setting up new hangars. In response to demand and market dynamics we will soon be adding additional hangars with widebody capabilities including aircraft painting facilities,” Gopinath said.
While GMR Aero Technic's main facilities are situated in Hyderabad, it also provides line maintenance services to airlines at various other airports in the country. This includes routine maintenance checks carried out before departure.
Expanding services
Asia Pacific region is expected to drive demand growth for air travel in 2024 and airlines are also expected to post higher than previously expected profit, International Air Transport Association had said in June.
Carriers including those from India are renewing their fleets to widen their footprint. While Air India ordered 70 widebody planes last year, IndiGo finalised a deal to acquire 30 Airbus A350 earlier this year.
Along with developing facilities for servicing wide body planes, GMR Aero Technic is also working on other projects to expand capabilities and diversify revenue streams.
Last March it signed an agreement with Boeing to set up a facility to convert 737 passenger aircraft into freighter.
It is also collaborating with Lufthansa Technik to provide engine wash services at various Indian airports and tied up with Spirit Aero Systems for aircraft nacelle repairs.
Policy support
"GMR Aero Technic is one of the five approved MROs for the Boeing Conversion Freighter program. Over recent months, the GMR Aero Technic and Boeing teams have collaborated closely, achieving significant progress in the past year. We are working collaboratively with Boeing on knowledge and technical skilling which will be a win win for both," Gopinath added.
Earlier this month the Centre also announced a uniform 5 per cent GST rate for all aircraft parts. “This policy adjustment is anticipated to significantly enhance the MRO sector and broader aviation industry,” civil aviation ministry said in a X post.
“The Indian MRO industry is projected to become $4 billion industry by 2030. This policy change is a crucial step towards building a strong ecosystem for MRO services, driving innovation and ensuring sustainable growth,” civil aviation minister Ram Mohan Naidu Kinjarapu said.