Maintenance, repair and operations(MRO) industry

by Mentors4ias · December 3, 2015

Aviation MRO in the country is currently worth $ 700 million and is set to reach $ 2 billion by 2020

Maintenance, repair and operations(MRO) involves fixing any sort of mechanical, plumbingor electrical device should it become out of order or broken (known as repair, unscheduled, or casualty maintenance). It also includes performing routine actions which keep the device in working order (known as scheduled maintenance) or prevent trouble from arising (preventive maintenance).
Airlines in India spend about 13–15 percent of their revenues towards maintenance, the second-highest cost item for airlines after fuel.
Generally airlines carry on-tarmac inspections (A and B checks) in-house and work with third-party MROs for engine, heavy maintenance (C and D checks) and modifications.
Almost all airline MRO infrastructure in India is captive (largely with Air India) with only one fully operational independent third-party provider MRO, Air Works, with an EASA-certified facility in Hosur, near Bengaluru.
Air Works provides heavy maintenance capability for Airbus A320, ATR 42/72 and Boeing 737/NG family of aircraft.
Till recently, in the absence of quality infrastructure, airlines carried out maintenance outside India at the nearest available MRO location (South East Asia, Middle East or Europe) incurring a ferry flight, logistics costs and engine and component hours.
Having the flexibility to get the aircraft serviced in India, at a local MRO with EASA-approved facilities, results in 30–40% saving in aircraft maintenance costs for an airline,

The issues

The tax regime on import of spares into the country making them 30% more expensive as compared to international MROs.
the other key impediment to growth of airline MRO capacity in India is the lack of availability of hangar space at key international airports. This limits the ability of MROs to tap into the larger potential market of aircraft operating within 5–6 hours of flying distance from India

An industry-led centre of excellence in aviation MRO (maintenance, repair, and overhaul) has been proposed to be set up in Bengaluru.
The proposal has been made to Hindustan Aeronautics Ltd., which has a ready runway at its old military airport, and with CSIR’s research body, National Aerospace Laboratories.
The city has the advantage of being the aerospace capital and the hub of information technology