The potential of the MRO business to flourish in India continues to remain on paper. While on the one hand, we do not miss any opportunity to tom-tom the rapid growth of the aviation sector and how the country will be in the top three in the next five years in the world, the MRO industry – one could refer to it as the backbone of the aviation sector — has been totally forgotten by the government. The size of industry in 2015 was ₹5 billion. Today, is the size remains at the same ₹5 billion and as C Santhosh found out, most of the MROs would have to down shutters by March 2019 if the situation does not improve.
As India’s civil aviation industry continues to grow at a scorching pace, the homegrown Maintenance Repair & Overhaul (MRO) industry appears to have come to a screeching halt. It is a sad state of affairs as industry observers agree that Indian MRO capabilities have the potential to be one of the most competitive in Asia, especially due to the availability of a large and highly-skilled English speaking workforce that is also very cost competitive. Despite the emergence of a strong airline industry that could have provided an impetus to the MRO industry in India, more than 90 per cent of the MRO requirements of Indian carriers are performed out of the country.
“All Indian MROs are heading towards total closure due to highly beneficial tax policies for foreign companies that allow imports at 5 per cent tax and local MROs have to charge Goods & Services Tax (GST) @ 18 per cent. This gives a clear advantage of 13 per cent in reduced tax on imports for foreign MRO versus Indian MRO's. From the information we have, all Indian MROs have declared operating losses in their balance sheets for year ended March 31, 2017. If the Government continues to offer these massive subsidies for foreign companies, it is estimated that total and complete closure of Indian MRO will be successfully achieved by March 31, 2019,” warns Bharat Malkani, CEO of MAX Aerospace, a well-known aviation services company. In effect, according to Malkani, the combination of 18 per cent GST on labour and spares used by Indian MRO firms, effectively subsidises the flight of MRO work from India, to firms based out of the country. As a result, MRO work is now flowing out of India to countries such as Singapore, Sri Lanka, Dubai and China.
Denne historien er fra September 2018-utgaven av Cruising Heights.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra September 2018-utgaven av Cruising Heights.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Jets, Tech, And Green Goals
The key themes at the Farnborough International Airshow 2024 revolved around innovation and sustainability. Sizeable aircraft orders, advancements in eVTOL technology, and a strong commitment to environmental goals underscore an industry that is not only rebounding from past challenges but also setting the stage for a more sustainable and technologically advanced future, reports ATUL CHANDRA.
FREIGHT IN FLIGHT
In 2023, Indian airports handled over 3.15 million metric tonnes of cargo, with international freight dominating. As the sector aims to meet the government's ambitious annual target of 10 million metric tonnes (MMT) by 2030, this goal will require dedicated freighter aircraft, technological integration, infrastructure development, and regulatory improvements, among other things. By JAIDEEP MIRCHANDANI, Chairman, Sky One
ELEVATING PASSENGER EXPERIENCES
Panasonic Avionics Corporation is setting new standards in in-flight entertainment and connectivity (IFEC) with the launch of its state-of-the-art software design and development facility in Pune, highlights
CAUGHT IN PAPER JAM
Despite rapid digital advancements in passenger air travel with the airline market expected to surpass $35 billion by end of this decade, the air cargo industry remains bogged down by outdated legacy systems, impeding progress in efficiency and real-time tracking. A special report by
PITCHING FOR SUPPORT
India's air cargo industry is gearing up for a major transformation, aiming to nearly triple its capacity by 2030. Current infrastructure handles about 6.5 million tonnes, but meeting future goals will require significant investments to expand capacity, streamline operations, and adopt cutting-edge technologies. Industry leaders at a recent ACFI Annual Conclave emphasised the need for strong government support to overcome challenges, urging policymakers to address operational constraints and improve connectivity, reports
BATTLE FOR THE SKIES
As India's international air traffic experiences significant growth over the past few decades, the competition between Air India and IndiGo intensifies. Vistara's merger within Air India and the significant aircraft orders position the combined entity as a formidable player, while IndiGo's ambitious expansion plans and international focus set the stage for a competitive future, analyses
"We Aim to Bridge the Training Gap in Indian Aviation"
In a candid conversation with CRUISING HEIGHTS, KHUSHBEG JATTANA, General Manager India of Simaero, discusses the strategic timing of Simaero's entry into the Indian aviation market. He addresses the challenges posed by existing pilot training programmes from major airlines like Air India and IndiGo, and elaborates on Simaero's plans to complement these efforts with state-of-the-art training solutions. Jattana also sheds light on the potential growth in the South Asian region and the company's vision for the future.
POWERING UP
Urban Air Mobility providers are accelerating their eVTOL development programmes, reports
Transforming Air Traffic Control Training: CAE's Cutting-Edge Approach
In this interview, MARIE-CHRISTINE CLOUTIER, CAE's Vice-President of Performance, Strategy, and Marketing, discusses CAE's air traffic control training program. Highlighting strategic partnerships, advanced technologies, and global initiatives, the interview reveals how CAE addresses the growing demand for skilled air traffic controllers and flight service specialists. From their dedicated Montreal facility to expanding efforts across the globe, CAE is committed to providing tailored, state-of-the-art training solutions for the aviation industry's future.
POWERING A GREEN FUTURE
FIA 2024 witnessed a growing order book for aircraft engine manufacturers and provided important insights into the development of sustainable powerplants.
