India is the world's third largest domestic aviation market - with a domestic traffic of 275 million-and is expected to surpass The United Kingdom (UK) to become the third largest air passenger market including both international and domestic passengers by 2024.
This prediction may be delayed for two or three years but facts are very much realistic. According to a NITI Aayog report, the size of the MRO industry being USD 1.7 billion as of 2021- it is expected to reach USD 4.0 billion by 2031, registering a CAGR of 8.9 per cent as compared to the global average of 5.6 per cent. Here such analytical reports will never expose that despite we the third largest aircraft operating country in the world, our 70-80 percent of MRO work is performed through imports. Despite inherent advantages such as growing passenger traffic and considerable fleet size, the Indian MRO sector has not seen a corresponding growth, owing to certain key bottlenecks.
The MRO segment is divided among Line Maintenance, Component Maintenance, their Airframe Heavy Maintenance & Modification and Engine maintenance and overhaul. Respective share of different segment may be 20:30:20:30. We are good in Line Maintenance, Heavy Airframe Maintenance but worse in engine and component servicing and overhaul. It is basically part of OEM'S long term strategy to earn in aftermarket business. The OEMs' ability to quickly capture market share in the aftermarket is largely due to their control over Intellectual Property (IP) related to training manuals, data design etc.
This adversely affects engine and component manufacturers and poses a serious challenge to the vision of an indigenous MRO industry in India. Secondly, OEMs charge exorbitant consultancy fees that restricts MRO players to diversify and expand services "said a report by NITI AAYOG named MRO in India.
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