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Madhumathi D.S.

Bangalore , Feb. 12

BOOMING air traffic worldwide on one hand, and spending cuts by loss-making airlines on the other, spell opportunities for aviation software solution providers.

Ramco Systems is eyeing this huge market, estimated at $2 billion in India and the Gulf market, according to its Vice-President, Mr R. Shankar.

Studies put the MRO (maintenance, repair and overhaul) business at $89.5 billion worldwide, including $36 billion for commercial aviation. The segment is estimated to be growing at 5.3 per cent to touch $62 billion in eight years. This puts a lot of pressure on IT services companies, said Mr Shankar, who was here for Aero India 2005.

MRO companies typically spend 2.5 per cent of their budget on IT solutions. Companies such as Chennai-based Ramco are looking to bag at least 2 per cent of this $2-billion market in the region, he said.

The Indian aviation sector is on an upswing, with huge aircraft acquisitions by airlines and airport modernisation plans across the country.

The year saw airlines worldwide stagger under $4 billion losses. But players are looking to peg high fuel costs and keep pace with competition. And IT solutions are there to help, said Mr Shankar.

Ramco has consolidated its aviation-related activities under a 160-strong centre for excellence catering to a range of concerns of airlines, MRO and helicopter companies. These include ERP (Enterprise Resource Planning), engineering and maintenance, aircraft service bulletins, airworthiness directives, digitised flight kits for the pilot, logistics, finance, sales and HR.

Ramco recently won a $8-million contract from US-based Petroleum Helicopter Inc. Its customers include IAF, Indian Airlines, Eurocopter, Saudi Arabian company Al Salam Aircraft and Conair.

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