The Hindu Business Line : Boeing in talks with State Govts for maintenance facility

BOEING, the Chicago-based aircraft maker, is in talks with six State Governments for setting up a $100-million MRO (maintenance, repair and overhaul) facility.

The company would finalise the location in April, said Dr Dinesh A. Keskar, Senior Vice-President, Boeing Commercial Airplanes.

The allocation for the MRO is part of the $185-million investment that the aircraft maker committed while signing an aircraft acquisition deal with Air India earlier this month.

Dr Keskar said the development of infrastructure was crucial to the growth of aviation industry in the country, and it was in Boeing's interest to aid the process.

Besides the MRO facility, the aircraft maker would invest about $75 million in a pilot training facility that would have simulators of the most commonly used Boeing aircraft in the country, including the Boeing 737, B-777, and the B-787. A further $10 million would be invested be setting up incremental facilities.

A separate counter-trade agreement entails Boeing Company to buy goods and services worth Rs 8,500 crore from Indian companies.

The MRO facility was likely to be set up in joint venture in partnership with an airline, investors in infrastructure, or other interested foreign entities. Once it becomes operational, domestic airlines would be able to carry out airframe and heavy maintenance checks within the country, saving on material and labour costs, besides expenses such as flying the aircraft abroad, putting up pilots in hotels, etc.

The MRO would also stock spares, reducing the time that aircraft are grounded for maintenance.

According to Dr Keskar, Indian orders valued at $15 billion accounted for nearly 12 per cent of the firm orders (1,002 airplanes) received by Boeing last year.