HAL, American firm to invest jointly in MRO business – announcement likely soon

14 Jul 2008

Bangalore: State-owned domestic aerospace giant, Hindustan Aeronautics Ltd (HAL), is set to enter into an agreement with an American company for the setting up of a full-fledged commercial aircraft maintenance, repair and overhaul (MRO) centre. According to HAL-sources, the agreement could materialise in ''a month or two.''

HAL, which has reported a sales turnover of more than $2 billion in fiscal 2007-08, is recognised as a 'Navratna,' or one of the 'nine jewels' amongst state-owned enterprises, by the Government of India.

Refusing to identify the company, HAL sources said that it was American and a worldwide leader in the commercial aviation MRO business. Both HAL and the American partner would invest in the $75-million venture, with the former putting up 45 per cent and the American partner the rest.

According to HAL sources, talks aimed at finalising details were currently at a final stage and an announcement would be made soon.

The MRO will be equipped to service both Boeing and Airbus families of commercial aircraft, including wide-bodied and single-aisle versions.

HAL officials are confident that around 25 to 30 aircraft could be serviced in the initial phase of operations. Services would start with a two-bay hangar, which would then be ramped up to a four-bay hangar in the next phase.