HAMCO INDIA-Hyderabad Aircraft Maintenance Company

The full spectrum of maintenance services ranges from line level to comprehensive C and D checks, major repairs, including accident damage......more

Aero Zone will be a geographic concentration/ cluster of advanced technology enterprises which will address the maintenance.....more

AeroZone-MRO in India:

India: The Epicenter of Aviation MRO Growth

a	Extraordinary growth in airline traffic– In 2001 the number of aircraft departures in India was 2,16,700. This has increased to 366700 in 2005 and is expected to grow to 438700 departures in 2006.
a	Rapidly rising fleet size – The total fleet size of all airlines operating out of India are projected to grow rapidly. Number of aircrafts in the country are expected to rise from 160 in 2004 to around 620 in 2014. In 2005 the fleet size of Indian carriers was 249. A significant corresponding increase in revenue passenger kilometres has also been recorded.
a	Emergence of multiple carriers – India has witnessed entry of airlines across the service spectrum ranging from full service carriers such as Kingfisher airlines and Paramount Airlines to a large number of low cost carriers such as Air Deccan, Spice Jet, Go Air, IndiGo and Premier Airlines.

With the rapid growth of the aviation sector in India, airport infrastructure, ATC requirements and concerns, pilot and engineer shortages have emerged as major areas of concern. The critical aspect of aircraft maintenance has unfortunately not received adequate focus and coverage.

However, Since the establishment of HAMCO in July 2005, the key aspect of aviation maintenance is gradually getting due recognition. Hamco endeavors to address all aspects related to aircraft maintenance by providing specialised services and support development of concepts such as AeroZone.

Comparative Growth:

a	With a significant and sudden rise in the total fleet size in India, the demand for MRO services has also increased rapidly.
a	Long standing players such as Air India, Indian Airlines, Jet airways etc have established their own MRO teams and have adequate maintenance capability. However, several new entrants in the market do-not have adequate manpower and skills for MRO and therefore source their maintenance requirements from abroad.
a	The total aviation MRO market in India is estimated at $ US 405 Mn. The market size is expected to be $ 1.06 Bn The total aviation by 2014.
a	Market contribution of India in Asian MRO market will also increase from 5.33% in 2004 to around 7% by 2014.
a	With a significantly high growth estimate of 10.2%, the aviation MRO market in India is expected to outpace the growth in the global as well as Asian market.
a	Low-cost carriers (LCC) such as SpiceJet and Air Deccan are increasingly outsourcing their fleet MRO requirements.

Maintenance Relationships Established by Various Airlines:

While leasing is a popular mode for aircraft acquisition world-wide, in India many new airlines have opted for acquisition through purchase – Acquisition through purchase puts the onus of maintenance on the airlines themselves, the airlines would therefore need to enter into comprehensive maintenance contracts. The following chart shows the maintenance relationships established by various airlines.

Presently, a lot of such work is being sourced from service providers based in regions such as Singapore and Europe.

	Line Maintenance	Base Maintenance	Component Repair
Air India	Air India	Air India	Air India
Indian	Indian	Indian	Indian
Jet Airways	JAECO	JAECO	JAECO
Sahara	Sahara Engg	Sahara Engg / Malaysian Air Engg	Sahara Engg
Air Deccan	EADS	EADS	EADS
King Fisher	Indian	Indian	Indian
Spice Jet	Hamilton	Hamilton	Hamilton
Indigo Air	Indigo Air	-	Rockwell Collins
Go Air	Go Air	-	(Sahara, Jet or IA)
Paramount	Paramount	-	GE

A number of companies have firmed-up plans to enter the airline market in India. This signifies an enormous growth potential for the MRO market. Air-One, Visa, Royal, Skylark and Yamuna Air are the proposed airlines which plan to operate a variety of formats such as chartered carriers, regional discounters etc.

MRO Market:

a	Similar to global market, the Engine overhaul comprises the largest segment in Indian MRO market worth US$ 174 Mn and is expected to grow to US$ 490 Mn by 2014. The state owned airlines have developed capabilities for engine maintenance and the private airlines routinely source their needs from independent MROs.
a	Similar to global market, the Engine overhaul comprises the largest segment in Indian MRO market worth US$ 174 Mn and is expected to grow to US$ 490 Mn by 2014. The state owned airlines have developed capabilities for engine maintenance and the private airlines routinely source their needs from independent MROs.
a	In India 80% of Airframe Maintenance is done in-house by Airlines themselves. Airframe Maintenance was a $ 47 Mn market in 2004.
a	OEMs have developed a significant market share in the Component Overhaul market in India. The market size of the component overhaul market was US$ 81Mn in 2004 and is expected to grow to US$ 204 Mn by 2014.
a	Modifications is a smaller market in terms of market size. The 2004 market was worth US$ 32 Mn and is expected to be $ 77.5 Mn by 2014.

MRO - INDIA