Feb 1st , 2018 Indian MRO – An Opportunity Untapped

Safran Nacelles signs thrust reverser servicesagreement with Kuwait Airways for A330jetliner fleetFrench Air Force signs C-130H logisticsagreement with Sabena technicsInterflight expands its maintenancecapabilities at London Biggin Hill AirportPg46Pg 7PgFeb 1 st , 2018Indian MRO – An opportunity untappedIDr Dinesh Keskar, Senior Vice President Asia Pacific and India Sales, BoeingL to R: Kishore Jayaraman, President India and South Asia, Rolls Royce, Amber Dubey, Partnerand Head-Aerospace and Defence, KPMG (Moderator), Ashish Saraf, VP & Make in India Officer,Airbus, Harpreet A De Singh, Exe. Director and Chief of Flight Safety, Air India Air MarshalJ N Burma, PVSM AVSM VSM (Retd), Indian Air Force M Balakrishnan, Consultant, Air IndiaEngineering Services Limited, Arun Kashyap, Executive VP Head of Engg. & Maintenance,SpiceJetwww.mrobusinesstoday.comndia has an amazing and fast-growingaviation segment that is forecastedfor the next decade. One out of everytwenty widebody aircraft delivery in theworld is to India. That is the magnanimityof the MRO opportunity exists in India.However, the stakeholders of the industryfeel that the government should look atthe larger scheme of things like the sizeof the business, employment that wouldbe generated, and developing a skilledworkforce. That would a game changer forthe Indian MRO industry.Interestingly, India is the fastest growingaviation market for the last 34 or 35 oddmonths. It is the third largest domesticmarket and inching towards taking overJapan in the overall size of the market,both domestically and internationally. Thebig two, US and China, are still ahead ofIndia, and it is expected that India wouldbeat them by 2030.The Aerospace & Defence MRO SouthAsia Summit which was held from 18-19January 2018 in India’s capital city NewDelhi witnessed participation from allsegments of the MRO value chain. Thissummit is the first ever event for the MROindustry and themed as Make in IndiaMRO Makes it happen.The two-day conference gained tractionin the wake of the current favourablefactors for MRO industry in the countrysuch as initiatives like ‘Make in India’ andother policies announced by the Ministryof Civil Aviation, Government of India.The tone of the conference was set in byDr Dinesh Keskar, Senior Vice PresidentAsia Pacific and India Sales, Boeing bydelivering the keynote address. In hisspeech, he high- lighted the humongousopportunity that India offers for theMRO players in the world. He said, “In thebeginning, till the liberalisation happenedand the private players came into theFeb 1, 20181

L to R: Bharat Malkani, Chairman & Managing Director, Max Aerospace (Moderator)Air Marshal Sukhchain Singh, AVSM VSM (Retd), Maintenance Command, Indian Air ForceArun Bansal, General Manager, Engineering, Air India Engineering Services Limited,Air Marshal P R Sharma, Vice President, Safran IndiaL to R: Shaji Karunakaran, Chief Engineering Manager, Blue Dart Aviation, Gagan Jacobs, PowerPlant Manager - Technical Services Department, Jet Airways, J K Agrawal, Deputy General Manager,Air India Engineering Services Limited, B K Mehrotra, GM (Cargo) Airport Authority of India & COOAAI Cargo Cargo Logistics & Allied Services, Shailendra Seth, Director - India, Chapman FreebornAirchartering Pvt Ltd, Vivek Gupta, Managing Director, Interfreight ForwardersL to r:Aanand Naidu Pola, Addl Director General, Prasar Bharati (Moderator), Gaurav Dhanda,Deputy Commissioner Customs, CBEC - SWIFT , Priya Iyengar, Corporate Lawyer and Arbitrator,Compass Law Spandan Biswal, Partner, Cyril Amarchand Mangaldas, Ashwani Sharma, FormerFormer VP- Engg. & Quality Manager, Air Costa, Sharad Agarwal, Quality Manager, Air IndiaEngineering Services Limited2Feb 1, 2018picture, the flag carriers Air India andIndian Airlines were handling their ownmaintenance works. And there wasn’tany additional scope for maintenance.When more and more private playerscame into operations especially with theused aircraft and some of them with old737-200, the requirement for MRO wentup. However, there was no support fromanywhere as Air India and Indian Airlineswere too full with their own work.”In the last two decade, the Indian MROmarket was growing consistently andnow the size is estimated to be of Rs 5000crore. However, 90 percent of the IndianMRO work is being done outside India. Thereason, blame it on the lack of MRO facilityin India. “The market is here, the growthis here and people (skilled workforce) arehere. This opportunity in MRO should betapped in time,” added Keskar.While the summit, on one hand, focusedon the conducive environment in India,on the other, it also discussed in detail thehurdles impeding the realisation of theMRO opportunities.Keskar continued that Boeing spent 107million dollars in building the NagpurMRO facility which is being run by AirIndia. He further said, “The challenges forMRO are infrastructure, finding land, landacquisition, the higher duties on spareparties etc.”The first panel had an electrifieddiscussion on Make in India- MRO Makesit happen. The high profile panel consistedof Ashish Saraf, VP & Make in India Officer,Airbus; Kishore Jayaraman, President Indiaand South Asia, Rolls Royce; Air Marshal JNBurma, PVSM AVSM VSM (Retd), Indian AirForce; Arun Kashyap, Executive VP Headof Engineering &Maintenance, SpiceJet;Harpreet de Singh, Exe. Director and Chiefof Flight Safety, Air India: m Balakrishnan,Consultant, Air India Engineering ServicesLimited; and was moderated by AmberDubey, partner and head of Aerospace andDefence, KPMG.Amber Dubey commented, “For thatbuying new air crafts and startingnew airlines are not enough. Nobodyis going to buy a car in Delhi and takethem to Chennai or Dhaka or Sri Lankafor servicing. Why are we in such abad shape? Whenever the industry,government and private sector gettogether, miracles happen. MRO is onesegment which is not doing not so good.www.mrobusinesstoday.com

L to R: Gagan Jacobs, Power Plant Manager - Technical Services Department, Jet Airways,G Sampath, Regional Director - South Asia, Triumph Group, Rahul Shah, SVP Strategic Growthand Business Development, AAR Corp (Moderator), S K Bansal, Associate Vice President Engineering, Indigo Airlines, Raminder Singh, Deputy General Manager, Air India EngineeringServices LimitedL to R: Prof Rajkumar S Pant, Aerospace Engineering, IIT Bombay (Moderator), Abhishek Gupta,Co-Founder & CEO, GreyKernel, Aruna Schwarz, CEO and Founder, Stelae Technologies,Saravanan Rajarajan, Associate Director - Ramco Systemswww.mrobusinesstoday.comBut until and unless the industry makesthe sound and being heard by the rightpeople, we need to shout loud.”Harpreet de Singh said, “One needs tolook at the financial viability not for theMRO as such but for the airline which isgoing to use the MRO. Getting repairs donedomestically viz a viz the cost advantage ofsending it overseas is what is making theairlines looking overseas.”Ashish Saraf was quick to add, “Whydoesn’t it work? Taxation—it got betterbefore GST and with GST it got worse. Wehave people who have approached us to setup MRO in the middle of nowhere. But werequire land near Delhi or Mumbai as noneof the airlines would like to do a detour to getthe repairs. So the location becomes a key.”Arun Kashyap brought in the role of OEMsby saying, “The OEMs needs to pitch inhere. We request whichever company offersMRO service, to set up a facility in India.We compete with each other. We needmore volume; Make in India should look atattracting south East Asia and the MiddleEast to the country in the MRO segment.”The expert panel members said thatforums like this should collectively compilethe suggestions and submit it to thedifferent ministries, so that encouragingpolicies can be framed by the government.The conference also saw deliberations onsubjects like a) ‘Defence MRO- Seizing the bigopportunity’ b) ‘Internet of things, Big dataanalytics & Artificial Intelligence: strongtailwinds fir for future MRO’ c) ‘Key businessdrivers shaping the global MRO marketin the next five years’ d) Regulatory andgovernment policy framework supportingIndian MRO and e) Building a Robustlogistics and Supply chain infrastructure forIndia’s civil & defence MRO.Aerospace and Defence MRO South AsiaSummit 2018 was organized by The STATTrade Times and was supported by AirIndia Engineering Services Limited (AIESL),Aeronautical Society of India. The Conferencealso had partners Ultra Aerospace, RamcoSystems, Compass Law Associates, Avion World.The STAT Trade Times is a multimodalinternational transport media establishedin 1986 engaged in the dissemination ofnews with a special focus on Aviationindustry globally for more than threedecades. STAT Times has also beenorganizing, the now very popularInternational biennial Air Cargo events AIRCARGO INDIA & AIR CARGO AFRICA.Feb 1, 20183

Safran Nacelles signs thrust reverser services agreement withKuwait Airways for A330 jetliner fleetKuwait Airways, the national carrierof Kuwait has selected SafranNacelles for unscheduled maintenanceservices coverage and asset managementfor thrust reversers on the airline’s AirbusA330 jetliner fleet powered by Rolls-RoyceTrent 700 engines.“We are fully committed to deliveringservices that meet Kuwait Airways’needs,” stated Olivier Savin, SafranNacelles’ Executive Vice President Customer Support & Services. “KuwaitAirways’ decision to select Safran Nacellesis a great endorsement of our services,which combine world-class innovativesolutions to ensure smooth operationsfor our customers’ fleets – from entry-inservice until aircraft retirement.”Falah Salman, the Head of KuwaitAirways’ special assignment office atthe engineering department, stated,“Safran Nacelles’ footprint in the regionprovides a very high level of support andservices quality, delivering value-addedmaintenance coverage for our fleet. Thisconvinced us to continue the workingrelationship, which has been built ontrust, with Safran Nacelles as the thrustreverser OEM and our services provider.I am delighted we have chosen the assetmanagement and unscheduled coveragepackage for our A330 fleet, and lookforward for extensive collaboration onnew aircraft joining Kuwait Airways’ fleetsoon.”Hainan Airlines, CFM sign LEAP-1A enginescontract to power 55 A320neo aircraftHainan Airlines has signed aMemorandum of Understanding(MOU) valued at 4.2 billion U.S withCFM International, a 50/50 jointcompany between GE and SafranAircraft Engines for the purchase ofLEAP-1A engines to power 55 AirbusA320neo aircraft, along with a long-termsupport agreement for Hainan AirlinesHolding and its affiliates. The MOU wassigned by Bao Qifa, Executive Chairmanand CEO of Hainan Airlines Holdingand Philippe Petitcolin, Chief ExecutiveOfficer of CFM parent company Safran.The signing was witnessed byMinister Zhong Shan of China Ministryof Commerce and Minister Jean-YvesLe Drian of French Ministry of Europeand Foreign Affairs and Minister BrunoLe Maire of French Ministry for theEconomy and Finance.“The majority of our fleet is poweredby CFM engines,” said Bao Qifa,executive chairman and CEO of HainanAirlines Holding. “The products areperforming great and we’ve been well4Feb 1, 2018supported by the CFM team. We believe that LEAP-1A engines will help us continueour growth on our domestic and regional routes.”“We are very pleased that Hainan has selected the LEAP-1A engine for its A320neofleet,” said Philippe Petitcolin, CEO of Safran. “It is an honor to be part of this airlinescontinued growth and we offer our assurance that the entire team can look forwardto the same high level of support they have come to expect from CFM as theyintroduce the LEAP-1A into service next year.”www.mrobusinesstoday.com