HYDERABAD: Lufthansa Technik, the leading provider of technical services for commercial aircraft, is setting up a Maintenance Repair and Overhauling (MRO) facility in the upcoming Hyderabad International Airport at an investment of $20 million.

This will be the second MRO facility in India after Boeing’s announcement on an MRO facility in Nagpur. The equity holding between Lufthansa Technik and GMR Hyderabad International Airport (GHIAL) for the MRO project is 75:25.

“The Indian aviation sector is buzzing with activity with new entrants and orders for over 400 aircraft being placed.

This is the right time to set base for a maintenance centre in India,” said Lufthansa Technik AG chairman (executive board) August W Henningsen. The two-bay facility will provide operation and maintenance services for small and medium-sized aircraft made by manufacturers like Airbus and Boeing.

“On full operations, the MRO facility will employ about 400 people. Considering the shortage of trained professionals in the sector in India, we will look at extensive training in our centre,” he said. However, he declined to state the cost benefit that Indian carriers can incur by using the MRO facility in India as against flying aircraft to countries like Singapore for MRO services.

Lufthansa Technik is not immediately looking at expanding the facility to accommodate larger aircraft like Airbus A380, though the Hyderabad international airport will be one of the first in the country with a landing facility for the aircraft. “We will decide on that after two years,” Mr Henningsen said.

The first flight from the Hyderabad International Airport will take off in March 2008 and the MRO facility is expected to be operational by the end of 2008 and operations will begin by early 2009. Lufthansa already has tie-ups with Air Deccan, Kingfisher, Jet Airways, Air Sahara and GoAir for MRO services.

“The MRO business takes time to break-even and we are not looking at immediate returns,” said Mr Henningsen, when quizzed on the time required for break-even.
source: The Economic Times

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