ProductsLogo
LogoStudy Documents
LogoAI Grader
LogoAI Answer
LogoAI Code Checker
LogoPlagiarism Checker
LogoAI Paraphraser
LogoAI Quiz
LogoAI Detector
PricingBlogAbout Us
logo

AVIATION MRO MANAGEMENT

Verified

Added on  2019/09/16

|6
|1219
|82
Report
AI Summary
The assignment content discusses the Maintenance, Repair and Overhaul (MRO) industry in India, focusing on its current state, future growth prospects, and challenges. The report highlights that India's MRO market is expected to expand from USD 700 million in 2011 to USD 1.4 billion by 2020, driven by the country's expanding aircraft fleet volumes, strategic location, rich pool of engineering expertise, and low labor costs. The existing MRO industry faces procedural hurdles, high taxes, and inadequate facilities, leading airlines to rely on foreign MRO services. However, the Indian government is taking measures to boost the domestic MRO industry, including reviewing tax implications, streamlining procedures, and offering incentives. With its potential to create jobs, earn foreign exchange, and minimize dependency on foreign carriers, India has a great opportunity to become a global hub for MRO services.

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
AVIATION MANAGEMENT
Maintenance, Repair and Overhaul

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
1
Introduction
The MRO i.e. Maintenance, Repair and overhaul are the landscape which is being disintegrated
by the emergence of the advanced technologies and the expanding presence of the manufacturers
of the original equipment in the market. Further, the challenges are being examined, and a
framework is being proposed through which the service providers of the MRO can abide in order
to deliver the value. Further the country i.e. India is selected to calculate the future and present
operators. Also, the fleet volume is given along with the composition and the size, and for it,
wide bodies are being considered. Further, the existing MROs are explained along with the
potential growth of the business. Further, the report will help in investigating the possibility in
order to set up a new MRO.
Present/future operators
The Indian maintenance, repair and overhaul industry was worth USD 700 million in the year
2011, and it is further estimated to expand to around USD 1.4 billion by the end of 2020. At
present, India includes I percent of the MRO market globally which is worth USD 47 billion.
The expanding preference for India's air travel is the middle class which is less-served. Further
the industry focuses in order to optimize the cost of the operations of aircraft which offers the
strong foundation for the MRO industry of India in order to enhance the capabilities to achieve
the global excellence standards. Developing an MRO is capital intensive along with a huge
break- even point. Operating the MRO is highly relied on investing in the correct manpower that
is continuously trained and utilized optimally through a great focus on the quality and the time. It
further requires the regular siege in the tooling and the certification from the regulators of the
safety, for example, Administration of Federal Aviation (Blog.sunsea.in, 2016). Therefore, the
Document Page
2
operators of the aviation industry are clearly determined and focused in order to maximize the
profitability and expand in future.
Fleet volumes
The maintenance, repair and overhaul industry of India is poised for the expansion, but firstly it
has to overcome the hurdles. The aviation sector of India is one of the most dynamic sectors
across the globe. It has been assumed that it has 15 percent of the growth rate of the annual
passenger traffic which triggers the expansion of the fleet within the various airlines of the
country. Further, it will cause the modernization and the expansion of the infrastructure of the
airport. It has been observed from the various researches that the rising number of passengers
and the expansion of fleets along with the arrival of carriers in the market which is of low cost
has further opened up a pasture of fresh and new opportunities for the international providers of
the MRO services (Aviationspaceindia.com, 2016). India, along with its expanding aircraft fleet
volumes, strategic advantage of the location, rich pool of the expertise of engineering and the
minimum cost of the labor has a great potential in order to become a global hub of MRO.
Size and composition
During the year 2016, the passenger traffic of the domestic air increased to 64 million as
compared to the previous year which was 52 million. According to the reports, the total
movement of the aircraft at the Indian airport was around 168,000, and it is 14 percent more than
the previous year. Whereas, the movement of international aircraft maximized by 8 percent and
the movements of the domestic aircraft maximized by 15 percent this year as compared to the
previous year i.e. 2015. Further, the traffic of Indian domestic air is being predicted to cross
around 90 million passengers by the end of FY2017. It is being researched that India is one of
Document Page
3
the fastest growing markets of aviation globally. Further, the airlines which are being operated in
India are shown to record a collaborative operating profit worth US $1 billion in the year 2016.
Existing MRO
There are various measures which are being taken by the government in order to boost the MRO
industry of India. The measures are as follows (Asianaviation.com, 2016):
The collective implications are being reviewed and the taxed which are imposed by the
state and the central government.
The procedural hurdles are being faced by the MRO by using the foreign experts and
address the problems immediately in order to place the MRO of India on the expansion
trajectory.
The states have considered the extended benefits such as the exemption from the duties of
the state electricity, stamp duty, etc. in order to fascinate the MROs.
At this point of time, the airlines which are being operated in India get around 90 percent of the
MRO which is done Abroad primarily because of the cost advantage which results from the high
burden of tax, procedure of the operations and also the inadequate facilities of MRO services
which are available in India.
Potential business growth
Indian aviation industry has the great potential in order to grow and maximize profitability.
According to the potential, the industry of MRO can achieve the below given benefits in the
upcoming years (Defproac.com, 2016):

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
4
Creation of more than thousand jobs for the engineers of the aerospace and the various
other professionals.
The country can earn and save the foreign exchange by fascinating the international and
national carrier to the MRO of India.
Minimizes the dependency of the carriers of India on the various other countries for the
requirement of MRO.
India can become the attractive hub of MRO across the globe.
The private carriers of India can rely on the facilities of the MRO which are being
provided by India.
The advance facilities of MRO can be encouraged in India in order to take care of the
expanding requirements of the various aircraft which are being operated in India.
The government will be able to earn the greater revenues through the multiplier impact of
the MRO, local employment generation and the expansion of ancillaries.
Document Page
5
REFERENCES
Asianaviation.com. (2016). Asian Aerospace & Aviation Industry News | Asian Aviation. [online]
Available at: http://www.asianaviation.com/ [Accessed 6 Dec. 2016].
Aviationspaceindia.com. (2016). News Aerospace Aviation India. [online] Available at:
http://aviationspaceindia.com/ [Accessed 6 Dec. 2016].
Blog.sunsea.in. (2016). Sunsea Aviation Services Private Limited – India's leading overseas
aviation education counsellors and promoters.. [online] Available at http://blog.sunsea.in/
[Accessed 6 Dec. 2016].
Defproac.com. (2016). Defence ProAc Biz News | Indian Defence Production and Acquisition
Biz News. [online] Available at: http://www.defproac.com/ [Accessed 6 Dec. 2016].
1 out of 6
[object Object]

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]