Aerospace Diary

by  Neelam Mathews  - November 29, 2018, 10:43 AM High taxes on the Indian domestic maintenance, repair, and overhaul (MRO) industry have led airlines to outsource 75 percent of the country’s $1.4 billion MRO business to international providers, sending local operations into a state of gradual decline even amid increases in fleet sizes and the prospect of large orders in the near future. In a letter to the Ministry of Civil Aviation, the MRO Association of India (MAOI) has called for the government to pay urgent attention to the declining industry and “offer at least a fair chance to compete with foreign MROs that enjoy a favorable import tax policy.” No response has come from the government. “We cannot understand why they do not grasp the simple math that a few hundred million dollars in taxes will far offset the revenues of a lucrative MRO industry at home,” MAOI president Bharat Malkani told  AIN . “We are subsidizing foreign MROs.” As MRO requirements...

AIN NEWS LIVE FROM AEROINDIA  »  2013 by    NEELAM MATHEWS Business  jets were on display at this week's Aero India show in Bangalore but buyers there still have to get permission from the country's aviation authorities for each individual acquisition, representing a significant obstacle to fleet growth. [Photo: Vladimir Karnozov]. February 4, 2013, 11:09 AM “The government treats business aviation like a rich man’s toy,” said an Indian business jet operator speaking to  AIN  on condition of anonymity. The comment neatly summarizes the context for the continuing obstacles to business aviation growth in a country where largely positive economic conditions should be driving a major uptick in expansion of the industry. But with no clear policy framework, India’s business and general aviation community is being stifled by limited infrastructure, regulatory hurdles and high taxation. The latest trends indicate owners ar...

Does anybody care anymore?  From an AI engineer's point of view Neelam Mathews Sept 24, 2012 There is little doubt   there is dissatisfaction among the  ranks of the erstwhile Air India and Indian Airlines engineers, upset with the formation of the MRO subsidiary for which they were not consulted nor made aware of where they would stand in seniority. Like it or not, this could become a safety issue. Interestingly, most of the engineers we spoke to, had little confidence the AI MRO would make money “especially with the high taxes “and the incapable Air India Engineering Management.” “Unless the MRO is handed over to a professional management, it will not be able to breakeven even after 10 years,” moans an engineer. VRS is not applicable for licensed category of employees like AMEs. There is trepidation that while the government  has promised to protect salaries and extend financial support to the MRO for the first three years, th...

Neelam Mathews Aug 18, 2012 Who says doing business in India is a breeze? However, the penchant to hurt our own industry is fast becoming a habit. Take MAS GMR Aero Technic launched early this year with an investment of Rs 350 crore, now believed to be looking at exiting the business, according to Aerospace Diary's global sources. While a spokesman for the company has denied this, saying: “We’re a startup company in our first year- naturally there will be hiccups….” He also refused to give us a projection of expected targeted business for the next few years adding: "That's a strategic decision for the top level management (to address?)" Another denial from GMR has just come in. "GMR Group is an established and reputed business entity, acknowledged across the globe. We would like to strongly deny the comment put in as a query. There is no such move of MAS GMR exiting the MRO business.” Whether GMR holds back its precious asset or not, the ...