Date:28/12/2006 URL: http://www.thehindubusinessline.com/2006/12/28/stories/2006122802730700.htm

Back Airbus may tie up with HAL

Ashwini Phadnis

The proposed facility will carry out complete repair and maintenance facility of a variety of aircraft that currently have to be sent to Dubai or Singapore for such works. To set up maintenance, repair and overhaul facility

New Delhi , Dec. 27

Airbus Industrie may tie up with Hindustan Aeronautics Ltd for setting up maintenance, repair and overhaul (MRO) facility in India.

Sources told Business Line that although Airbus was exploring ways to assist HAL in the MRO venture, a final decision on the firm with which the aircraft manufacturer would finally tie up is likely to be announced early next year.

Talks on

Airbus has also held discussions with Indian for a similar tie-up. "Airbus is in talks with HAL but that in no way means that we have decided to tie up with them. We have also held discussions and done all the exploratory work with Indian. We hope to put everything together by early next year so as to make a formal announcement," said Dr Kiran Rao, President of Airbus India.

The MRO is to be set up as part of the counter-trade agreement that Airbus agreed to when the Rs 9,490-crore 50 Airbus aircraft sale to Indian was finalised. The proposed facility will carry out complete repair and maintenance facility of a variety of aircraft that currently have to be sent to Dubai or Singapore for such works.

Urgent need

The need for having MRO facilities within the country is being felt urgently as airlines add more aircraft to their fleet.

The sources also said that Bangalore could be an ideal location for such a facility as huge tracts of land would be available when the existing airport is to become vacant at the end of next year. Meanwhile in a related incident, Indian has now been approached by Airports Authority of India to partner it in setting up an MRO facility at Hyderabad.