Airlines spend some 13–15 percent of their revenues towards Maintenance, Repair and Overhaul (MRO) and presently this revenue goes to countries outside India. What are roadblocks to a vibrant MRO industry in India? Discuss in the light of Draft National Civil Aviation Policy 2015.
Roadblocks to a vibrant MRO industry
- International airports lack hanger space, which is needed for temporary protective storage of the aircrafts.
- Setting up MRO is highly capital intensive with high initial as well as recurring investments
- Operating a credible MRO is highly dependent on trained technical manpower, tooling, and world-class maintenance services.
- Non-availability of spare parts
National Civil Aviation Policy 2015 provides for
- Services under MRO to be zero rated
- Zero custom duty over tools and toolkits for MRO
- Foreign aircraft brought to India for MRO will be allowed to stay for longer duration
- Prompt visa to Foreign MRO experts
- Temporary Landing Permits for foreign pilots