GMR Group in sale discussions with Airbus

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By admin September 24, 2014 20:08

GMR Group in sale discussions with Airbus

The GMR Group is in discussion with Airbus for a potential sale of a stake in its MRO facility in Hyderabad. A deal will help GMR raise cash as a part of its “asset light” strategy and enable Airbus to fulfill its commitment of developing an MRO in India.

GMR launched its MRO in 2012, as a joint venture with Malaysian Aerospace Engineering (part of Malaysia Airlines) with an investment of 300 crore rupees. Initially, Jet Airways was to be become a partner in the project but it backed out. Last month GMR said it was acquiring its partner MAS’s stake in the project as the latter’s parent company undergoes restructuring.

Airbus has been investigating developing a MRO facility in India, and CEO of Airbus India Srinivasan Dwarakanath told media in March that a partner for the MRO venture would be finalised by year-end.

Airbus also previously committed to developing a training centre and MRO as a part of 8399 crore rupees deal to sell 43 A320s to the former Indian Airlines in 2006. However the MRO project was not successful, and the terms of the deal have since been the subject of scrutiny by the Indian Central Bureau of Investigation.

The Hyderabad MRO facility has been unable to attract long term business, as airlines in India send their aircraft abroad for major maintenance checks due to India’s high taxation structure.

admin
By admin September 24, 2014 20:08