The upcoming MRO opportunity given the fleet orders is more than $34 billion which is 8 times the current size of Indian MRO Market- Anand Bhaskar
As India’s biggest independent MRO, Air Works Group in its seven decades of presence has come a long way transforming the Aviation MRO capabilities of the nation. As the outset of 74th year of presence, Mr. Anand Bhaskar, Managing Director and Chief Executive Officer, Air Works in an exclusive interview with Vishal Kashyap, Managing Editor, Aviation World shares his views on various key aspects related to the Indian MRO ecosystem. Q: 73 years of presence in Aviation MRO Business. Your views on the historic milestone of Air Works Family? A: Air Works was founded in Mumbai on 16th April 1951 by 2 close friends – (Late) Mr. BG Menon and (Late) Mr. PS Menon –aircraft engineers, who worked with Indian National Airways at the time and were extremely passionate about aviation. At Air Works, we celebrate this day as our Founders’ Day. And our recent Founders’ Day was indeed a poignant moment for the entire Air Works family, as we take strides towards completing 74 years next and achieving the magical 75 number. The milestone is especially important for us and for Indian aviation, considering that only a few select brands – perhaps an Air India, who’ve stayed relevant and reached this iconic landmark.Through you, I take this opportunity to express our gratitude to our customers, our employees, our partners and all our well-wishers who’ve been supporting and inspiring us over these past decades. Beginning with Dakota DC-3s and Twin-Beech aircraft of leading industrialists,we’ve come a long way, where our customer portfolio today covers every aviation segment – Business, Commercial, Cargo and Defense, supported by a pan-India network and strong logistics relationships, that ensure that our customers can rely on us 100%. Even with reference to capabilities, we have come a long way after setting up India’s first independent EASA certified based maintenance facility in 2009. Today, Air Works Group is India’s biggest independent line maintenance service provider, assuring close to 40,000 flights annually, which translates into 1 out of every 3 flights of foreign carriers taking off anywhere in India. I consider myself blessed to have been part of the Group’s journey, including also driving its destiny in part, especially during the unprecedented pandemic period. Looking ahead, the rapidly transforming civil aviation sector continues to bring attractive opportunities and by virtue of our values, we remain confident of addressing them to stay relevant for our customers and become India’s first independent MRO to eventually reach the 100 Year milestone. Q: Indian Aviation has witnessed a sea change in last few years in a holistic way. How do you see this transformation? A: The ongoing transformation driven primarily by enhancements in airport infrastructure, technology adoption, huge aircraft and engine orders, as well as the entry of larger businesses has definitely expanded the size and visibility of the sector. It has also added scale, and all this is indeed a welcome and a much-awaited change since it also heralds opportunities for MRO and other related aviation services. However, more needs to be done to become Atmanirbhar as is our overarching ambition as a country. From an MRO perspective, some of the priorities include, a strong need to expand Business aviation including enhancing the role of helicopters in our economy, reduction taxes and duty structures – for the interim – to a level that enables indigenous MRO to compete with pre-existing regional maintenance hubs and attract business as well as support capability building, increase collaboration between civil and defense verticals to realize scale and efficiencies in MRO, as well as facilitate the creation of component manufacturing and repair ecosystem within the country to realize our national ambition of Viksit Bharat. Equally importantly, we also need to harmonize our regulatory ecosystem with the prevailing global one for standardization, easier compliance and faster decision making. It is critical that India does not lose the ongoing momentum that has been created with great difficulty and with considerable effort to ensure that we catch up with the larger global developments. Q: What are the significant steps being taken by the government to strengthen the Indian MRO sector? A: I admire and appreciate the Govt. for taking several steps over the last decade to transform the sector, which to varying extent, have facilitated the sector’s evolution. Policy changes for various sub-sectors such as Ground handling/ MROs / Airlines/ Cargo operators/ NSOPs/ Security set up/ Airports/ Regulatory ecosystem/ aircraft financing/ Manpower training/ ATCs/ FAL setups/ Airspace harmonization – have all been steps in the right direction and have been welcome. The industry recognizes that Rome was not built in a day and that it does take time to change or undo historical measures that were perhaps relevant for the time when they were taken. The more important need as I mentioned above, is to continue this momentum for another decade. Given that the aviation world around us has been evolving in parallel and we’re trying to catch up with the market, we obviously have to move faster than we have done earlier, to be able to achieve what we wish to realize. Q: We often hear that Indian MRO ecosystem has still not nurtured upto its maximum capacity. What are the bottlenecks? A: India is primarily an Airframe MRO market, geared to handle maintenance of narrow body aircraft that comprise 70% of our domestic fleet, which isexpected further increase to 80% as per some reports over time.Indian MROs have sufficient capability and capacity to manage the needs of domestic as well as regional fleet from APAC and the Middle East to some extent, in that context. However, capacities and capabilities to do wide body checks – need to be added in time, as the induction of wide body aircraft gradually occurs. While the country is also good and sufficient in Line Maintenance, emerging and more lucrative areas of the value chain such as Component and Engine MRO remain outside the reach of most indigenous MROs, due to several bottlenecks, some of which include: (a) High Capex requirements,