MAS unit, Indian partner in deal to maintain Jet Airways aircraft

MALAYSIA Airlines' (3786) maintenance unit and its Indian partner have signed an initial deal to provide heavy maintenance services to Jet Airways over the next 10 years.

The deal, which can be extended for another five years, was the first major deal for the partnership in India, a market where airline fleets are expected to triple in the next 10 years.

India's aircraft market now stand at some 410.

MAS-GMR Aerospace Engineering Co Ltd (MAG), a tie-up between MAS Aerospace Engineering (MAE) and GMR Hyderabad International Airport Ltd (GHIAL), signed the Memorandum of Understanding (MOU) with Jet Airways yesterday.
The MOU was signed by MAG chairman Tengku Datuk Azmil Zahruddin and Jet Airways executive director Saroj K. Datta, in the presence of Prime Minister Datuk Seri Najib Abdul Razak, in Chennai yesterday.

"This is a key development towards building MAG as the preferred maintenance, repair and overhaul (MRO) hub in the subcontinent. Once the MAG facility in Hyderabad commences operations by the first quarter of 2011, the aircraft will be serviced on Indian soil, allowing Jet Airways to enjoy even more cost savings and reduced downtime for each aircraft," said Tengku Azmil in a statement released in Kuala Lumpur.

In the same statement, GMR Group chairman G. M. Rao said the strategic location of MAG within the 101.17ha Special Economic Zone will allow substantial savings to Indian carriers, as they will be offered highly competitive fees.

"Airlines are expected to spend an estimated US$100 million (RM3.40 million) per year to send aircraft overseas for maintenance and this figure is expected to increase with the purchase of new aircraft. This will also help conserve valuable foreign exchange for the country," he added.

The MAG facility in Hyderabad will be built on the eastern side of the Rajiv Gandhi International Airport with the capacity to service an estimated 60-80 aircraft per year upon completion of Phase 1 in 2011.

It will provide base maintenance services starting with C and D checks for narrow bodied aircraft like Airbus A320 and Boeing 737 and subsequently wide-body aircraft like A330 and B777.