Betting big on the fast growing domestic aviation market, leading MRO services provider Air Works expects revenues from Indian clients to grow nearly two-fold to Rs 450 crore by March 2019.
The company's total revenue this fiscal is expected to be around Rs 700-725 crore of which Rs 240 crore is expected to come from domestic operations, Air Works Managing Director and Chief Executive Officer Vivek Gaur said.
"In two years, April 2017 to March 2019, we would expect our revenue from India operations in the range of Rs 350-450 crore," Gaur told PTI.
Gaur said that domestic operations currently accounts for one-third of the company's top line, adding, "we expect this to grow as more and more airline start getting the MRO work done here." "We are very optimistic about MRO business in India. We have seen about 40 per cent uptick in our business in the second quarter of this fiscal over the same quarter year-ago," he said.
According to him, the new national civil aviation policy announced by the government in June has significantly contributed in this growth.
In the policy, besides abolishing the import duty on MRO tools, the government has also allowed foreign aircraft coming to India for maintenance to operate them as a revenue flight, which has reduced the cost for the airlines.
Also, the practice of securing an NOC from the aviation authorities for flying these aircraft to India, if coming for six months, has been done away with.
With expected increase in fleet size of Indian carriers to 1,740 planes in the next 20 years, the domestic MRO market is projected to be worth USD 5.2 billion by 2036, a recent report by leading consultancy KPMG said.
Air Works, which has 17 aircraft maintenance, repair and overhaul (MRO) hangars across India, the UK, the US, France and Slovak Republic, provides a range of services including airline and business aircraft MRO, commercial and business aircraft asset management.
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