Boeing and GMR Aero Technic have come together to set up a passenger to freighter (P2F) conversion facility in Hyderabad, India to cater to the rising narrowbody freighter demands in Asia and Africa.
As per Boeing’s commercial market outlook India’s air cargo growth is expected to average 6.3% annually, driven by the country’s growing manufacturing and e-commerce sectors.
Boeing and GMR Aero Technic did not give details of the likely investment for the project or the production capacity. Currently both the companies are working on the finalisation and operationalisation of the conversion line, which would take around 18 months from now.
Marc Allen, Chief Strategy Officer, Boeing said: "The investment adds to Boeing's $1B supply chain sourcing from India."
The facility will be set up at GMR Aero Technic’s airframe maintenance, repair, and overhaul (MRO) facility at Hyderabad’s Rajiv Gandhi International Airport.
“Our cooperation with GMR Aero Technic not only a testimony of the maturation of Indian MROs in the country to support the vision of Aatmanirbhar Bharat, but also supports the anticipated growth of the cargo sector in the region,” said Salil Gupte, president, Boeing India. “India is an air cargo market, whose time has come,” he added.
“The collaboration with Boeing reaffirms our capability to provide world-class MRO services and further contribute to the “Make in India” initiative. We thank Boeing for the opportunity given and look forward to working together for future initiatives,” said Ashok Gopinath, CEO, GMR Aero Technic. “To begin with, we will use one of our existing lines for this purpose. We are open to adding an additional line as well in the future, depending on demand.”
GMR further revealed that the facility will initially be for narrow-body 737 planes, but will gradually expand to widebody segment as the demand rises.
The announcement comes close on the heels of Air India’s mega order to Boeing and Airbus, with Boeing bagging a firm order for 220 passenger jets. Boeing is trying to make inroads into India and is investing in MRO, supply chain sourcing and logistics.