2012 OUTLOOK - AIRLINES
19th December 2011
Maintenance, repair and overhaul companies are preparing for more business in India as it is poised to become the fastest growing market in the world for aircraft MRO services over the next decade tripling its worth to $1.5 billion.
Indian air traffic is expected to triple to 362 million passengers by 2021-22, with carriers’ fleets expected to double to about 1,000 aircraft. That means a lot of MRO facilities and services will be required. At the moment, India constitutes just 1% of the total MRO market, but analysts at KPMG are expecting that to change significantly by 2021 and become the largest market for MRO services.
“The fleet size in India is now reaching a critical mass where it makes sense to have a strong MRO space not just for the domestic fleet but also for international airlines. Growth of MRO in India is now a necessity than an option,” said Amber Dubey KPMG director (aerospace and defence). “Moreover, India will have no dearth of skilled manpower and has the advantage of its good geographical position.”