New Delhi, Aug 10 : SpiceJet on Wednesday said that it will only use domestic MRO (maintenance, repair and overhaul) facilities for it fleet in the very near future.
This comes after the budget passenger carrier entered into a MoU (memorandum of understanding) with Air India on Tuesday to use its MRO facility at Nagpur.
Under the agreement, Air India will provide support to SpiceJet for maintaining its Boeing 737 aircraft and landing gear replacement at Air India Engineering Services Limited's (AIESL) MRO facility at Nagpur.
"It is expected that, we will be able to send our aircraft to Air India's MRO facility within 2-3 months," Arun Kashyap, Vice President, Engineering and Maintenance, SpiceJet told IANS.
"After this MoU comes into effect, SpiceJet will not require to send its aircraft for MRO purposes abroad."
According to Kashyap, the budget passenger carrier will use India-based MRO facilities of Air India, GMR and Air Works for its fleet of 42 aircraft.
"This MoU will allow us to make substantial savings," Kashyap said.
"Not just our current fleet but also our new aircraft are expected to be serviced in India."
Kashyap disclosed that the airline is in active discussion with global manufacturers to acquire around 100 or more aircraft.
Indian passenger carriers send their aircraft abroad for MRO purposes due to lack of domestic capacity in the sector. However, the government has been actively promoting domestic MRO sector.
Currently, the MRO business of Indian carriers is pegged around Rs 5,000 crore, 90 per cent of which is spent abroad.
In the budget for 2016-17, customs duty on parts consumed by the sector was rationalised and the procedure for clearance of goods simplified.
The recently passed National Civil Aviation Policy also proposes to promote the sector.
Air India on its part said that the MoU will result in generation of additional revenue.
H.R. Jagannathan, Chief Exceutive of AIESL said that Air India is always ready to be a part of the Make in India programme.
