Manufacturer and Indian carrier discuss three-way deal on maintenance facility

India's Kingfisher Airlines plans to open an aircraft maintenance shop in late 2008 with Hindustan Aeronautics (HAL) and an undisclosed foreign partner.

Kingfisher executive vice-president Hitesh Patel says the carrier and HAL are committed to jointly operating in Bangalore or Hyderabad a new four-bay maintenance, repair and overhaul (MRO) facility capable of handling Airbus A320s and ATR 42/72s. He says Kingfisher aims to finalise a three-way deal within the next two months which will also involve a foreign MRO provider.

Lufthansa Technik (LHT), Abu Dhabi-based Gulf Aircraft Maintenance (Gamco) and SR Technics are among several large MRO companies which have been looking to set up maintenance shops in India. India's Jet Airways is also reportedly talking to LHT and SR Technics about setting up a joint venture MRO facility in India.

Kingfisher has been looking at setting up an in-house maintenance capability since before launch in May 2005. Kingfisher's first A320 C-check is due in November and the airline is evaluating proposals from LHT and Gamco to handle the 40-odd A320 heavy checks required before its own shop opens in the fourth quarter of 2008. An interim maintenance provider for Kingfisher's ATR 72 fleet will be selected next year.

Patel declines to disclose which foreign MRO providers Kingfisher is courting as potential joint venture partners, but he acknowledges that it is possible this deal will be linked to its selection of an interim A320 heavy check provider.

Gamco says it is confident that it will soon win the interim contract and hopes it will later be selected as the partner for the joint venture facility. LHT confirms it is interested in opening a facility in India and other growth markets but declines to elaborate.

LHT already provides maintenance services for the International Aero Engines V2500s powering Kingfisher's initial fleet of 14 A320s. Patel says he is now evaluating bids from LHT and IAE for fleet hour agreements covering the V2500s on the 30 additional A320s Kingfisher ordered last year.

Source: Flight International