Airbus, India's Pipavav To Establish Joint MRO Facility

Airbus will set up a joint aircraft maintenance, repair and overhaul (MRO) facility in India with private Indian defense company Pipavav Defence and Offshore Engineering.

EADS, the parent company of Airbus, will hold 26 percent equity in the joint venture, while Pipavav will hold a 51 percent stake, said an executive of Pipavav. Later, EADS may try to increase its stake to 49 percent.

The MRO facilities and associated infrastructure are likely to cost $100 million, added the executive.

The joint facility initially will target the servicing of civilian aircraft, though the Indian Air Force is also eyeing the venture. And EADS, with its Eurofighter aircraft, is bidding against Dassault's Rafale in India's $10 billion medium multirole aircraft competition.

The details of the collaboration, including the location of the facility, have yet to be decided, added the executive. However, sources in the company said, the location will be decided after the winner of the multirole fighter aircraft competition is announced, which is likely by year-end.

If Eurofighter is selected, the MRO facility could be near Bangalore, added the sources.

The Indian Defence Ministry recently put on hold another big ticket tie-up between Pipavav and state-owned Mazagon Docks for manufacturing warships and submarines.

Defense News