Safran considers to build an engine repair plant in the Indian subcontinent after mega Airbus‘ order.
New Project is likely to be aimed at customers of the venture, CFM International. As, it was selected by IndiGo, the nation’s top airline. The selection was made in order to supply engines for 310 new Airbus SE A320-family aircraft.
New set-up in India
France’s Safran SA is considering building an engine-repair facility in India. The company has presented the idea post winning its biggest-ever turbine deal last month! It was joint venture with Indigo partner General Electric Co.
Final decision and the timing of any project will be linked to global industry recovery and demand for engine maintenance, repair and overhaul services after the pandemic. A Safran spokesperson said in response to queries from News.
Hyderabad or Delhi?
CFM has shortlisted the southern Indian city of Hyderabad. Also, an under-construction airport near the capital of New Delhi as two possible locations.
The facility would bolster India’s aviation infrastructure. This will provide a platform for further growth in a key long-term market for Airbus and U.S. rival Boeing Co.
Carriers in the country were ordering hundreds of new jets in pandemic times.
The May order added to CFM’s existing $20 billion contract with IndiGo to power 280 jets with its LEAP-1A engines.
A spokesman for India’s civil aviation ministry didn’t immediately refused to give any comments.
IndiGo, operated by InterGlobe Aviation Ltd., is the world’s biggest customer for Airbus’s best-selling A320neo-family of jets, having ordered 730 of the models.
Growing market in the country
India’s rising middle class and competition has made it a robust target for airlines. Millions of people take to the skies for the first time.
Aviation grew at a rate of more than 10% annually for a decade before Covid hit, according to the government.
The International Air Transport Association expects the country to become the third largest air-transport market in the world by 2026, catapulting from seventh in 2018.
Pandemic has limited air travel globally. However, the demand is starting to spring back in some places as more people are vaccinated and infection rates ebb down.
Engine repair facilities
India lacks adequate infrastructure for MRO activities, and carriers are often forced to send their aircraft to Sri Lanka, Dubai or Singapore for major work. This is despite the huge market and potential.
While MRO work in India generates almost $1 billion in annual revenue, local factories don’t usually work on engines.
These usually are serviced overseas, according to Pulak Sen, secretary general of the MRO Association of India.
Safran in 2019 announced a 36 million-euro ($43 million) plant to manufacture LEAP engine parts in Hyderabad.
The company is finalizing an investment plan of 100 million euros for the airport at Jewar. The new airport will be about 80 kilometers (50 miles) southeast of New Delhi’s main hub.
Safran, has almost 600 engines currently in service with Indian airlines.
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