MUMBAI– Air India (AI) and Singapore-based SIA Engineering Company (SIAEC) have signed a Memorandum of Understanding (MoU) to explore the creation of a Maintenance, Repair and Overhaul (MRO) joint venture in India.
The proposed collaboration is designed to strengthen domestic aircraft maintenance capabilities while supporting India’s ambition to become a global aviation MRO hub.
The agreement was signed in Mumbai (BOM) and builds on an expanding partnership between the two companies.
If established, the joint venture would serve the growing maintenance requirements of Air India’s expanding fleet while also supporting airlines across India and the wider region.
Air India MRO Expansion Gains Momentum
The latest MoU marks another milestone in Air India’s long-term transformation strategy.
By combining SIAEC’s engineering expertise with Air India’s rapidly expanding operations, both companies aim to develop a world-class MRO ecosystem capable of handling increasing aircraft maintenance demand within India.
India has emerged as one of the fastest-growing aviation markets, resulting in a sharp rise in aircraft orders and fleet expansion.
This growth has also increased demand for local maintenance infrastructure, reducing dependence on overseas facilities for heavy maintenance and aircraft repairs.
Industry experts have long highlighted the importance of expanding domestic MRO capacity to improve operational efficiency, lower maintenance costs, and reduce aircraft downtime.
The proposed venture aligns with these broader industry objectives while strengthening India’s aviation supply chain.
Existing Partnership Strengthens MRO Collaboration
The proposed joint venture is not the first collaboration between the two companies. In February 2024, Air India signed a 12-year Inventory Technical Management agreement with SIAEC to provide extensive component support for the airline’s Airbus A320 family fleet.
A few months later, Air India appointed SIAEC as its strategic partner for developing its new base maintenance facilities in Bengaluru. Those facilities, expected to support both narrowbody and widebody aircraft, form a key part of the airline’s maintenance expansion plans.
The new MoU deepens that relationship by extending cooperation beyond maintenance support into the potential creation of a dedicated joint venture.
The companies believe such a partnership could accelerate the development of advanced maintenance capabilities within India.
Aviation Growth Strategy for India’s Future
Air India’s ongoing fleet modernization and network expansion continue to drive higher maintenance requirements. As the airline inducts hundreds of new aircraft over the coming years, building domestic engineering capacity has become a strategic priority.
For SIAEC, the collaboration offers an opportunity to expand its presence in one of the world’s fastest-growing aviation markets. The company brings decades of technical expertise across airframe maintenance, component repair, engine support, and engineering services.
If the venture moves forward, it could support not only Air India’s operational requirements but also airlines operating across the Indian and regional markets.
The initiative also complements India’s broader efforts to position itself as a competitive global destination for aircraft maintenance, repair, and overhaul services while generating skilled employment and strengthening the country’s aerospace ecosystem.
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