Date:09/05/2006 URL: http://www.thehindubusinessline.com/2006/05/09/stories/2006050903970900.htm

Back HAL close to inking pact with US co for MRO facility

Madhumathi D.S.

MROs expect roaring business from the aircraft purchases of domestic airlines

Bangalore , May 8

HAL has said that it is close to sewing up two critical tie-ups with US aircraft engine major, Pratt & Whitney.

One is for an MRO (maintenance, repair and overhaul) facility in Bangalore to service civil turboprop aircraft.

The second is for manufacturing specialised, high-end civil aero-engine components, according to the HAL Chairman, Mr Ashok Baweja.

Without disclosing the finer details of the tie-ups, Mr Baweja told Business Line that the MRO business facility was proposed to cater to the turboprop fleet - close to a hundred - that airlines have sourced from Canadian aircraft major, ATR.

Pratt & Whitney, a part of the US-based aerospace major United Technologies Ltd, has a strong Canadian presence.

MRO aspirants like HAL, which has already been doing small and dedicated military overhauls, expect roaring business from the aircraft purchases of domestic airlines.

Under the joint manufacturing proposal, two centres have been lined up - one at Bangalore for static engine parts and another at Koraput in Orissa for rotating parts. HAL has also entered into a 50:50 venture with French engines major, Snecma, to produce components for Snecma's global users.

From the production centres, HAL plans to turn out large volumes but limited varieties of flight-critical, high-value parts for aircraft customers.

"We are in active dialogue with Pratt & Whitney to set up the dedicated production centres for specialised engine components."

Mega aircraft purchase deals of Airbus and Boeing are also keeping the order books of their engine makers overflowing, while engine components have a backlog of 20-24 months.

Thanks to this activity, the market forecast for aircraft engine components could be worth $100-150 million and HAL wants to cash in on this opportunity, he added.

HAL is also in advanced-level discussions with UK-based ejection seats leader, Martin-Baker Aircraft Co, to set up a joint facility in Bangalore for a new type of emergency ejection seats used in military aircraft.