Date:30/07/2006 URL: http://www.thehindubusinessline.com/2006/07/30/stories/2006073002470500.htm

Back Hamco getting ready to begin MRO operations

Our Bureau

Hyderabad , July 29

Hyderabad Aircraft Maintenance Company (Hamco) has signed up a line maintenance contract with an airline and got expression of interest letters from two others.

"By the end of August, we will announce one financial and one infrastructure partner to enter the operational phase of our venture," said Mr Amit Kishore Prasad, Director of Hamco, Maintenance, Repair & Overhaul (MRO).

While refusing to disclose names at this juncture, Mr Prasad said Hamco had applied to the Directorate General of Civil Aviation for starting the MRO operations.

In the next couple of days, the company would meet the Airports Authority of India Chairman to pursue its request to get space at the Begumpet Airport to launch the operations. "We are hopeful of getting started by year end there," he said.

Hamco, promoted by about 30 aviation professionals, has IT and education expertise along with the core strength of offering MRO services. It has prepared a business plan with the help of consultants Frost & Sullivan, Mr Prasad told newspersons on Friday.

"We are early starters in the MRO space in India and expect to grab a good share of the potentially huge market. Estimates put the global market at $62 billion by 2014, with Asia Pacific region accounting for $15.4 billion. In 2004, the world market was $36 billion," he said.

Aerozone

Hamco has also proposed the setting up of an aerozone. It has approached the Andhra Pradesh Government for land ranging between 50-250 acres close to Hyderabad for the purpose. Typically, the facility should house 15-20 joint ventures offering various MRO services to the industry. A 50-acre facility would cost $12-15 million.

Hamco is looking for a basic MRO set up with investments of about $5 million, starting from an airport location. Funds would be raised through own sources and financial institutions.

Four major companies have already evinced interest in the aerozone project and the company expects to sign MoUs by the year-end, Mr Prasad said.