Boeing to invest $185 million in joint venture MRO facility with Air India

07 July 2007

The proposed joint venture will offer maintenance, repair and overhaul facilities for Boeing 777 and 787 aircraft to third parties as well, V Thulasidas, chairman and managing director of Air India, said at the rollout of Air India's first Dreamliner.

The joint venture will invest $100 million for setting up the unit, $75 million for training and $10 million for general purposes, Thulasidas said.

The MRO, which will be one of the five strategic business units (SBUs) of the restructured Air India, following the merger of Air India and Indian Airlines, will cover both airframes and engines.

While Boeing will offer its expertise for airframes, Air India is looking for a partner for the engines, Thulasidas said.

Air India is all set to start its first India-US non-stop flight between Mumbai and New York beginning August 1. Air India plans to use the fuel-efficient Dreamliner on this route and other denser routes of Asia , Africa and Europe, while its subsidiary Air India Express will use 737-800 on the Gulf, Middle East and Southeast Asia routes.

Air India will also soon operate New Delhi- New York, Mumbai-Chicago and Mumbai-San Francisco flights.