Will Supply Engines... But No Local Maintenance Facilities

Rolls-Royce has won a $600 million contract to provide its V2500 engines on the 100 Airbus aircraft Indian start-up LCC IndiGo has on order -- despite having no current plans for the aircraft engine manufacturer to establish a maintenance facility in that country.

For as many problems as US air carriers are experiencing, business is booming in India. Besides IndiGo -- currently expected to begin operations in early-2006 -- other local carriers such as Jet Airways and Kingfisher Airlines are pressing ahead with large fleet expansion plans, according to The Financial Express.

Rolls Royce has sought to establish ties with those carriers, as well, but there is one factor working against them: Rolls-Royce does not have a maintenance, repair, and overhaul (MRO) facility in India, nor does the company have any current plans to establish one -- despite the anticipated growth of the Indian aviation sector.

Indian carriers using Rolls-Royce engines currently must fly to MRO facilities in Singapore, Hong Kong, Scotland, England, or the United States to have maintenance work performed.

The door isn't closed to establishing an Indian MRO option, according to Rolls-Royce's Customer Business Director for the Middle East and South Asia, Mark Tyack. The business will have to be there first, though, before the company will commit.

"We will consider setting up an MRO facility seriously if the demand arose," said Tyack.

FMI: www.rolls-royce.com