Air India, SIA Engineering explore MRO joint venture as Tata Group airline bets on India’s aviation maintenance boom

Air India has signed a Memorandum of Understanding (MoU) with Singapore-based SIA Engineering Company (SIAEC) to explore a deeper collaboration in the maintenance, repair and overhaul (MRO) business, marking another step in the Tata Group-owned airline's strategy to strengthen India's aviation infrastructure and reduce dependence on overseas maintenance facilities.

 The non-binding agreement, signed in Mumbai on July 3 by Air India CEO and Managing Director Campbell Wilson and SIAEC CEO Chin Yau Seng, could eventually lead to the formation of a joint venture MRO company in India. The proposed collaboration aims to leverage SIAEC's technical expertise to build advanced maintenance capabilities that cater to the growing requirements of both Indian and regional aviation markets.

Building on an expanding partnership

The latest MoU extends an already growing relationship between the two companies. In February 2024, Air India entered into a 12-year Inventory Technical Management (ITM) agreement with SIAEC covering extensive component support for its Airbus A320 family fleet. A few months later, in May 2024, SIAEC was appointed Air India's strategic partner to help develop the airline's base maintenance facilities in Bengaluru.

The proposed collaboration comes at a time when Air India is undertaking one of the world's largest fleet expansion programmes. The airline has placed orders for 570 aircraft across Airbus and Boeing and is simultaneously investing in engineering infrastructure, training and maintenance capabilities to support future operations.

India eyes global MRO hub status

India's civil aviation sector has emerged as one of the fastest-growing globally, with domestic passenger traffic continuing to scale new highs and airlines significantly expanding their fleets. However, a sizeable portion of heavy aircraft maintenance is still carried out overseas, resulting in higher costs and longer aircraft turnaround times.

"India's rapid aviation growth is driving the need for a stronger, more self-reliant MRO ecosystem within the country. As fleet sizes expand and operations scale up, developing local maintenance capacity will be important to support efficiency, resilience and long-term growth," said Campbell Wilson, CEO and Managing Director, Air India.

Echoing the opportunity, Chin Yau Seng, CEO of SIAEC, said India's expanding aviation market makes it an important destination for building advanced MRO capabilities. He added that the company looks forward to exploring how its technical expertise can support the progressive development of maintenance capacity in India alongside its ongoing partnership with Air India.

Supporting long-term aviation growth

The proposed partnership aligns with the government's broader objective of positioning India as a global aviation hub by strengthening domestic aircraft maintenance capabilities. If formalised, the collaboration could enhance local MRO capacity, create specialised technical jobs, reduce foreign exchange outgo on overseas maintenance and improve operational efficiencies for Indian carriers as fleet sizes continue to expand. While the MoU is legally non-binding, both companies said material developments will be announced as discussions progress.