Air India, Tata Advanced Systems to set up MRO facilities in Karnataka

Air India and Tata Advanced Systems (TASL), aerospace and defence solutions provider, signed a Memorandum of Understanding (MoU) with the Government of Karnataka for a cumulative investment of ₹2300 crore in the state’s aerospace and defence sector.

“This move will enhance the state’s aerospace ecosystem and help create around 1600 direct employment and over 25000 indirect job opportunities in the state,” reads the release.

As per the MoU, Air India will establish Maintenance, Repair, and Overhaul (MRO) facilities at Kempegowda International Airport Bengaluru (operated by Bangalore International Airport Ltd) starting with Airframe Maintenance through the development of Wide-Body and Narrow-Body hangars for all checks, including heavy structural checks. This initiative will help develop the broader MRO ecosystem in India and is expected to generate over 1200 highly skilled employment opportunities in the state. Air India plans to enhance its connectivity over Bangalore, this initiative is a step towards deeper presence of Air India Group at Bangalore and will entail scaling its direct connectivity to various global destinations on one end and aggregating traffic from Southern India.

The investment by TASL will be directed towards various endeavours, including implementing an Aircraft Modification, Conversion, Completion and Maintenance, Repair, and Overhaul (MRO) facility for defence purposes, setting up an indigenous gun manufacturing including barrel manufacturing facility and implementing R&D in the aerospace and defence sector. These ventures are expected to generate over 450 highly skilled employment opportunities in the state.

Chief minister Siddaramaiah expressed his enthusiasm, stating, "We are delighted to witness this landmark collaboration between the Tata group companies, Air India and Tata Advanced Systems, and the Government of Karnataka. This investment not only propels Karnataka's aerospace industry to new heights but also augments employment opportunities, thereby contributing to the state's economic growth."

Minister for Large and Medium Industries and Infrastructure Development, MB Patil said, “Karnataka continues to lead the way in fostering economic growth and development. This strategic alliance, marked by a cumulative investment of INR 2300 crore, signifies a significant leap forward for Karnataka's aerospace and defence sector. This collaboration reflects our state's unwavering commitment to fostering innovation, economic growth, and job creation. We look forward to a prosperous partnership that will not only elevate Karnataka's global standing but also contribute to the advancement of the aerospace and defence industry in India.”

Campbell Wilson, Chief Executive Officer & Managing Director, Air India, said, “We are glad to be partnering with the Government of Karnataka. India’s aviation sector is on a growth trajectory and Air India is playing a leading role in this. The agreement with the government and Bangalore International Airport comes at an opportune time and will not only bolster the state’s aviation ecosystem, but also be a step ahead in our mission to become a world-class airline and provide our customers the elevated travel experience that they truly deserve.”

“This initiative by Air India will not only help us become more self-reliant for the maintenance of our own fleet but it also reiterates our commitment to strengthen India’s aviation infrastructure by boosting the growth of the country’s MRO industry,” said Mr. Nipun Aggarwal, Chief Commercial & Transformation Officer, Air India.

Mr. Sukaran Singh, Chief Executive Officer and Managing Director, TASL, added, “We are pleased to announce the beginning of a long-term partnership with the Government of Karnataka. This milestone marks a significant stride towards bolstering India's aerospace and defence manufacturing sector. We believe this will lead to creating opportunities and advancing India's capabilities in industrial growth including skill development.”

Hari Marar, Managing Director and CEO, Bangalore International Airport Limited, said, "As we embark on this transformative journey, we are thrilled to announce the collaboration between Bangalore International Airport Limited (BIAL), Air India and Tata Advanced Systems Limited to establish an MRO facility at BLR Airport, further solidifying Bengaluru’s status as an aviation hub. This partnership not only underscores BIAL's unwavering commitment to providing world-class infrastructure but also aligns seamlessly with the Government of India and Ministry of Civil Aviation's vision to foster multiple aviation hubs across the nation. We extend our heartfelt gratitude to the Government of Karnataka for their steadfast support and commend Air India and Tata Advanced Systems Limited for choosing BIAL as their partner in this endeavor.”

The partnership signifies a major step forward in propelling the aerospace industry's progress, fostering innovation, and sparking economic growth throughout the region. With BLR Airport emerging as the primary hub for South and Central India, bolstered by investments in runway expansion and Terminal 2, Tata Group's vision is to establish Air India as a key player in global connectivity. Aligned with the goals of the Civil Aviation Ministry, this collaboration has the potential to elevate India into a dynamic aviation hub. Additionally, this initiative is expected to generate up to 25,000 indirect job opportunities, stimulate economic activity, and fortify the supply chain for over 200 SMEs in the state.