Fast 5: Boeing India President On Country's Fleet Expansion, Building MRO

Salil Gupte, president of Boeing India, discusses the country's aviation growth and the importance of ramping up MRO to support the expanding Indian fleet.

Over the next two decades, it is estimated that India will witness an influx of more than 2,000 aircraft and accordingly will need a robust MRO infrastructure to maintain the fleet. Do you think India is progressing at the same pace along MRO lines or is there a lag? 

India's commercial aviation market is expected to become the third-largest in the world by 2041, with a fleet size nearly quadrupling compared to 2019. As per the Boeing Commercial Market Outlook 2023, South Asia is expected to receive more than 2,700 new aircraft over the next 20 years, of which a staggering 90% will be slated for India. To meet this growth, India requires top-tier MRO services, as a significant portion of MRO expenditures currently flow overseas. 

The primary challenge lies in component and engine MRO, where the bulk of spending is concentrated. However, the arrival of new aircraft models that support local repair facilities is still a decade away. Therefore, it is imperative to strengthen India’s MRO capabilities, particularly in components and engines, to support the burgeoning aviation sector, foster job creation and advance technological expertise. India can leverage its skilled workforce, including experienced ex-servicemen, and robust industry capabilities to provide cost-effective solutions while meeting rigorous customer standards. This effort aligns with India’s aspiration to establish itself as an MRO hub for the region, reinforcing the nation’s aerospace and defense landscape.

Can you tell us about Boeing’s expansion plans related to the MRO infrastructure in India?

In 2021, Boeing launched Boeing India Repair Development and Sustainment (BIRDS), an in-country network and alliance of suppliers that envisions a competitive MRO ecosystem for engineering, maintenance, skilling, repair and sustainment services of defense and commercial aircraft. This network aims to drive high industry benchmarks in India for maintenance and repair, platform availability, customer satisfaction and quicker turnaround times. An important aspect of the hub is training programs to increase skilled manpower by developing sub-tier suppliers and medium, small and micro enterprises to build high quality MRO capabilities in India. As part of the BIRDS hub, Boeing and Air Works collaborated to successfully complete Phase 32 maintenance checks on six Poseidon P-8 aircraft operated by the Indian Navy, including three that underwent heavy maintenance checks simultaneously, showcasing a level of maturity and scale comparable to established global MRO hubs.

Horizon Aerospace was awarded a Boeing contract for the MRO of key Boeing defense platforms in India, the P-8I operated by the Indian Navy (IN) and the VIP 737 transport fleet operated by the Indian Air Force. It will enable value-creation for Indian defense customers locally through faster turnaround, exceptional operational capability and readiness on Boeing aircraft. Air India Engineering Services (AIESL) entered into a strategic agreement with Boeing for the MRO of 777 Indian head of state aircraft operated by the Indian Air Force and is also exploring collaboration in repair and overhaul of landing gear and other commercial common 737NG equipment fitted on the Indian Navy’s P-8I fleet. Boeing built an MRO facility in Nagpur, which was handed over to Air India in late 2014.

Is Boeing eyeing collaboration with more local MROs?

Boeing has taken the leadership to partner with customers and local industry to set up MRO facilities in the region to support India’s aspiration to become an MRO hub for the region, and also provide engineering and parts services to directly support regional commercial airline customers. Today, Boeing has the highest number of MRO partners in the country, working on defense and civil aviation. Boeing is actively working to ensure maintenance training and certification for Indian MROs, and partnering with regulators to enhance their capabilities and expertise. Boeing is also developing the first-in-India MRO capabilities, collaborating with Air Works on Boeing 737 derivative aircraft and GMR [Aero Technic] on aircraft cargo conversions. These initiatives will bolster the MRO sector and contribute to India’s aviation industry. 

To support MRO operations in India, Boeing will be investing $24 million in India Logistics Center to ensure timely availability of critical components for efficient MRO services. Boeing is fostering collaboration between component and engine OEMs and Indian MROs. Notable partnerships include Spirit announcing a collaboration with GMR, and Safran/CFM committing to establish a full MRO facility in Hyderabad by 2025. These collaborations will strengthen the MRO ecosystem in India. 

Boeing is also investing in MRO hangar infrastructure, exemplified by the C-17 MRO facility at Hindan Air Base. This infrastructure will not only support defense MRO but also has the potential for civil MRO operations in the future. Recently, Boeing forged a partnership with GMR Aero Technic to launch a Boeing Converted Freighter line in Hyderabad. In a further effort to enhance MRO capabilities, Boeing is inviting leading foreign MROs to India to evaluate Indian MROs for component repair and explore potential partnerships. This exchange of expertise and knowledge will contribute to the growth and development of the MRO sector in India.

Can you shed some light on Boeing’s latest venture of Aerospace Park in Devanahalli, near Kempegowda International Airport? It is said that the facility will be Boeing’s largest facility outside of the U.S. What are some key aspects of the upcoming facility?

Boeing is investing $200 million in a new 43-acre engineering and technology campus in Bengaluru. This will be Boeing’s largest facility of its kind outside the U.S. Our more than 4,500 diverse engineers and technologists at the Boeing India Engineering & Technology Centre (BIETC) are instrumental in executing high-quality, advanced aerospace projects. They provide essential engineering expertise to Boeing’s defense, space and commercial sectors, encompassing everything from designing structures and systems to aiding in manufacturing processes, creating systems for aircraft testing and delivering digital solutions to our airline customers. 

In addition to this vital work, BIETC plays a pivotal role in co-development initiatives for the Indian defense forces. Our teams engage in cutting-edge R&D across traditional and emerging domains, including next-generation aircraft health management, environmentally sustainable coatings, advanced network solutions and secure communications. These endeavors leverage state-of-the-art technologies such as artificial intelligence, machine learning, Internet of Things, cloud, model-based engineering and additive manufacturing to enhance quality, safety and productivity while advancing our co-development commitments.

Considering the government's push for an aircraft manufacturing unit in India, will Boeing consider establishing a final assembly line in the country?

Boeing supports the “Aatmanirbhar Bharat” initiatives as a central pillar of our long-term business strategy in India. Boeing is the top foreign aerospace and defense company in India with more than 5,000 engineers and other skilled staff employed in India. This represents Boeing’s largest presence outside the U.S. and we continue to grow our operations and invest in new capabilities in India. Boeing spends $1 billion annually on local sourcing and our supply chain footprint extends to more than 300 local companies, employing a further 13,000 people. We continually evaluate our aircraft production system and rate increases to support the growing global demand for our products. Volumes required for final assembly of commercial aircraft are far greater than that required for defense, and a viable business case would require a large regional market.