Thirdly, given that the aerospace and MRO industry in India is in its infancy, and that there is a heavy dependence of Indian carriers on MROs in foreign countries, the domestic MRO industry should be supported as a means of import substitution. For instance, manufacturing of power sector equipment for domestic industry is treated as deemed exports and receives significant tax benefits.

Then, there should be impetus given to MRO joint ventures. The Government should incentivise airlines to consider setting up their dedicated MRO hubs in India through three-way joint ventures with MRO service providers and airport operators. This assures sustained business for the venture as well as cost advantage for the airlines.

Equally important is the streamlining of licensing and security clearance procedures. According to industry players, receiving approvals for an MRO establishment is extremely challenging. Currently the license is given out as a ground handler instead of a MRO player which suggests that the authorities are not distinguishing between these two very distinct services.

In case of urgent repairs of a grounded aircraft, requiring foreign specialists to be flown in at short notice, the amount of time taken for getting security clearance for such experts is highly time consuming. Their late arrival causes significant losses for the airlines since the opportunity cost of a grounded aircraft is extremely high. There is an urgent need to streamline clearance procedures so that there is a reasonable balance between business exigencies and security considerations.

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