Air India has signed a memorandum of understanding (MoU) with Singapore-based SIA Engineering Company Ltd (SIAEC) to explore a strategic collaboration in maintenance, repair and overhaul (MRO), as part of efforts to develop India into a global aviation MRO hub.
The MoU was signed in Mumbai by Air India Chief Executive Officer & Managing Director Campbell Wilson, and SIA Engineering Company Chief Executive Officer Chin Yau Seng.
The proposed collaboration builds on the companies’ existing partnership and aims to strengthen India’s domestic MRO capabilities amid the country’s rapidly expanding aviation sector.
Partnership may include MRO joint venture
Under the non-binding agreement, Air India and SIAEC will explore opportunities to jointly develop a world-class MRO ecosystem in India by leveraging SIAEC’s technical expertise and Air India’s expanding airline operations.
The collaboration could also lead to the formation of an MRO joint venture in India to serve the growing maintenance requirements of both Indian and regional airlines.
The companies said further details will be finalised as discussions progress.
Builds on existing collaborations
The latest agreement expands the long-standing relationship between Air India and SIAEC.
In February 2024, the two companies signed a 12-year Inventory Technical Management (ITM) agreement under which SIAEC provides extensive component support for Air India’s Airbus A320 family fleet. In May 2024, Air India also appointed SIAEC as its strategic base maintenance partner to support the development of the airline’s maintenance facilities in Bengaluru.
Supporting India’s aviation growth
Air India Chief Executive Officer & Managing Director Campbell Wilson said India’s fast-growing aviation market requires a stronger and more self-reliant maintenance ecosystem.
“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. Partnerships such as this can play a constructive role in enabling that broader direction and developing India as a global aviation hub,” he said.
SIAEC sees long-term opportunity
SIA Engineering Company Chief Executive Officer Chin Yau Seng said India is emerging as one of the world’s fastest-growing aviation markets and strengthening its MRO capabilities will enhance its position in the global aerospace industry.
“Through this MoU, we look forward to exploring how SIAEC’s technical expertise can support the progressive build-up of capabilities and capacity in India, alongside our ongoing partnership with Air India,” he said.
Focus on local MRO ecosystem
The proposed collaboration aligns with India’s broader objective of reducing dependence on overseas maintenance facilities by expanding domestic MRO infrastructure.
With Indian airlines placing record aircraft orders and fleet sizes expected to grow significantly over the coming years, the demand for local maintenance, repair and overhaul services is also projected to increase substantially.
The companies said the MoU is currently non-binding, with any future partnership expected to be formalised after further discussions and regulatory approvals.