National flag carrier Air-India is all set to pick up stake in the proposed $100 million maintenance, repair and overhaul facility of the US-based aircraft manufacturer Boeing Company in Nagpur.
Air-India's stake in the facility will be in the form of contribution of its engineering assets and infrastructure located at its base in Mumbai as well as its human resources. The airline will hire an independent firm to value its engineering infrastructure and human resources to ascertain the proposed stake in the MRO project.
Sources said Air-India will pick up a substantial stake and be a major shareholder in the project next to Boeing. Boeing is also planning to induct a technological partner into the project. A delegation from Boeing is expected this weekend to finalise the particulars of the Nagpur project.
When contacted, Air-India Company Secretary S Venkat declined to comment, stating: "Air-India has signed an agreement with Boeing, which gives the airline the first right to partner with the MRO project."
The MRO is part of the commitment Boeing gave to the Indian government when Air-India agreed to buy 68 aircraft from it for $11 billion as per the listed price.
"After picking up the stake, Boeing will also set up its simulators on land provided by Air-India and lend simulator slots to the airline on mutually agreed terms and conditions," sources said.
Venkat said the airline is incurring a cost of $3 million per aircraft for major maintenance and overhaul.