Boeing has committed to invest $100 million to the Indian government for setting up an MRO in the country as part of the 68 aircraft acquisition deal worth $8.1 billion.
"Air-India is likely to team up with Boeing to set up an MRO. While Boeing will invest $100 million, Air India will lend its land and other related infrastructure for setting up this facility," highly placed sources said.
A-I may also chip in with some investment in addition to its land facility in Thiruvananthapuram, Bangalore, Hyderabad and Delhi.
When contacted, A-I and Boeing executives declined to comment adding, "Details of these efforts are to be finalised in the coming months".
The sources pointed out that the proposed MRO would not be a captive facility. The investment details are yet to be worked out. The MRO would be spread over at least three locations for different types of aircraft.
"The repair facility for 737-800s could be in Thiruvananthapuram while the 777 and 787 series could be in Delhi, Hyderabad or Bangalore," he pointed out.
A-I is also planning to set up a ground handling cargo engineering facility for its own flights and for customer airlines at Bangalore International Airport.
"It is in talks with Bangalore Airport for acquiring an eight-acre land in Udayagiri village in Devanahalli Taluka for meeting administrative, engineering, commercial and cargo requirement from Karnataka Industries Area and Development Board," the sources said.
Earlier, the Kerala government had also allocated 11.5 acres of land in Thiruvanathapuram to A-I for setting up an aircraft maintenance base. An additional 3.5 acres of land will be allotted for the project by the government later.
"The government is giving preference to major airlines in allotting land for setting up MROs. With major land infrastructure in its hand, Air India is in a comfortable position to tie up with Boeing," said a private MRO player.
Meanwhile, the national flag carrier is also setting up a comprehensive training facility in Navi Mumbai. This facility will provide training to staff members.
Boeing has also committed to invest $75 million and $10 million for a training facility and other civil aviation requirements respectively.Asked about whether this training facility will be another joint venture with Boeing, A-I executives said that details are yet to be worked out.