Tata Group is now looking to set up a maintenance, repair and overhaul (MRO) unit for planes in India. Sources in the Union government said that the Tata Group is in talks with the Airports Authority of India (AAI) with regard to MRO service set up. The group has also signed an agreement with Singapore Airlines to set up an airline company in India.
More than 95 per cent of India's passenger aircraft fleet gets serviced abroad. If Tatas set up an MRO facility it will have potential market in the country, say analysts.
Tata is looking to secure space for the MRO operations right now, the sources said.
Tata Group also said that it has signed a pact with Singapore Airlines to set up a full service carrier in India. The group plans to control 51 per cent of the airline, while the rest will be held by Singapore Airlines, it said.
It has another tie-up with AirAsia to launch a low-frills airline in the country. Setting up an MRO unit will give the Tatas close to a 360 degree presence in the Indian aviation sector. The facility is likely to be used for maintaining aircraft for Tata's two airlines as well as for third parties.