Manpower Shortage Becoming a Bottleneck to Air India’s MRO Growth Plans

In January 2015, Air India hived off its engineering department into a separate unit to tap maintenance, repair and overhaul business from other airlines. It still mainly caters to its own aircraft maintenance but aims to double its third party business to Rs 1300 million in FY 2017.

But today Air India is facing a severe shortage of aircraft engineering personnel. Its plans to grow its MRO business faces a big risk.

As per H R Jagannath, CEO of Air India Engineering Services Limited, Air India’s MRO unit has around 600 aircraft maintenance engineers and faces a shortage of around 100-150 personnel. Recently it hired around 100 of its retired engineers on contract but it was inadequate. Air India will require 250 engineers and the manpower shortage could become a bottleneck to Air India’s growth.

Part of the additional manpower through fresh hiring will be utilised to maintain new aircraft being inducted in Air India’s fleet. A part is also to be utilised to cater to vacancies caused by retirements of over 15-20 employees each month.

Hiring engineers essentially means poaching from another airline and is so proving to be a difficult proposition. It normally takes four years for a fresh aircraft technician to secure a type rating and maintenance engineer’s license. An operator like Air India must also groom aspirants for the job. Air India is now offering on-job training to technicians from other companies, enabling them to apply to the Directorate General of Civil Aviation (DGCA) for licence.

“We are seeking support of DGCA and Boeing for the training programme. The government too should support the MRO sector by offering five year tax holiday, ” according to H R Jagannath.

Earlier this year, Air India’s MRO began carrying out ‘C’ check (heavy maintenance check) on Jet Airways Boeing 777 aircraft. It has also signed a MoU with SpiceJet to maintain its Boeing 737 and efforts are underway to secure European Aviation Safety Agency certification for MRO facilities in Nagpur and Thiruvananthapuram.

The MRO unit will also start test and minor repairs of General Electric engines which power Boeing 777 planes at its Nagpur unit later this year and complete overhaul of engines will be carried out from next year. The engine overhaul facility, the first of its kind in India, will significantly boost the MRO business as it can undertake engine repairs of all General Electric engine customers.