Maintenance and Pilots: The Hidden Supply Chain

Why aircraft maintenance and pilot training are big industries, why much of India's maintenance has been done abroad, and efforts to build these capabilities at home.

Behind every flight are engineers, technicians and pilots. Aircraft maintenance and pilot training are large industries in their own right.

MRO: maintenance, repair and overhaul

Aircraft need regular checks, from quick daily inspections to heavy maintenance that takes weeks. Engines need overhauls. This work is called MRO.

For years, much of Indian airlines’ heavy maintenance and engine work was done abroad, in places like Singapore, Sri Lanka and the Gulf, because:

India’s tax rates on MRO services were high.
Foreign centres had scale and experience.
Import duties on parts and tools raised costs.

Reforms

In 2020, India cut GST on MRO services from 18 percent to 5 percent.
Rules were eased to attract investment in MRO facilities.
Several MRO centres have been set up, including by Air India, Indian companies and global firms.

With a large and growing fleet, India could support a major MRO industry, creating skilled jobs and saving foreign exchange.

Pilots

India’s fast-growing fleet needs many more pilots:

Training is expensive, often costing tens of lakhs of rupees.
Many Indian cadets have trained abroad due to limited domestic flight schools and weather or airspace constraints.
Airlines have started their own training academies.
Rules on pilot rest and duty hours affect how many pilots airlines need.

Engineers and technicians

Licensed aircraft maintenance engineers are also in short supply. Skill development programmes aim to train more.

Why it matters

A shortage of skilled staff or maintenance capacity can ground aircraft and limit growth, even if airlines have planes and demand.

The engine overhaul

An Indian airline sends a jet engine abroad for overhaul, paying in dollars and waiting weeks for its return. After a new engine maintenance facility opens in India, the work is done locally, faster and cheaper, and creates jobs for Indian technicians.

Thinking planes and passengers are all an airline needs

Maintenance capacity, pilots and engineers are essential; shortages can ground planes.

Key takeaways

MRO covers aircraft maintenance, repair and overhaul.
Much Indian MRO was done abroad due to taxes and scale.
GST on MRO was cut to 5 percent in 2020 to build the industry at home.
Pilot and engineer shortages can limit airline growth.