RITES to help Air India to develop business plan for Nagpur MRO

New Delhi: National carrier Air India has roped in mini ratna company RITES to help it develop a business plan for its Nagpur MRO facility, which it has set up in collaboration with the US aircraft maker Boeing.

Besides, the Central Public Sector Enterprise would also lend its expertise to the airline in planning, design and construction management of aircraft hangers and cargo complexes, among others, as part of a Memorandum of Understanding (MoU) signed between the two government-run entities in New Delhi today.

Under the pact, RITES will assist Air India in the areas of planning, design and construction management of aircraft maintenance hangars, Maintenance Repair and Overhaul (MRO) facilities, building air cargo terminals, among others, Air India said in a release today.

Air India will also seek cooperation in project feasibility report, site investigation and material surveys, environmental impact assessment, preliminary project reports, preliminary cost studies and economic evaluations, surveys and traffic forecasts.

RITES will also help in the preparations of detailed project reports, design of airport pavements and detailed design and cost planning of all engineering and construction works, among others, it said.

“RITES has been mandated to suggest us a roadmap for the Nagpur MRO facility and how to generate maximum revenue from it,” Air India sources said.

It has been asked to submit the roadmap by 15 January next, they said, adding, “the three years partnership also entails a host of other projects for Air India.”

The MRO facility has come up at an investment of $100 million under an agreement between Air India and Boeing Co in 2005. The actual construction work on the projected, however, started only in 2011. The facility was handed over to Air India in August this year.

RITES, as part of the MoU would also carry out field surveys for flag carrier on the road and rail traffic from two city pairs, which would help the airline in assessing the air traffic potential from the surveyed cities, sources said.

“We intend to wean away a sizeable chunk of road and rail traffic from tier II/III cities. One of the ideas behind engaging RITES is to have some feasibility study before assessing air traffic potential from such cities,” they said.

PTI