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Preliminary work on aircraft maintenance hangar begins

A Correspondent

Project undertaken by Cochin International Aviation Services Limited

NEDUMBASSERY: Preliminary work on the aircraft maintenance hangar proposed by the Cochin International Airport has begun, an official working on the project has said.

The piling work on the 33 acres of land allotted by the airport company for setting up the hangar had begun three months back, the official told presspersons here on Tuesday.

The former Managing Director of the airport company V.J. Kurian had said on farewell meeting that the hangar would become operational by May 2007.

Asked whether the project would be able to keep that target, the official said a formal announcement would be made only after a new Managing Director took charge.

At present, Sheela Thomas, Principal Secretary to the Chief Minister, is holding temporary charge of the Managing Director's post.

New company

The project is being undertaken by Cochin International Aviation Services Limited, a new company floated for the purpose. The airport company would have 51 per cent shareholding in the new company, while Licensed Aircraft Maintenance Engineers (LAME) would hold the remaining 49 per cent shares.

The project is expected to cost around Rs.35 crores with the airport investing Rs.10.2 crores and LAME's chipping in with Rs.9.8 crores.

For raising the balance Rs.15 crores, the plan is to avail of a term loan. According to the official, the expected cost in the initial phase is Rs.22 crores.

Many Malayali aircraft engineers working with various airline companies outside the country had evinced interest in the project.

The project has great potential in terms of generating employment opportunities for the technically qualified unemployed. It has been conceived in such a way that shareholding engineers while working for the company could also impart training to prospective engineers, thereby enabling them to secure a job.

The airport has fixed a nominal rent for the land allocated and would be entitled to around three per cent of the gross revenue as royalty once the maintenance hangar turns operational.

At present, Air India, Indian and Jet Airways have maintenance hangars.

According to statistics, at present around 200 aircraft crisscross the Indian skies, which is estimated to touch about 435 within the next three years, presenting enormous scope for a maintenance hangar.

As of now, the Gulf countries, Hong Kong, Singapore and Portugal cater to much of the aircraft maintenance requirements of the world's airlines.

Niche market

With labour cost accounting for as much as 80 per cent of the total maintenance charges, the proposed hangar aims at capturing a niche market by attracting clients through providing cost-effective service.

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