NEW DELHI: Hoping to cash in on India's emergence as one of the largest growth markets for air traffic, Lufthansa Technik, part of the Lufthansa Aviation group, plans to position itself as an experienced provider for support services of jet engines and crucial components to airlines in India.

Lufthansa Technik has decided to invest $20 million in the first Maintenance, Repair and Overhaul (MRO) facility for aircraft at the upcoming Rajiv Gandhi International Airport at Shamshabad on the outskirts of Hyderabad.

It signed an agreement with the GMR Hyderabad International Airport Limited (GMR HIAL) last week to set up the new facility that is likely to be ready by 2008-end.

"Today, about 150 to 250 million people in India are seen as potential buyers of flight tickets. In this connection, India is only at the very start of a sustainable development. As the world's leading MRO provider, we are looking forward to strengthening existing relationships with the Indian carriers and will expand our support programmes, including a regional component pool,'' said August Wilhelm Henningsen, Chairman of the Executive Board at Lufthansa Technik, while on a visit to Hyderabad to finalise the agreement with GMR HIAL.

"We see this venture with GMR as the foundation for a long-lasting partnership, and the basis for a state-of-the-art technical cooperation for the benefit of our existing and future airline partners in India,'' Mr. Henningsen said.

The MRO facility would be a crucial step to establish a full-service world-class airport to match Hyderabad's status as the economic powerhouse of the region as well as its geographic location that made it a strategic hub for domestic and international air traffic, said T. Srinagesh, Chief Operating Officer of GMR HIAL.

The facility will provide base maintenance services for A-320 and Boeing 737 family aircraft.

Lufthansa Technik secured many contracts last year for providing total component support and MRO services with Air Deccan, the low-cost airline, Kingfisher Airlines and Jet Airways.

Recognising the need for an experienced MRO partner for further growth of airlines in India where more than 400 new aircraft are on order at present, Lufthansa Technik has set up its Indian subsidiary — One Stop Airline MRO to supply technical components for the Airbus A-320 fleet of up to 60 aircraft at the Bangalore hub. State-owned carriers — Air India and Indian Airlines — also depend upon Lufthansa Technik for various component repairs as well as structural parts such as nacelles and thrust reversers.

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