Air India signs MRO pact with SIA Engineering to strengthen aviation ecosystem

MUMBAI: Air India has signed a memorandum of understanding (MoU) with SIA Engineering Company (SIAEC) to explore a deeper collaboration in aircraft maintenance, repair and overhaul (MRO), as the Tata Group-owned airline looks to strengthen India’s ambitions of becoming a global aviation MRO hub.

The MoU was signed in Mumbai by Campbell Wilson, chief executive officer and managing director of Air India, and Chin Yau Seng, chief executive officer of SIA Engineering Company.

Under the agreement, the two companies will explore opportunities to jointly develop a world-class MRO ecosystem in India by leveraging SIAEC’s technical expertise and Air India’s expanding operational network. The collaboration could also pave the way for a potential MRO joint venture in India to serve the growing maintenance requirements of both the domestic and regional aviation markets.

The latest agreement builds on an existing partnership between the two companies. In February 2024, Air India signed a 12-year Inventory Technical Management (ITM) agreement with SIAEC to provide component support for its Airbus A320 family fleet. A few months later, in May 2024, SIAEC was appointed as Air India’s strategic partner for developing the airline’s base maintenance facilities in Bengaluru.

Speaking on the development, Air India chief executive officer and managing director Campbell Wilson said India’s rapid aviation growth is creating the need for a stronger domestic maintenance ecosystem.

He said expanding fleet sizes and airline operations make local maintenance capacity increasingly important for improving efficiency, resilience and long-term growth, adding that partnerships such as this can help support India’s broader ambition of becoming a global aviation hub.

SIA Engineering Company chief executive officer Chin Yau Seng said India is among the world’s fastest-growing aviation markets and strengthening its MRO capabilities will reinforce its position in the global aerospace ecosystem.

He added that SIAEC looks forward to exploring how its technical expertise can contribute to building maintenance capabilities and capacity in India alongside its existing partnership with Air India.

While the memorandum is non-binding, both companies said they expect to progressively evaluate and formalise opportunities arising from the collaboration as discussions advance.

The agreement comes as India’s aviation sector continues to expand rapidly, driving demand for domestic maintenance infrastructure and reducing reliance on overseas MRO facilities, a key objective for both airlines and policymakers seeking to build a globally competitive aviation ecosystem.