Hindustan Aeronautics Limited (HAL) | Business Upturn

India’s engine MRO sector: Global interest and steps toward self-reliance

Jennifer Philip — Mon, 22 Apr 2024 14:27:36 +0000

India’s aviation industry is rapidly expanding, poised to become the third-largest market globally. As passenger traffic soars, the government, airlines, and aviation stakeholders are fortifying the foundation for a robust aviation ecosystem. A crucial pillar underpinning this industry is maintenance, repair, and overhaul (MRO), which has recently garnered significant attention from global companies.

While India’s MRO sector has witnessed modest growth thus far, the post-COVID-19 era, marked by a surge in “revenge travel,” the emergence of new airlines, and government initiatives to bolster airport infrastructure, has propelled the MRO sector into a promising trajectory.

India’s engine MRO sector poised for growth amid rising domestic demand

India has established proficiency in line and airframe maintenance tasks, with domestic aircraft now serviced in-house. However, a substantial gap exists in component and engine MRO capabilities. Apart from AI Engineering Services (AIESL), no other MRO provider in India offers engine maintenance services.

The MRO (Maintenance, Repair, and Overhaul) sector in India had a market size of USD 1.7 billion in 2021, and it is projected to reach USD 4.0 billion by 2031, registering a compound annual growth rate (CAGR) of 8.9%, which is higher than the global average of 5.9%. In 2019-20, Indian airlines imported MRO services worth USD 1.26 billion, primarily sourced from countries like France, Sri Lanka, Germany, Jordan, Malaysia, Singapore, Turkey, the United Arab Emirates, and the USA. Over the next five years, the MRO market size in India is estimated to reach around USD 2.8 billion, with a significant portion expected to be procured from domestic MRO providers.

Air India Engineering Services Limited (AIESL) stands out as the only organization in India certified by the Directorate General of Civil Aviation (DGCA), European Union Aviation Safety Agency (EASA), and Federal Aviation Administration (FAA) as an engine repair station. AIESL possesses full capability for engines like CFM 56-5B/7B, GE CF6-80C2, V2500 A1, and PW 4000, as well as partial capability for GE 90, CFM 56-5B, and various Auxiliary Power Unit (APU) types such as GTCP 131-90, GTCP 331-250H, GTCP 331-500B, PW901A, and APS 5000A.

AIESL’s repair shop is equipped with state-of-the-art facilities, including CMM, CNC machines, a 5-axis milling machine, welding and plasma spray capabilities with a 9-axis robotic plasma spray machine. Additionally, they have a well-equipped and computerized test cell with a capacity of 100,000 lbs, enabling comprehensive testing and evaluation of repaired engines.

With India’s current fleet of around 700 commercial aircraft set to escalate to over 2,000 in the next five years, owing to recent orders from IndiGo, Air India, and Akasa Air, the demand for engine overhauls is expected to surge. Typically, jet engines require overhauls after 5,000 flight hours or 3,000 flight cycles, a process that takes 60 to 90 days. Presently, it is practically impossible to overhaul all domestic aircraft engines within the country, prompting the outsourcing of a significant portion to facilities abroad.

However, this scenario is gradually transforming, with major original equipment manufacturers (OEMs) taking proactive steps to establish independent MRO facilities in India.

Safran invests in India’s engine MRO market with LEAP project in Hyderabad

Safran, recognizing the substantial opportunity in India’s engine MRO market, has embarked on an ambitious project. Capitalizing on the 2,200 LEAP engine orders from Air India and IndiGo, Safran has broken ground on a 15,000 square-meter LEAP MRO plant in Hyderabad’s Special Economic Zone (SEZ). With an investment of approximately $163 million, this facility, slated for completion by 2025, is poised to become one of Safran’s largest MRO facilities globally.

The plant will focus on manufacturing rotating parts for the LEAP engine from CFM International, while Safran’s Electrical & Power plant in the same airport zone will produce wiring for LEAP engines and the Rafale fighter jet. The MRO facility will service operators from India, South Asia, West Asia, and Africa through a 100% Indian subsidiary.

The Safran Group has been a pioneer in technology transfer to India and has a successful track record of fruitful cooperation with the country in strategic domains such as space rocket engines, helicopter engines, and inertial navigation technologies. Safran has established successful collaborations with major Indian organizations, such as the Indian Space Research Organization (ISRO), the Defense Research and Development Organization (DRDO), and defence public sector companies. These collaborations have spanned across various advanced technologies, enabling the transfer and development of strategic capabilities within India.

When it comes to commercial aviation, the decision to establish MRO facilities and expand operations will be driven by the demand for such services in the market. The increasing fleet size and growth in air travel demand will play a crucial role in determining the extent of Safran’s investments and operations in the commercial aviation MRO sector in India.

Safran’s long-term plans involve expanding the facility to support military engines used in the Indian Air Force’s Rafale and Mirage 2000 fighters, aligning with the “Atmanirbhar Bharat” (Self-Reliant India) initiative. Additionally, the company is forging partnerships and establishing deep roots within India to cultivate a well-rounded MRO ecosystem, collaborating with entities like Telangana Academy for Skill and Knowledge, the GMR Group, and Hindustan Aeronautics Limited (HAL).

Pratt & Whitney, Rolls-Royce to establish independent engine MROs in India

In 2023, The Directorate General of Civil Aviation (DGCA) in India urged Pratt & Whitney (PW) to establish an MRO facility within the country due to ongoing issues with PW engines used in Airbus A320neo aircraft. These engines have been experiencing problems over the past 5-6 years.

IndiGo, a major airline and one of the largest customers for these planes has been forced to ground 50 aircraft as they await replacement engines from PW. The situation has become a significant concern for the Indian aviation sector.

While Pratt & Whitney has expressed interest in exploring MRO opportunities in India, the company has also warned that hundreds of engines may need to be grounded globally for inspections and checks. This highlights the severity of the engine issues faced by the manufacturer.

The DGCA’s push for PW to establish an MRO facility in India is aimed at addressing engine problems more effectively and ensuring timely maintenance and repair services within the country. This move could potentially mitigate the impact of engine issues on Indian airlines and their operations.

With Safran announcing its plans to establish a major LEAP engine MRO facility in Hyderabad, other engine manufacturers like Rolls-Royce and Pratt & Whitney are closely monitoring the changing aviation landscape in India. Media reports suggest that Rolls-Royce is interested in opening an independent MRO facility in India, given the volume and scale of work anticipated.

This interest from Rolls-Royce is not surprising, as the company recently signed a 100-engine contract with Air India as part of the Airbus deal. The order includes 68 Trent XWB-97 engines, with the potential for an additional 20 engines. The Trent XWB-97 engines ordered by Air India from Rolls-Royce are intended to power the airline’s Airbus A350-1000 aircraft. Moreover, Air India has also placed an order for 12 Trent XWB-84 engines, which are the sole engine options available for the Airbus A350-900 variant. This significant order makes Air India the largest operator worldwide of the Trent XWB-97 engine model.

This is the first time an Indian airline has ordered the Trent XWB, and the deal will make Air India the largest operator of the Trent XWB-97 in the world, presenting Rolls-Royce with a golden opportunity to establish an engine facility and base in India. However, the company is cautious about the market, as Kishore Jayaraman, the president of Rolls-Royce India, stated, “It’s not like you put up an MRO in every country.” He further clarified that setting up an engine shop is an expensive proposition, and Rolls-Royce is fully committed to providing engine monitoring support to Air India for the new A350-900 order.

India embarks on ₹60,000 crore overhaul to propel Su-30MKI fleet into technological excellence

Gowri Jagadish — Wed, 21 Feb 2024 13:55:43 +0000

India’s fighter jets will enter a new era of technological capability with the planned extensive overhaul of the Sukhoi Su-30MKI fleet. The Defence Research and Development Organisation (DRDO) is assisting Hindustan Aeronautics Limited (HAL) and the private sector in this enormous project, which is valued at an astounding ₹60,000 crore.

A major step forward for the “Make in India” strategy, the project was authorised by the Defence Ministry last year, and HAL has been tasked with spearheading the modification. The overhaul will be completed in two stages: the first will integrate new radars and avionics, and the second will improve the flight control systems.

Developments in Radar and Avionics:
The Indian Air Force expressed reservations about the Su-30MKI fleet’s antiquated avionics and radar systems, which will be addressed in the project’s first phase. The initiative, which demonstrates India’s commitment to self-reliance in defence technology, entails swapping out several equipment of Russian origin for indigenous ones.

To overcome the limits of older-generation radar technology and allow fighter jets to detect and strike targets from substantially larger distances, a new indigenous radar system will be created. The action is intended to guarantee that the Indian Air Force can compete with enemies.

Native Combat Edge Systems:
The primary focus of the update is to improve the aircraft’s combat capability by incorporating native systems into the platform. A new electronic warfare system will be implemented as part of this to jam incoming threats and obstruct enemy communications. Improved engagement capabilities with air-to-air and air-to-ground targets will also be achieved through the use of new domestic Infra Red Search and Track systems.

The extensive overhaul is expected to strengthen the Su-30MKI fleet’s standing as a potent force in the area and fulfil the changing demands of contemporary combat.

Accelerating the Improvement:
In order to hasten the renovation of its whole fleet of Sukhois, the Indian Air Force has placed the project on high speed. About ninety fighters are scheduled for the initial phase of improvement, which will concentrate on avionics and radars. The first phase of the project is anticipated to begin this year. Significantly, the entire refurbishment procedure will take place in India, demonstrating the country’s technological prowess and dedication to independence.

Prospects for the Economy and Exports:
The project offers substantial economic prospects in addition to strengthening India’s defence capabilities. The upgrades provide a sizable export market, with over 600 Su-27/30 aircraft in service in several nations, such as Vietnam, Malaysia, Indonesia, and Algeria. The Su-30MKI fleet’s achievements have the potential to establish India as a major player in the international defence industry.

Along similar lines, last year an extra ₹11,000 crore deal was authorised for 12 Su-30MKI planes, which HAL is expected to produce using more than 50% indigenous components.

IAF deploys 83 indigenous TEJAS MK-1A fighters, aims for 97 more with ‘Uttam’ radar and ‘Angad’ electronic warfare suite

Gowri Jagadish — Wed, 14 Feb 2024 07:26:18 +0000

The Indian Air Force (IAF) plans to equip its domestic Light Combat Aircraft (LCA) TEJAS MK-1A with the state-of-the-art ‘Uttam’ radar and ‘Angad’ electronic warfare suite, marking a huge step towards achieving self-reliance in defence capabilities. The government’s commitment to advancing indigenization in the military is demonstrated by this action, which represents a clear departure from foreign systems.

India Today recently reported that the IAF has put 83 TEJAS MK-1A fighter jets into service and that they intend to acquire an additional 97 shortly. Defence officials have disclosed that the TEJAS MK-1A aircraft would soon be equipped with the Uttam Active Electronically Scanned Array (AESA) radar and the Angad electronic warfare suite, which are presently in advanced stages of development.

The replacement programme, which will start with the 41st aircraft out of 83, is a strategic move by the IAF to use AESA radar and electronic warfare suites manufactured in India. The Defence Research and Development Organisation (DRDO) comprises several laboratories that are actively involved in carrying out these initiatives.

Currently in development, the ‘Uttam’ radar is showing promising outcomes and could eventually be installed in high-end fighter aircraft. This move supports the overarching goal of enhancing the IAF’s capabilities through the use of cutting-edge domestic technology and modernising the force’s fleet.

The integration of indigenous weapon systems into TEJAS is expected to result in significant foreign exchange cost savings and the creation of jobs in the defence industry. This action highlights the IAF’s commitment to using domestic capabilities for its operational needs and is vital in harmonising with the government’s ‘Make in India’ policy.

The Indian Air Force (IAF) has planned to replace its ageing MiG-series fighter jets with these made-in-India aircraft, in keeping with its strategic goal. The Ministry of Defence and other national security players have received detailed preparations for this transition, according to sources.

Hindustan Aeronautics Limited (HAL) was among the important parties that attended a review meeting recently held by Air Chief Marshal VR Chaudhari, the head of the Indian Air Force, to evaluate the status and future directions of the domestic fighter jet programme. The partnership between the Indian Air Force and Hindustan Aeronautical Limited (HAL) highlights the cooperative efforts of government agencies and private sector companies in strengthening India’s defence capabilities.

India’s LCA TEJAS MK-1A to soar as first batch nears delivery, bolstering national defense

Gowri Jagadish — Tue, 13 Feb 2024 13:39:34 +0000

The construction of Light Combat Aircraft (LCA) TEJAS MK-1A is on track, revealing that the first of the 83 ordered planes is likely to be ready for delivery next month. This is an important step towards reinforcing India’s domestic defence capabilities. The MK-1A will strengthen the Air Force’s fighter aircraft force due to its advanced radars, electronic warfare systems, and mid-air refuelling capabilities.

At least four MK-1A planes are expected to be delivered by August of this year as a result of ongoing efforts to expedite production and delivery. Authorities have taken action to reduce any possible output gaps because certain delays in engine deliveries could affect the production timetable.

Deliveries of MK-1A are intentionally coordinated with the overarching strategy to free up production capacity for the TEJAS MK-2, the following edition. This more powerful 17.5-ton single-engine aircraft is powered by the GE-F414 engine, which is produced in India under a technology transfer arrangement. It was developed jointly by Hindustan Aeronautics Limited (HAL), the Indian Air Force, and the Indian Navy.

The first aircraft deployment for the TEJAS MK-2 programme appears to have been slightly delayed, with a new target date of late 2026 or early 2027. Officials are nevertheless optimistic that the programme will finish development by 2027, despite this. With its improved endurance and range, onboard oxygen generation system, and capacity to carry powerful stand-off weapons, the MK-2 is anticipated to be a game-changer.

Strategically, the MK-1A deliveries are part of a larger plan to free up production capacity for the TEJAS MK-2, the next version. The GE-F414 engine, which is built in India under a technology transfer agreement, powers this 17.5-ton single-engine aircraft, which was developed jointly by Hindustan Aeronautics Limited (HAL), the Indian Air Force, and the Indian Navy.

The TEJAS MK-2 programme appears to have reversed course recently, with the initial aircraft rollout now scheduled for late 2026 or early 2027. Despite this, officials are still optimistic that the programme would finish development by 2027. The MK-2 is anticipated to revolutionise the military with its improved endurance and range, onboard oxygen generation system, and capacity to carry powerful standoff weapons.

With a targeted rollout by 2024 and completion of flight testing by 2027, the TEJAS MK-2 project has received approval from the Cabinet Committee on Security (CCS) at a total development cost of ₹9,000 crore. The strategic significance of this cutting-edge fighter jet is evidenced by the Indian Air Force’s commitment to acquiring six squadrons of the MK-2.

The TEJAS MK-2 boasts several design advancements over the MK-1A, such as a longer frame measuring 1350 mm, canards for increased stability, and a larger payload capacity of 6,500 kg as opposed to 3,500 kg. The MK-2, also intended to be utilised in the Advanced Medium Combat Aircraft (AMCA), will be powered by the General Electric GE-414 engine, which has 98kN of thrust.

The TEJAS MK-1 is still in service, with one squadron operating under Initial Operational Clearance (IOC) and another under Final Operational Clearance (FOC). However, India’s commitment to developing its own fighter aircraft capabilities is demonstrated by the MK-1A deliveries and MK-2 development.

The orders for 83 TEJAS MK-1A are anticipated to be fulfilled by 2028–2029 with HAL setting up a second assembly line to boost production from eight to sixteen aircraft annually. Furthermore, India’s aggressive pursuit of cutting-edge defence technologies is shown in the Advanced Medium Combat Aircraft (AMCA) plan, an indigenous fifth-generation fighter currently undergoing CCS review.