NEW DELHI: State-owned aircraft maintenance firm AI Engineering Services Ltd (AIESL) is looking to expand into India’s next aviation hubs, holding discussions to set up maintenance, repair and overhaul (MRO) facilities at the upcoming Jewar airport and the three-month-old Navi Mumbai International Airport, as it seeks to capture rising demand from airlines.
According to chief executive Sharad Agarwal, the country’s largest MRO plans to invest ₹200–300 crore in the new facilities, even as competition intensifies with airlines and airport operators moving to build captive maintenance bases.
Carriers such as Air India, IndiGo and have outlined plans to set up their own MRO infrastructure, including at Bengaluru and Jewar, tightening the competitive landscape AIESL is stepping into.
AIESL, originally set up as a wholly owned subsidiary of , was later hived off into AI Assets Holding Co. Ltd following the Tata group’s acquisition of the airline.
The company is evaluating a calibrated approach to expansion. “We are in talks for both Jewar and Navi Mumbai, but we cannot spread ourselves too thin. Investments will be calibrated,” Agarwal told Mint, indicating that final decisions will hinge on traffic visibility and airline commitments at the new airports.
AIESL expects to invest ₹100-150 crore per hangar, largely through internal resources, with projects likely to be completed and operationalized within two years of securing approvals and land. “Ideally, factors like our cash position will also come into play too. So maybe we start with one wide-body hangar at any of these two airports and then take things forward,” Agarwal said.
Queries sent to Jewar and Navi Mumbai airports remained unanswered till press time.
India’s MRO market, estimated at $1.7 billion in 2021, is projected to cross $4 billion by 2031. With over 1,000 aircraft on order, the country is set to become the world’s third-largest buyer of commercial jets, driving demand for 200–300 major maintenance checks annually, AIESL said in its FY24 annual report.
Yet, nearly 90% of MRO work is still outsourced to hubs such as Singapore, the UAE and Sri Lanka, underscoring gaps in domestic capacity. Building a local ecosystem will be key to servicing a growing civil and defence fleet and cutting turnaround times, the company said.
The market remains relatively concentrated, with a handful of large players including AI Engineering Services Ltd, Air Works India, Deccan Charters, Indamer Aviation, Max MRO, Taj Air, Bird ExecuJet and GMR Aero Technic.
Scaling up, cautiously
The expansion comes as AIESL looks to scale beyond its current network of six stations—Delhi, Mumbai, Chennai, Kolkata, Nagpur and Thiruvananthapuram—while maintaining a steady revenue base of ₹2,200-2,500 crore over the next two to three years.
In FY24, the company reported a turnover of over ₹2,100 crore. For FY25, numbers are under audit, but AIESL expects revenue of around ₹1,750 crore and a profit of about ₹300 crore, according to Agarwal.
At present, AIESL can handle around 20 aircraft a day across its facilities, including 5-6 wide-body jets. The company sees significant headroom in improving utilisation through operational efficiencies. “If turnaround improves, capacity can expand two to three times without immediate large capex,” the chief executive said.
Its core business remains anchored in servicing Boeing 737s and Airbus A320 family aircraft, along with wide-body Boeing 777s and 787s. The 737 fleet, operated by airlines such as Air India Express and SpiceJet, continues to be a key revenue driver, Agarwal said.
As part of its growth strategy, AIESL is preparing to service newer aircraft platforms, including the Airbus A350, Airbus A220 and Embraer jets, reflecting shifts in fleet composition in India.
Air India has already inducted the Airbus A350, while other regional carriers are evaluating smaller, long-range narrow-body aircraft such as Embraers.
“We need to build capabilities for new-generation aircraft. That primarily involves training, tooling and certification. Once airlines induct these planes, the MRO ecosystem has to be ready,” Agarwal said. The company currently employs around 4,500 technicians.
To support its international ambitions, has applied for certification from the European Union Aviation Safety Agency (EASA), which would allow it to service aircraft registered in Europe.
While the company already undertakes line maintenance for several foreign carriers operating in India, including airlines from Southeast Asia and the Middle East, full-scale certification work on European-registered aircraft requires EASA approval.
“We have applied and expect it to come through in six to twelve months,” Agarwal said.