PIA’s MRO business gains momentum
KARACHI: The Pakistan International Airlines’ (PIA) Maintenance, Repair and Overhaul (MRO) business is now in the expansion phase with an increase in the number of customers from 14 to 40. PIA has earned Rs 1.1 billion in the year 2011 through MRO business while the revenue set for the year 2012 is Rs 1.4 billion.
Original Equipment Manufacturers (OEMS) like Boeing Company, Airbus and General Electric have shown keen interest in the MRO Business. This was stated by PIA Deputy Managing Director Salim Sayani while briefing a delegation from US Embassy in Pakistan at the PIA’s Head Office.
Recognising the great potential in PIA’s MRO capabilities, the United States Trade and Development Agency (USTDA) has granted PIA Rs 58 million ($864,000) to conduct a thorough feasibility for this business. The joint initiative taken underscores the confidence and trust in PIA’s engineering capabilities to create state of the art MRO facility in the region that will generate revenue of $100 million and around 5,000 jobs in Pakistan by the year 2020. The South Asian and Middle Eastern MRO markets are expected to grow into $9 billion market.
A six-member team from Embassy of United States in Pakistan led by Consul General, Karachi William Martin visited PIA’s Head Office and PIA MRO facility.
The US delegation showed keen interest in the airline’s engineering capabilities including avionics overhaul, base maintenance division, engine shop welding, heat treatment shop, APU test facility and Ispahani Hanger where ‘D’ check of a Boeing 777 was in progress. The delegation also visited Precision Engineering Complex where parts are manufactured for airline industry such as Airbus, Boeing and General Electric. The delegation also visited the flight simulators of Boeing 747, 737 and the latest flight simulator of Boeing 777 recently installed.
Sayani said that PIA’s five-year business plan is focused on turning cost centres into revenue centres and focused approach will greatly help PIA return to profitability. PIA engineering capabilities and vast infrastructure would serve as a solid foundation for the growth of MRO business in Pakistan.
The US delegation showed confidence and satisfaction over PIA and its engineering potentials.
MRO is in the second phase of expansion to become one stop shop premier MRO service provider in the region by providing, quality and value for money, excellent turn around time, competitive labour price through total maintenance support of domestic airlines.