AIESL targets $1 billion in revenue by 2030, eyes new avenues for growth
"We have been maintaining
₹
2,000 crore average revenue from the last three years consistently. We will be able to achieve the $1 billion yearly revenue target by 2030 as we expand our portfolio of services," said Agarwal.
According to AIESL's research, there is a huge opportunity in the P2F conversion segment, as both Airbus and Boeing grapple with pending deliveries. There is also an opportunity to convert 1,000 passenger aircraft to freighter aircraft.
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"We look forward to the first aircraft entering our facility next year. So hopefully by the end of this fiscal year, we will start P2F conversion," said AIESL's CEO.
GMR Aero Technic, in partnership with Boeing,
Hindustan Aeronautics
Ltd (HAL), Israel Aerospace Industries (IAI), and Adani Group acquired Air Works, are the other companies working in the P2F segment.
AIESL's major customers are Air India Group and the defence forces, and the company hopes to partner with other Indian airlines. While the company has also catered to international airlines like Kuwait Airways, other major airlines are not yet customers.
As per leasing agreements, broader approvals from the European Union Aviation Safety Agency (EASA) are mandatory, which AIESL and other MRO companies in India currently don't have. However, the company is in the process of getting more such approvals.
"We are working towards getting EASA approval for more services and will be able to bridge the gap. With more approvals, we will be able to expand base checks for more aircraft," said Agarwal.
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AIESL currently has seven base and line maintenance facilities in seven cities: New Delhi, Mumbai, Nashik, Nagpur, Kolkata, Hyderabad, and Thiruvananthapuram.
Agarwal also told
Mint
that AIESL should be a good option for other Indian airlines, as all the company operations are in India. He said, "Airlines may not need to send aircraft to other countries for MRO services as we have high regulatory oversight since we're present in India. All our facilities can be visited at any time by the regulator or partner airlines," said the CEO.
The CEO also sees a big opportunity in engine MRO.
Currently, AIESL provides engine MRO for CFM LEAP 1A, CFM56 B, GE90, GEnx and certain Pratt & Whitney engines. "Line maintenance and base maintenance make up just about 5-8% and 10-12% of the volumes. The remaining 80% opportunity is in engine and component maintenance, and the country must go big towards this segment," said Agarwal.
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AIESL currently offers line and base maintenance for aircraft such as Airbus A319, A320, A321, Boeing 737, MAX, 787, 747, and 787. It also offers maintenance for ATR aircraft and component maintenance. AIESL's Nashik facility provides painting services for Airbus and Boeing narrow-body aircraft.
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