New Delhi. AI Engineering Services Limited (AIESL), a leading player in the maintenance, repair and overhaul (MRO) segment, is operating at more than 100 per cent capacity with “overflowing” hangars, senior executives revealed during a recent press meet. The company, which services over 25 international airlines alongside domestic carriers, is positioning itself to capture the surge in demand driven by India’s rapidly expanding aviation market and the global trend of airlines extending aircraft lifespans rather than waiting for new deliveries.
“Hangars are overflowing. More than 100 per cent,” confirmed Chief Executive Officer Sharad Agarwal during the briefing, adding that the company is having to conduct some maintenance work outside hangar facilities to meet demand. This represents a stark contrast to the industry’s position just a few years ago when Indian MRO facilities struggled to attract business.
The company, known for its expertise in aviation engineering and maintenance services, currently operates wide-body hangars in Nagpur and Mumbai, along with seven narrow-body aircraft hangars for A320s and Boeing 737s across Delhi, Trivandrum, and other locations. Each wide-body aircraft service generates approximately ₹10 crore in revenue and takes under 25 days to complete.
Ambitious Growth Targets
AIESL executives expressed confidence in achieving 20-30 per cent revenue growth in the coming fiscal year, building on a base of approximately ₹2,000 crore. A senior executive predicted that the next five years would be “game-changing” for India’s MRO sector. The optimism is grounded in concrete market dynamics. With numerous new airports coming online and airlines expanding their fleets, the demand for MRO services is set to multiply.
The company recently completed maintenance on 70 aircraft from the defunct Go First airline, representing a 30-40 per cent increase in that segment alone.
“Hangars are overflowing. More than 100 per cent,” confirmed Chief Executive Officer Sharad Agarwal during the briefing, adding that the company is having to conduct some maintenance work outside hangar facilities to meet demand
International Confidence Growing
AIESL’s international client base continues to expand, with Kuwait Airways returning in 2025 for a repeat order after an initial contract in 2023. The company is currently servicing Singapore’s SilkAir for Airbus A350 base maintenance and has attracted interest from Japan’s All Nippon Airways.
“People are interested in coming to India,” noted an executive, citing the increase in foreign operator flights and the addition of services from smaller domestic stations like Kannur, Kozhikode, and Kochi. The company’s recent partnership with Boeing to provide component MRO services for the Indian Navy’s P-8I fleet marks another milestone. AIESL successfully completed the first landing gear overhaul of a P-8I aircraft at INS Rajali, demonstrating India’s growing indigenous capabilities for complex MRO services.
Executives noted significant improvements in India’s regulatory framework, as the Directorate General of Civil Aviation (DGCA) “remains very process – oriented and focused about the compliances, and the regulations are technically at par with international standards”.
Workforce Expansion and Operational Efficiency
AIESL has aggressively expanded its workforce, adding over 2,000 professionals in the last three years to reach approximately 5,000 employees. The company plans to continue hiring to meet growing demand, particularly as Air India considers returning some line maintenance activities previously brought in-house. Turnaround times have improved significantly, with the company now operating hangars 24/7.
The extended preservation of aircraft during the pandemic has created both challenges and opportunities. Many aircraft require extensive work to return to service, with some ultimately being parted out rather than restored. However, the trend of airlines extending aircraft life rather than retiring them on schedule has created substantial new business. “Older aircraft, more opportunity,” summarised one executive, noting that checks that previously required 20 days might now take 30-40 days but allow airlines to extend aircraft life by 2-3 years.
AIESL’s international client base continues to expand, with Kuwait Airways returning in 2025 for a repeat order. The company is currently servicing Singapore’s SilkAir for Airbus A350 base maintenance and has attracted interest from Japan’s All Nippon Airways
Looking Ahead
Despite carrying legacy debt from its 2015 separation from Air India, AIESL has maintained operational surpluses for five consecutive years. The company reported a provisional FY25 profit after tax of ₹427 crore with EBITDA margins of 42 per cent.
Despite competition, AIESL maintains collaborative relationships with other Indian MRO providers. “If I don’t have a tool, I pick up the phone and ask for it. He will send it by flight,” explained an executive, describing the mutual support system among competitors.
The company remains open to strategic partnerships but emphasises its selective approach. “We are open to good, trustworthy, partnerships,” stated a senior executive. The company is also exploring new business lines, including passenger-to-freighter (P2F) conversions, which executives identified as a growing market opportunity.
With India’s aviation sector continuing its rapid expansion, and the government pushing to reduce the current practice of sending 90 per cent of MRO work abroad, companies like AIESL are positioned to capture a significant share of what industry estimates suggest could become a $4 billion market by 2030.
–The writer is a senior journalist and Consulting Editor of Raksha Anirveda
