Air India and IndiGo say they need to strengthen in-house engineering and maintenance capabilities, while Akasa Air is developing a facility of its own. The push comes as airlines add aircraft faster than maintenance capacity can be built, making access to hangars, skilled technicians and parts increasingly important.
At the Aviation India and South Asia 2026 conference in New Delhi, Air India Senior Vice-President for Engineering and Maintenance Jeremy Yew said the airline was reviewing how much work it could perform internally. He highlighted a particular gap in heavy maintenance for wide-body aircraft, much of which is currently carried out overseas.
Yew said Air India had planned to send aircraft to maintenance facilities in West Asia but struggled to find alternative capacity after a regional crisis disrupted those plans. The episode underscored how dependence on overseas facilities can expose airlines to geopolitical disruption and limited availability of hangar slots.
Air India expects to establish a maintenance, repair and overhaul (MRO) facility in Bengaluru by the end of 2027. The airline has more than 540 aircraft due for delivery in coming years, adding urgency to its effort to prepare engineering capacity alongside fleet expansion. Its investment plan is part of a wider industry shift toward bringing more maintenance work closer to home.
IndiGo’s Senior Vice-President for Engineering and Maintenance, Parichay Datta, said the airline had “no choice but to be self-reliant” given the difference between the pace of fleet growth and the expansion of MRO facilities in India. He also stressed the importance of partnerships that meet commercial and technical requirements. Building internal capacity, he said, does not rule out working with independent providers.
Akasa Air is also planning for growth. Its Senior Vice-President for Maintenance and Engineering, Daniel Saldanha, said its MRO facility at Noida airport is expected to be ready in 2028. Industry representatives from GMR Aero Technic, AI Engineering Services, Airworks and Max Aerospace have pointed to the business opportunity created by rising demand for aircraft maintenance in India.
The fleet outlook helps explain the investment. India had around 800 commercial aircraft, and the number is expected to double in the coming years as airlines respond to passenger growth. Airbus projected in January that the country’s fleet could reach 2,250 aircraft over the next decade. The market for airframe, engine and component maintenance is projected to triple to $9.5 billion by 2035.
That opportunity will not be captured by hangars alone. Airlines and service providers also need qualified engineers and technicians, access to spare parts, specialised tooling, reliable supply chains and approvals that meet aviation safety standards. Wide-body and engine work can be particularly demanding, requiring investment and expertise that take time to develop.
Government policy has sought to make domestic MRO more competitive. Measures include a 5 per cent GST rate on MRO services with full input tax credit, simplified customs procedures and tax changes affecting aircraft parts and tools. In July 2026, the government also cited a 2026 guideline addendum providing moratorium and rent-free periods for operators building hangars at Airports Authority of India airports.
The policy direction aligns with a national ambition to retain more maintenance spending in India and attract overseas customers. But the industry’s expansion will depend on whether facilities come online on schedule and can offer the capacity, cost and technical capability airlines need. A domestic base could reduce exposure to overseas bottlenecks, but it must be supported by dependable parts availability and a trained workforce.
For carriers, the immediate challenge is matching maintenance readiness to aircraft deliveries without compromising safety or operational reliability. The planned facilities in Bengaluru and Noida mark steps toward that goal. Their progress – and the ability of independent MRO companies to scale alongside airline investments – will help determine how much of India’s growing maintenance demand is ultimately served at home.
