According to sources Prime Minister Narendra Modi's tax reforms will encourage more local airlines to service their aircraft within the country, a $704 million-a-year business that currently goes to Sri Lanka and Southeast Asia. Sources have stated that simpler rules for doing business and scrapping of import duties on equipment and machine parts are benefiting companies that maintain, repair and overhaul planes, Air Works India Engineering Pvt. Managing Director Vivek Gour said in an interview.
Meanwhile Air Works services Airbus SE and Boeing Co. single-aisle jets at an airport near Bengaluru. Gour said by government estimates, Indian carriers spend about Rs 4,500 crore ($704 million) annually on maintenance work at facilities in Sri Lanka, Singapore and Malaysia. With the new policy unveiled by PM Modi last year, some of that business could be lured back to India, benefiting firms like Air Works.
Gour further added that "Air Works, which also has a contract to paint some Airbus aircraft in Toulouse, France, is aiming to have revenue of Rs 1000 crore in three years, a 67% jump from its sales in the year ended March".
