Air India Signed MRO Deal in July 2026
The partnership with SIA Engineering Company aims to bolster domestic aircraft maintenance capabilities.
Updated on Sept. 22, 2026 in Air Travel
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In July 2026, Air India signed a memorandum of understanding with SIA Engineering Company to develop in-country aircraft maintenance, repair, and overhaul (MRO) capacity. The collaboration addresses India’s growing fleet needs as the airline prepares to integrate over 500 new aircraft.
Why it matters
India currently meets only 20% of its total MRO demand domestically, creating a reliance on foreign facilities. This partnership seeks to close that gap and mitigate the talent drain of skilled maintenance personnel to other international markets.
The new Bengaluru hangar facility measures 235 meters in length and includes dedicated workshops for composite, cabin interior, and sheet-metal work. Completion of this site is planned for 2027.
The players
Air India
This is the flag carrier airline of India that is currently undergoing a massive fleet expansion.
SIA Engineering Company
Headquartered in Singapore, this firm provides extensive maintenance, repair, and overhaul services to global airlines.
The details
Air India is leveraging the widebody maintenance expertise of SIA Engineering Company to scale its domestic infrastructure. This expansion is essential to support the projected delivery of 278 aircraft annually from 2032 through 2036.
Timeline
Construction of the new Bengaluru hangar began in 2024.
Air India and SIA Engineering Company signed the memorandum of understanding in July 2026.
The Bengaluru hangar is expected to be completed in 2027.
Indian operators are slated to receive 2,100 aircraft between 2027 and 2036.
Deliveries are projected to average 278 aircraft annually from 2032 through 2036.
Travel Outlook
This partnership seeks to reverse the documented trend of the Indian civil aviation industry's reliance on foreign MRO facilities. By localizing these complex services, the country aims to move away from historical patterns where high-value technical maintenance was outsourced abroad.
While this partnership focuses on industrial operations, increased domestic maintenance capacity could eventually lead to more reliable scheduling and reduced downtime for international travelers. Passengers should monitor how fleet growth impacts regional hub connectivity in the coming years.
The takeaway
Building local MRO expertise is a critical step for nations looking to support the rapid expansion of their commercial aviation fleets. Investing in infrastructure like the new Bengaluru hangar helps ensure that long-term fleet growth remains sustainable and operationally efficient.
Further reading
Learn more about the latest developments in Air Travel.
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