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AIESL Reports Full Hangars Amid Rising Global MRO Demand

AIESL Reports Full Hangars Amid Rising Global MRO Demand
India’s aspirations to establish itself as a global aviation hub are gaining significant traction, as evidenced by Air India Engineering Services Limited (AIESL) operating at full capacity. The surge in demand for aircraft maintenance, repair, and overhaul (MRO) services is reflected across AIESL’s facilities, from Delhi to Trivandrum and Mumbai to Nagpur, where every hangar—servicing both wide-body and narrow-body aircraft—is fully booked. This operational peak underscores AIESL’s critical role in the country’s expanding aviation sector.
Operational Capacity and International Expansion
AIESL’s wide-body hangars, including two in Nagpur and three in Mumbai (one of which is a dual hangar), are currently at maximum occupancy. Concurrently, all seven narrow-body hangars, which service aircraft such as the Airbus A320 and Boeing 737, are operating at full capacity. A senior AIESL official confirmed, “We’re running at full capacity. ‘Hangars full hai’—that’s the situation now.” Each wide-body aircraft serviced generates nearly ₹10 crore in revenue, with maintenance typically completed within 25 days, highlighting the company’s operational efficiency and growth.
This surge in activity is driven by an expanding international clientele. While Air India remains a principal customer, AIESL has successfully attracted global carriers. Notably, Kuwait Airways contracted AIESL in 2023 for the maintenance of seven wide-body aircraft and, impressed by the quality of service, returned in 2025 with a repeat order. Four of these aircraft have already been serviced, with the remainder scheduled for completion shortly. Additionally, negotiations are ongoing with two other international airlines, signaling increasing global confidence in India’s MRO capabilities.
Strategic Growth Amid Challenges
The rapid expansion of the MRO sector aligns with the Indian government’s vision to transform the country into a global aviation hub. The Ministry of Civil Aviation has introduced regulatory reforms, policy support, and capacity-building initiatives aimed at enhancing India’s attractiveness as an MRO destination. Since its establishment as an independent entity in 2015, following its separation from Air India, AIESL has achieved remarkable growth without government financial assistance. Despite inheriting a negative net worth post-disinvestment, the company has consistently reported operational surpluses over the past five years. CEO Sharad Agarwal emphasized, “We’re self-sustaining and proud of it. Our performance speaks for itself—we’re building not just capacity, but credibility.”
To accommodate rising demand, AIESL has expanded its workforce by over 2,000 professionals in the last three years, now employing more than 5,000 staff across its facilities. However, this growth has not been without internal challenges. The All-India Aircraft Maintenance Engineering Union has threatened industrial action over disputed promotion policies and employment contracts, raising concerns about potential disruptions during a period of peak operational activity.
Externally, competition within the MRO sector is intensifying. Major industry players, including the Adani Group, are expanding their MRO portfolios, increasing pressure on AIESL’s operations. Industry forecasts anticipate a substantial rise in both the business helicopter fleet and commercial aircraft maintenance requirements by 2026, further fueling competition and demand.
Despite a slight decline in provisional revenue for the fiscal year 2025 to ₹1,980 crore from ₹2,180 crore in fiscal 2024, AIESL has maintained strong operational health. EBITDA margins improved from 40% in FY24 to 42% in FY25 (provisional), reflecting robust financial management amid sectoral headwinds.
As India’s MRO sector enters a new phase of growth and heightened competition, AIESL’s capacity to navigate both internal and external challenges will be pivotal in sustaining its leadership and supporting the nation’s broader aviation ambitions.

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