GMR Hyderabad International Airport Ltd. (GHIAL), and MAS Aerospace Engineering (MAE), a wholly-owned subsidiary of Malaysia Airlines sealed an agreement today to set up a 50:50 joint venture Airframe Maintenance, Repair and Overhaul (MRO) company in Hyderabad.

The JV company, known as MAS-GMR Aerospace Engineering Company Ltd., will be built on the eastern side of the Rajiv Gandhi International Airport, Hyderabad.

The agreement was signed by Mr.P.S.Nair, CEO of GHIAL and Mr.Mohd Roslan Ismail, MD of MAE, in the presence of His Excellency Dato’ Tan Seng Sung, Malaysia’s High Commissioner to India; Mr.G.M.Rao, Group Chairman, GMR, Mr.N.Sadasivan, Deputy Chairman, Malaysia Airlines and Mr.Kiran Kumar Grandhi, Business Chairman-Airports, GMR Group.

Mr. Rao said, "Despite the economic downturn, there are over 350 aircraft in operations currently. We expect that more than 200 new aircraft will be headed for India in the next few years, with a possible ten-fold increase of 2,000 new planes in the next 10-15 years.

"All this makes us bullish for the future, and we are confident that the strategic location of Hyderabad, just two hours away from all the major Indian metros and less than four hours away from all the SAARC countries, will ensure that our country’s forex reserves receive a big boost," he added.

Malaysian Airlines, Deputy Chairman, Mr. Sadasivan said, "Our aim is to position the JV company as a leading MRO player. Our facility, catering to both narrow and wide bodied aircraft checks, will be up and running by the third quarter of 2010. Built specially to service aircraft in the Indian subcontinent, we have the capacity to service between 60-80 aircraft annually. This will also give us a head start when the economy recovers, and we will add new capacity as needed.

"I am delighted to say that many airlines have expressed interest in our MRO services. Announcements will be made as and when the details are finalized."

MD of MAE, Mr. Mohd Roslan Ismail added, “MAE has over 36 years of experience in the MRO business. We are certified by 31 National Aviation Authorities and have 80 customers including Lufthansa, Saudi Arabian Airlines, Jet Airways, Qantas, Austrian Airlines, AWAS, RBS and GECAS, one of the world’s largest fleet owners and lessors.

"As such, our customers in India will be in good hands. Our facility in Hyderabad airport will provide base maintenance services starting with C-checks for narrow bodied aircraft like Airbus A 320 and Boeing 737 including the B-737 Classic and B-737 next generation aircraft."

GHIAL CEO, Mr.P.S. Nair said, "Currently, Indian aircraft are sent overseas for maintenance. With our strategic location in Hyderabad’s Special Economic Zone, airlines will soon be able to enjoy substantial savings. They will enjoy highly competitive fees and reduced downtime for each aircraft. On an average, the downtime for an aircraft leaving Indian shores for maintenance is between four to ten days."

The Rajiv Gandhi International Airport, Hyderabad is the first Public Private Participation airport project in India. It has 250 acres of land adjacent to the airfield, which has been designated as a Special Economic Zone with attractive tax and other financial incentives. These 250 acres have been earmarked specifically for Aerospace-MRO Activities.

About GHIAL:
GMR-HIAL is a joint venture company promoted by GMR Infrastructure Ltd., (63%); Malaysia Airports Holding Berhad (11%), Airports Authority of India (13%) and Government of Andhra Pradesh (13%), with a mandate to develop a world-class international grade airport spread over 5,495 acres in Shamshabad, about 25 kms from the main city of Hyderabad.

This project - Rajiv Gandhi International Airport – is set to position Hyderabad as a prominent player in the global aviation map contributing to the prosperity, development and economic well-being of the region.

About MAE Aerospace Engineering:
MAE started as Malaysia Airlines’ E&M Division in 1972 and has over 36 years of experience in the Maintenance Repair Overhaul (MRO) business.

It is amongst the leading MROs and one of the biggest in South East Asia, with strong technical and engineering capabilities. It is a certified MRO organization by 31 National Aviation Authorities including the European Aviation Safety Agency (EASA), the U.S Federal Aviation Administration (FAA), India’s Directorate General Civil Aviation (DGCA) and Malaysian Department of Civil Aviation, amongst others.

With advanced heavy maintenance facilities and six fully equipped hangars in KL International Airport and its head office in Suban