Air France-KLM Acquired Stakes in India’s Max Aerospace

The Air France-KLM combine in January 2011 acquired 26% stake in a Mumbai-based firm, Max Aerospace. Air France-KLM expressed their intention to launch a maintenance, repair and overhaul (MRO) facility for aircraft components in India. The European giant, Air France-KLM become one of the first international airlines to invest in a MRO in India.  A simple business model for the MRO: Offer spare parts required by Indian carriers in the country itself without ordering them from abroad was adopted.

Indian carriers are compelled to send their planes abroad for maintenance checks and also rely on overseas suppliers for their component requirement. As a result there is wide business opportunity for international players who can at least have a warehouse for spares in the country and offer Indian carriers fast and at reasonable rates.