AAR Explores In-Country Capability

AAR is talking with potential partners about setting up in-country MRO capability in India, said Ben Sandzer-Bell, AAR's vice president of strategic development. "We are looking to transition from what we have done historically, which is selling service from out of country," he said. What business structure the Indian MRO will take is open, but Sandzer-Bell said "it more than likely will be a wholly independent company, because we will need to have an in-country partner."

AAR recently retained Rono Dutta, a former president of United Airlines and Air Sahara, as a senior advisor in India. Sanzer-Bell said Dutta is "helping shape AAR's thinking about what the end state" of its investment in India should be.

Sandzer-Bell said customer airlines are telling AAR there are three MRO capabilities in India that are lacking: component repair, sophisticated supply chain management and third-party independent aircraft maintenance.

Its ability to train and retain a technical workforce will be a determining factor in where the MRO should be based.