Air India secures land for Boeing MRO JV

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Air India and Boeing have decided that the lease on the land for their future maintenance, repair and overhaul (MRO) business at central India's Nagpur Airport will be under Air India, rather than Boeing's, name.

Boeing in February 2009 signed a lease on a 50-acre plot of land at Nagpur Airport but Air India has announced today that the airline has just signed a lease on 50-acres at the airport.

The land; which is for construction of Air India and Boeing's MRO joint-venture; is being leased from the Maharashtra Airport Development Company and the lease was signed on 8 June, says Air India.

"Boeing will facilitate the construction and equipping of the new facility", which will be used to maintain Boeing 777s and Boeing 787s for Air India and third-party customers, it adds.

Boeing was originally planning to begin construction in 2009's fourth quarter, but the plan was delayed. India's government is working to restructure loss-making Air India.

In December 2005 Air India ordered 27 Boeing 787s, 23 Boeing 777s and 18 Boeing 737-800s. It was the largest commercial aircraft order in India's civil aviation history and was made on the proviso that Boeing establish a MRO business in India to support the aircraft.