Boeing has delayed establishing a maintenance, repair and overhaul (MRO) business in partnership with Air India, the loss-making national carrier that recently received a government bail-out.

The US aircraft-maker's president for India, Dinesh Keskar, told ATI in June that construction of the MRO in Nagpur, central India, would commence in 2009's fourth quarter and it would be completed in late 2011.

He said the plan was to be build two aircraft hangars, which would be used to maintain Boeing 777s and Boeing 787s.

But Boeing's spokeswoman in India says construction has yet to commence.

Boeing aims to have construction start sometime this year, she says.

The delay is a consequence of the delays in the Boeing 787 programme, she adds.

But the MRO is a joint-venture with Air India, which recently received a government bail-out and has promised the government it will restructure its business and slash costs in an effort to become profitable.

Source: Air Transport Intelligence news