New Delhi: Flag carrier Air India will set up a $90 million (Rs412 crore) engine overhaul facility for Dreamliner, the new aircraft from Boeing Co., along with GE Aviation, an aircraft engine supplier.
GE Aviation, a subsidiary of General Electric Co., will invest about $20 million in the joint venture, to be based out of Air India’s hub of Mumbai, the firm’s country director Nalin Jain said on Thursday.
Air India, run by state-owned National Aviation Co. of India Ltd, or Nacil, will invest the rest of the amount.
The investment will be phased over seven years as engines come up for overhaul or major maintenance.
Under the GE Branded Services Agreement announced on Thursday, GE Aviation will provide technical support while Air India will offer maintenance, repair and overhaul (MRO) services for engines that power the Dreamliner.
Air India has ordered 27 Boeing 787 Dreamliner aircraft and will begin inducting these from 2011.
The new facility is expected to advance Air India’s plans to become a global MRO firm, the airline said in a statement.