Air India to Invest Rs 3,200 Crore in MRO Hub at Bengaluru Airport, Strengthening India’s Aviation Infrastructure

India’s aviation infrastructure is set for another significant milestone after Air India announced plans to establish a world class Maintenance, Repair and Overhaul (MRO) facility at Kempegowda International Airport in Bengaluru. The airline will invest approximately Rs 3,200 crore in the project, creating one of the country’s largest aviation maintenance hubs.

The new MRO campus will support Air India’s expanding fleet while reducing the airline’s dependence on overseas maintenance facilities. The investment also aligns with India’s ambition of becoming a global aviation hub as passenger traffic continues to grow rapidly.

Spread across a large area within Bengaluru airport, the facility will be capable of servicing both narrow body and wide body aircraft. It will provide maintenance, engine servicing, component repairs and aircraft overhaul services using advanced engineering systems and digital technologies.

For decades, Indian airlines have relied heavily on foreign MRO facilities in countries such as Singapore, the UAE and Europe, resulting in higher operational costs and longer aircraft turnaround times. Developing domestic maintenance infrastructure is expected to improve efficiency while retaining more aviation spending within the country.

The project is also expected to create thousands of direct and indirect employment opportunities. Engineers, aircraft technicians, maintenance specialists, logistics providers and aviation support companies are likely to benefit as the facility becomes operational. It is also expected to strengthen India’s aviation supply chain by encouraging component manufacturers and specialist service providers to expand their presence.

Bengaluru was selected due to its established aerospace ecosystem, skilled workforce and excellent connectivity. The city already hosts several leading aerospace manufacturers, research organisations and engineering companies, making it an ideal location for a large scale aviation maintenance hub.

The MRO facility will support Air India’s ambitious fleet expansion programme, which includes hundreds of new aircraft ordered from Airbus and Boeing. As more aircraft join the fleet over the coming years, domestic maintenance capacity will become increasingly important to ensure operational reliability and minimise downtime.

Industry experts believe India’s MRO market has significant growth potential as domestic air travel continues to expand. Rising passenger numbers, government policy support and increasing airline fleets are expected to drive sustained investment in aviation infrastructure over the next decade.

Apart from supporting Air India’s operations, the new facility could eventually provide maintenance services for other domestic and international airlines, helping position India as a competitive aviation maintenance destination in Asia.

The investment also complements the government’s broader focus on strengthening airports, regional connectivity and aviation infrastructure. With more airports becoming operational and air travel demand reaching record levels, investments in maintenance facilities are becoming just as important as new terminals and runways.

Air India’s planned MRO hub represents more than just an airline investment. It marks another step towards building a self-reliant aviation ecosystem that supports employment, technology development and long term growth. As India’s aviation sector continues to expand, projects such as the Bengaluru MRO facility will play an important role in improving efficiency, reducing costs and strengthening the country’s position in the global aviation industry.