The Iran-Israel conflict now poses a big risk to India's aviation repair industry, making people worry about getting important plane parts. As Israel steps up attacks on Iran's nuclear sites and Iran tries to shut down the Strait of Hormuz, supply chains worldwide face more doubt.
On June 22, Iran's parliament approved the plan to close the Strait of Hormuz, a key shipping route. The Supreme National Security Council still needs to give the final okay. This happened after the U.S. hit Iranian nuclear sites, making things even more tense in the area.
Indian MRO companies such as Air India Engineering Services Ltd (AIESL) and Hindustan Aeronautics Ltd informed money control that most of their aircraft parts are imported from Western nations, including the U.S. and France.
As 80 percent of India's aviation engineering requirements are fulfilled by imports, any disruption in shipping routes or availability of air freight would severely affect business.
While most of the components are flown in, particularly regular "line checks" representing more than 80 percent of MRO revenues, heavier equipment such as landing gear by sea.
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Executives fear that extended disruption can push back heavy maintenance cycles and redelivery inspections, and the carriers will be compelled to outsource to Middle Eastern or Southeast Asian MRO providers. The increased logistics complexity and cost could further undermine India's domestic aviation maintenance supply chain.
India's aircraft parts market, valued at US dollar 16.22 billion today, remains heavily import-dependent. Any protracted Middle East crisis would not only increase the cost but also lead to flight grounding due to component unavailability.
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