hamco - presentation
TRANSCRIPT
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RISK AND BUSINESS SOLUTIONS
Presentation on
AeroZone @ Hyderabad- The Aviation MRO SEZ
Hyderabad Aircraft Maintenance Company Pvt. Ltd. (HAMCO)
2
Agenda : Setting the Context
To present the concept of AeroZone to the Government of Andhra
Pradesh (GoAP)
To evaluate potential economic and social impact of proposed
AeroZone on the State of Andhra Pradesh
To seek Government approval for the proposed project
To evaluate potential opportunities of collaboration between GoAP
and HAMCO
2 AeroZone @ Hyderabad – The Concept
3 AeroZone - Focus areas and Service
4
CO
NT
EN
TS
5 Business Case for AeroZone
Hamco: Demonstrating our Capabilities 7 AeroZone : Impacts and Benefits 6
Building Blocks of AeroZone
What We Seek from Government of Andhra Pradesh 8
Global Aviation Market – Opportunities Galore 1
GLOBAL AVIATION MARKET – Opportunities Galore
5 Source: Boeing 2005 current market outlook report``
With the expected steady rise in the global
economy, the long-term growth outlook for
global aviation market is robust.
The Boeing Current Market Outlook 2005
infers that over a 20 year outlook period
increasing number of people will travel for
vacations, to meet friends and relatives and to
conduct business.
It is forecasted that the revenue passenger
kilometres would increase from 3800 Billion
Km in 2005 to 9400 Billion Km in 2024
By 2024, the world passenger air travel is
expected to grow at 4.8% CAGR (Compound
Annual Growth Rate) while the cargo air travel
is estimated to witness higher growth of 6.2%
The global commercial fleet size would
increase from 16,800 airplanes in 2004 to
35,300 airplanes in 2024.
It is estimated that around 18,500 new
airplanes (except replacements) will be
added in the global airline fleet
The Global Aviation Market – Opportunities Galore
6 Source: Boeing 2005 current market outlook report``
Shining Asia-Pacific
8,7991,7438696,6957,163425Airplane Deliveries (Number)
3.55.16.64.66.08.2North America
5.17.2—4.98.88.8Latin America
6.6—4.75.16.16.0Middle East
4.64.95.13.45.45.0Europe
6.08.86.15.46.06.3Asia–Pacific
8.28.86.05.06.36.1Africa
%/year%/year%/year%/year%/year%/yearto/from:
2005–20242005–20242005–20242005–20242005–20242005–2024Traffic Growth
North America
Latin America
Middle EastEuropeAsia–PacificAfrica
8,7991,7438696,6957,163425Airplane Deliveries (Number)
3.55.16.64.66.08.2North America
5.17.2—4.98.88.8Latin America
6.6—4.75.16.16.0Middle East
4.64.95.13.45.45.0Europe
6.08.86.15.46.06.3Asia–Pacific
8.28.86.05.06.36.1Africa
%/year%/year%/year%/year%/year%/yearto/from:
2005–20242005–20242005–20242005–20242005–20242005–2024Traffic Growth
North America
Latin America
Middle EastEuropeAsia–PacificAfrica
With increasing importance of Asia Pacific in
the global economy, the growth in passenger
and cargo traffic is estimated to grow
significantly
Supporting this growth, the region is
expected to receive the second largest
passenger airplane deliveries (7163), only
after North America by 2024
Even in the cargo plane deliveries, Asia
Pacific region is expected to receive second
highest number of aircrafts after North
America by 2024
Asia-Pacific will see single-aisle available
seat kilometers (ASKs) more than triple over
the forecast period.
It is estimated that more than 80 percent of
the world’s ASK added generated by 747
and larger airplanes will serve travel to,
from, and within the Asia-Pacific region.
ASK: Available seat-kilometers — the number of seats an airline provides multiplied
by the number of kilometers they are flown; a measure of airline capacity.
7
Challenges Leading to Opportunities
Steady growth projections for next few years in the global aviation market is expected to result in
emergence on new challenges for the airlines which in turn will lead to evolution of new business
opportunities.
Key Challenges for leading Airlines
Emerging Business
Opportunities
Increasing competition owing to the emergence of Low cost carriers leading to intense fare war
Minimise aircraft downtime to maximise revenue potential
Technological complexity of Aviation maintenance
Maintenance related regulatory compliance
Stringent safety standards
Growing shortage of trained MRO professionals
Outsourced
MRO
Services
Focus on core activity– Selling seats – Outsource non core activities to qualified services providers
Minimise capital expenditure by eliminating heavy capital investment on maintenance and repairs equipment
Focus on operational cost competitiveness
by reducing inventory holding costs for the numerous spare parts
Global Aviation MRO
Changing Dynamics
9
Fuel and pilot
salaries 30.1%
Aircraft and
Traffic Service
15.9%
In-flight service
8.3%
M aintenance
12.2%
Administrative
7.5%
Transport
Related 10.0%
/ Depreciation
Amortization
6.7%
/ Promotion
Sales 9.3%
MRO activities in an Airline business can not be
compromised and yet it is a major expense head. Globally,
several airlines do not have the requisite technical expertise
for maintenance. But it represents a major expense-head
which cant be ignored.
Industry estimates suggests that Maintenance Cost
contributes as high as 12.2% of the total cost of an
airline.
In 2004, global aviation MRO industry was estimated to
be a $36 Bn industry. However, with the rapidly rising global
fleet size, the need for MRO services is also set to change.
The industry is expected to witness steady growth of
around 5.6% in long term and is estimated to cross $ 62
Bn by 2014
With an objective to achieve convenience, expertise and
minimisation of MRO cost, airlines are increasingly
outsourcing MRO activities
Airlines are acquiring new wide-body and narrow-body
aircrafts: while this reduces the market for unscheduled
downtimes, the need for scheduled Maintenance is
increasing
Estimated growth in the Global MRO Market
Global Aviation MRO : Changing Dynamics
What do the airlines spend their money on?
36
62.2
0
10
20
30
40
50
60
70
2004 2014
10
Aviation MRO is a well established industry in the West.
However, with increasing economic significance and rising
fleet size of Asia, many organizations in China and rest of
East Asia are rapidly building up their skill-base in the
aviation maintenance field
Owing to the labor intensive nature of MRO services Asia is
emerging as an important hub for MRO. The market in Asia
is estimated to grow at a CAGR of 7.4% by 2014 and
reach approx. $ US 15.4 Bn
The share of Asia in the global MRO market is also
expected to increase from 21% in 2004 to 24.5% in 2014
Presently, a significant amount of Passenger to Freighter
conversion work is also being executed in Asia
Within Asia, China, Japan, India and Australia are emerging
as the top 4 countries in terms of airline traffic and MRO
potential
Over the past few years, China has been able to tap a
significant market share of the Asia MRO market. This
was primarily due to setting up dedicated industrial
zones for aviation related manufacturing and MRO
activities and providing several incentives to companies
operating in this space. Latin America 4.0
Middle East 2.5
Asia 15.4
Europe 17.7
North America
21.9
Africa 1.6
Latin America
1.8
Asia 7.6
Europe 10.1
North America
14.4
Middle East
1.4
Africa 0.7
MRO in Asia – Improving Significance
2004 Global Commercial MRO Market :
$ 36 Bn
2014 Projected Global Commercial MRO Market :
$ 62.2 Bn
What’s in Store for India?
The Epicenter of future Growth
12
160
360
620
0 100 200 300 400 500 600 700
2004
2009
2014
Projected Fleet Size Growth: India
Source: Aerostrategy
India: The Epicenter of Aviation MRO Growth
Extraordinary growth in airline traffic– In 2001 the number
of aircraft departures in India was 2,16,700. This has
increased to 366700 in 2005 and is expected to grow to
438700 departures in 2006
Rapidly rising fleet size – The total fleet size of all airlines
operating out of India are projected to grow rapidly. Number
of aircrafts in the country are expected to rise from 160 in
2004 to around 620 in 2014. In 2005 the fleet size of Indian
carriers was 249. A significant corresponding increase in
revenue passenger kilometres has also been recorded.
Emergence of multiple carriers – India has witnessed
entry of airlines across the service spectrum ranging from
full service carriers such as Kingfisher airlines and
Paramount Airlines to a large number of low cost carriers
such as Air Deccan, SpiceJet, Go Air, IndiGo and Premier
Airlines
With the rapid growth of the aviation sector in India, airport infrastructure, ATC requirements and concerns, pilot and engineer shortages have emerged as major areas of concern. The critical aspect of aircraft maintenance has unfortunately not received adequate focus and coverage. However, Since the establishment of HAMCO in July 2005, the key aspect of aviation maintenance is gradually getting due recognition. Hamco endeavors to address all aspects related to aircraft maintenance by providing specialised services and support development of concepts such as AeroZone
13
With a significant and sudden rise in the total fleet size in
India, the demand for MRO services has also increased
rapidly.
Long standing players such as Air India, Indian Airlines, Jet
airways etc have established their own MRO teams and have
adequate maintenance capability. However, several new
entrants in the market do-not have adequate manpower and
skills for MRO and therefore source their maintenance
requirements from abroad.
The total aviation MRO market in India is estimated at $
US 405 Mn. The market size is expected to be $ 1.06 Bn
by 2014
Market contribution of India in Asian MRO market will
also increase from 5.33% in 2004 to around 7% by 2014.
With a significantly high growth estimate of 10.2%, the
aviation MRO market in India is expected to outpace the
growth in the global as well as Asian market.
Low-cost carriers (LCC) such as SpiceJet and Air Deccan are
increasingly outsourcing their fleet MRO requirements
Presently, a lot of such work is being sourced from service
providers based in regions such as Singapore and Europe
India: The Epicenter of Aviation MRO Growth
Comparative Growth Chart – Global,
Asia and India
Global Asia India
2004 $36 Bn $7.6 Bn $405 Mn
2014 $62.2 Bn $15.4 Bn $1.06 Bn
CAGR* 5.62% 7.4% 10.2%
* CAGR - Compound Annual Growth Rate
14
Line
Maintenance
Base Maintenance Component Repair
Air India Air India Air India Air India
Indian Indian Indian Indian
Jet Airways JAECO JAECO JAECO
Sahara Sahara Engg Sahara Engg /
Malaysian Air Engg
Sahara Engg
Air Deccan EADS EADS EADS
King Fisher Indian Indian Indian
Spice Jet Hamilton Hamilton KLM Engg &
Boeing
Indigo Air Indigo Air - Rockwell Collins
Go Air Go Air - (Sahara, Jet or IA)
Paramount Paramount - GE
Currently many
Indian Low Cost
Carriers source their
MRO needs either
from larger airlines
having their own
Maintenance
facilities or from
MROs abroad.
A number of companies have firmed-up plans to enter the airline market in India. This signifies an
enormous growth potential for the MRO market. Air-One, Visa, Royal, Skylark and Yamuna Air are
the proposed airlines which plan to operate a variety of formats such as chartered carriers, regional
discounters etc.
India: The Epicenter of Aviation MRO Growth
While leasing is a popular mode for aircraft acquisition world-wide, in India many new airlines have
opted for acquisition through purchase – Acquisition through purchase puts the onus of maintenance on
the airlines themselves, the airlines would therefore need to enter into comprehensive maintenance
contracts. The following chart shows the maintenance relationships established by various airlines
15
Critical Requirements for India To Capture MRO Opportunity
Adequate domestic market
World class infrastructure in vicinity of prominent airports
Ease of business operations
Government Support and Fiscal Incentives
Avenues for reduction in operational expenses
Adequate ancillary industry base
Availability of trained and experienced manpower resources
China has successfully captured significant MRO market through addressing critical industry requirements by developing dedicated industrial Park/cluster for Aviation industry. Given its known technical capabilities and low cost trained manpower, India has tremendous potential to emerge as preferred destination for Aviation Original Equipment Manufactures (OEMs) and MROs. To capture the significantly large opportunity of aviation MRO and to attract leading international players in aviation sector, the concept of “AeroZone @ Hyderabad” has been developed.
AeroZone @ Hyderabad -
The Concept
17
AeroZone - Concept
AeroZone will be a geographic concentration/ cluster of advanced
technology enterprises which will address the maintenance, repair
and overhaul (MRO) needs of the global aviation industry”
Vision - To emerge as the benchmark center for excellence in the field Aviation Maintenance Support
and Ancillary Manufacturing by providing an enabling infrastructure and customized service support to
the global industry leaders.
AeroZone would be a ―one-stop-shop‖ for all kinds of aviation related MRO services and ancillary
manufacturing, supported by integrated infrastructure facilities such as ready to use factory sheds, office
space, world class testing facilities, training institutions, business centre and other support facilities - all
functioning at one campus.
The Aerozone would endeavor to be a hub of all regulatory bodies in aviation sector. Indian & Foreign
regulatory bodies such as DGCA, FAA (USA) and EASA (Europe) would be encouraged to set-up
offices in the AeroZone
The objective of AeroZone is to build a „critical mass‟ of leading international aviation components
suppliers and MROs by providing all the required infrastructure of a cluster at a single location.
18
AeroZone – Unique Propositions
Comprehensive Specialized Facilities and
Service
Fiscal incentives &
regulatory benefits
under SEZ scheme
Specialised Infrastructure
and common facilities for
the global MRO
Companies
Offering a broad spectrum of support
to the Growing Airline Industry
AeroZone
First of its kind of industrial cluster focused on aviation sector in South Asia.
The unique selling proposition of AeroZone is based on three core offerings:
Hassle free operating environment
Comprehensive specialized facilities and services
Preferential incentives and policy framework
19
Strategically located in India to
service the entire South East Asia
Integrated Offerings Fiscal Incentives Access to market
First of its kind special economic zone dedicated for aviation and related industry in India
AeroZone - Concept
Tenants to benefit with fiscal incentives under the SEZ scheme
Centrally located within India assisting in faster turnaround time for aircrafts
Spread over 250+ acres of
Land
Specially designed to
accommodate the domestic
and international aviation
MROs and ancillary
manufacturing facilities
Specialised services support
to tenants such as trained
manpower supply, regulatory
assistance, logistics support
Logistics support for smooth
transfer of equipments/ goods
Operational linkages with the
Centres of knowledge (leading
universities, research
organisations etc.)
World-class manufacturing,
office and commercial space
In-campus access to
regulatory bodies
20
AeroZone
Reduced
Costs
The SEZ
Advantage
Strategic
Location
Business Case for the AeroZone
Time to
market
Cluster
Advantages
Integrated Facilities with specialist MRO features
Location at Hyderabad ―a natural aviation hub‖
Operational benefits of operating out of an SEZ
Built-to-suit facilities enabling reduced business
set-up time
Market and Operational Advantages of being
located in a cluster
21
Benchmark Project : Aeroplex at China
Xiamen Aviation Industrial Zone (XAIZ), founded in 1993, is the unique civil aviation maintenance base in
mainland China. Spanning an area of 3.4 sq. km (2850 acres), XAIZ is situated in the northeasten part of
Xiamen Island, a part of Xiamen International Aviation City
The Zone is developed by Xiamen Aviation Industry Co.Ltd. (XAICO). The shareholders of XAICO are:
Xiamen State-owned Estate Investment Co., China Xiamen Corporation For International Techno-
economic Co., Xiamen Airlines, Xiamen International Airport Group Co.Ltd. , China Life Insurance
Company Xiamen Branch, Xiamen International Trade (Group) Co. Ltd., Xiamen Tourism Group
Corporation
XAIZ’s focus areas include maintenance and manufacture of aircraft components. The Industrial Zone is
divided into many functional sections.
Xiamen Aviation Industrial Zone (XAIZ), China
The Park also provides several standard factory buildings in the zone,
with the purpose to lease or sale to investors
Total investments in the zone till date is estimated to be more than
USD100 Mn.
XAICO had raised a fund of USD 200 Mn for infrastructure development
(Roads, Power Supply, water and communication) at the Zone
Leading Global MRO service providers who are opeating out of the Park
are: Boeing, GE On Wing Support Co. Ltd. Taikoo Aircraft Engineering
Co. Ltd., GE Engine Services Co. Ltd., Honeywell TAECO Aerospace
Co. Ltd., Goodrich TAECO Aeronautical Systems Co. Ltd, Hamilton
Sundstrand Qinling Aerospace Co. Ltd. , Meggitt Sensors & Controls Co.
Ltd.
AeroZone @ Hyderabad –
Focus Areas/ Services
23
AeroZone– Focus Areas / Services
In the case of Aviation Maintenance, a cluster is a boon for the consumer – the Airlines. A single location
providing comprehensive services can contribute significantly towards dropping costs and reducing aircraft
maintenance turnaround times for airlines.
The proposed AeroZone would attract companies specializing in flight components, aircraft engine and also
ancillaries. This set-up would significantly enhance the attractiveness of the AeroZone to both – the airlines as
well as the potential tenants.
Aviation Maintenance is a regulatory body monitored activity. In the Aerozone space would be provided to set-
up a DGCA office in the premises of the Aerozone. Additionally a cell would be formed to assist tenants in
securing a certified repair station licence from bodies such as FAA in the US and EASA in Europe
The proposed AeroZone would undertake 6 key activities which would comprise an entire gamut of services
to the airline industry
Ancillary Overhaul and
Repair
Component
Overhaul
and Repair
Technical Services
Engine
Overhaul
Ancillary
Design and
Development
AeroZone
Aero-University
24
Ancillary Overhaul & Repair Engine Overhaul Ancillary Design and
Development
Aircraft Engines are complex systems and the repair and overhaul of engines are routinely conducted generally by Original Equipment Manufacturers.
Ancillaries refer to aircraft components, which do not contribute to flying. Components such as seats, doors and life-rafts are included in this sector
Many aircraft components require complex design and development expertise. Such activities can be taken up at the park
AeroZone– Focus Areas / Services
Airbus A320 - CFM 56 and V2500
Boeing 737 - CFM 56
Embraer 170/190
GE CF 34
ATR 42 / 72
PW 100
GE, Pratt Whitney, Snecma, MTU, IHI Japan, Rolls Royce
Key
Activities
Potential
Tenants
•Oxygen Supply
•Doors
•Seats
•Toilet Units
•Life Limited Escape Slides & Raft
•Oxygen Equipment
•Cabin Interior channels
•Fire Extinguishers
•Fabrication and Mfg of floor panel
Air Liquide, AVOX Systems, Meggitt,
Vought, WZK Poland, HAL India,
Weber, P.L. Porter, B/E Aerospace,
Goodrich Corp, Aircruisers, Teklam,
Hexcel, Thales, Matsuhita, Rockwell
Collins
Aircraft Hardware
Design Analysis Software
Component Development Testing
OEMs and Software companies
with aircraft component design
expertise
25
AeroZone– Focus Areas / Services
Technical Services Component
Overhaul & Repair Aero-University
Critical Aircraft components
such as flight controls,
navigational aids, and landing
gear would be repaired and
overhauled in this facility
An Unique facility which would
conduct testing for aircraft
components and also assist
companies in conducting research
for developing new components
An institution that would conduct courses in Aircraft Maintenance Engineering and technical training for cabin crew
Liebherr, Hamilton Sundstrand, Crane Aerospace, Eaton, TRW Aeronautical, Honeywell, Messier Bugatti, Goodrich Corp, Hydro-Aire, Meggitt Plc, B/E Aerospace Crane Aerospace, Parker Hannifin
Potential
Tenants
HAMCO and other leading Original
Equipment manufacturers
•Air-conditioning
•Auto Flight
•Electrical Power
•Flight Controls
•Fuel Systems
•Hydraulic Power
•Ice and Rain Protection
•Landing Gear
•Navigation Aids
•Pneumatics
•Ancillary Power Unit
•Wheels and Brakes
•Structural and Sheet-metal Repair
Key
Activities
•Hydrostatic Testing and Charging
•Component Design Assistance
•Aircraft Recovery Services
•Licentiate courses in Aircraft
Maintenance Engineering
•Simulator training
•Technical training for Cabin
Crew - Water Borne Landing
HAMCO in alliance with leading
global Aviation educational
institutes
26
AeroZone – Manpower and Investment
Manpower
Investment Range
$ Mn
Component Overhaul & Repair 1635 158
Engine Overhaul & Repair 1000 200
Ancillary Overhaul & Repair 1025 58
Technical Services 25 2
Ancillary Design and Development 750 60
Aero-University` 100 50
Total 4535 528
Building Blocks of AeroZone
28
AeroZone– Building Blocks
I. Aero District
Demarcated zone for units
engaged in focus MRO and
ancillary design and development
activities
II. Aero Commerce
Demarcated zone for business
support and other commercial
infrastructure critical for tenants
III. Aero-University
Integrated campus for aviation
maintenance training and
educational programs
IV Aero Logistics Distribution and Warehousing
Infrastructure for the tenants
29
Aero District Aero District will be the demarcated zone within the
AeroZone that will provide ready to use infrastructure
facilities in the form of factory sheds to the tenants of
the Park.
The zone will house units engaged in the five key
areas as depicted in the chart.
Purpose-built factory sheds of various sizes would be
provided to companies
Plots would be earmarked for companies wishing to
build their own workshops at AeroZone
AeroZone – Building Blocks
Aero District
Ancillary
Overhaul
and
Repair
Technical
Services
Component
Overhaul
and Repair
Engine
Overhaul
and
Repair
Design &
Develop
ment
Zone
30
Aero Commerce Aero Commerce will be a cluster of ultramodern
Buildings that will cater to the office space needs of
the tenants at AeroZone
The business will have facilities as depicted in the
chart.
The Business Enclave would be constructed on a 2.5
acre plot of land in a central location in the AeroZone
The enclave would be easily accessible from all parts
of the complex
Aero Commerce
Club
House
Commerci
al Complex
Office
Complex
AeroZone – Building Blocks
31
Aero-University An Integrated campus for aviation education, developed on
8 acre plot in the AeroZone
Aero-University would be set-up by Hamco in collaboration
with leading institutes such as Westwood College of
Aviation Technology Denver and National Aviation
Academy Florida
An unique industry academia partnership that would
engender a continuing source of high quality workforce for
the aviation industry
The courses would be in the fields of aircraft maintenance
and technical training for cabin crew. Courses for
Commercial Pilot’s License would not be conducted here
Specialised training Infrastructure such as
Mock Aircraft,
Simulators,
large water pool for water-borne landing training and
Workshops
Aero-University - Indicative Courses
• Licentiate courses in Aircraft Maintenance
Engineering
• Simulator training for Pilots
• Technical training for Cabin Crew Training
• Specialist short term courses such as Water
Borne Landing for cabin crew
• Anti-Hijack training
• First Aid training
• Passenger Behaviour Control Management
AeroZone – Building Blocks
32
Aero Logistics
An unique feature for the AeroZone– a dedicated
logistics hub set over an area of 4 acres
The hub would maintain a large warehouse for parts
The operations would be backed by a central
purchase organization which would co-ordinate with
the tenants and ensure optimum stocking of spare
parts
The distribution arm of the company would engage in
transporting replacement components and securing
airport clearance for the components
Central Warehouse Distribution Arm
Centralized Parts
Purchase
Securing Aircraft
Clearance
Spare Parts Needs
Assessment
Transporting
Components
Stocking of Parts Doorstep Delivery
Inventory Management
Following Material
Handling Guidelines
Functions of Aero Logistics
AeroZone – Building Blocks
33
AeroZone– Infrastructure and Facilities
Integrated Facilities with specialist features for the Aviation support maintenance and
manufacturing industry
Specialty
Services to be
offered by the
AeroZone
Regulatory Assistance Securing clearance of proposals for Automatic Approval
Import of Capital Goods list attestation
Country of Origin Certificate (GSP)
Filing proposals to the DGCA
Assistance in securing accredited repair station certificates
from FAA and EASA
Securing Import Export Code No. (IEC)
Clearance for job work / subcontracting
Logistical Support A central warehouse for Aircraft Parts
A logistics unit for parts transportation and securing security
clearance for parts from the Airport
Manpower Assistance A ready workforce for tenants, trained in MRO activities
An Aero-University for continuous flow of trained manpower
Other Services Facilities Management
34
AeroZone– Proposed Land Usage Pattern
Total Area (in Acres)
AERO DISTRICT 245.0
Component Overhaul 125.0
Ancillary Overhaul 50.0
Engine Overhaul 35.0
Technical Services 10.0
Design and Development Zone 25.0
AERO UNIVERSITY 15.0
AERO LOGISTICS 5.0
AERO COMMERCE 5.0
Total 270
AeroZone– Impact and Benefits
36
Estimated Area 250 Acres (Phased Development)
Potential Companies
in the AeroZone GE, Honeywell, Hamilton Sundstrand, Goodrich Corporation, Liebherr
Estimated Space
Development
(Over a period of 3
years)
Processing Zone - around 6 lakh sqm and
(including processing and training facilities)
Estimated Job
Creation
Estimated Direct Jobs Creation - Around 4,500
Estimated Indirect jobs Creation- Around 11,250
Potential Investment Approximately $ 520 Mn
Magnitude of the AeroZone
37
Economic Impact
Expected FDI – Over USD 500 Mn
Significant Foreign Exchange Saving
Potential to develop a peripheral cluster
of SMEs engaged in activities such as
• Supplying contract labour
• Mechanical Fabrication
• Facilities Maintenance
• Providing technical supplies –
Metalworking Fluids, Adhesives,
Cleaning Agents etc
Social Impact
Potential to create more than 15,000
jobs – Over 11,000 indirect jobs and
over 4,000 direct jobs
Would play a role in upgrading the
skill-sets across all strata of the
participating workforce
Potential to upgrade the social
infrastructure in the immediate region Spin-off Benefits
Enhance the technology capital of the
region
Act as an additional enabler for airline
operators to identify Hyderabad as their
operational hub
Spawn multiple other industry groups
such as mechanical engineering,
electronics and software development
First Mover Advantage for A.P.
Aero-Zone will make Hyderabad the Aviation
capital of India
Aerozone can make significant contributions
to the Andhra economy
There is a need to act fast. Companies are
likely to consider only a single location in
India for operations
AeroZone– Impact & Benefits
“GoAP – Hamco” Best Fit
39
HAMCO has been established on 7th July 2005 by a team of aviation professionals
after over a year of planning
Company is set-up and managed by set of Aviation Professionals with decades of
Aviation experience
Over 20 A&C and Av Licensed Aircraft Maintenance Engineers, holding current &
valid DGCA Licenses working with Hamco
Company will be starting to provide Line Maintenance to private airlines at
Begumpet airport shortly
Negotiations in advanced stage with Airlines for supporting their Line Maintenance
activities at Hyderabad
Evaluating opportunities to offer Heavy Maintenance services to airlines at
Hyderabad Airport.
Hamco - Introduction
40
1. Conceptualization, Planning and financing of AeroZone
2. Managing the development of AeroZone and technical evaluation of all
potential tenants
3. Marketing AeroZone across the world
4. Providing specialised services such as regulatory assistance, trained
manpower support, logistics & distribution services etc to the tenants
5. Establishing MRO units in alliance with leading companies in the
AeroZone
6. Develop India‟s first Aero-University at AeroZone in alliance with
leading aviation education institutes in the world
7. Developing a highly trained pool of workforce
8. Facilities management at the AeroZone
Role of Hamco in AeroZone
41
What we seek
Support of Government of Andhra Pradesh for the AeroZone initiative
Evaluate opportunities of State Government Participation in the AeroZone
Project
Allotment of around 250 acres of land in the vicinity of upcoming
Shamshabad Airport in Hyderabad
Government Support to Procure Necessary Approvals from the
Government of India for Obtaining Special Economic Zone Status for
AeroZone
Additional financial incentives to make the proposed AeroZone attractive
to leading global players engaged in Aviation related manufacturing and
services
RISK AND BUSINESS SOLUTIONS
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