Gautam Adani, Bombardier CEO Eric Martel discuss partnership in aviation sector

Adani Group Chairperson Gautam Adani met Bombardier CEO Eric Martel to discuss a possible partnership in the aviation sector. Adani, in a social media report, said that they discussed partnerships in aircraft services, MRO and defence. 

“Powering India's aviation growth! Had a great discussion with @Bombardier CEO Éric Martel on transformative partnerships in Aircraft Services, MRO and Defence. Together, we are harnessing synergies for a stronger, self-reliant India,” he said in a post. 

This comes after the group had, last year, halted the proposed Rs 400-crore acquisition of maintenance, repair and overhaul (MRO) company Air Works after a major shareholder of the aviation company was forced into liquidation. Adani was unable to close the deal proposed in 2022, after Punj Lloyd Group that held 23 per cent stake in the company underwent liquidation, leading to inordinate delays. 

Meanwhile, the government, in an aim to boost the MRO industry in the country, has implemented a 5 per cent Goods and Services Tax (GST) on all aircraft and aircraft engine parts. 

The new tax regime is expected to make the Indian MRO industry more competitive and attract more business to the sector. Previously, different GST rates applied to various parts, which complicated the tax structure and increased costs for the industry.

The government’s decision is part of a broader effort to enhance the aviation sector and make India a global hub for MRO services. The uniform GST rate is expected to provide a significant boost to the industry, which has been struggling with high costs and complex tax structures.