08:21 AM EDT, 07/25/2024 (MT Newswires) -- Magellan Aerospace ( MALJF ) on Thursday signed a Memorandum of Understanding with Aequs Private Limited to explore the development of a business plan for a jointly-owned engine MRO business in the Aequs Special Economic Zone, at Belagavi in Karnataka, India.

India's aerospace sector has experienced growth over the past decade, driven by government initiatives including Make in India and UDAN Scheme, growth in the private sector, and increasing air traffic. Air travel demand in India has surged, making it one of the fastest-growing aviation markets in the world.

Under the terms of this MOU, Magellan and Aequs will work together to evaluate the market for business, commercial and military aircraft engine MRO services, to develop a comprehensive business plan that expands our existing partnership into the MRO sector through this exciting new project.

In 2008, Aequs and Magellan established Aerospace Processing India (API), a joint venture (JV) that was the first Airbus and Boeing approved plant in India, providing OEMs aerospace surface treatments not readily available in country at the time.

Aravind Melligeri, Chairman and CEO, Aequs said in a statement: "This facility is expected to have the ability to strip, rebuild, and test engines to help alleviate existing capacity constraints. This JV will leverage the vertically integrated Aerospace manufacturing ecosystem at Aequs SEZ and coupled with Magellan's global presence and expertise across product lines, will be best suited to provide engine MRO services to domestic and international business, commercial and military aircraft users."

Phillip Underwood, President and CEO, Magellan Aerospace ( MALJF ) said in a statement: "With soaring aerospace and aviation growth, this potential engine MRO venture for the Indian market will focus on infrastructure development, cost advantages, and strategic initiatives that are essential to realizing the sector's potential."