Pratt & Whitney maintenance facility to be set up in Mumbai see slow progress due to GST issue?
Pratt & Whitney’s (P&W) first-ever engine maintenance repair and overhaul (MRO) facility (in association with Air India Engineering Services Ltd) that is to be set up in Mumbai is seeing slow progress due to Goods and Service Tax (GST) issue.
P&W has been seeking 5% GST on engine parts as the current tax rate of 18% is not viable for their business. However, the government has not yet officially responded to its demand. This has resulted in the MRO failing to take off, even a year after the two parties signed an agreement to establish this facility.
AIESL, Air India Ltd’s engineering wing, along with aircraft engine P&W had announced their decision to work together for maintaining engines, including the problematic ones fitted on Airbus A320neos. This had come amidst glitches in P&W engines, resulting in several mid-air scares.
