AVGEEK
The commercial decisions behind India’s airport infrastructure
Lufthansa Consulting’s Arvind Chandrasekhar examines airport investment and commercial teams, make-or-buy decisions and the geography of MRO, drawing comparisons with European hubs and low-cost long-haul models.
The conversation
This week Arvind Chandrasekhar, the Director of Sales India and Head of Network, Fleet Management at Lufthansa Consulting, discusses in detail the world of aviation consulting. We delve deep into the business of airports in India, ranging from the projects undertaken by Lufthansa Consulting to challenges & opportunities for airport infrastructure in the country for the next five years.
We also discuss “Make vs Buy,” airport commercial and marketing teams, the geoeconomics of MROs, lessons from European hubs, Indigo and Low Cost Long Haul and various other topics.
Vishal Mehra - @vishal1mehra
Key Takeaways
- Scale alone does not settle make-versus-buy. Arvind Chandrasekhar argued that an airline must compare the quality and cost it can actually deliver in-house with external alternatives, rather than assume that size makes internal provision superior.
- Airport capacity is a chain of constraints. Terminals, aircraft parking, airspace and surface access can each shape network growth; airside transfers and road or rail links also require cooperation beyond the airport boundary.
- Infrastructure needs commercial capability to become a viable business. Data, airline relationships and experience with non-aeronautical partners help an airport turn physical investment into a proposition customers and carriers can use.
- Base maintenance and engine MRO are different investment problems. They need different technical capabilities, while demand may grow faster than capacity; an aggregate claim that India needs more MRO does not specify which capability should be built.
- Local maintenance growth need not mean exclusive local sourcing. Chandrasekhar favoured diversified supply and considered regional export demand as part of the investment case, rather than treating localisation alone as proof of resilience or commercial viability.
- Long-haul low-cost economics require more than full aircraft. Feed, fleet efficiency, ancillary income and premium demand can support the model, but traffic volume alone does not demonstrate route profitability.
- An implementable recommendation needs operational ownership. Chandrasekhar described working with delivery teams so they understand and champion changes; the quality of a consulting proposal is separate from an airline’s decision about which services to own.
Editorial analysis
Start with the problem an airline can control
Arvind Chandrasekhar treats aviation consulting as a practical question about what an organisation can control. A solution that worked elsewhere is not automatically useful to an airline or airport facing different market power, regulation or capabilities. The process begins by defining the problem, then testing ideas with the people who must implement them. His make-versus-buy example captures the discipline: reaching a certain scale does not make insourcing sensible if the operation cannot deliver the service at an appropriate cost.
Airport capacity beyond the passenger terminal
That lens changes the airport-growth conversation. Passenger terminals are only one capacity requirement; aircraft parking, airspace and surface access can each become a constraint. Inadequate parking can force airlines into suboptimal schedules, while poor access can prevent an airport’s intended catchment from using it easily. Chandrasekhar sees opportunities in investment, additional hubs and non-aeronautical revenue, but links them to targeted infrastructure and capable commercial teams. Building the facility does not remove the need to develop airline relationships or bring in appropriate specialist experience.
MRO as a sequence of investment decisions
Maintenance presents a related set of choices. Chandrasekhar distinguishes line, base and engine work rather than treating MRO as one interchangeable market. He expects additional Indian base-maintenance investment to recover some business, while warning that fleet growth could still outstrip local capacity. Engine maintenance poses a higher barrier in skills, capital and manufacturer cooperation. He also argues for diversified sourcing and an investment case that can serve nearby foreign markets, rather than assuming that all Indian aircraft maintenance will return home. These are forecasts and strategic judgments from the recording.
Why operational delivery matters more than a full aircraft
The airline discussion returns to execution over spectacle. Operational and financial discipline, clear customer promises and investment in staff underpin growth. Chandrasekhar’s interest in long-haul low-cost models is qualified: network feed, efficient aircraft, ancillary revenue and premium demand may help, but the verdict remains open. Filled aircraft do not themselves prove profitable routes. His airport comparison likewise favours useful connections over isolated assets, linking easier airside transfers with airline cooperation and road or rail access. Across the interview, the commercial plan becomes credible only when the operating system can deliver it.
Questions & answers
What makes aviation consultancy advice implementable?
Chandrasekhar starts by identifying the specific problem, its local constraints and who must implement a solution. An approach that worked for another carrier is not automatically transferable.
Why might a growing airport still constrain airlines?
Terminals, aircraft stands, airspace and ground access form a chain of bottlenecks. Any one can distort schedule or limit the catchment even when passenger facilities appear large.
Is aircraft maintenance a single investment market?
No. Line, base and engine work need different skills, capital and manufacturer relationships. Chandrasekhar warns that new Indian capacity might still lag fleet growth.
Will every airline benefit from localising all maintenance?
Not necessarily. He favours diversified suppliers and argues that credible Indian MRO investment may also need demand from nearby foreign markets.
What would make long-haul low-cost operations sustainable?
Feed, fleet efficiency, ancillary sales and premium demand may help. Chandrasekhar cautions that high load factors alone do not demonstrate route profitability.
Sources & attribution
Original conversation: The Indian AvGeek — Episode 41. Originally published 25 May 2025.
Historical context: This analysis reflects statements and assessments made during the original 2025 conversation. Strategies, forecasts, regulations, commercial claims and figures should be read in that period rather than as an independently verified account of October 2026.
Editorial Q&A: These are sourced explanatory paraphrases, not verbatim quotations from the guest.