Mr. Phillip Underwood reports

MAGELLAN AEROSPACE PARTNERS WITH AEQUS TO EXPLORE SETTING UP INDIA BASED ENGINE MRO BUSINESS

Magellan Aerospace Corp. has signed a memorandum of understanding (MOU) with Aequs Private Ltd. to explore the development of a business plan for a jointly owned engine MRO (maintenance, repair and operations) business in the Aequs special economic zone, at Belagavi in Karnataka, India.

India's aerospace sector has experienced growth over the last 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.

Given the substantial growth of aerospace and aviation in India, the MRO sector is poised for significant development. 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 its 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 (original equipment manufacturers) aerospace surface treatments not readily available in country at the time. This successful venture has flourished and grown over the last 15-plus years to be the largest in India processing more than 1.5 million parts per year. This demonstrates the solid foundation of the Aequs/Magellan relationship that delivers unique, cost-effective solutions to support a global customer base.

Commenting on this newly agreed to MOU, Aravind Melligeri, chairman and chief executive officer, Aequs, said: "We have had a successful relationship with Magellan Aerospace for the past 15 years and partnered to build the most innovative and effective Aerospace ecosystem in India today at the Aequs SEZ. It is only logical we explore further opportunities to service the fast-growing business, civil and military aviation industry in India. 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, said: "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. Magellan is committed to contributing to India's expertise in the aircraft engine MRO sector and helping grow this industry in the country. We are ready to meet the growing needs of our MRO customers with the cost-effective and quality solutions they have come to expect."

About Magellan Aerospace Corp.

Magellan Aerospace is a global aerospace company that provides complex assemblies and systems solutions to aircraft and engine manufacturers and defence and space agencies worldwide.

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