A Strategic Win for Aviation Tech
On August 2, 2025, Melstar Information Technologies Ltd. announced that its aviation subsidiary, Melstarr Aviations Tech Pvt. Ltd., has received a Letter of Acceptance (LoA) from AP Airports Development Corporation Limited. The contract is for the development, operation, and management of a Flying Training Organization (FTO) at Kurnool Airport in Andhra Pradesh. This marks a significant milestone for Melstar, which has been steadily expanding its footprint in aviation technology and simulation services.
Key Highlights
- Melstarr Aviations Tech Pvt. Ltd. awarded LoA by AP Airports Development Corporation
- Project involves setting up and managing a Flying Training Organization at Kurnool Airport
- Compensation fixed at ₹810 per flying hour per aircraft, excluding taxes
- Initial compliance required within 15 days of LoA issuance
- Full operational term to be governed by a formal agreement post-signing
- Nature of contract is domestic and does not involve any related party transactions
Scope of the Project: Training India’s Next Generation Pilots
- Flying Training Organization (FTO) Setup
- Includes infrastructure development, aircraft procurement, and simulator integration
- Focus on training commercial and private pilot license candidates
- Will feature advanced flight simulation systems and AI-powered analytics tools
Operational Management
- Melstarr to oversee scheduling, safety protocols, and regulatory compliance
- Aircraft maintenance and instructor training to be handled in-house
- Real-time data tracking and performance monitoring to be implemented
Revenue Model
- ₹810 per hour per aircraft forms the base revenue stream
- Additional income expected from simulator sessions, ground school modules, and certification programs
- Overall project size will depend on actual operational scale and fleet utilization
Strategic Fit: Melstar’s Aviation Ambitions Take Flight
- Melstar has been pivoting toward aviation tech, with a focus on simulation, AI, and training systems
- The Kurnool FTO project aligns with India’s growing demand for trained pilots and aviation infrastructure
- Supports government initiatives to decentralize flight training and boost regional connectivity
- Enhances Melstar’s credibility in aviation services, complementing its legacy IT offerings
Market Reaction and Business Implications
- Melstar’s stock remained flat at ₹4.32 on the BSE following the announcement
- Trading volumes were modest, but analysts expect long-term value creation from aviation vertical
- The LoA adds a new revenue stream and diversifies Melstar’s business portfolio
- Potential for future contracts with other regional airports and aviation authorities
Execution Timeline and Compliance
- Initial compliance with Request for Proposal (RFP) terms required within 15 days
- Full operational rollout to follow post-agreement signing
- Melstar has confirmed no promoter or group company interest in the awarding entity
- The project is not classified as a related party transaction and is conducted at arm’s length
Conclusion: A Lift-Off Moment for Melstar
Melstar Information Technologies’ foray into aviation training through its subsidiary marks a bold step toward diversification and innovation. With the Kurnool FTO project, the company is not just expanding its business—it’s helping shape the future of India’s aviation talent. As the skies open up for regional training hubs, Melstar is positioning itself as a key player in the next wave of aviation infrastructure.
Source: MoneyWorks4Me
