MROs and OEMs Must Do More Air Transport World

Published on : Monday, February 6, 2017

Air Transport WorldThe new maintenance, repair and overhaul market is presenting its own set of challenges, mostly in the form of intense competition among diversified global giants. The trick now is to gain share fast enough to compete with rival MROs or to partner on favorable terms with OEMs.

 

“The big keep getting bigger,” consulting group CAVOK VP David Marcontell noted. “2017-2018 will likely see more consolidation as the biggest MRO and OEM firms continue to acquire smaller, niche players.”

 

“Aircraft OEMs are entering the aftermarket more aggressively either directly or through existing providers,” Gavin Simmonds, general manager of AJW Technique, said.

 

Scale is increasingly necessary in this market. MROs and OEMs now do more than simply facilitate repairs; they must manage assets. Whether providing part pools or ofering pool-backed fight-hour programs, the more aircraft that are supported the fewer spares are needed as a portion of operating assets. A lower spare ratio allows an MRO provider to offer more competitive rates and to make further market gains.

 

Major airlines want worldwide support, so global stretch is also essential to growth. The biggest growth in air transport — in passenger numbers and in terms of feets — is still in China and Asia, so MROs in mature markets must have an Asian presence. It is no accident that the two biggest airframe shops, ST Aero and HAECO, are located in Asia-Pacifc and have expanded from there. The Middle East and Latin America have also grown fast, and a presence in these regions is deemed valuable.

Nose-to-tail
The third critical competitive element is the breadth or scope of services a firm can offer. “More suppliers now offer a one-stop solution, streamlining repair support through nose-to-tail offerings across all ATA chapters,” Simmonds explained.

 

It’s not enough just to do traditional maintenance. For example, heavy checks are low margin and subject to capacity gluts in slow years. But modifcations are growing fast for services such as winglet installation, cabin reconfgurations, IFE installations and the avionics upgrades that are coming around the world. The MRO provider that can offer long-term customers well-designed modifcation programs that ft into the maintenance program stands to earn more revenue and be more proftable.

 

MRO providers must also be more fexible in today’s fast-changing market.

 

 

Source:- AJW Aviation

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