aircraft mro business plan

• Alton Aviation Consultancy

MRO & Aftermarket

Alton’s team brings decades of aviation industry experience advising maintenance, repair and overhaul (MRO) suppliers, airlines, OEMs, parts traders/distributers and investors. Clients rely on Alton’s deep technical domain expertise for data-driven insights and solutions leveraging highly-curated, proprietary market intelligence databases, models, and industry forecasts.

Strategy and Business Plan Development

Leading aircraft lessors, airlines, lenders, and investors rely on the Alton Aviation Consultancy team for our acumen, experience, and client-focused approach across the industry spectrum.

Operations Improvement and Performance Benchmarking

Alton specializes in performing comprehensive data-driven, operational and financial benchmarking vis-a-vis industry peers to identify gaps to best-in-class competitors, perform root cause analysis, and prepare a detailed action plan to close the gaps.

Strategic Sourcing and Supply Chain Management

Having sourced over $2+ billion in MRO contracts over the past decade, Alton’s team provides turn-key strategic sourcing support to from RFP development through negotiations, implementation, and vendor oversight.

Transaction Support

The aviation investment community trusts Alton to provide independent, objective guidance to support their MandA due diligence efforts.

Case Studies

MRO IT Strategy Development and IT System Sourcing Support for European Airline

A fast-growing European low cost carrier was using an antiquated IT system to manage the maintenance and regulatory compliance for its fleet. The IT system vendor had advised that it was no longer going to provide product support, necessitating a new solution. Our Approach Alton was engaged by the airline’s…

MRO Strategic Sourcing Support for Major Asia-Pacific Airline

Alton was retained to develop a comprehensive sourcing strategy to support the expedited emergence of an airline going through bankruptcy restructuring to include re-negotiating all MRO and ground handling contracts to include airframe, engines, components, APUs, landing gear, inventory, and GSE. Our Approach Leveraging Alton’s proprietary MRO cost market intelligence…

Feasibility Study and Business Plan for European Commercial Engine MRO Market Entry

A European military engine OEM and MRO was facing a declining market for the engine models that it maintained and needed to pivot to new products and services. Our Approach Alton performed comprehensive market research and analysis to identify where favorable supply / demand dynamics existed to transition from a…

Operational / Financial Benchmarking and Growth Strategy Development for Airframe MRO

A recently acquired independent airframe heavy maintenance MRO had been under-capitalized and experiencing declines in revenue and profitability. Our Approach Alton performed a comprehensive financial and operational benchmarking and qualitative enterprise assessment, and gap and root cause analysis, to prepare a comprehensive business transformation plan and growth strategy. Successful Outcome…

Target Identification and Transaction Support for Aftermarket Services Provider Acquisition

Alton was engaged to serve as a strategic advisor by a Special Purpose Acquisition Company (SPAC) in search of a business combination in the aerospace and defense industry. Our Approach Alton first met with its client to develop an understanding of its investment criteria and objectives for a business combination.…

Component OEM Market Entry Strategy for China

A leading North American-based commercial aircraft component OEM engaged Alton to develop a market entry strategy to better support its Chinese airline customers - for both OEM new parts sales and MRO aftermarket support. Our Approach Leveraging the local expertise of Alton's Beijing office, we performed comprehensive market research benchmarking…

Alton’s value to clients is derived from hundreds of years of industry and consulting experience. The selected case studies demonstrate some of our team’s capability.

Jonathan Berger

MANAGING DIRECTOR

Adam Guthorn

ENGAGEMENT MANAGER

Aviation Industry Insights

Alton Aviation Consultancy’s senior leaders are globally recognized for their thought leadership. We are pleased to share our insights.

The Power of “Little Data” and the Evolution of MRO

At the annual IATA Maintenance Cost Conference, Alton Aviation Consultancy Managing Director Jonathan Berger gave a speech entitled The Power of “Little Data” and the Evolution of MRO. The presentation highlighted how the aviation industry has evolved over the past several decades and the substantial progress achieved with regards to…

The Current Landscape of Singapore’s Aviation Market

Post-COVID Recovery of the Local Aviation Market The local airline industry in Singapore has experienced a robust post-pandemic recovery, driven primarily by a surge in travel demand as Singapore swiftly reopened its borders, but also by the ability of Singapore Airlines to rapidly ramp up its network. Singapore Airlines and…

Asia Pacific’s Flight Path: Seizing Opportunities in an Evolving Landscape

The Asia Pacific (APAC) region has long been a cornerstone of the global aviation sector, significantly contributing to aviation growth over the past few decades. While the region’s cautious approach to re-opening and economic slowdown following the pandemic have led to a slower recovery than other parts of the world,…

Alton Aviation Consultancy is a specialized aviation consulting firm that is highly experienced and proudly independent. We bring deep domain expertise and hands-on collaboration to clients across commercial, financial and technical disciplines. Our global footprint and unparalleled relationship network span the aviation industry.

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Modernizing MRO

January 2018.

Companies specializing in maintenance, repair and overhaul of commercial planes are beginning to face competition from the companies that built the planes. How can MRO specialty providers compete? Industry executive Tom Hennessey says it all starts by embracing the concept of the digital thread.

The number of commercial airliners in the world is expected to grow annually for the next 20 years. The maintenance, repair and overhaul market is projected to grow, too, specifically at an annual rate of 5.2 percent between 2022 and 2027. The global fleet will be refreshed over the next 10 years, with half of the 20,000 new planes delivered replacing in-service aircraft; the passenger fleet will net more than 10,000 new planes by 2027. Due to regional differences in air travel, fleets in China and India will continue to age as aircraft are kept in service to meet outsized demand in Asia. In fact, aviation MRO in Asia has boomed in recent years, and the region is under constant pressure to keep up with infrastructure needs. The story is different in developing areas like Africa and the Middle East, where fleets are newer overall. The “2017-2027 Fleet & MRO Forecast” by the Oliver Wyman firm details these technology, travel, and fleet trends and their impacts on the MRO market.

With outsourced maintenance representing more than 60 percent of direct maintenance costs, competition among upstart and established MRO players has intensified. To keep up with global capacity demand and stay competitive, all MROs will have to make leaps forward in efficiency.

Fleet age, travel demand, outsourcing trends and global economic pressures will shape the MRO market, with regional differences and new aircraft technologies disrupting business as usual.

Traditionally, MRO businesses have not needed to invest heavily in R&D and corporate strategy. To rise to the challenge of more dynamic, globalized markets, MROs must quickly develop internal abilities to recognize, assess and prepare for change. Incorporating analytic and automation technologies is key to modernizing MRO operations and harnessing the power of enterprise-wide digital integration.

For MRO companies to come up to speed with smart manufacturing and the digital transformation of the value chain, they will have to make significant capital investments. Given time and resource constraints, they must choose wisely. Extending the concept of the digital thread throughout MRO operations will help shape investment and forge powerful links with aircraft manufacturers, airlines and the supply chain.

A digital thread links all model data, product structure data, metadata, effectual data, process definition data, including supporting equipment and tools, into a contiguous definition of all value-added decisions. Choices must be made about the definition of a product, its configuration, manufacturing and repair processes, logistics, and operational support. This thread provides a single reference point for design, engineering, manufacturing and service to ensure that those in charge of these areas act in concert.

Challenges to reaching altitude

Many years without disruption means many established MRO firms do not have a strong innovation foundation. Efficiency will require embracing automation technologies, analytics and 3-D modeling. That will mean bringing in new leaders in some cases and jumpstarting R&D, workforce training and infrastructure investment. That’s a tall order, and will demand a new level of executive focus.

The most compelling force in MRO innovation is the new generation of aircraft, defined as those built after 2000. New manufacturing methods and materials (including carbon fiber composites, highly engineered titanium, and aluminum alloys) obviously require MRO retooling. On top of that, they change everything from recommended maintenance schedules to aircraft longevity. As more new aircraft come online over the next 10 years, these changes will continue to impact the MRO industry, perhaps in ways not yet identified. Advanced systems on new planes include sophisticated avionics and thousands of sensors designed to feed aircraft health monitoring systems, which promise to transform predictive maintenance and incident prevention. This specialized internet of things, or IoT, for aircraft produces endless amounts of operational data.

MROs must gear up to fully leverage and integrate these data streams along with others from design to engineering to production. This is the essence of the digital thread. Aircraft manufacturers are already adopting the digital thread concept, which means MROs face new competition from them. By applying the digital thread, manufacturers are beginning to “servitize” various components of their planes. Simply put, manufacturers are capturing MRO business for themselves. Building up data management and analysis capabilities and closely integrating them with inspection, maintenance, and repair systems will help fend off these incursions. On the flip side, establishing alliances with manufacturers could prove to be a fruitful new business model for many MRO outfits; mature capabilities in advanced analytics and machine learning technology will be a precondition.

New-era MRO

The digital thread is in essence a communication framework that enables connected data flow throughout the asset lifecycle and across traditionally segmented functions (design, engineering, production, maintenance). This all-encompassing framework ensures an integrated, authoritative, up-to-the-minute view of the aircraft’s data that can be accessed at any point along the way. A related concept, the digital twin, refers to a digital model of a specific airplane identified by tail number. This twin includes specifications and descriptions of its geometry, materials, components and behavior. More importantly, it includes the as-built and operational data unique to that specific physical asset. The digital twin includes engineering changes made during production and deviations from original design, as well as inspection, operation and MRO data. Building the integrated infrastructure and capability to leverage these comprehensive digital records will be a game changer for MRO.

In the years ahead, the interaction between human expertise and machine learning or artificial intelligence has the potential to vastly improve the functionality, safety and sustainability of the global fleet. Progressing toward this AI vision depends in large part on an enterprise’s ability to collate, store, manage and analyze data collected by sensors in industrial equipment, aircraft, and operational and business management systems. The predictive and prescriptive analytics enabled by comprehensive and nuanced use of digital thread data and models could radically improve MRO planning and reduce aircraft downtime. Today, most maintenance activities are planned based on a combination of elapsed time and asset usage frequency, which leads to both over- and under-servicing of assets. Sophisticated integration of data and systems is fundamental to the successful implementation of several core technologies that are already changing the way MRO work is performed: unmanned air vehicles for autonomous, intelligent inspections; additive manufacturing of spare parts on demand; and augmented reality and natural language interfaces for advanced guidance of inspections and repairs. It’s not difficult to imagine how these innovations, used in concert and underpinned by the digital thread framework, could result in step changes in productivity, accuracy and efficiency. They will certainly prove to be a key differentiator in the increasingly competitive MRO landscape, with wide ranging repercussions for the entire value chain. A continuous, data-driven feedback loop from design through MRO will help optimize every stage of aviation manufacturing.

Flight plan

MROs cannot afford to taxi around the runway. The scope, growth and dynamism of the market indicate that the time for acceleration is imminent. Each innovation (not to mention any related integration projects) will require assessment, experimentation, iterative implementation and skill development. There is no better time than the present to head down that runway, and many leading MRO hangars are well on their way.

The first step is to create and rejuvenate internal organizations devoted to R&D, infrastructure assessment and strategic planning. Executives have to lead with a clear focus on digital transformation and a road map for all the change it engenders, including cultural and organizational change. The retraining and hiring required to cultivate an appropriately skilled workforce will be disruptive. Widespread technical skills shortages, especially in data science and cybersecurity, will be an ongoing challenge. First movers, as always, will have an advantage.

The next step is to focus on completing connectivity across the enterprise. Building up foundational data management and analytics capabilities is essential. Identifying and eliminating outdated functional silos and barriers between departments will unleash the collaborative power necessary to undertake enterprise-wide digital initiatives and pinpoint disconnects that will require extra attention. Implementing manufacturing management software platforms that drive integrated processes and enable the digital thread is a key preparatory step for bringing MRO operations into the smart manufacturing fold.

The change of pace over the next 10 years will be relentless, and the 10 years after that hold challenges we can’t yet imagine. From global economic disruptions to the surge of travel demand in developing nations, there will be plenty of turbulence. Intelligent application of the powerful innovations converging to drive the transformation of complex manufacturing will boost MRO’s flight into higher levels of global competition, fleet sustainability and enterprise resilience.

Related Topics

Related Reading

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Keith button.

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The Operation Management Model of Aircraft Maintenance, Repair and Overhaul (MRO) Business

The aircraft maintenance, repair and overhaul (MRO) is important to the airline operation. The C check and D check need the longer lead time and higher cost than A check and B check. It is the good opportunity for professional MRO Company to get the business from airlines. This study propose the Operation Management Model, which introduce the concept of lean production and sustainable development into the maintenance process and management process for MRO Company. Thus the MRO Company can increase the performance and competence in the competitive market.

Related Papers

Scott Carmichael

Oscar Rocha

A QUALITATIVE STUDY ON THE EXPLORATION OF SAFETY HAZARDS RELATED TO THE OUTSOURCING OF AIRCRAFT MAINTENANCE1

Lec. Hakkı Bağan (PhD. Cand.) , Ender Gerede

This study sets out to investigate the hazards, root causes and outcomes associated with the outsourcing of aircraft maintenance, and to investigate how and why these hazards compromise safety. For the purpose of the study, questionnaires consisting of open-ended questions were used to collect qualitative data from technicians and engineers who participate in outsourcing processes, and who were selected through purposive sampling. An inductive qualitative analysis method was used to analyze the qualitative research data. The research results suggest that airlines see the outsourcing of aircraft maintenance to another party as an effective way of reducing costs. With cost being the main factor in the selection of a maintenance, repair and overhaul (MRO) company, MRO providers are under serious pressure to reduce costs as this is the major competitive advantage in the MRO market. These factors create a wide range of safety hazards. Furthermore, outsourcing causes disorganization in the production of aircraft maintenance activities and in the organizational structure of parties. This also gives rise to safety hazards.

Abed El-azez Safi

During the last decade travel and tourism has assisted the Emirates Group in spreading its wings into every aspect of travel, tourism and business to become the fastest growing corporation in its field. Emirates airlines and Middle East aviation system will face strong challenges with global aviation during the coming years. In the mean while, “the overall growth aspiration of the region demands a high-performing aviation system—including airlines, airports, and air traffic control (ATC)—that in 20 years must successfully serve more than four times the passengers it serves today. However, international benchmarks illustrate that even today’s aviation system does not fulfill current demand. In many Middle East countries, aviation systems’ quality and efficiency levels are well below international levels (e.g., compared to Europe and Asia). Heavy regulation also has resulted in limited service in terms of route frequency and destinations, high customer prices, and a need for high government subsidies to maintain the system.”1 Middle East aviation markets especially United Arab Emirates have set the level for reforming their aviation systems and have started encouraging trading and deregulation of airlines rules. In addition, the Middle airline sector plays a smart role in developing a world-class, such as Qatar Airways (which has a five-star Skytrax ranking) and Emirates Group (which has above-average profitability). “Aviation and transport infrastructure is the fundamental catalyst for the creation of global cities. The UAE’s open skies policy is the cornerstone upon which Dubai built its dynamic air transport hub, which in turn supports the growth of other industry sectors. The growth of Emirates embodies the spirit of competition and free enterprise, which will continue to guide their policies for the benefit of the UAE and of the global community in which they operate.”2 Finally, analyzing Emirates airline challenges through SWOT analysis and comparing it with Lufthansa Group a prove of being very active with Cargo and shipment services and passenger cater through developing there technology and advertise there 40 brands and looking to the needs of the customers. It was very obvious of the strengthen of innovation and creativity of Emirates is much stronger then the weakness and keep in going to hire new employees and buying new plans even during Dubai crisis. After compering Emirates with Lufthansa Group the largest airlines in terms of passenger and second largest airline of fleet aircraft. We will prove that Emirates is the most innovative and the fastest airlines growing in the world since they are 25 years old and Lufthansa 86 years old.

Jimmy Gandhi

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24 January 2024

Challenges & Trends in the Aircraft MRO Industry

Imagine the skies as a vast, ever-changing canvas, where aircraft of all shapes and sizes trace the outlines of our interconnected world. At the heart of this dynamic portrait lies the Maintenance, Repair and Overhaul (MRO) sector, a crucial linchpin ensuring each aircraft’s story continues safely and efficiently. Yet, as we navigate through an era marked by rapid technological advancements and global shifts, the MRO industry finds itself at the forefront of a transformation. Like navigating a great river’s currents, understanding the challenges and trends shaping this sector’s future has never been more vital. Through the lens of STS Aviation Group , we embark on a journey to explore the intricate landscape of aircraft MRO services , unveiling insights into overcoming obstacles and seizing opportunities in a realm where innovation and resilience soar high.

Section 1: Challenges Facing the MRO Industry

Regulatory Compliance

Navigating the maze of global and regional regulations is a perennial challenge for MRO providers. The demand for strict adherence to safety and quality standards, while adapting to new regulatory frameworks, requires a proactive and informed approach to compliance management, underscoring the importance of agility and expertise in the MRO industry challenges.

Skilled Workforce Shortage

A critical issue facing the industry is the shortage of skilled aviation technicians . As seasoned professionals retire, attracting and retaining the next generation of technicians is paramount for sustaining growth and ensuring quality. Investing in training and development programs is essential for building a resilient and skilled workforce capable of tackling the complexities of modern aircraft maintenance.

Cost Management

In an industry where margins are often tight, effective cost management is a balancing act. MRO providers must innovate to reduce operational costs without compromising on quality or safety. This includes optimizing logistics, enhancing operational efficiency and leveraging technology to streamline processes.

Supply Chain Disruptions

Recent global events have highlighted the vulnerability of the MRO supply chain . From delays in parts delivery to fluctuations in demand, the industry must enhance its supply chain resilience through strategic stockpiling, diversification of suppliers and adopting digital tools for better supply chain visibility.

Section 2: Current Trends in Aircraft MRO

Digital Transformation

The digital transformation of the MRO sector is underway , with aviation maintenance trends leaning heavily towards the adoption of data analytics, artificial intelligence and digital twins. These technologies offer unprecedented opportunities for predictive maintenance, operational efficiency and personalized service offerings, marking a significant shift in how MRO services are delivered.

Sustainability Practices

As the aviation industry commits to reducing its environmental footprint, sustainable aviation maintenance practices have taken center stage. From eco-friendly materials and processes to waste reduction and energy efficiency, MRO providers are innovating to meet sustainability goals, reflecting a broader industry movement towards greener skies.

Partnerships and Collaborations

The complexity of modern aviation maintenance requires a collaborative approach. Strategic partnerships between MRO providers, OEMs and technology companies are fostering innovation, expanding service capabilities and enabling access to new markets. These collaborations are crucial for driving forward the industry’s technological and operational advancements.

Innovations in Maintenance Technology

Technological innovations, including the use of drones for aircraft inspections and wearable technology for maintenance technicians, are revolutionizing the MRO industry. These advancements not only improve efficiency and safety but also open up new avenues for service delivery and operational excellence.

The aircraft MRO industry is at a crossroads, facing significant challenges but also poised for a future of remarkable innovation and growth . By addressing the industry’s current hurdles with strategic foresight and embracing the latest trends, MRO providers can ensure the continued safety, efficiency and sustainability of aviation operations.

At STS Aviation Group, we’re at the forefront of navigating these complex challenges and trends, offering cutting-edge MRO solutions that meet the demands of today’s aviation industry. Contact us to learn how our expertise can enhance your MRO strategy, ensuring your operations are ready for the skies of tomorrow.

Improving Profitability in Aircraft MRO Operations

MRO operations throughout all industries pose one of the toughest supply chain management challenges. MRO operations are a major component of the economy, with the potential to be highly profitable:

The aftermarket, driven by strong global airline demand, is pushing year-over-year growth in the high single digits, but pressure from several sources–notably struggling supply chains requiring extra resources and a lack of used parts due to low retirement rates–is presenting headwinds. – Canaccord Genuity

The commercial aircraft aftermarket parts market size is expected to Exhibit $51.14 billion by 2026; a 6.6% CAGR. – MarketWatch

SGC Partners (SGC) estimates that the continued move to outsource Aircraft MRO services will create a significant opportunity for those who can produce results in-line with corporate and shareholder expectations. Based on our observations and experiences with several clients, we believe that realizing this opportunity will require the following:

• Relentless focus on understanding customer requirements and adapting services to lead the industry
• Careful selection of investments that will lead to improved productivity and customer satisfaction and have a clear ROI
• Skillful integration of business functions/departments across the organization. For many, this means effectively integrating the operations of acquired companies
• Strategic execution of initiatives to maximize the effectiveness of the supply chain and, in particular, the assets utilized to provide service

SGC’s Perspective on Aircraft MRO

With the exception of niche sectors and defense, growth in aerospace MRO is expected to be modest, but opportunities exist.  Masterful execution will be required to capture both strategic advantage and their associated profits. Net after-tax profits for airlines and, to a lesser extent, Aerospace Original Equipment Manufacturers (OEMs) currently track lower than a composite of all manufacturing companies. Year-to-year margin changes, especially for airlines, are volatile, and the financial success of the airline industry drives new orders or cancellations for commercial aircraft. The aftermarket, driven by strong global airline demand, is pushing year-over-year growth in the high single digits, but pressure from several sources—notably, struggling supply chains requiring extra resources and a lack of used parts due to low retirement rates–is presenting headwinds, a new Canaccord Genuity survey reveals.

Ironically, in this difficult environment, aircraft companies are moving to increase their presence in the MRO space. For many competitors without the required focus and skill, we see this path as a recipe for value destruction.  Although the industry has a reputation for generating higher profits and ROE (GE Aviation’s Engine Services, for example,  generates margins in excess of 20% from its long-term service contracts with major airlines), the results for others is less clear.

Despite this uncertainty, OEMs, such as Boeing, and independents are “jumping in with both feet” to expand service capacity and capability as airlines look to outsource maintenance to cut and control costs. OEM service divisions are shedding old paradigms to capture a larger share of the market, buying or growing in areas of the supply chain not previously considered core. For instance, some OEMs are buying or growing parts brokerage and component repair operations, and performing overhauls of another OEM’s products. These changes create an opportunity for profitability and, at the same time, significant challenges as companies operate outside previous competencies and further confuse an already very complex supply chain.

The Challenges and the Pay-Off

The current state of many Aerospace service operations reflects a complexity that needs to be addressed with new and adaptive solutions. Service organizations are managing complicated supply chains with multiple, competing for distribution channels, a large product portfolio with a high number of SKUs, multiple material flow paths, the need for tightly integrated supplier relationships, and significant reverse logistics issues related to returns for campaigns, or repaired components.

Aircraft MRO Operation Relationships are Complex

Historically, there has been a low corporate investment in MRO operations, as MRO organizations took a back seat to Original Equipment (OE) production. Adding to the difficulty is the fact that organizations are operating with legacy systems that are often 20 years old or more, point solutions are not integrated, and software companies have not sufficiently addressed this market in the past.

Given this landscape, the potential improvement opportunities—and their associated payoffs—are enormous.  Based on our experiences thus far, we have typically realized “breakthrough” improvement for our clients as follows:

• Revenue increases of 5-7%
• Return on investment as high as 60%
• Inventory reductions of 30-50%
• Fill-rate lifts from current lows to the 90s
• Warehouse productivity gains between 20-30%
• Transportation cost reductions of 8-15%
• Additional benefits reaching 5-10 times the up-front investment

Given the attractiveness of these opportunities, the logical question obviously is: How do we get there from here? 

Although we may not have all the answers, we do know where to begin and how to proceed to capture value currently left on the table.  The process begins by evaluating your current situation and existing capabilities.

From SGC’s work with MRO companies, we call out a number of pain points and challenges that new or incumbents players need to address or have as yet done so ineffectively:

• High numbers of SKUs with complex interchangeability which make it difficult to forecast effectively, set stock or rotatable levels, plan and process orders with existing planning staff, and utilize customer-owned inventories.
• Low inventory turns with the accompanying need to manage high service level which poses a larger challenge to meeting contract-driven requirements. In addition, the industry is experiencing sporadic, low-volume demand, part number proliferation, complex interchangeability, long lead times, and variable supplier and vendor performance.
• Higher customer service-level expectations that result from customer maturity and extensive experience in their practice of procuring services. Quite simply, customers expect “more, better, faster and cheaper.” And as even more competitors enter the services arena, customers will have more choices. Thus, service providers must excel in operational performance and develop creative contract structures to shape the customer experience and increase loyalty.
• Lack of supply chain visibility which hinders closer cooperation between companies to manage events, improve response time, increase velocity, track serial numbers, smooth demand, reduce inventory redundancy, and increase efficiency.
• Poor warehouse productivity and/or inventory accuracy which causes customer service problems and eroding profitability.
• High obsolescence and excess inventory which drives inaccurate initial provisioning, ECOs without consideration for service inventory, premature or unnecessary part repair, returns, product life-cycle transitions, management decisions to maintain additional platforms, and end-of-life buys.
• Network complexity resulting in an inability to rationalize and/or reconfigure the distribution network to provide better customer service.
• Higher transportation costs which are caused by increased customer delivery expectations, more small shipments, and wider geographic coverage.

To fully capitalize on the value opportunity, organizations need to integrate cleanly across three critical areas: Customer Lifecycle Management, Product Lifecycle Management, and Service Lifecycle Management. In addition, MRO management capabilities must adapt quickly and efficiently to changing market needs in terms of their structure, operations (through sense and respond systems), and better management practices.

Addressing the Business Issues of Aircraft MRO Organizations

In addition, aircraft MRO organizations need contingency plans to deal with a number of current business issues affecting them, including the implications of multiple mergers and acquisitions within the aftermarket services industry, increased competition from the movement of OEMs into aftermarket services to improve their overall margins and stability, decreased demand as the airline industry retires older, maintenance-intensive fleets, and airline labor relations issues.

At the same time, process trends within the Airline MRO industry are towards adopting engineering-driven requirements (such as status monitoring, performance-critical parts), shorter maintenance turn-times, greater time between overhaul, the need to balance in-house versus outsourced maintenance, and FAA/JAA compliance.

The impact of these two trends on MRO inventories is likely to be significant, and will require that management deploy new, special, and increasingly sophisticated inventory tools that are tailored to the high volume of part number/location combinations, complex part interchangeability, need for specific identification, customer usage preference, and operational priority. Effective management will be as much about pinpoint the need for deployed inventory at a specific location, ensuring its availability, while simultaneously minimizing overall logistics, inventory, and system costs. Winning on this new basis of competition has some significant payoffs (about 15-20% of substantial airline structural costs) as follows:

• MRO costs are 10-15% of the total airline operating cost: 10% opportunity
• Airframe parts inventory are approximately 8% of the aircraft price: 20% opportunity
• Engine parts inventory is approximately15% of the engine price: 15% opportunity

These challenges drive the need for proactive and predictive optimization solutions that reduce time to value while increasing top-line growth and bottom-line performance.

Airline MRO organizations must re-tool their operations now to capture these savings by  satisfying key needs in the following areas:

• Heavy Maintenance: Optimizing inspection and work activities, planned and unplanned removals, outsourcing, SB, AD and ECO economics, and leasing that includes return condition requirements and maintenance reserves. See a time-lapse video of a commercial aircraft maintenance check https://www.youtube.com/watch?v=GJy-DX-1c04
• Line Maintenance Integrating tightly with flight operations (schedule disruptions) and route planning to ensure timely and efficient results. It also includes dispatch reliability regarding delays and cancellations, preventive line maintenance, insurance spares, and deferrals, spares pooling, visibility of expendables to prevent “parts chasing planes.” See a time-lapse day in the life video of a commercial aircraft line maintenance https://www.youtube.com/watch?v=NgNBtQVG9Xs
• Engine MRO: Optimizing key process elements such as, parts costs that are greater than labor costs, managing engine shop inventory pool, module management through shops, condition and status monitoring/diagnostic tools, power-by-the-hour contracts, and outsourcing (OEM-dominated service companies and JVs). See a time-lapse video of a commercial aircraft engine change https://www.youtube.com/watch?v=aOmCTehtFpI
• Component Repair: Ensuring superior inventory logistics (serviceable vs. non-serviceable or in-house vs. outside repair), managing problem parts, reliability management, outsourcing and supplier management, quality and inspection, and warranty management. ). See a time-lapse video of a commercial aircraft engine combustor repair https://www.youtube.com/watch?v=51kkwNi9opQ
• Other Common Issues: Managing related and “adjacent” areas effectively, e.g. safety/regulatory, inventory, workforce, facility management, and in general connecting the customer contracts to the supplier contracts.

SGC’s Solutions for Aircraft MRO Organizations

SGC provides a portfolio of solutions to help manufacturers improve the sales growth and profitability of their aftermarket service and parts operations. Our comprehensive portfolio of services includes three core approach especially suited to this segment, including: Value Accelerators, Supply Chain solutions, and Customer-Focused solutions.

Value Accelerator: Strategic Roadmap

Building an adaptive supply chain requires a holistic, strategy-led approach to change. Moreover, the aerospace MRO supply chain requires a thorough understanding of the complexity aerospace companies deals with. SGC’s MRO Strategic Roadmap provides the analysis and design methodology to help clients move from confusion to action.  Based on our experience in this segment, we find that most industry players have begun this process, but it remains either incomplete or suffers from some significant gaps.

In creating an MRO Strategic Roadmap, SGC performs a rapid analysis of how your company’s processes compared with leading practices employed by other aerospace companies and by the MRO industry in general. Working in conjunction with your personnel, SGC completes an extensive analysis and design process. During this phase, we work with you to evaluate and prioritize a portfolio of initiatives to build the MRO Strategic Roadmap, including a high-level implementation plan and a quantifiable business case that will guide your company through the transformation process.

This phase includes the use of a range of tools that include people, process, metrics, and technology enablers to tackle the complexity of building an integrated plan to align your organization for action.

Our recommendations are grounded in your company’s greatest improvement needs and potential market opportunities.

The solution results in:

• A portfolio of suggested strategic and tactical improvement initiatives
• Quantifiable value propositions supporting the business case
• An integrated, high-level implementation plan including risk and change management measures

Strategic Roadmap Process

Focused Solutions

Forecasting & Inventory Deployment: In general, with every 2% of forecast accuracy achieved, there is a corresponding 1% decrease in inventory.

As a starting point, we would ask:

How good is your current forecasting process, what level of error does it generated, and what are the associated penalty costs that your organization incurs?

SGC’s solution enables your company to better understand its demand drivers in order to forecast your customer’s requirements more accurately by integrating disparate planning processes and addressing data challenges that inhibit a robust planning system. The solution is designed to help clients improve planning to achieve:

• The right stock at the right location
• A fully collaborative environment that includes internal entities, suppliers, repair vendors, and customers
• Improved responsiveness to customers
• Proactive management of assets.

The SGC solution uses a holistic approach, including people, process, metrics, and technology. We align organizations to best fit the new collaborative environment, make process changes adaptive to the everchanging business climate, and define metrics for informed decision making that do not compete. And, implement technologies that continue to make substantial strides with a significant focus on reducing the elements that drive variability: Mean Time Between Failure (MTBF), Flight Operations Data, Planned and Unplanned Maintenance, Asset Configurations, Routes and Locations, Marketing Intelligence, Configuration Management and resulting part interchangeability.

Reverse Logistics & Fulfillment: SGC’s technology solutions enable clients to improve repair part supply and return performance, so you gain the ability to manage proactively the end-to-end supply chain during the service part fulfillment and return/ repair/ remanufacturing life cycle.  This solution allowing you to:

• Eliminate (or reduce) the need for your own internal DCs.
• Focus instead on monitoring and policing
• Shift responsibility to suppliers
• Reduce disposition time
• Eliminate the part backlog
• Track serial numbers, connecting the serial number of the replaced part with the new part serial number
• Manage campaigns driven by SBs or other programs

Supplier Management & Connectivity:

SGC’s other technology and process solutions enable connectivity to suppliers, logistics providers, customers, and internal legacy systems. This allows all parties to share supply chain event transactions and perform proactive event-based detection and resolution of critical operational issues through web-based connectivity and closed-loop control. The solution provides:

• Visibility: Distributed, web-based access to critical value-chain events, statuses, levels, and capacities
• Performance Reporting: Leverages a centralized data repository to provide enhanced supply chain, vendor and internal performance measurements of the entire supply chain performance This reduces “multiple versions of the truth,” reliance on supplier and vendor performance data and reduces disagreement
• Issue Management: Provides collaborative communications and progress monitoring for companies, suppliers, and repair vendors to effect cause and corrective action for delivery or quality
• Contract Enhancements: To enforce policies written into contracts and often not exercised
• Web User Interface: To facilitate electronic message compliance with suppliers, repair vendors, and carriers
• Event Management & Alerting: Allowing for exception-based management of orders, shipments, levels, or events that will most impact supply chain performance

Field Service Automation/Mobility: Remote connectivity has the potential to dramatically impact service effectiveness. For example, this technology is deployed in the area of line maintenance where tasks may be dispatched along with the tech publication and parts needed. In addition, service manuals, AD Notes, etc. are on tablets, and 2-way IP cameras allow more seasoned technicians to assist more junior technicians on repairs. Depending on your current solution, there may be opportunities to implement “quick hit” improvements in high return areas. Typically, we expect projects of this kind to provide demonstrable ROI within 3-6 months.

Next Steps:

SGC Partners has a proven track record in capturing value in a complex, distributed, and rapidly changing MRO environments, and we would value the opportunity to talk with you regarding our ability to help you achieve your objectives. We have deep Aircraft MRO industry knowledge gained from years of experience and many successful projects. We have an experienced team of professionals with aircraft MRO expertise to help you achieve your goals using powerful methodologies and best-in-class alliance partners.

For more information on Improving Profitability in Aircraft MRO Operations, contact us here for a complimentary consultation.

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• MRO Management

Regional aircraft MRO: Trends and outlook

Much smaller in dollar terms than the MRO markets for mainline single-aisle and widebody jets, regional airliner MRO nevertheless involves thousands of aircraft, dozens of providers internationally and similar challenges, reports Chris Kjelgaard

[This article first appeared in the December 2021 issue of MRO Management]

Compared with the MRO markets for mainline single-aisle and widebody jets, the MRO market for regional aircraft is small. Oliver Wyman’s ‘Global Fleet and MRO Market Forecast 2021-2031’, published in January 2021, estimated that regional jets and turboprops represented 21 per cent of the total global fleet of air transport aircraft for the year. However, regional aircraft accounted for a much smaller share than that of the overall 2021 commercial aircraft MRO market, according to Oliver Wyman: just 11 per cent of the approximate US$70 billion total engine, component, line and airframe heavy maintenance spend.

By 2030, regional aircraft will account for an even lower proportion of what by then will be a much larger commercial aircraft fleet, Oliver Wyman predicts. Estimating that by 2030 the total fleet size will increase to more than 36,000 aircraft, the consulting firm forecasts regional turboprops will represent just seven per cent of the overall fleet – compared with just under 10 per cent in 2021, when some 2,500 regional turboprops were in service. While there will be about 600 more regional jets in service by 2031 than the approximately 3,000 flying in 2021, the proportion of the overall commercial aircraft fleet regional jets represent is likely to fall from a little under 12 per cent in 2021 to about 10 per cent a decade later.

The picture is similar for regional airliners in terms of the proportion of the 2031 MRO spend they will require. While the 2031 MRO spend for all commercial aircraft will be much greater than the 2021 spend, rising to somewhere between $103 and $116 billion, regional airliners will account for less than 11 per cent of the overall amount – and possibly less than 10 per cent. However, the absolute MRO spend on regional aircraft appears likely to rise from a little under $8 billion in 2021 to around $11 billion in 2031.

The relatively small proportions of total commercial aircraft fleet size and MRO spend accounted for by regional aircraft tend to disguise the fact that the regional aircraft MRO business is still a sizeable business. The market will generate $8 billion or more a year from now through 2031. It is also highly fought over. The same engine and component MRO specialists that handle the repair and overhaul work on larger commercial jets also handle much of the work on regional aircraft. But regional aircraft line maintenance and heavy airframe maintenance are very competitive markets, with many smaller MRO shops able to compete with larger facilities on a more or less equal basis. At the same time, some of the regional aircraft manufacturers and various operators are deeply involved in providing MRO for the aircraft they make or operate.

The Canadian, US and European markets

Take the Canadian market as an example. Chorus Aviation – which owns Jazz LP, the company that operates all the aircraft in the Air Canada Express regional network – also owns two MRO companies, Jazz Technical Services in Halifax, Nova Scotia and Voyageur Airways in North Bay, Ontario. There the company handles the MRO for all of the Dash 8s and CRJs in the Jazz and Voyageur fleets, and it has now begun taking on MRO work for third-party customers, according to JC Tewfik, VP marketing, sales and services for Premier Aviation Québec, an independent company based at Québec City Jean Lesage International Airport which specialises in regional aircraft heavy airframe MRO.

Several other Canadian operators also perform MRO on their aircraft, among them Dash 8 operators Air Inuit and Air Creebec, according to Tewfik. Not to be forgotten as a major MRO provider for all of North America for the former Bombardier CRJ family is Mitsubishi itself – renamed the SpaceJet family following Mitsubishi Heavy Industries’ purchase of all of Bombardier’s CRJ production and MRO assets – which operates the former Bombardier MRO service centres for CRJs in Tucson, Arizona and Bridgeport, West Virginia.

Similarly, Embraer operates a large MRO facility at Nashville International Airport for ERJ-family and E-Jet-family aircraft flown by operators throughout North America. Air Canada and AAR handle heavy Embraer E-Jet airframe MRO, while Mirabel-based Avianova has established a cooperation with Air Canada and is building a large new facility in which to perform airframe MRO on that airline’s new Airbus A220 jets. In the USA, Delta TechOps and Lufthansa Technik both handle E-Jet MRO and Delta handles MRO for its A220s.

At present, Premier Aviation Québec (PAQ) is primarily handling heavy airframe MRO for ATR and Dash 8 turboprops, as well as the Embraer ERJ family, according to Tewfik. In addition to the competitors already identified, Tewfik names at least four other independent Canadian MRO providers which compete for regional aircraft airframe heavy check business: JD Aero Technical, KF Aerospace, Skyservice and Springer Aerospace.

Various facilities and regional aircraft operators in the USA also compete for the North American and Latin American markets which are PAQ’s primary sources of MRO business. One very important one is Skywest, Inc, the largest regional airline company in the world which operates no fewer than 13 maintenance bases in the USA, the largest of which located in its home state Utah. Other competitors include Empire Aerospace in Coeur d’Alene, Idaho and Mountain Air Cargo – which also operates 26 Cessna 208s and 17 ATR turboprops as freighters, many under contract to FedEx Express – in Kinston, North Carolina.

Another increasingly important US‑based provider of heavy airframe MRO for regional aircraft is Ascent Aviation Services, which has two large MRO facilities in Arizona – one at Tucson International Airport and another nearby at Pinal Airpark, where its ‘Marana’ aircraft storage site and disassembly operation is situated. Ascent also handles widebody airframe heavy MRO.

The company performs airframe MRO on single-aisle jets and regional jets at its Tucson facility, primarily focusing on CRJ900 and CRJ700 airframe maintenance and interiors work. Ascent also performs “some specialised work” on Embraer 190s and 175s, but hasn’t made a major MRO commitment to the E-Jet family yet because of the “investment in tooling and training” that would require, says Scott Butler, Ascent Aviation Services’ chief commercial officer.

Butler says Ascent first ventured into regional aircraft MRO three years ago and the work now represents “a pretty good-sized” and expanding part of its business. The supply chains for regional aircraft parts and components “are usually quite different” to those for mainline commercial aircraft and are “quite challenging”, being “pretty stressed for different aircraft types” for heavy-check parts requisitioning.

Europe is no less competitive a market for regional aircraft MRO than is North America, according to Malcolm Chandler, head of commercial and marketing for Vallair. In addition to its aircraft leasing and other businesses, Vallair handles airframe MRO for ATR turboprops at its facility at Montpellier in France and has acquired a large hangar at Chateauroux in which it will perform heavy maintenance on Airbus A330 family widebodies.

Chandler says there are at least eight competitors to Vallair in Europe for ATR airframe MRO business: BinterTechnic in the Canary Islands; Czech Airlines Technics in Prague; Exeter Aerospace (formerly Flybe) in southwest England; LOT Aircraft Maintenance Services in Poland; Magnetic MRO in Tallinn, Estonia and in Poland; Sabena technics in France; SAMCO Aircraft Maintenance in the Netherlands; and Skyways Technics in Denmark.

While the regional aircraft MRO sector suffered substantially from the effects of the Covid-19 crisis on air travel, the sector has largely bounced back and short-term capacity is becoming tight to non‑existent. One reason for the early recovery of the regional airline sector, particularly in the USA, was that major airlines preferentially stored their larger single-aisle and twin-aisle aircraft to reduce capacity but kept in service many of the regional aircraft operated by their regional airline partners, according to Richard Brown, managing director of Naveo Consultancy.

This was particularly true for 60-70-seat regional jets such as the Embraer 175 and CRJ700, and for the Dash 8-400 and the ATR 72 large turboprops. The rebound in utilisation of these aircraft is demonstrated in Naveo Consultancy’s ‘Air Transport Traffic, Fleet & MRO Update’ of November 2021.

The report shows that after the slump produced by the onset of the pandemic, utilisation of the CF34-8 engine type powering the Embraer 170/175 and the CRJ700, and the PW100 turboprop engine powering the Dash 8-400 and the ATR 72, grew back much more quickly and strongly than did utilisation of the CF34-10, the CF34-3 and the AE3007. Those engines respectively power the Embraer 190/195 and CRJ900; the CRJ100 and CRJ200; and the Embraer ERJ family.

MRO capacity crunch

Tewfik says that today all of PAQ’s regional aircraft heavy MRO capacity is booked “almost until 2024”, where until September 2020 its capacity was usually fully booked only for about six months ahead. A major reason for this is that after about ten years of Tewfik pursuing a particular potential customer for business, the customer agreed a contract with PAQ and immediately booked slots for 15 aircraft. That’s a big win considering that PAQ’s entire annual induction capacity is in the 40-50 aircraft range.

Tewfik also discerns a growing trend among large North American regional airlines to outsource their heavy airframe maintenance rather than perform it in-house, as they used to do. This is making capacity tighter at big regional aircraft MRO facilities. For instance, “Embraer at Nashville is full until 2025”, he says.

The regional airline sector in Europe is also emerging again (depending on country), says Vallair’s Chandler. Regional aviation in the UK has seen a fair amount of recovery, “led by Emerald Airways and the resurrection of Flybe”, in part because of the relative inefficiency of the UK’s privatised railway system and the high costs for passengers of travelling domestically by rail.

However, the French Government’s climate-conscious decision to ban domestic flights on all inter-city routes which the nation’s TGV high-speed trains can cover within two and a half hours has adversely affected the operations of some French regional carriers, such as Air France subsidiary Hop. The rule effectively pushed domestic air service out of the centre of France, leaving only routes between cities in northern and southern France and between cities in western and eastern France.

That said, ATR MRO business “is looking up” for Vallair, according to Chandler. The company has been performing freighter conversions on a number of ATR turboprop aircraft and has carried out heavy airframe MRO on various other ATR aircraft, including some repossessed from carriers in the Far East and due to be re‑deployed by regional carriers operating services across the Mediterranean between Southern European and North African destinations.

Mechanics shortfall

The Covid-19 crisis has also created a staffing problem for various MRO providers, according to Tewfik. Many long-term A&P mechanics chose to retire permanently when they were laid off in response to the crisis and are no longer available to service the increasing amounts of MRO work required following the quick rebound in regional aircraft utilisation – particularly in the USA. This is a highly important consideration for PAQ, which obtains about 70 per cent of its business from US customers, according to Tewfik.

Even though PAQ has its own training school and employs every apprentice who graduates from it, the company is reluctant to expand. “What scares me the most is manpower,” says Tewfik. Although its capacity is fully booked for the next two years and PAQ knows that in today’s market it could obtain ample new business, expansion would require it to hire about 100 more mechanics and “they are not available in Québec”, he says. Without an adequate supply of skilled mechanics, the C$40 million investment he reckons PAQ would need to make to build a large new maintenance hangar and tool it completely would effectively be money thrown away.

To expand, PAQ would need to hire experienced mechanics from other countries; however, unlike the FAA, Transport Canada doesn’t recognise the certifications and accumulated type experience of mechanics from other countries, he says. So any highly experienced A&P mechanics moving to Canada from, say, Europe would have to begin work as apprentices again and would take years to obtain Canadian certification as A&P mechanics. “The only way for us to come out of the nightmare in Canada is for Transport Canada to recognise [immigrant mechanics’] talent and recognise their equivalencies,” says Tewfik.

Butler says Ascent Aviation Services was able to “maintain and retain a significant percentage of its mechanics” – it has about 200 overall – because of its aircraft storage and aircraft recycling businesses. Both surged as a result of the travel slump wrought by Covid-19. Ascent works closely with aviation schools in Arizona to continue developing its local workforce, an important activity both because of the struggle to retain employees when the major airlines come calling and because Ascent is intent upon expansion in the relatively near future.

Butler says Ascent’s MRO capacity is “booked ahead quite fully for the next six to 12 months”, and as a result “we’re always hiring and trying to improve” the company’s competitive position and offer. The company has expansion plans and is simultaneously “seeing [MRO] capacity getting tighter and tighter in the rest of the world”. This is important to Ascent, because in addition to its regional jet and mainline narrowbody MRO work, the company is heavily involved in widebody airframe MRO and has customers from all six continents, says Butler.

Working differences

As a diversified airframe MRO company, Ascent Aviation Services is in a particularly good position to know what the key differences are between MRO for regional airliners and MRO for mainline commercial jets. As one might expect, when comparing working on regional aircraft and working on mainline jets, the “scale, service and scope [of MRO work] play into how you do things and also how you flow the aircraft” through a heavy check, says Butler. One obvious difference is that far fewer mechanics can work on a regional jet at the same time than on a widebody. Only one mechanic can get into the electronics bay of a CRJ at a time, for instance, and because its interior is so much narrower than that of a widebody, sizeable numbers of mechanics can’t work on a regional jet’s interior simultaneously.

Another important difference between MRO for regional aircraft and MRO for mainline jets is that “most airlines operating regional jets don’t veer too far from the [OEM’s] manual, but major airlines can have a very different maintenance programme” to that recommended by the OEM, says Butler. “It’s not a difference in approach per se, but getting used to the [mainline jet] operators’ programmes themselves takes a bit of getting used to,” he notes. That makes regional jet MRO planning and workflow “a little bit easier” than following different mainline operators’ customised maintenance programmes, when working on different aircraft of the same type.

Tewfik says that while in most aspects performing regional aircraft MRO is just like performing MRO on larger aircraft, maintenance planning, methodology and workflow is different for regional aircraft, at least in terms of scale and resources required. Often, too, “it is more difficult to get parts on some [regional] aircraft”, though they tend to be simpler and “more mechanical” than newer mainline jets. Another difference between regional airliner MRO and mainline jet MRO is that the build quality of some regional aircraft, particularly slightly older ones, is not always as good as it should be, according to Chandler. Doors sometimes don’t fit well and on occasion it has been known for parts corrections to be required for airframe deviations. Additionally, interchangeability of parts between airframes of the same aircraft type is not always ideal.

Of course, MRO task and planning differences exist between different regional aircraft types. The most important difference, according to Tewfik, is that different regional types have different C-check intervals. “Every OEM has its own recipe for the C-check,” he says. “Some are time-based, some are cycle-based. The number of hours for a Saab [340] is 3,000. For an ATR, it’s 5,000. For an ERJ, it’s 6,000.”  

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MRO Operations: Enabling Lean MRO

All fleet aircraft operators fly with the same basic business rule in mind – an aircraft sitting on the ground because of maintenance requirements generates no revenue (commercial) and detracts from overall mission readiness (military).

Driven by ever-changing business models, global competition, high fuel costs and other unavoidable doing-business costs, fleet aircraft operators (both commercial and military) have developed a simple business strategy – control operating costs across the broad spectrum of the aircraft maintenance cycle by implementing processes designed to mitigate economic fluctuations.

MRO benefits and savings

Many fleet aircraft operators have realized some value and savings by implementing in-house maintenance, repair and overhaul (MRO) profit centers and/or by outsourcing their aircraft maintenance activities to established MROs. In turn, these MROs are increasingly applying Lean/Six Sigma principles and techniques to their operations to achieve dramatic and sustainable performance improvements.

Unfortunately, most MROs never realize peak effectiveness from these initiatives because they have failed to properly support them with an information technology (IT) solution that provides the broad visibility and effective data needed for true knowledge-based decisions. 

Today, MRO operations account for 15 to 18 percent of the fleet aircraft operator’s total operating costs. Aircraft undergoing scheduled-maintenance actions, or aircraft delayed from being returned to service because of scheduled-maintenance actions, also create the need for additional capital expenditures for the spare aircraft needed to meet flight-dispatch schedules. The significance of these costs highlights the MRO industry as a key business area for targeted transformation.

“Lean MRO,” in conjunction with an optimized maintenance program, enables MROs to eliminate nonproductive or unnecessary tasks from their process-event critical paths, improve maintenance team performance, increase the yield of scheduled maintenance actions, and increase supply chain effectiveness. With these enhancements, maintenance teams can maximize information re-use, manage the complexity arising from asset variation, and reduce the time spent performing tangential tasks like information searches and data downloads.

When properly implemented, lean with Six Sigma helps reduce and eliminate the root causes of defects and unwanted process variability. When employed together, the following Lean/Six Sigma principles have the potential to generate significant performance improvements:

• Define value from the customer's perspective

• Clearly identify value streams in business processes

• Execute work assignments to optimize value

• Assure that every process adds value

• Remove obstacles to value creation

• Continuously reduce or eliminate waste

• Reduce process variability; focus on data and measurements

• Develop a culture intolerant of waste and defects

• Involve every employee in continuous improvement

Performance improvements

Lean/Six Sigma-enhanced production processes provide opportunities to protect future revenues through true competitiveness. Industry statistics suggest that with lean/Six Sigma, MROs can achieve extraordinary performance improvements. Over a three- to five-year period, it is not uncommon to realize significant savings in: labor productivity, inventory reduction, defect reduction, lead time reduction, hangar or work space reduction, increased capacity, and on-time delivery improvements.

In addition to enhanced processes, Lean/Six Sigma-qualified aviation-maintenance subject matter experts provide valuable, enterprisewide insights into maintenance programs and schedules. These individuals possess the background and experience to:

• Evaluate and redesign fleet maintenance programs or schedules to eliminate wasted efforts arising from poorly sequenced, too-frequent or unnecessary tasks

• Assess planning and proffer advice on optimizing check packages to increase production velocity and flexibility while reducing process complexity

• Help implement a adaptable system response to an FAA continuing analysis and surveillance system (CASS)

Culture change

To achieve the success that will only come with process optimizations and culture changes, MROs must implement the IT designed specifically to support lean MRO operations. Today, success in MRO operations is no longer about simply turning wrenches. It is now all about the tooling that provides reliable, just-in-time information to MRO decision makers.

Software solutions

Any suite of MRO software solutions should provide maintenance and engineering organizations with the planning, execution, analysis, and reporting solutions required to drive the following Lean/Six Sigma initiatives:

• Detailed event planning and execution for heavy, shop, light, and line maintenance actions

• Robust data capture, analysis and reporting for metrics-driven continuous improvements

• Optimal task assignments and material tool allocations

• Real-time status internal/external communications

• Maximization of the mechanic’s time on assigned tasks at workstations

• Integrated analysis of reliability information from aircraft, legacy and execution information

A common problem in achieving a truly Lean MRO operation is a less-than-comprehensive/complete lean transformation. Even though MROs spend millions of dollars to transform their facilities into lean machines capable of collecting significant amounts of data, many lean/Six Sigma efforts fail because of a lack of effective IT integration throughout the operation.

In other words, ineffective and nonuse of IT systems to enable and support lean methodologies are the two main reasons for lean-implementation failure.

An effective lean IT solution is integral to capturing, managing, and accessing the comprehensive and highly accurate set of information applicable to lean MRO processes and assets. Once this information is collected, it must provide enterprise leadership with the core knowledge needed for effective decision support across the entire product lifecycle. This knowledge can then be leveraged in work flow-driven processes which, in turn, can be tightly focused to achieve metrics-driven lean/Six Sigma MRO objectives. 

In closing, Lean MRO is a holistic, comprehensive, enterprisewide program designed to be integrated into the MRO’s core strategy as an aid to operational transformation. The Lean MRO’s IT solution enables MRO/Six Sigma strategies by doing all of the following things very well: Ensure repeatable processes and systematically provide micro visibility to movement of assets (including technicians) in a cost-effective manner; guarantees both reliability and readiness; and reduce turnaround time (TAT) and cycle time with accurate forecasting of resources by providing just-in-time knowledge.

Dinakara Nagalla is chief executive officer and president from EmpowerMX. EmpowerMX provides aircraft maintenance software and consulting services to the air transport industry.  For more information visit www.empowermx.com.

Key attributes

Here are the key attributes for effectively establishing a true lean/Six Sigma-based MRO:

• The solution must be full-lifecycle solution and must enable the commercial MRO or military depot to deal with fluctuations over time and on a systematic and repeatable basis

• The solution must be a metrics-based solution that can easily measure and account for organizational performance

• Must support what resources are needed to fulfill the contract

• Must deal with fluctuating workloads, particularly for those organizations that deal with performance-based logistics contracts

• The solution must allow the MRO access to its historical data and be capable of performing the analytics required to predict material needs and to manage inventory levels

• Understanding the maintenance requirements and aligning these requirements to optimize inventory levels at a micro level ensures that when a given part is replaced, the system natively maximizes asset readiness and uptime and enhances platform/fleet availability

• A matured IT system should be a best-practice tool capable of facilitating Lean MRO processes, practices and techniques

• Process analysts will use this tool to establish MRO processes with optimized workflows, maintain complete visibility into maintenance visits, and use it to continually monitor for ensuring the optimization of maintenance visit workflow

• In essence, an effective IT system allows for re-use of both knowledge and best practices for new programs, as well as for upgrades and enhancements

• Data delivery to the point of maintenance contact on the hangar floor using next-generation and touch-based hardware with wireless mobility is central to advanced IT systems

• Data must be accurate, surgical, up-to-date data and highly tailored

• Knowledge must enable maintenance teams to understand, plan and rapidly execute the maintenance visit

• Balance of skills across all hangar bays with right parts on hand before the technicians begin the maintenance visit must be a key feature

• Availability of accurate data on asset under service, including inspection requirements, service procedures, allowable configurations and life-limit cycles significantly reduces the risk of overflowing/underflowing assets

In closing, Lean MRO is a holistic, comprehensive, enterprisewide program designed to be integrated into the MRO’s core strategy as an aid to operational transformation. The Lean MRO’s IT solution enables MRO/Six Sigma strategies by doing all of the following things very well:

• Ensures repeatable processes and systematically provides micro visibility to movement of assets (including technicians) in a cost-effective manner

• Guarantees both reliability and readiness

• Reduces turnaround time (TAT) and cycle time with accurate forecasting of resources by providing just-in-time knowledge

Chart (third column has checkmark)

Waste Types    Examples of MRO Waste       Software Providing Lean Solutions

Logistics          Mechanic spends too much time off task in order to acquire parts, tools, information, assignments; tasks improperly planned and/or sequenced

Defects            Task improperly performed due to human factors; process variability; incorrect specification; defective materials

Materials Management            Parts and components not available at planned time or location; incorrect material provided; excess materials utilized

Unused Employee Expertise   Mechanics not involved in process improvement and problem solving activities

Resource Management            Personnel with appropriate training, correct tools, correct equipment, and other resources required for task performance are not available where/when required

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Overview: leading companies in aviation MRO market

Aviation and aircraft maintenance, repair and overhaul (MRO) is a critical market. Its purpose is to ensures the safety and airworthiness of aircraft or aircraft components in line with stringent regulations.

What is an aviation MRO?

In aviation, MRO refers to a set of procedural activities, including administration, supervision and managerial practices aimed at restoring aircraft to its safe and original state, performance and function. 

MRO companies, which retain spacious facilities to accommodate aircraft, provide essential services, including scheduled maintenance activities of certain segments such as the engine, line, airframe or component of an aircraft.

A wide variety of MRO companies concentrate on only one segment. For example, some enterprises focus exclusively on engine or airframe MRO services.

Furthermore, to ensure compliance with the aviation industry’s strict regulations, the MRO sector and its companies must be certified by the aviation regulatory bodies such as the United States Federal Aviation Administration (FAA) or European Union Aviation Safety Agency (EASA) to name a few.

Here, AeroTime explores the leading companies in the aviation MRO market.

Leading players in aviation MRO market

Ge aviation.

GE Aviation was founded in 1917 and counts 104 years of operation in the global MRO market. The American MRO giant is headquartered in Evandale, Ohio, the United States. 

GE Aviation, an operating unit of General Electric, is a global provider of jet and turboprop engines, as well as avionics and engine maintenance for commercial, military, business and general aircraft. The company’s products, services and activities are subject to a number of regulators such as the U.S. Federal Aviation Administration (FAA), the European Aviation Safety Agency (EASA), and other regulatory bodies. 

With more than 33,000 engines in service, GE is a world leader in jet engine manufacturing. The company’s key customers include Boeing, Airbus, Bombardier, Embraer, Sikorsky, and Lockeed Martin. The MRO giant also boasts a network of nearly 80 plants in 19 countries, which manufacture engines and provide overhaul, maintenance and repair services. 

Interestingly, GE Aviation is best-known for developing the world’s largest and most powerful commercial engine. In the early 1990s, GE developed the GE90 turbofan engine to power the twin-engine Boeing 777. The baseline GE90 engine was certified on the aircraft in 1995 and became the first commercial jet engine to operate with carbon-fiber composite front fan blades.

In 2013, and building upon the GE90 success, GE launched the GE9X engine as the sole engine for the yet to be certified Boeing 777X aircraft. Then, in 2019, GE has announced that the GE9X was the most powerful commercial jet engine after reaching 134,300 pounds of thrust during ground testing in Peebles, Ohio. This broke the previous record held by the GE90-115B engine, which was 127,900 pounds in 2002. By 2020, the GE9X had more than 700 engines on order for the Boeing 777X.

Recently, GE Aviation and Safran, a leading international high-technology group, launched the CFM RISE program to develop a new generation of sustainable engines.

John Slattery, President and CEO of GE Aviation was quoted in the company’s press release as saying:  “Together, through the RISE technology demonstration program, we are reinventing the future of flight, bringing an advanced suite of revolutionary technologies to market that will take the next generation of single-aisle aircraft to a new level of fuel efficiency and reduced emissions.”

According to Slattery, the new engine is intended for narrow-body aircraft, thus replacing the CFM LEAP currently in use by the latest generation of mainline jets, such as Boeing 737 MAX , Airbus A320neo and COMAC C919.

CFM International, a 50/50 joint venture of American GE Aviation and French Safran, was founded in the mid-70s. Since then, it has become one of the world’s most prolific manufacturers of aviation engines for narrow-body aircraft.

Lufthansa Technik 

Lufthansa Technik can be traced back to 1951, predating its parent company, the German national carrier, Lufthansa ( LHAB ) ( LHA ). However, the company currently operating under the name Lufthansa Technik was established in 1995.

Lufthansa Technik is the world’s leading provider of aircraft maintenance, repair, overhaul and modification services from commercial civil aircraft to VIP and special mission aircraft. Lufthansa Technik is based in Hamburg Airport (HAM), Germany, with other important sites situated at Frankfurt Airport (FRA) and Munich Airport (MUC). 

The Lufthansa Technik Group consists of 32 companies with more than 22,000 employees worldwide. The German MRO giant has approximately 800 customers worldwide maintaining 4,500 aircraft under exclusive contracts in 2020. 

“In fiscal year 2020, we had more than 4,500 aircraft under exclusive contracts. Over the course of the year, we won 16 new customers and concluded more than 500 new contracts with a total volume of €2.3 billion for 2021 and the following years,” read the Lufthansa Technik statement. 

ST Aerospace

ST Aerospace, a subsidiary of ST Engineering, was established in 1967 to provide maintenance and support services to the Republic of Singapore Air Force (RSAF). Since then, it has diversified into various MRO capabilities for commercial and military aircraft.

Headquartered in Singapore, ST Aerospace has international offices and facilities located at aviation hubs in Asia-Pacific, Middle East, Europe, and the United States. The Singapore-based MRO company has customers in more than 100 countries and employs approximately 8,000 staff across the globe. 

The company provides aircraft maintenance repair and overhaul services for a wide range of aircraft components and engines via a global repair and logistics support network. It offers services for avionics (including electrical, radar/communications, instruments and electro-optics), mechanical components and engines support (such as CFM56-3/-7B, JT8-D, J85, F404, F100, T53, T55, T56, LEAP-1B, Turbomeca Makila and Arriel engines).

To date, ST Aerospace is recognized as the world’s largest airframe MRO solution provider with the capacity to work on up to 44 widebody, 26 narrow-body and 24 general aviation aircraft at once.

In 2020, ST Aerospace expanded its capabilities in engine MRO after signing an agreement with CFM International to perform MRO work on the LEAP-1B engine, the exclusive engine for the Boeing 737 MAX. 

“We are monitoring the pandemic situation closely and will calibrate the pace of LEAP 1B setup to match Boeing 737 MAX return to service,” read the ST Aerospace statement. 

At the height of the COVID-19 pandemic, ST Aerospace, like many other businesses in the industry, was hit hard. Despite the downturn during 2020, ST Aerospace saved and concentrated on a multi-year heavy maintenance contract to support a Chinese cargo airline’s Boeing 767 fleet, a three-year heavy maintenance contract for Alaska Airlines’ A320 fleet and a five-year heavy maintenance contract to support an international air cargo carrier’s multiple fleet types.

Rolls-Royce

Today, Rolls-Royce Holdings, which is owned by Rolls-Royce (established in 1904), designs, manufactures and maintains engines for the aerospace industry.

The British engineering giant primarily focuses on aircraft engine MRO and its development. Rolls-Royce powers more than 35 types of commercial aircraft and has over 13,000 engines in service around the world. Key Rolls-Royce customers include aircraft manufacturers and commercial air carriers such as Boeing, Airbus, Air China, Qatar Airways or Emirates . Additionally, Rolls-Royce has a wide network of engine repair and overhaul service centered across the globe, most of which are in Europe and the United States.

The most popular Rolls-Royce engines range from M250 to the Trent XWB. Members of the Trent engine family are now in service on the Airbus A330, A340, A350, and A380 , as well as the Boeing 777 and 787 Dreamliner.

Recently, Rolls-Royce started building the UltraFan, the largest aero engine in the world. The UltraFan is expected to exceed the capabilities of the current largest and most powerful aircraft engine, the GE9X. UltraFan engines are predicted to power both narrow-body and wide-body aircraft and deliver a 25% fuel efficiency improvement in comparison to the first generation of the Trent engine family. 

Rolls-Royce is also renowned for its indoor aerospace testbed, which is the world’s largest, situated in Derby, United Kingdom. Testbed 80 was officially opened on May 27, 2021.

After three years of development and with $127 million of investment, Rolls-Royce constructed Testbed 80, aiming to promote sustainability and contribute to lowering emissions in the aeroengine market. The new facility covers an internal area of 7,500 m2. 

HAECO 

Hong Kong Aircraft Engineering Company (HAECO) is an independent aircraft engineering and maintenance, repair and overhaul group. Its head office is on the grounds of Hong Kong International Airport (HKG).

Established in 1950, the HAECO Group consists of 18 subsidiaries and affiliates, and employs roughly 17,000 staff in Hong Kong, Mainland China, Singapore, Europe and the United States, as per HAECO data.

HAECO is responsible for a full spectrum of services, including airframe services, line services, component services, engine services, inventory technical management, fleet technical management, cabin solutions, private jet solutions, freighter conversion, parts manufacturing and technical training.

HAECO has attracted 150 customers worldwide, including Boeing, Airbus, Bombardier, COMAC, Qatar Airways and Cathay Pacific.

Pratt & Whitney

Pratt & Whitney is an American engine manufacturer also known for its wide network in engine MRO services. Pratt & Whitney, a subsidiary of Raytheon Technologies, was established in 1925. 

As one of the biggest aircraft engine manufacturers and aircraft engine MRO providers, it competes with GE Aviation and Rolls-Royce, although it has also formed joint ventures with both companies. P&W is headquartered in East Hartford, Connecticut, United States.

P&W data shows that the company’s large commercial engines power more than 13,000 of the world’s passenger aircraft fleet and serve more than 800 customers in 160 countries. Additionally, the company has a wide network for aircraft engine overhaul and component centers in Europe, Asia-Pacific and the United States. 

A statement from Pratt & Whitney read: “Our fleet of commercial engines has logged more than 1 billion hours of flight, powering the narrow and widebody aircraft that fly both passengers and cargo around the world.”

The most popular Pratt & Whitney commercial aircraft engines range from PW600 to GFT. In recent years, flight hours tripled across the combined GTF-powered fleet of the Airbus A320neo family, Airbus A220, and Embraer E190-E2 and E195-E2 aircraft, according to Pratt & Whitney.

Air France Industries and KLM Engineering & Maintenance 

Air France Industries and KLM Engineering & Maintenance (AF KLM E&M), a subsidiary of Air France-KLM Group, was founded in 2004. Their headquarters are in Tremblay, France. 

The business operates in three major maintenance segments: airframe maintenance, engine maintenance and component support (electronic, mechanical, pneumatic, hydraulic). However, AF KLM E&M is also responsible for a range of services, including line, predictive maintenance, and technical training services. 

The European MRO service provider employs approximately 14,000 people and provides services to around 200 airlines. AF KLM E&M supports 2,800 commercial aircraft.

MRO market trends: what’s the latest?

Over the last decade, the commercial MRO market has experienced steady growth owing to the global economic rise, an increase in demand for air travel and expanding global fleet. However, the COVID-19 pandemic provided a setback during the last 12 months or so.

According to the International Air Transport Association (IATA), the global aviation industry lost over $118 billion in 2020 and dozens of airlines seek bankruptcy protection or stop flying entirely as a result. During the crisis, cash preservation and cost control remained a priority for airlines, which also resulted in bad news for aerospace manufacturers and maintenance, repair, and overhaul (MRO) service providers.

In total, the COVID-19 crisis is estimated to have lowered spending on commercial MRO by about $40 billion in 2020, according to analysis conducted by the American consulting firm Oliver Wyman, Global Fleet and MRO Market Forecast 2021-2031. As per Oliver Wyman estimates, the spending on commercial MRO in 2021 will reach $68 billion.

Due to the ongoing pandemic, commercial MRO demand is unlikely to return to pre-pandemic levels until the end of 2022, according to the Global Fleet and MRO Market Forecast 2021-2031 study. The timing of MRO’s return to pre-pandemic levels of spend is primarily determined by a recovery in air travel demand, which is driven by economic recovery and the pace at which the international community battles the COVID-19 pandemic.

However, despite the reduced expectations for MRO growth, the compound annual growth of the sector between 2019 to 2031 is expected to grow by 3%, according to the analysis.

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Airbus Services has a dedicated organisation that has been created in order to  deliver world-class and fully integrated aviation services  to Maintenance, Repair and Overhaul (MRO) organisations.

Our ambition is to build upon Airbus’ pioneering spirit and propose  innovative solutions to a highly specialised MRO market . We have listened to your requests and ideas so that we can provide you with the best solutions to meet your specific business requirements today and tomorrow.

With over 10 000 Airbus aircraft delivered we have the shared goal of ensuring that these aircraft are maintained and operated successfully, cost effectively and in the safest manner for our mutual customers all over the globe.

Airbus proposes its  Maintenance & Structure training services to support MROs,  from the development of an upstream suitable programme for the future maintenance technicians and engineers to the aircraft type related training and the continuation/recurrent training for experienced mechanics.

We adapt our Maintenance & Structure training services to your needs and expectations thanks to flexible, comprehensive and tailor-made training solutions, whether in one of the Airbus training centres, or in your premises with Airbus instructors, remote training solutions or with our innovative training materials deployed at your base.

Basic Training

Skills, knowledge and attitude from the start

Airbus is committed to support Part 145 to get proficient resources from Schools and Universities. Benefit from Airbus Training at the early stages of the educational programme.

Type Training

Ready to operate for safe & efficient operations

Benefit from the manufacturer expertise to obtain your certified staff ready to operate. Airbus offers a full coverage of approved/ type training courses for maintenance staff subject to Airworthiness Authorities regulation.

Continuation Training

Focus on the right skills for safe & efficient operations

Benefit from a customised Airbus offer to support your internal staff all along their career path to ensure right skills to effectively perform their maintenance operations in accordance with the Airworthiness Authorities requirements.

Structure Training

When competencies drive efficiency

Leveraging on Airbus' OEM expertise, we design our structure courses to ensure competent personnel at every stage of the damage assessment & repair workflow and to optimise your training time & costs. Benefit from learning paths adapted to your staff’s profile & qualifications to ensure safe & efficient operations.

Maintenance & Structure Solutions

Driving efficiency and cost savings

Airbus maintenance experts are continuously working to improve our services portfolio integrating the latest training concepts and teaching techniques devoted to operators and MROs. Especially developed to answer your needs, discover our innovative Integrated Training Solutions and benefit from Airbus quality standards at your base.

Best-in-class services provided by Airbus FHS and Satair

Airbus Material Services is comprised of Satair and FHS working together. Airbus Material Services’ purpose is to  provide parts, tools, and component repairs,  and manage the  commercial aviation material supply chain and logistics . With a strong regional footprint and deep expertise in material management, the organisation supports the complete life cycle of the aircraft for multi-fleet customers across the world through fully integrated material services including Flight Hour Services (FHS) and Integrated Material Services (IMS).

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With IMS we  manage the entire supply chain  across platforms for you. We provide robust planning, procurement and logistics services as well as repairs and maintenance. Your IMS solution will be developed and tailored to your exact needs and can cover the entire material management for Consumables, Expendables and Standard Parts ( CES Materials ).

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Too much stock on the shelf is expensive, whereas too little can result in maintenance delays. Together, we create an  automated replenishment setup  that fits your needs, monitor your consumption data and make sure you have the right stock level available. All day, every day.

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We provide you with our  Airbus Proprietary Parts  that meet the highest quality requirements from the industry-leading aircraft manufacturer.

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In order to best support in reducing your maintenance and inventory costs, we offer high quality  Airbus Structural Parts  as well as Original Equipment Manufacturer  (OEM) components   in a certified serviceable condition.

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We offer an outstanding service for repair and overhaul and one single point of contact handling everything around your repair orders .

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As an aircraft OEM, we are uniquely positioned to provide you with the latest innovative tools to  optimise your maintenance , should it come from our fleet-wide exposure to customer needs, our aircraft Technical Data and Planned Maintenance know-how, or partnership with key aircraft suppliers to develop and certify their ground support means.

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When in-service return of experience and technical know-how are at stake, we have you covered. From upskilling your new mechanics with our best practices to supporting your operations when facing the unforeseen,  we are committed to serve you with our undisputed aircraft OEM expertise , as well as safety and airworthiness in our DNA, to reach your return to service commitments.

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For operations and maintenance events falling outside of Airbus aircraft manuals’ tolerance, we support customers with the appropriate documentation to restore operations while preserving aircraft safety and airworthiness conditions.

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For urgent troubleshooting or repairs

In the case of repair or urgent troubleshooting, the Technical Assistance teams can support you directly at your premises or remotely from the Airbus offices.

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Expert engineers for major in-service problems

The Airbus Engineering Support team ensures technical interfacing for routine and complex in-service issues.

Each incident is analysed to detect occurrences and better anticipate any Major In-Service Problem which can lead to a potential safety issue by a team of on-duty expert engineers to ensure round-the-clock support.

The Airbus Engineering Support can be activated via TechRequest, one of your key Customer Care portals.

TESTIA's mission is to develop inspection solutions and tools that will ultimately improve your efficiency. As an expert in this field, TESTIA offers a full range of products and equipment which aim at  reducing inspection time,  as well as  facilitating defect detection. 

Airbus Consulting Maintenance & Engineering experts will support you to decrypt the market trends, define your competitive advantage and reach operational excellence.

Stay connected with your Customer Support Director

The  Customer Support Director  is there to support aircraft operations, right from Entry-into-Service preparation, and continues through the operational life of the aircraft, ensuring confidence and high satisfaction level of Customers. Constantly focusing on how Airbus can improve its day-to-day in-service assistance, Customer Support Directors manage the transversal coordination across Airbus, employing a global way of working at regional level.

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What is the Overhaul part of MRO for Business Aircraft?

Every aircraft, regardless of the mission or use, periodically faces Maintenance, Repair and Overhaul (MRO). It’s a common enough industry term not to warrant much thought – but what exactly does each element cover? Dave Higdon explores business aircraft ‘Overhaul’.

• Dave Higdon

Dave Higdon was a highly respected, NBAA Gold Wing award-winning aviation journalist who covered all...

All this takes time – and often requires the aircraft to be taken out of service for the duration of the process, which could take several weeks to complete.

• Find an MRO Center
• Read Business Aircraft MRO: What is Aircraft Maintenance?
• Read Business Aircraft MRO: What is Aircraft Repair?
• Read more on Business Aircraft MRO on our new hub.

Do you have a specific aircraft maintenance, upgrade or repair need?

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• 01 Feb 2020
• 27 Jul 2018
• Ken Elliott

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Aircraft Component MRO Strategic Business Report 2024: Rising Demand for Specialized MRO Services Generates Market Opportunities - Global Forecast to 2030 - ResearchAndMarkets.com

The "Aircraft Component MRO - Global Strategic Business Report" has been added to ResearchAndMarkets.com's offering.

The global market for Aircraft Component MRO is estimated at US$17.6 Billion in 2023 and is projected to reach US$27.2 Billion by 2030, growing at a CAGR of 6.4% from 2023 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.

The growth in the aircraft component MRO market is driven by several factors. Firstly, the increasing global fleet size, particularly with the rise of low-cost carriers and the expansion of air travel in emerging markets, is leading to higher demand for MRO services. Secondly, the aging of existing aircraft fleets necessitates more frequent and comprehensive maintenance to ensure continued operational safety and efficiency. Thirdly, regulatory requirements mandating regular inspections and maintenance of critical components are driving the need for specialized MRO services.

Additionally, technological advancements that improve maintenance processes and outcomes are making MRO services more attractive and essential to airline operators. As airlines strive to minimize operational disruptions and extend the lifespan of their assets, the aircraft component MRO market is expected to experience sustained growth, supported by continuous innovation and the increasing complexity of modern aircraft systems.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Narrowbody Aircraft Component MRO segment, which is expected to reach US$14.7 Billion by 2030 with a CAGR of a 6.9%. The Widebody Aircraft Component MRO segment is also set to grow at 6.1% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $4.8 Billion in 2023, and China, forecasted to grow at an impressive 10.4% CAGR to reach $5.9 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2023 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of major players such as AAR Corporation, AerSale, Inc., Airbus SE, and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Key Questions Answered:

• How is the Global Aircraft Component MRO Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Key Attributes:

MARKET OVERVIEW

• Influencer Market Insights
• World Market Trajectories
• Global Economic Update
• Aircraft Component MRO - Global Key Competitors Percentage Market Share in 2024 (E)
• Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2024 (E)

MARKET TRENDS & DRIVERS

• Increasing Global Fleet Size Spurs Demand for MRO Services
• Technological Advancements in Predictive Maintenance Drives Market Growth
• Rising Focus on Operational Efficiency Strengthens Business Case
• Growing Adoption of Digital Twin Technology Generates Demand
• Enhanced Diagnostic Tools and Software Accelerate MRO Processes
• Rising Investment in MRO Infrastructure Sustains Market Growth
• Supportive Regulatory Frameworks Propel Market Dynamics
• Increasing Complexity of Aircraft Systems Drives MRO Needs
• Development of 3D Printing Techniques Expands Spare Parts Production
• Growing Focus on Reducing Downtime Spurs Demand for MRO
• Innovations in Engine Overhaul Technologies Drive Adoption
• Technological Advancements in Avionics Maintenance Strengthen Business Case
• Rising Demand for Specialized MRO Services Generates Opportunities
• Expansion of Airline Fleets in Emerging Markets Propels Market Growth

FOCUS ON SELECT PLAYERS (Total 86 Featured)

• AAR Corporation
• AerSale, Inc.
• Aviation Technical Services, Inc.
• Boeing Company, The
• Bombardier, Inc.
• GE Aerospace
• Honeywell Aerospace Technologies
• Honeywell International, Inc.
• Hong Kong Aircraft Engineering Co., Ltd. (HAECO Group)
• Lufthansa Technik AG
• Roder Prazision GmbH
• SIA Engineering Company
• SR Technics Switzerland Ltd.

For more information about this report visit https://www.researchandmarkets.com/r/ksgqln

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240827285918/en/

ResearchAndMarkets.com Laura Wood, Senior Press Manager [email protected] For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900

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What is mro in aviation.

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• MRO facilities perform essential maintenance programs, including inspections and routine maintenance on aircraft.
• MROs offer repair programs to ensure parts are serviceable, with some repairs outsourced to OEM or specialized centers.
• Overhauling in MROs involves bringing aircraft components back to OEM standards and performing airworthiness directive checks.

A Maintenance, Repair, and Overhaul (MRO) in Aviation is an aircraft (or aviation components) maintenance facility certified by the country's civil aviation authority. An MRO facility is capable of performing maintenance on an aircraft and its components in accordance with the manufacturer's maintenance manual. Based on the maintenance capability, the regulatory authority certifies the processes and tools of the MRO facility.

An MRO facility can be part of the Original Equipment Manufacturer (OEM) or a standalone third-party certified facility. This article explores the various maintenance programs MROs run, as highlighted by Airshare and Lufthansa Technik.

Maintenance

An essential program at MROs is maintenance, including visual and detailed inspection of aircraft, engines, and other major components. Depending on the scope of work, routine maintenance is required on aircraft at regular intervals. MROs also offer maintenance programs specific to customers, aircraft, and configurations.

According to Lufthansa Technik,

“Holding international licenses for maintenance, design and production, we provide tailored maintenance programs, modification, completion and conversion as well as innovative cabin products, material pooling or engine services. We supply you with digital fleet support.”

MRO facilities generally have repair programs that enable the serviceability of parts and components. In other words, inspected components deemed repairable can return to a serviceable condition after necessary repairs.

Some specialized repairs can be outsourced to the OEM or proprietary repair centers determined by the OEM.

Overhauling refers to bringing the aircraft and components back to OEM standards. That may include repairing or replacing parts, assemblies, and components and restoring the aircraft in an overhauled condition.

Overhaul tasks may also require modifications to certain modules, as the OEM prescribes. Moreover, the applicability of airworthiness directives (AD) and Service Bulletins (SB) is also performed by the MRO.

Types of MRO

MROs are generally associated with heavy maintenance of aircraft and engines. Heavy maintenance may require an aircraft to stay in an MRO facility for two to three months. Usually, heavy maintenance tasks are done every 60, 90, or 120 months. The frequency varies based on the aircraft's usability and the OEM recommendations. During a comprehensive D check, for example, all major components, including engines, landing gear, and other systems, are removed. The cabin's interior pieces, including seats, lavatories, and wall panels, are removed for maintenance.

Lufthansa Technik Has Completed Its 1st 12-Year Airbus A380 Check

The aircraft flew to the Philippines for the procedure.

In the same way, engine MROs perform full-performance restoration of engines in approximately three months. In a typical MRO process, incoming inspections are performed before the disassembly of modules and assemblies begins. The maintenance scope is defined based on the aircraft or engine condition. The customer must approve the work scope before the aircraft or components are inducted into the shop.

After disassembly, parts are individually cleaned, inspected, and sent for repair. Life-limited parts (LLPs) are replaced. All serviceable parts are assembled before the testing of components and assemblies begins.

What are your thoughts on aviation MRO? Share your views in the comments section.

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Global aircraft mro market size to worth usd 37.6 billion by 2033 | cagr of 1.07%.

The Global Aircraft MRO Market was valued at USD 33.8 Billion in 2023 and the Worldwide Aircraft MRO Market Size is expected to reach USD 37.6 Billion by 2033, according to a research report published by Spherical Insights & Consulting. Companies covered: Airbus Group, Air France KLM Engineering & Maintenance, Air Works, Delta TechOps, HAECO, Honeywell International, GMF Aero Asia, Jet Maintenance Solutions, ST Aerospace Aviation, Rolls-Royce, Pratt & Whitney, Lufthansa Technik, Safran Aircraft Engines, and other key companies.

New York, United States , Aug. 27, 2024 (GLOBE NEWSWIRE) -- The Global Aircraft MRO Market Size to Grow from USD 33.8 Billion in 2023 to USD 37.6 Billion by 2033, at a Compound Annual Growth Rate (CAGR) of 1.07% during the forecast period.

Get a Sample PDF Brochure: https://www.sphericalinsights.com/request-sample/5705

The Aircraft MRO market is crucial to maintaining aircraft safety, efficiency, and durability. This industry is fuelled by rising global aviation traffic, ageing aircraft fleets, and demanding safety standards. With the rise of low-cost carriers and burgeoning regional airlines, demand for MRO services is gradually increasing. Technological innovations such as predictive maintenance and digital twins are transforming the sector, allowing for more efficient and cost-effective operations. The market is also moving towards outsourcing MRO activities to specialised service providers, particularly in emerging markets. Overall, the Aircraft MRO market is expected to increase significantly, driven by the aviation industry's recovery from the pandemic and the continuous expansion of global air travel.

Browse key industry insights spread across 240 pages with 110 Market data tables and figures & charts from the report on the  " Global  Aircraft MRO Market   Si ze, Share, and COVID-19 Impact Analysis, By MRO Type (Engine, Component, Line Maintenance, Airframe and Modifications), By Aircraft Type (Narrow-body, Wide-body and Others), By Application (Commercial Air Transport, Business and General Aviation and Military Aviation), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 - 2033."

Buy Now Full Report: https://www.sphericalinsights.com/checkout/5705

Insights by MRO Type

The airframe MRO segment accounted for the largest market share over the forecast period 2023 to 2033. As airframes wear and tear over time, frequent maintenance, structural repairs, and modifications become critical to ensuring safety and compliance with demanding aviation regulations. The use of lightweight materials such as composites in new aircraft necessitates the provision of specialised MRO services, which further strengthens this market. Furthermore, developments in predictive maintenance systems allow for more effective and timely airframe inspections and repairs, lowering downtime and costs. With airlines focussing on extending fleet lifespans and improving operational efficiency, the airframe MRO industry is positioned for ongoing expansion.

Insights by Aircraft Type

The narrow body segment accounted for the largest market share over the forecast period 2023 to 2033. As airlines increasingly prefer narrow-body planes for their operational efficiency and cheaper costs, the global fleet of these aircraft grows. This rise immediately increases the demand for MRO services, especially in emerging economies where low-cost carriers are rapidly expanding their operations. Maintenance duties for narrow-body aircraft are exacerbated by their high utilisation rates, which necessitate frequent inspections, repairs, and component overhauls. Furthermore, technological advances in narrow-body aircraft, such as next-generation engines and advanced avionics, necessitate specialised MRO capabilities. As a result, the narrow-body segment remains an important and rising part of the worldwide aircraft MRO industry.

Insights by Application

The commercial air transport segment accounted for the largest market share over the forecast period 2023 to 2033. Airlines are growing their fleets as global air traffic continues to climb, particularly in emerging economies, resulting in greater demand for MRO services. The continued recovery of the aviation industry following the pandemic has increased this rise, as carriers prioritise aircraft maintenance and upgrades to meet rising passenger demand. Technological developments in aviation systems, along with a shift towards more fuel-efficient planes, are fuelling demand for specialised MRO services. Furthermore, the practice of outsourcing MRO activities to third-party suppliers is gaining pace, which presents prospects for market expansion.

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North America is anticipated to dominate the  Aircraft MRO Market from 2023 to 2033. The United States is a major player, having a vast fleet of commercial and military aircraft that require routine maintenance, repairs, and upgrades. North America's modern infrastructure, combined with a strong network of OEMs and specialised MRO providers, drives the sector's rapid expansion. The region is also a hotbed of technological innovation, with substantial investments in digital maintenance solutions, predictive analytics, and sustainable practices. However, issues such as labour shortages and the high cost of new technology adoption remain. Despite this, North America's MRO market is expected to develop steadily, owing to ongoing fleet modernisation and rising air travel demand.

Asia Pacific is witnessing the fastest market growth between 2023 to 2033. With a large increase in air travel demand, notably in China, India, and Southeast Asia, airlines are growing their fleets, resulting in increased need for MRO services. Asia-Pacific is also seeing an increase in low-cost carriers, fuelling the demand for cost-effective maintenance solutions. The region is receiving considerable investments in MRO infrastructure, with numerous worldwide companies establishing or extending their presence to meet the growing demand. However, issues such as regulatory discrepancies, skilled labour shortages, and high operational expenses remain. Despite this, the Asia-Pacific MRO market is poised for rapid growth, eventually becoming a significant hub for global aviation maintenance.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market. Major key players in the Global Aircraft MRO Market Size include Airbus Group, Air France KLM Engineering & Maintenance, Air Works, Delta TechOps, HAECO, Honeywell International, GMF Aero Asia, Jet Maintenance Solutions, ST Aerospace Aviation, Rolls-Royce, Pratt & Whitney, Lufthansa Technik, Safran Aircraft Engines, and other key companies.

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Recent Market Developments

In May 2023, SF Airlines (Shenzhen) and ST Engineering's commercial aerospace arm (Singapore) have created a joint venture (JV) to offer commercial airframe maintenance, repair, and overhaul (MRO) services at China's Ezhou airport in eastern Hubei province.

Market Segmentation

This study forecasts revenue at global, regional, and country levels from 2023 to 2033.

 Aircraft MRO Market, MRO Type Analysis

Line Maintenance

Modifications

 Aircraft MRO Market, Aircraft Type Analysis

Narrow-body

 Aircraft MRO Market, Application Analysis

Commercial Air Transport

Business and General Aviation

Military Aviation

 Aircraft MRO Market, Regional Analysis

North America

Rest of Europe

Asia Pacific

South Korea

Rest of Asia Pacific

South America

Rest of South America

Middle East & Africa

Saudi Arabia

South Africa

Rest of the Middle East & Africa

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