Aircraft Maintenance Technology

OCT 2018

The aircraft maintenance professional's source for technological advancements, maintenance alerts, news, articles, events, and careers

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16 OCTOBER 2018 AIRCRAFT MAINTENANCE TECHNOLOGY COMMERCIAL MRO IFS Commercial Aviation Aftermarket Heats Up Third-party MROs face competition from OEMs for new business opportunities By James Elliott The global aviation market may have just experienced its most profitable period ever, but with mega airline mergers and acquisitions and the increased proliferation of low-cost carriers on both short and long-haul flights, airlines are now having to focus more than ever on their bottom line — and that means their core business processes. Here James Elliott, director of the maintenance, repair, and overhaul (MRO) product line for the Aerospace & Defense Business Unit at IFS, explains that as airlines start to focus on serving their passengers and optimizing the customer experience, they are also looking to outsource one of their biggest cost areas — the maintenance of aircraft. He discusses how this is opening up huge opportunities for service providers. The latest Oliver Wyman study forecasts continued growth for the MRO industry until 2028, with the value set to rise to $114 billion globally — a jump of nearly 50 percent over 10 years. In particular, countries in Asia and the Middle East will see a significant hike in MRO spending as regional air passenger demand continues to grow, while the established duo of North America and Europe will witness a steady increase. This growth is driving a shift in the focus of original equipment manufacturers (OEMs) to target in-service support contracts. OEMs have the experience in designing and building aircraft and are using this position to unlock more revenue through aftermarket services and compete with independent MROs. OEMs step up to the plate OEMs are in the unique position of being able to change the original maintenance program written

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