Keep them flying: Find your winning position in the MRO game

Maintenance, repair and overhaul (MRO) services play an invaluable role in assuring that commercial airliners remain safe, durable and profitable. As new companies enter the aircraft maintenance business and others change or expand their value propositions, MRO providers will be compelled to become more collaborative, more open – and more competitive. To position themselves for the future, these organizations must be prepared to take on new roles and heighten their value by working more closely with others.

Maintaining commercial aircraft: An attractive and growing opportunity

Today’s US$40.1 billion maintenance market for commercial aircraft is large and growing – attracting new companies and changing the roles of existing ones. The market is expanding at a 3.6 percent compound annual growth rate (CAGR), and is expected to reach US$58 billion by 2016.¹

Nearly two-thirds of today’s MRO market is split between North America and Western Europe.² Over the next 20 years, the center of gravity of the world’s airline fleet will tilt toward the Asia-Pacific region: almost 40 percent of air traffic will be to, from or within those areas.³ The largest MRO growth will be seen in Asia (+US$5.6 billion).⁴

The aircraft maintenance supply chain currently holds an inventory of about US$44 billion and supports an active global fleet of nearly 17,000 aircraft. This has resulted in approximately US$2.5 million in inventory available to each active aircraft.⁵

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References

¹ Michaels, Kevin. “Air Transport MRO Market Outlook.” April, 2007.
² Ibid.
³ Current Market Outlook 2007. Boeing.
⁴ Ibid.
⁵ Evans, David. “Aftermarket Outlook.” May, 2006.