Home' Asian Aviation : AAV Dec Jan 2010 Contents MRO Asia Report
The civil aviation maintenance, repair and
overhaul (MRO) industry is estimated to have
declined 7.5 percent to US$42.5 billion in 2010,
with most service providers seeing a drop of
22-25 percent in revenue. Yet the longer-term
outlook remains positive.
According to Mike Bride, executive vice-
president and chief financial officer of
consultancy TeamSAI, airlines are once again
expanding thanks to a rebound in global travel.
Newer aircraft models coming into service will
require less-intensive maintenance, but even so
future growth will be strong.
With the introduction of new aircraft into
the world fleet, MRO cost per aircraft has
fallen from US$2.4 million in 2008 to US$2.1
million in 2010.
Bride says the industry will bounce back in
2011, with 7.3 percent growth, settling to a
compound annual growth rate of 4.4 percent
up to 2020, when the market will be valued
at about US$65.3 billion. The Americas and
Europe will each account for 31 percent of the
market, while the Asia-Pacific will account for
China will represent 9 percent of the global
market, with the Middle East at 6 percent,
Africa at 3 percent and India 2 percent. China,
India and the Asia-Pacific region will have the
strongest growth rates, at 9.6 percent, 9.4
percent and 5.3 percent respectively.
The global aircraft fleet will expand at a
compound 3.3 percent per annum, from
19,675 aircraft in 2010 to 27,303 in 2020,
with the Americas accounting for 35 percent,
Asia for 29 percent, Europe 27 percent and the
Middle East/Africa 9 percent.
"Profits have been elusive in many regions
but Asia has been a different story in the last
decade, being most profitable," Bride says.
Airlines have increasingly begun to re-examine
their maintenance programmes in an effort to
increase efficiencies and minimise cost drivers.
"Efforts are underway to examine industry
standards for best practices and appropriate
intervals in between checks," Bride says.
MRO service providers must identify new
market needs and value-added services that
support airline requirements, reinvent their
business model and develop new processes to
optimise customer service, he adds.
While there is optimism for growth of the
industry, there are concerns that Original
Equipment Manufacturers (OEM) are gaining
a competitive advantage in the MRO market.
Boeing has been aggressively marketing its
GoldCare support programme, with some
In September, meanwhile, Singapore Airlines
signed a Flight Hour Services (FHS) deal with
Airbus, covering full MRO component support,
line and heavy maintenance and technical
management services for its fleet of five
A340-500s. The carrier has two other FHS
agreements signed with Airbus -- in July 2008
for A330-300 and in 2007 for component
support for A380.
Amid expectations that Asia will become the first MRO market to recover from the global economic
downturn, the MRO Asia 2010 Conference and Exhibition was held in Singapore pm 2-4 November.
William Dennis reports.
MRO market outlook remains positive
Beijing-based Aircraft Maintenance Engineering
(Ameco Beijing) is expanding its airframe heavy
maintenance capabilities to cover the Airbus
A330 widebody twinjet.
Ameco Senior Director Bin Teng says that, with
AMECO already having capabilities to maintain
the four-engine A340, it makes business sense
to complete the portfolio by adding the A330,
which is in service with many airlines in Asia.
Ameco, based at Beijing Capital International
Airport, expects to do its first heavy-maintenance
check on an A330 soon. The company also
offers maintenance and component-repair
services for Boeing 747, 777, 767, 737 and
Airbus A320 airliners.
The company says it is not planning to offer
Boeing 757 services, as that is a shrinking
market. All MRO work for 757 aircraft is
contracted out to sister company Air China
Technics in Chengdu, Sichuan Province.
AMECO's 41,000 square metre A380 hangar,
which is now operational, can accommodate as
many as six widebody aircraft at the same time.
It also has a 10,000 square metre, temperature-
controlled hangar for stripping and painting
aircraft types up to the size of the 747.
The company has component workshops
covering 20,000 square metres, including
temperature-controlled avionics and electric
workshops, a landing-gear overhaul shop
and mechanical, pneumatic and hydraulic
Guangzhou-based China Southern Airlines is
the only Chinese carrier so far to have ordered
the A380 -- the world's largest airliner. China
Southern will start taking delivery of its five
A380s in 2011, after a delay of two years.
Ameco has started providing line-maintenance
services for Lufthansa's A380s, deployed on the
daily Frankfurt-Beijing route.
The MRO provider has engine overhaul and
component-repair capabilities covering Pratt
& Whitney PW4000 and Rolls-Royce RB211
turbofans. Ameco is also equipped with a test-
cell for engines up 100,000lb thrust.
Teng says Ameco is looking to expand its
engine capabilities to cover additional types,
but has yet to decide on which. The company
has also been planning to offer passenger-to-
freighter conversions for the last five years, but is
still not ready.
"We will continue with our core business of
airframe maintenance and engine overhaul,"
Ameco Beijing adds Airbus A330 maintenance capabilities
22 AsianAviation | DECEMBER 2010 / JANUARY 2011
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