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Frost & Sullivan Publishes New Report on Commercial Aircraft MRO Market - Aircraft maintenance, repair, and overhaul (MRO) for commercial fleets is not likely to absorb as much money as it has in the past, as the ongoing economic decline has airlines deferring fleet expansion plans
Frost & Sullivan Publishes New Report on Commercial Aircraft MRO Market

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2009/12/14 - Aircraft maintenance, repair, and overhaul (MRO) for commercial fleets is not likely to absorb as much money as it has in the past, as the ongoing economic decline has airlines deferring fleet expansion plans.

   
 
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The current airline financial restraints and slower deliveries from Airbus and Boeing as well as weak travel demands, rising fuel prices, and a need to preserve cash are also compelling airlines to continue adjusting their fleet capacity.

North American carriers experienced the largest capacity reduction on record in 2008, when U.S. carriers reduced capacity by nearly 800 aircrafts. The need to save costs has halted airline fleet expansions, with aircraft maintenance outsourcing expected to hold steady.

New analysis from Frost & Sullivan (aerospace.frost.com), North American Commercial Aircraft MRO Market, finds that the market earned revenues of $16.4 billion in 2008 and estimates this to dip marginally to $16.26 billion in 2014. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: heavy maintenance, engine maintenance, components maintenance, and line maintenance.

If you are interested in more information about this study, please, then send an email to Sarah Saatzer, Corporate Communications Associate, at sarah.saatzer[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

“Two key issues faced by the airline industry are the need for lower maintenance cost and risk in the aviation supply chain,” says Frost & Sullivan Industry Analyst Nathan K. Smith. “Industry observers state that original equipment manufacturers (OEMs) are better suited to reduce supply chain risk while third-party MROs can provide lower maintenance costs.”

Airlines are likely to conduct a thorough analysis of their options to determine the best course of action.

MRO service providers will have to be adept at working with cutting-edge electronic technology, as the commercial aircraft industry is technology driven. It continues to be powered by advanced cockpit systems, integrated avionics, and optimized systems. In fact, the number of next-generation aircraft is expected to double in the next four to five years. Airlines will be especially encouraged to adopt next-generation aircraft as environmental regulations become more stringent and the need for fuel efficiency and lower maintenance rises.

Market participants will have to hold on to their competitive positions to stay afloat in these demanding conditions. Strategically, MRO providers must aim to provide reliable and cost-effective maintenance services.

“North American MRO vendors should revaluate their present organizational structure and continue to seek improvements,” notes Smith. “The availability of skilled labor will be a challenge in the industry and therefore, they must be prepared for the rise in labor costs.”

Meanwhile, low-cost Asian and Latin American MROs are capturing considerable market share and turning the heat on the MROs in North America. Domestic MROs need to respond to this competition by lowering costs and wastage, increasing productivity, providing timely and quality products, and focusing strongly on customer satisfaction.

North American Commercial Aircraft MRO Market is part of the Aerospace Growth Partnership Service program, which also includes research in the following markets: C4ISR and autonomous systems, ATM & airports, aircraft and engine MRO, and commercial aviation and services. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

North American Commercial Aircraft MRO Market / N624.

 
 
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Frost & Sullivan Publishes New Report on Commercial Aircraft MRO Market

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Frost & Sullivan |
Contact: Sarah Saatzer 
210-247-8427 sarah.saatzer[.]frost.com
 
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