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Innovative Technologies Ensuing Safer and Greener Aircraft Spur Growth in the North American Commercial MRO Market Finds Frost & Sullivan - The North American commercial aircraft maintenance, repair, and overhaul (MRO) market is driven by new technologies and innovations that provide safer, greener, and less maintenance intensive aircraft
Innovative Technologies Ensuing Safer and Greener Aircraft Spur Growth in the North American Commercial MRO Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2010/09/21 - The North American commercial aircraft maintenance, repair, and overhaul (MRO) market is driven by new technologies and innovations that provide safer, greener, and less maintenance intensive aircraft.

   
 
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The demand by airlines for total support and bundled maintenance offerings continue, but cost is a key consideration when choosing a service. Third party MROs are competing to meet this need with key differentiators such as superior quality, quick turn-around time (TAT), a high degree of technical capability, and low competitive cost.

New analysis from Frost & Sullivan (aerospace.frost.com), North American Commercial MRO Market, finds that the market earned revenues of $15.64 billion in 2009 and estimates the market to decline to $14.60 billion in 2010. The aircraft original equipment manufacturers (OEMs) covered in this research are Airbus, Boeing, Bombardier, and Embraer.

If you are interested in a virtual brochure for this study, please send an email to Sarah Saatzer, Corporate Communications, at sarah.saatzer[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

"In an era of a less than perfect economic setting, 2010 has given hope to the airline industry. Second quarter profits and reduced losses in the industry provide a glimmer of hope for a profitable year. However, the industry's behavior is one of caution; capacity restraints remain in place and less efficient aircraft remained parked, as next generation less maintenance intensity and fuel-efficient aircraft are introduced. North American's MRO market will be challenged in an era of reduced MRO spending," says Frost & Sullivan Industry Analyst Nathan K. Smith.

The North American commercial MRO market is anticipated to remain flat. The most obvious impact in North America's MRO market is the total amount of work that is available to the industry. Work provided to third parties has diminished 20 to 30 percent since 2008.

Airlines are likely to leave many older aircraft parked due to capacity restraints and the replacement by next generation aircraft. A limited amount of new aircraft is scheduled for North American operators. Therefore, North America's fleet size is expected to diminish for this forecast.

"Although travel demands and airline earnings are improving, airline financial restraints due to the economic slowdown and higher fuel prices are likely to continue, thereby reducing MRO revenue," explains Smith. "Airline capacity is increasing at a slower pace when compared to the levels in 2007 and is unlikely to increase in the short-term."

The North American commercial MRO market participants should remain cost competitive and customer focused. Customer program management, product lifecycle management, and service management, as well as customer service strategies, are the foundation of the emerging customer service and support model for the North American commercial MROs.

"The largest share of the service and support revenue opportunities is anticipated for MRO organizations that are able to acquire, integrate, and build these capabilities into their already extensive competencies, capitalizing on aspect to drive innovation, growth, and high performance," concludes Smith.

North American Commercial MRO Market is part of the Aerospace Growth Partnership Services program, which also includes research in the following markets: World Aircraft Leasing Market - Market Outlook and Investment Analysis, World Commercial Helicopter Market, and North American Military Helicopter Market. 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 40 offices on six continents.

North American Commercial MRO Market / N7F5

 
 
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Innovative Technologies Ensuing Safer and Greener Aircraft Spur Growth in the North American Commercial MRO Market Finds Frost & Sullivan

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