Business & GA, Commercial

Airline Interest in Reducing Operating Costs Spurs Global MRO Market

By Juliet Van Wagenen | September 1, 2015
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Maintenance technicians working on an aircraft
Maintenance technicians working on an aircraft. Photo: Southwest Airlines

[Avionics Today 09-01-2015] The global narrow-body aircraft Maintenance, Repair and Overhaul (MRO) market is expected to grow at a Compound Annual Growth Rate (CAGR) of almost 4 percent from 2015 to 2019, according to a new report by Technavio.

According to the report, airlines across the world are focusing on reducing their operating costs. Maintenance is a major area where the airlines can cut costs, enabling them to avoid investment in equipment, facilities and inventories of components and parts.

“Many airlines across the world are shifting their MRO facilities to developing countries like China and El Salvador due to the availability of cheap labor. Nearly 84 percent of the aircraft MRO activities are outsourced, which is expected to boost market growth,” says Faisal Ghaus, vice president of Technavio.

The report also emphasizes the use of lean management techniques in operations, which can eliminate unnecessary tasks from processes and increase supply chain effectiveness, and lead to sustainable performance improvements.

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