Companies in this industry provide aircraft maintenance and repair, as well as inspection and testing services. Major companies include AAR (based in the US), Hong Kong Aircraft Engineering Company, Lufthansa Technik (Germany), SR Technics (Switzerland), and ST Aerospace (Singapore).
Demand for maintenance and repair services is driven by air transportation activity and the size and age of aircraft fleets. The profitability of individual companies depends on efficient operations. Large companies have an advantage in their ability to serve major customers and enjoy economies of scale in parts purchasing. Small companies can compete effectively by serving local markets and smaller customers. The US industry is concentrated: the 50 largest firms generate about 65% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Primary segments of the aircraft maintenance, repair, and overhaul (MRO) market include engine overhaul, airframe maintenance, line maintenance, modifications, and components. Companies involved in engine overhauls handle inspection, parts replacement, repairs, and preventative maintenance. Airframe maintenance covers scheduled inspection and repair of airframe structures and cabin bodies. Line maintenance is scheduled to be conducted before and between operations and does not require that the aircraft be taken out of service. Modification work covers a broad range of activities, including major operations such as passenger-to-cargo aircraft conversion and product upgrades such as in-flight entertainment system installations. Component maintenance is conducted on parts that have been removed from the aircraft for maintenance or repair.