Aircraft Maintenance & Repair
Description
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 Engineering Aerospace (Singapore).
Global revenue for commercial aviation maintenance, repair, and overhaul (MRO) services is forecast to about $125 billion by 2034, according to Statista. Economic expansion in emerging markets in the Asia Pacific region is expected to drive industry growth and surpass the leading countries in the MRO country.
The US aircraft maintenance and repair industry includes about 3,900 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $17 billion.
COMPETITIVE LANDSCAPE
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 60% of industry revenue.
Dedicated third-party providers of aircraft maintenance, repair, and overhaul (MRO) services compete against original equipment manufacturers (OEMs) and airlines. Engine makers and other equipment manufacturers often generate a significant percentage of their revenues from MRO services, and airlines typically handle some portion of their own MRO requirements. Some MRO companies began as in-house airline departments and later evolved into third-party providers.
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 get majority of their revenue from maintenance and repair (more than 95%) with wholesale sales of aircraft equipment and supplies account for the rest. 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.
Maintenance checks are performed on a prescribed schedule that is determined by the aircraft's manufacturer in conjunction with regulatory agencies such as the Federal Aviation Administration (FAA). A maintenance planning document (MPD) spells out specific tasks and maintenance intervals for various aircraft models
Common types of maintenance inspections include "A" Checks, "C" Checks, and "D" Checks. A more detailed "A" Check is performed at service stations every 120 to 150 flight hours and takes about 10 hours. Maintenance handled under a "C" Check includes a comprehensive series of inspections and overhaul tasks that takes the plane out of service for three days. "D" Checks, also known as structural checks, involve tasks requiring extensive disassembly and remove airplanes from service for 20 days or more.
Global revenue for commercial aviation maintenance, repair, and overhaul (MRO) services is forecast to about $125 billion by 2034, according to Statista. Economic expansion in emerging markets in the Asia Pacific region is expected to drive industry growth and surpass the leading countries in the MRO country.
The US aircraft maintenance and repair industry includes about 3,900 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $17 billion.
COMPETITIVE LANDSCAPE
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 60% of industry revenue.
Dedicated third-party providers of aircraft maintenance, repair, and overhaul (MRO) services compete against original equipment manufacturers (OEMs) and airlines. Engine makers and other equipment manufacturers often generate a significant percentage of their revenues from MRO services, and airlines typically handle some portion of their own MRO requirements. Some MRO companies began as in-house airline departments and later evolved into third-party providers.
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 get majority of their revenue from maintenance and repair (more than 95%) with wholesale sales of aircraft equipment and supplies account for the rest. 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.
Maintenance checks are performed on a prescribed schedule that is determined by the aircraft's manufacturer in conjunction with regulatory agencies such as the Federal Aviation Administration (FAA). A maintenance planning document (MPD) spells out specific tasks and maintenance intervals for various aircraft models
Common types of maintenance inspections include "A" Checks, "C" Checks, and "D" Checks. A more detailed "A" Check is performed at service stations every 120 to 150 flight hours and takes about 10 hours. Maintenance handled under a "C" Check includes a comprehensive series of inspections and overhaul tasks that takes the plane out of service for three days. "D" Checks, also known as structural checks, involve tasks requiring extensive disassembly and remove airplanes from service for 20 days or more.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Search Inside Report
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
