Asia Pacific Aircraft and Engine MRO Market Poised to Take Off

PALO ALTO, Calif.--Feb. 3, 2004--The idea of outsourcing non-core maintenance operations is gaining popularity with aircraft operators in the Asia Pacific region -- particularly in the commercial segment -- and is creating opportunities for independent maintenance, repair and overhaul (MRO) service providers.

New analysis from Frost & Sullivan (www.aerospace.frost.com), Asia Pacific Aircraft and Engine MRO Market, reveals that revenues in this industry totaled $5.2 billion in 2002 and are projected to reach $7.3 billion by 2011.

Current market trends reveal that airline operators are increasingly looking for comprehensive solutions that include scheduled heavy maintenance (namely C & D checks) and engine checks over a fixed number of years.

"To provide a 'total' solution encompassing all possible types of maintenance and repair from 'nose-to-tail,' MRO service providers must form strong relationships with aircraft original equipment manufacturers (OEMs), second-tier OEMs such as manufacturers of avionics and landing gears, and aircraft engine OEMs," remarks Frost & Sullivan Sr. Research Analyst Vignesh Kadirvel.

Increasing deregulation in the airline industry also impacted the demand for outsourcing; it has helped attract numerous privately owned operators that give priority to selling of seats and prefer to outsource almost all other operations associated with commercial aircraft.

On the other hand, the military segment is yet to embrace outsourcing in a big way. Most countries in the Asia Pacific region are reluctant to entrust the maintenance of high-tech military equipment to third parties, preferring to keep it in-house. However, due to lack of technical knowledge of in-house staff or inherent system complexities, the maintenance of the aircraft is often compromised.

Again, forging alliances with aircraft OEMs can help MRO service providers highlight this issue to the relevant Ministries of Defense and convince them of the benefits of outsourcing such operations to specialized independent providers.

Aircraft engines as well as the diagnostic systems used to service them are seeing a substantial increase in both price and complexity.

"The acquisition and maintenance of diagnostic systems together with the expense of training mechanics has increased the costs associated with an engine tremendously," says Kadirvel. "Given the number of new engines in service, the benefit of the increased MRO associated with engines has been difficult to gauge."

Nevertheless, companies must allocate the necessary funds to train technicians in the intricacies of aircraft engines and their diagnostic systems as well as to develop tooling and support capability for engine repair. This is becoming increasingly crucial for engine MRO participants to succeed.

If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the analysis of this market, send an email to Nuha Kadri, Industrial Media Relations Executive at nkadri@frost.com with the following information: your full name, company name, title, telephone number, e-mail and title of the brochure you are interested in receiving. Upon receipt of your information, an overview will be sent to you via e-mail.

Asia Pacific Aircraft and Engine MRO Market is part of the Aerospace & Defense subscription and provides a detailed analysis of significant trends such as the growing move towards outsourcing and the formation of maintenance alliances that are shaping the market. Key drivers, restraints and challenges are discussed and strategic recommendations provided. Summaries and interviews are available to the press.

Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence and management training. Our mission is to forge partnerships with our clients' management teams to deliver market insights and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers, and support staff spans the globe with offices in every major country.

             Asia Pacific Aircraft and Engine MRO Markets
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Keywords: Asia Pacific, MRO, commercial segment, avionics, diagnostic systems