MRO is the hot topic
Having just returned from MRO Europe last week, International Business Development Manager, Joe Muir and Sponsorship Sales Manager, Lara Day, discuss the opportunities for the MRO sector at Farnborough International Airshow
At MRO Europe last week, the sector came together to discuss some of the latest trends and issues affecting the industry. From training needs, new technologies, regulatory updates and industry forecasts and trends, it was a major opportunity for networking and discussion.
We attended both days and meet with a variety of potential exhibitors for the Farnborough International Airshow in 2018. The exhibition itself was also a hive of activity with all areas of the MRO industry in attendance from major primes to specialist suppliers. We were particularly interested to see a large number of airlines at the show.
Various market forecasts seem to agree that the MRO sector is set to almost double in the next 10 years. According to Oliver Wyman at the MRO Europe Conference, the worldwide MRO market is valued at US$67.7 billion and forecasts total MRO spend to increase by over US$31 billion by 2026, representing a year-over-year increase of 3.9%. Statista.com’s MRO dossier corroborates this statistic predicting the MRO market to be valued at US$100 billion over the next decade.
The MRO industry is driven by the strength of the aerospace market which is strong given the continued demand from the Asia Pacific region. Oliver Wyman and Statista also comment the Engine MRO segment as a continued driver for growth. FIA16 saw robust engine orders announced at the show with orders and options for 1407 engines from Rolls-Royce, GE Aviation, CFM and Pratt & Whitney. While not quite reaching the heady heights of FIA14, the number is still more than double that 2012.
Notably, some of the deals were packaged with extensive maintenance contracts. For example, Gulf Air’s order for Rolls-Royce Trent 1000s and Virgin Atlantic’s order for Trent XWBs both had long-term TotalCare maintenance agreements attached to them. GE Aviation also signed deals with Emirates and Austrian Airlines to extend their MRO contracts.
Overall, FIA16 saw over US$5bn of MRO deals taking place at the show and no doubt further potential business down the line. For example, MRO service provider AAR Corp had a number of executives on-site meeting with potential and existing customers. FIA16 saw over 317 exhibiting companies operating with the MRO sector taking advantage of the show as an international platform for business.