Page 29 - AAA JANUARY - FEBRUARY 2017 Online Magazine

COVER STORY

airline MRO organizations among its clients. existing companies and the opening of new,
“Hainan Airlines acquired majority stakes small repair stations.”
in SR Technics; Avic International acquired “Currently, the Fort Lauderdale
Align Aerospace. There is an east to west International Airport and the Miami
wave in the industry; it’s a definite trend.” International Airport are growing their
Fleet growth is not the only reason why number of flights and carriers,” said
Asia Pacific and the Middle East are seeing Taschereau. “This should provide a fertile
a lot of MRO activity, said Waart. “North ground for MRO demand. It is a very
American operators have moved heavy competitive market, but there is a lot of
maintenance to Asia and Europe is warming work,” says Brullo. “Seems like there is
up to the idea. Asian operators like to do more work now than before. I hope it stays
their maintenance inside the region. We are that way.”
also seeing narrow body work migrating
to Latin America. Places like Morocco and Low Fuel Price a Boon
Malta have seen growth as well.” “MROs According to 10-year MRO market forecast
in Asia and places like Mexico, Brazil and by Oliver Wyman in 2016, the MRO industry
Malaysia make money and there is nothing is expected to grow at an annual rate of 3.9
that we can do about it,” said Giovanni Brullo, per cent until the end of the forecast period.
CEO of G Force Aircraft Maintenance, a A tailwind for the MRO industry is the
company based in Fort Lauderdale. “Labor delay in fleet renewal process because of
is so cheap in these places. In a place like El the law price of fuel. With operators using
Salvador, you have employees working for ageing aircraft longer, experts expect to
$8 to $10 per hour.” see an increased demand for MRO services
“The MRO market is growing in on mature engines. This uptake, however,
North America,” said Pierre Taschereau, is expected to be short-lived, lasting a
International Client Manager and Aviation maximum of 5 to 10 years. According to
specialist for the Greater Fort Lauderdale 10-year MRO market forecast by Oliver
Alliance, an organization that is focused on Wyman in 2016, nearly half of the current
attracting high value targeted industries global fleet will be replaced by 2026.
to the region. “What we’re seeing here with Operators will phase out mature aircraft
the companies located in the Greater Fort and replace them with next generation
Lauderdale region is continued growth at aircraft that are low-maintenance. Longer
this time exemplified by the expansion of maintenance windows are bad news for

RIGHT: There will be growth for
independent MROs in the short
term, however, emerging MRO
trends will pose challenges
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