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COVER STORY
MROs. Offsetting the decreased demand there to worry? Quite a lot, in fact.
for MRO services due to induction of new The continuing influx of next generation
generation aircraft is the anticipated aircraft, competition from original equipment
increase in fleet. Oliver Wyman predicts an manufacturers in the aftermarket, the
increase of nearly 9,900 aircraft by 2026, introduction of new technologies and
an average annual growth of 3.4 per cent. the shift from reactive to predictive
maintenance pose challenges to an industry
Trouble on the Horizon? that is still struggling to come to terms with
Waart believes there are challenges ahead. the changes. With engine and airframe OEMs
“Short term, there will be growth for eager for a share of the pie and stepping in
independent MROs, but there are several to transform the aftermarket, many MROs
trends that will challenge them,” he said. have been forced to rely on partnerships to
The scenario, at first look at least, survive. CHC Helicopters, which offers MRO
does not portend trouble and in fact, services for helicopters, filed for bankruptcy
looks promising. Passenger volumes have in May last year and is currently working on
gradually increased over the last five years a financial restructuring plan. It is not the
and is expected to more than double within only company in trouble, said Brian Kushner,
the next twenty years. Low fuel prices, Senior Managing Director at FTI Consulting.
among other factors, is pushing net profits to “There is a lot happening,” he said. “ A few
unprecedented levels. Fleet growth is steady companies are in trouble. There is some
A key issue for MROs will be how
to access the license to provide and expected to grow at a healthy rate of distress in the area.”
overhaul for new engine types more than 3 per cent annually. So, what’s
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