Page 31 - AAA JANUARY - FEBRUARY 2017 Online Magazine

COVER STORY

New Challenges pronounced in engines; Rolls-Royce, General
Maintenance of new aircraft will be no Electric and Pratt & Whitney have close
cakewalk for MRO companies that have to absolute control through aftermarket
infrastructure and background systems support agreements. OEMs have started
that are, in most cases, decades old. Newer altering market equations in components
machines, while light on maintenance, are and airframes as well. Prime examples are
much more complex compared to older ones Boeing and Airbus, and their entry into the
and demand both an updated skill set and component and airframe MRO scene. The
better technical capabilities. The advances introduction of new, sophisticated aircraft
in data analytics is another reality that gives OEMs distinct advantage over MROs.
companies will have to come to term with. The increased availability of used serviceable
New generation aircraft are armed with material (USM) n the coming years, a result
technology that facilitates collection and of the anticipated increases in retirement
transmission of huge amounts of data. As of ageing fleet, provides an opportunity for
per the Oliver Wyman forecast, the billion MROs to offer more competitive prices to
gigabytes of data that is produced by the clients, but OEMs pose a formidable hurdle
global aircraft fleet globally will jump to 98 here as well - they are expected to remain the
billion gigabytes in 2026. “Analytic capability largest customers of USM.
has increased in the last two years, but MROs
have generally struggled to make good use of When You Can’t Fight Them, Join
the data,” says Waart. “There is huge potential Them
there; effective use of data improves Experts are of the opinion that the
utilization of assets. But with so much data, landscape has changed to such an extent
the challenge is in finding out what is useful that independent MROs that do not have
and what is not. There is an issue of data any OEM or airline relationships will find it
ownership as well.” tough to survive. Expect more companies to
start planning partnering with OEMs, airlines, Continued growth in passenger
The OEM Threat fellow MRO companies or aftermarket volumes and low fuel-prices
The biggest challenge that MROs face component suppliers. That is, if they have not will benefit MRO providers
is the increasing prominence of original done so already. with continued work as airlines
could decide to retain their
equipment manufacturers (OEMs) in older-generation aircraft for a
the aftermarket. The dominance is most longer period
WWW.GBP.COM.SG/AAA JANUARY / FEBRUARY 2017 ASIAN AIRLINES & AEROSPACE 31