Page 10 - AAA NOVEMBER - DECEMBER 2015 Online Magazine

COVER STORY LANDING GEAR

The market for landing gear
MRO is changing as older aircraft
leave service and newer types
appear on the horizon
weight can reach almost 395.000 kg. As a proportion of labour in the cost structure does seem that during the next few years
result, this part of an aircraft is among the (up to 67 per cent of overall maintenance all of the players will have an opportunity
ones to undergo the most inspections and cost). It means that landing gear overhaul to have a bite of the landing gear MRO
is a steady source of business for MRO is the most profitable to the service pie,” says Jurkstas.
providers. providers which maintain direct contact “Another key element in the landing
with their customers and have in-house gear MRO development is the substantial
Market Outlook repair capabilities. This is why, for the investment the MROs have to make in
The global landing gear maintenance last decade OEMs have been putting a buying landing gear sets for exchange.
market saw a growth of 130 per cent from lot of efforts into entering the market Many airlines are becoming increasingly
2008 to 2013 and is estimated to reach (currently they account for almost 40 per reluctant to purchase spare sets,
US$1,11 billion by 2022. cent of it), as they see the landing gear preferring to rely on pool items and short-
Currently North America and Europe overhaul sector as an opportunity to get term leases. This has driven the landing
account for up to 62 per cent of the landing back a portion of their investments in the gear MRO industry to carry this financial
gear MRO market. However, in recent development and manufacturing of gears burden. In addition to that, independent
times the demand in the region has been and components MROs have been feeling the OEMs are
on the decline. The trend could be partly “Although competition is always making it difficult for them to compete
attributed to the extended overhaul cycles productive, the growing presence of OEMs on a level playing field, as they have been
as well as the introduction of modern in the market could be perceived as a drastically increasing spare-asset pricing.
landing gears. These are nowadays negative trend as it poses the difficulties Although the OEMs are certainly
commonly designed to last for the life related to obtaining instructions for becoming more dominant, they still realise
of the aircraft or an average of 80.000 continued airworthiness and the use of they cannot support the demand on their
flight hours. Nevertheless, the rapidly non-OEM as well as PMA parts under own and consequently - some more than
growing emerging markets outweigh the OEM warranties,” says Jurkstas. others - work alongside reputable repair
decreasing demand in the U.S. and the shops in the support of their product.
Old Continent. OEM Challenge “Thus, although the technological and
The vast majority of current overhauls investment hurdles might be high, for
Competition as High as Ever are still being performed by non-OEM those competitors willing and able to
Although it may seem that such a busy providers, who can offer a wider product surmount them, the rewards for staying
segment has a place for everyone, the range, as well as strict and innovative in the race could be very worthwhile,”
competition is as high as ever. Landing focus on developing new and smart repair concludes Jurkstas.
gear MRO is one of a few component schemes to salvage parts. “In any case,
MRO segments characteristic of a high considering the upcoming demand, it
10 ASIAN AIRLINES & AIRPORTS NOVEMBER / DECEMBER 2015 WWW.ASIANAIRLINES-AIRPORTS.COM