Page 18 - AAA NOVEMBER - DECEMBER 2022 Online Magazine

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the strengthening US dollar can slow down the pandemic hit, is back on the way up as passenger traffic
recovery. grows, but a return to pre-Covid-19 levels is only expected by
2024. Companies in the region, which remain concerned about
“Asia-Pacific air traffic volumes will recover supply chain challenges and geopolitical situations, are focused
to at least two-thirds of the pre-pandemic on introducing digital solutions and being flexible when it comes
levels,” says AAPA director general Subhas to addressing customers’ needs. The MRO market in the region
Menon. “Full recovery may take another year is expected to register a CAGR of over 5% during the 2022-2031
at least, provided the global economic outlook period.
doesn’t get any worse.”
One of the major reasons for the expected growth of the MRO
The region’s total recovery from the pandemic industry in the region is the penetration of low-cost carriers in
is critical for the industry’s future. According the region. The pronounced growth in passenger traffic in coun-
to Airports Council International (ACI) Asia- tries such as China, India, Japan, Thailand, Singapore, and South
Pacific’s Airport Industry Outlook, global Korea, and fleet expansion by major airlines in the region to
passenger numbers are expected to rise from handle the expected increase in passengers, are among the other
9.2 billion in 2019 to about 19 billion in 2040, significant tailwinds.
with Asia-Pacific and the Middle East account-
ing for 58 per cent of the volume. The two Hectic Activity
regions’ volumes are forecast to grow at an
average rate of 4.5 per cent per annum, com- Many of the major MROs have landed significant contracts since
pared to just 2.8 per cent for other regions. the recovery from the pandemic. While Boeing has awarded
Airports in Asia Pacific and the Middle East Lufthansa Technik a contract for sustainment services within
will require an investment of US$2.4 trillion its support of the Royal New Zealand Air Force’s (RNZAF) future
to handle the expected growth in traffic, with fleet of four P-8A aircraft, EFW has signed a deal with AMECO for
the APAC region alone needing US$1.3 trillion. Airbus A330P2F freighter conversions at Chengdu, China, from
2023. HAECO, which has a significant presence in the region, has
Happier Times Ahead a branded services agreement in place with GE Aerospace for
CF34-10A maintenance and repair in Xiamen, China.
MRO providers in the Asia-Pacific region are
excited to finally see signs of recovery in the Collins Aerospace will continue providing, for an additional five
region but remain aware that they could face years, on-site support for integrated drive generators and other
a temporary capacity crunch as airlines bring generators of China Southern Airlines’ multiple aircraft plat-
a number of aircraft that had been in stor- forms, including the 787, A320neo and Comac ARJ21. Malaysia’s
age during the pandemic back to service. As Asia Digital Engineering (ADE), the engineering arm of Capital, is
facility expansion plans of MROs are largely planning to build a comprehensive MRO facility of over 380,000
on track, the long-term capacity outlook for sqft at Kuala Lumpur International Airport (KLIA). The project
the industry remains bright. is expected to be completed by 2025. The facility will be able to
provide heavy MRO services for up to 14 commercial aircraft at
Demand for MRO services in the Asia Pacific any time and will have dedicated component workshops as well
region, which was at an all-time peak before as a digital product development centre.

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