Services provided by aviation MROs (independent or airline owned) form the very backbone of the aviation industry, civil and more so for the military sector. For that very reason, aviation MRO facilities must be located strategically, to be able to provide repair, replacement, and execute quick TAT services, and everything that encompasses aircraft maintenance. Because of the criticality of their need and services, which is directly linked to the safety and airworthiness of the assets and aircraft operations, the locations of these facilities are carefully planned out. However, the size, scale of operations of these service providers often depends on their business models.
A 2019 IATA forecast predicted that on average, air travellers around the world would travel once every 21 months! With the affordability and popularity of air travel, the aviation market appears to be moving northward. To support this exponential growth aircraft MRO facilities will be required closer at hand or closer to home, hubs, and the like, more than ever.
Aviation MRO business therefore needs to grow in tandem with the civil, and as required, defence aviation industries. The locations of these MRO facilities must offer the customer advantage in terms of logistics and strategic convenience.
There are six prevalent business models for aviation MROs and facilities across the world, varying in terms of business model, facility and services on offer, and ownership patterns. The categories of MRO facilities are Commercial Airline Hubs, Regional Hubs, Facilities for Corporate/Business Aviation available In-house, Independent Repair Stations, Fixed-Based Operators, and Military Facilities.
Whatever the scale of MRO operations, proper and adequate infrastructure is required, passing all certifications and regulatory approvals. Ground support equipment for one, is crucial and so is related technology. For regular aircraft maintenance, repair and overhaul jobs, the list of equipment will vary in accordance with the business model. Some essentials are Cutting-edge Aviation Software, Hydraulic Power Units, Aircraft and Fuel Servicing Equipment, Equipment for servicing the Aircraft Fuselage and Landing Gear Servicing Equipment.
COMMERCIAL AIRLINE HUBS
Located at Delhi (Safdarjung) and Mumbai (Kalina, Santacruz) Airports
MROs of large commercial airlines exists for the sole purpose of serving that airline, and as such do not have a set business model. It is because of this reason that major commercial airline MROs are located close to the main hub of the airline. This is to derive maximum efficiency, as much as applicable. These MROs are then capable of executing the entire gamut of maintenance, repair, and overhaul services. Commercial airline MROs are known not to outsource their services to competition as a matter of policy. This is also to prevent the airline from being exposed to liabilities that may come from opening their services to outside parties. Besides, an established commercial airline above all, must adhere to its own maintenance and operational schedules.
Etihad Engineering located at Abu Dhabi HUB
Finding empty slots to serve competitor airlines is also remote, having their own in-house needs that are a priority. A large commercial airline MRO also tends to have a maximum number of qualified and trained technicians and staff, and that gives them an advantage especially with AOG 24/7 and quick TATs.
Having one’s own MRO, allow a commercial airline company control over the location of their MRO facilities and often they are set close to where the airline has their hubs. Workflows and productivity remain very much in check and control of the airline company.
REGIONAL AIRLINE AND AIR TAXI SERVICES
located in the Shreveport Regional Airport’s Aeropark
MRO facilities of regional airlines, for the very nature of their business model are located near smaller, regional airports. Cost structures, however, remain almost like those of large commercial airlines, perhaps are better placed to make higher profits. This is because of smaller fleets and the exercise of better discipline with infrastructure budgets.
Small-sized regional airlines do not operate their own MROs thanks to the size, and more so for the very size of their businesses. Larger commercial airlines can attract most of the certified technicians, leaving comparatively smaller businesses to then go for independent MRO service providers to service their fleets. For regional airlines, owning their own MROs is not a viable investment to make.
IN-HOUSE CORPORATE FACILITIES
Large corporations that possess their own fleet often have their own in-house MRO facilities or contract that job out to independent MROs. Their in-house MRO facilities are adequately staffed with certified technicians and operational staff available on a 24/7 to conduct aircraft maintenance. These MROs are located near the airline company or their headquarters. However, the services these MROs are capable of are general and line maintenance, and do not typically include heavy maintenance. With major corporate or business jet manufacturers offering maintenance services, the need for setting up in-house aircraft MRO is not there.
INDEPENDENT MROs & FIXED-BASE OPERATORS (FBO)
Independently owned MROs are typically operated by large corporations or by smaller MRO units that offer services in certain specialised areas of which they possess core competencies – these could be maintenance, repair and overhaul services like landing gear or aircraft interiors.
Larger market players must see a return on investments and offer an entire range of MRO services for all sizes of airline fleets.
The location of the Kochi MRO facility at the Cochin Int’l Airport is strategic,
given that Kochi has been a hub for leading carriers from the Middle East.
Fixed-base operators
A fixed-base operator (FBO) are MRO service providers usually located at large, non-commercial airports, supporting the local aviation community. FBOs offer may offer full-service repairs for any aircraft on a station visit. These facilities make up a small segment of the aviation MRO business and cater to a niche customer base including general aviation aircraft and smaller commercial airplanes.
Independent MROs offer the full range of services to their clients and are an attractive option for large and small commercial airlines or corporate airline fleets to avail of their services instead of investing in their own MRO which may not be commercially viable for many.
MILITARY FACILITIES
Military MRO facilities provide services to helicopters and military aircraft, and must be highly specialised in their service offerings – servicing a wide variety of aircraft. Military MROs are equipped with aerospace ground equipment and military towing equipment, and similar hardware and must be in a state of great readiness to offer military MRO services. These facilities are massive in size as they are equipped with a large amount of MRO assets to be able to serve cargo planes to helicopters efficiently.
Military MRO and are some of the largest purchasers of aerospace military ground support equipment (GSE), and generating revenue is not their business model and operate in their own exclusive space. However, they are large consumers and handlers of military-grade MRO equipment and are heavy-duty service providers.
Impetus for Aviation MRO Business in India
As reported in the media in 2021, the Government had made a slew of announcements regarding aviation MRO policies to attract more investments for every aspect of the Maintenance, Repair and Overhaul (MRO) business. SOPs include attractive policies on leasing of land through open tenders and abolishing the royalty-based charges levied by AAI.
Furthermore, aviation MRO will be done for 30 years instead of the current short-term period of 3 to 5 years. AAI Royalty free land.
The Civil Aviation Ministry of India in their recent policy announcements on aviation MROs included the following Indian cities/airports.
For both aircraft and helicopters, the Ministry has identified eight airports for attracting investments to set up MRO facilities – Begumpet (Telangana), Bhopal (Madhya Pradesh), Chennai (Tamil Nadu), Chandigarh, Delhi, Juhu (Maharashtra), Kolkata (West Bengal) and Tirupati (Andhra Pradesh).
Expansion of MRO services in the age of e-commerce
Military MRO facilities provide services to helicopters and military aircraft, and must be highly specialised in their service offerings – servicing a wide variety of aircraft. Military MROs are equipped with aerospace ground equipment and military towing equipment, and similar hardware and must be in a state of great readiness to offer military MRO services. These facilities are massive in size as they are equipped with a large amount of MRO assets to be able to serve cargo planes to helicopters efficiently.
Military MRO and are some of the largest purchasers of aerospace military ground support equipment (GSE), and generating revenue is not their business model and operate in their own exclusive space. However, they are large consumers and handlers of military-grade MRO equipment and are heavy-duty service providers.
Impetus for Aviation MRO Business in India
As reported in the media in 2021, the Government had made a slew of announcements regarding aviation MRO policies to attract more investments for every aspect of the Maintenance, Repair and Overhaul (MRO) business. SOPs include attractive policies on leasing of land through open tenders and abolishing the royalty-based charges levied by AAI.
Furthermore, aviation MRO will be done for 30 years instead of the current short-term period of 3 to 5 years. AAI Royalty free land.
The Civil Aviation Ministry of India in their recent policy announcements on aviation MROs included the following Indian cities/airports.
For both aircraft and helicopters, the Ministry has identified eight airports for attracting investments to set up MRO facilities – Begumpet (Telangana), Bhopal (Madhya Pradesh), Chennai (Tamil Nadu), Chandigarh, Delhi, Juhu (Maharashtra), Kolkata (West Bengal) and Tirupati (Andhra Pradesh).
Expansion of MRO services in the age of e-commerce
Military MRO facilities provide services to helicopters and military aircraft, and must be highly specialised in their service offerings – servicing a wide variety of aircraft. Military MROs are equipped with aerospace ground equipment and military towing equipment, and similar hardware and must be in a state of great readiness to offer military MRO services. These facilities are massive in size as they are equipped with a large amount of MRO assets to be able to serve cargo planes to helicopters efficiently.
Military MRO and are some of the largest purchasers of aerospace military ground support equipment (GSE), and generating revenue is not their business model and operate in their own exclusive space. However, they are large consumers and handlers of military-grade MRO equipment and are heavy-duty service providers.
Impetus for Aviation MRO Business in India
As reported in the media in 2021, the Government had made a slew of announcements regarding aviation MRO policies to attract more investments for every aspect of the Maintenance, Repair and Overhaul (MRO) business. SOPs include attractive policies on leasing of land through open tenders and abolishing the royalty-based charges levied by AAI.
Furthermore, aviation MRO will be done for 30 years instead of the current short-term period of 3 to 5 years. AAI Royalty free land.
The Civil Aviation Ministry of India in their recent policy announcements on aviation MROs included the following Indian cities/airports.
For both aircraft and helicopters, the Ministry has identified eight airports for attracting investments to set up MRO facilities – Begumpet (Telangana), Bhopal (Madhya Pradesh), Chennai (Tamil Nadu), Chandigarh, Delhi, Juhu (Maharashtra), Kolkata (West Bengal) and Tirupati (Andhra Pradesh).
Expansion of MRO services in the age of e-commerce
FEAM Aero broke ground on its second widebody hangar at Cincinnati/Northern Kentucky International Airport in early November.
The MRO says it needs to double capacity at the airport due to growing e-commerce demand and cargo fleets.
It expects the $40.2 million hangar to be completed by the end of 2023.
The Aerospace and Defence MRO industry serve general aviation aircraft, business aircraft, helicopters, commercial airline, military, or government, and the like and aircraft owners and operators rely on these numerous MROs for providing continuous and reliable operations- the very existence of their businesses.
The aircraft maintenance industry includes small repair stations found across the globe that provide services such as welding, plating, or non-destructive testing services, which require specialised equipment and being complex processes, need personnel with technical experience, and authorizations. There are larger repair stations that provide maintenance, repair, and overhaul services relating to specific types of components, such as avionics and electronics, mechanical actuators, or fuel systems.
Then there are MROs that handle complex jobs with components like retractable landing gear assemblies, reciprocating and turbine engines, or auxiliary power units. Finally, MROs provide maintenance services on aircraft of any type – such as aviation training aircraft, a business aircraft belonging to a corporate fleet, helicopters, or the commercial passenger or cargo aircraft owned by airlines as also leasing companies. Every entity requires MRO services, is a customer.
