Post-pandemic adjustments and changing strategies based on the new normal has been the general trend throughout the Aviation industry. Each sector is going through their own set of challenges with a hope for a new and better future. Airlines are dealing with costing issues, low passenger numbers and possibility of a new outbreak, working staff are scared of furloughs and salary-cuts, MROs are grappling for mere survival. In such a situation another challenge that the MROs are facing is the continuous intake of newer and technologically advanced aircraft replacing their older fleet. Most airlines have taken this step for fleet enhancement, better customer experience, less fuel burn, less noise and a promise for better performance thereby fulfilling their corporate social responsibility of clean, green and sustainable aviation. But are the independent MROs suffering in this process? Let us find out…
As per the global airlines trend, newer, modern and technologically advanced fleet are rapidly replacing older widebody aircraft. Will this pose as a challenge for the MROs in business?
Threat/ Opportunity or Both?
Consider this both as a threat and opportunity says Alan Harding, Divisional Vice President MRO Europe & Asia at AMETEK MRO. The key is to stay nimble, flexible and ahead of the market dynamics. At AMETEK, we look to maximise opportunities at all stages of the aircraft life cycle, and just as we actively seek and support end-of-life programmes working directly with the OEM’s, we are also focused upon and investing in the support of the newer platforms and our recent press release announcing our newly developed capability in our Singapore operation supporting the A350 Heaters, is a prime example of this, he further adds.
Key Challenges
According to Zilvinas Lapinskas, CEO of FL Technics there are three key challenges from MRO perspective. They are –
Extremely varying types of aircraft currently operated, relating to routes and demand in markets.
Airlines and operators are flying their fleets in ever-changing situations, with the demand ranging from close-to-none routes to peaks of maximum capacity of fights. It is natural that carriers adapt to market needs to maintain operations and it is relatively easy to achieve it with the current pool of aircraft available. However, such on-demand shifts of aircraft variants operated require MRO providers to rearrange their capabilities as well with extremely short notice. Nowadays it is a common challenge to adapt existing contracts and capacity, to service aircraft versions, previously not listed in the scope of agreed services – the necessity of flexibility, that becomes a trend.
The “MAX challenge” with inevitable comeback of the aircraft and urgent need of related capabilities.
As the pandemic struck, there were more challenges within aviation, affecting everyone in the industry. One of such was grounding of Boeing’s 737 Max. As much as it was major challenge to the manufacturer and everyone committed to operate this aircraft, the company seems to have succeeded in overcoming the crisis and the MAX is coming back to the skies more rapidly than expected. In fact, it is now commonly perceived as one of the safest modern aircraft in operation. The outcome – increasing number of airlines and operators are bringing back the aircraft to their fleets, while maintenance of them was halted for past years. As a result – MRO businesses need to realign their resources and certifications to provide services, while these processes are time-consuming and require significant investment.
Emerging types of aircraft, with necessity of maintenance without sufficient scope of operations.
The third topic is also related to high investment and new aircraft variants as well as types. Let us take Airbus A220 as an example. The new generation of aircraft currently with a limited number of fleets operated across the globe. As modernization and sustainability is increasing the demand of such aircraft, the pace of operations and production is still relatively low, shaping the paradox of the crucial MRO services needed, without actual feasibility of such operations. In other words, MRO businesses are challenged to invest in tooling, training, and certifications, while prospects of such developments are yet to come in future.
The ’Cost’ factor
Then again, new aircraft types and variants on existing types require training, tooling, inventory and regulatory approvals before an MRO can carry out maintenance. This comes at a cost. If the MRO is connected to an airline, the manufacturer may assist the MRO to develop capabilities as part of its support package to the airline. If the MRO is independent, then it’s a significant investment says Shevantha Weerasekera, Head of Engineering at Srianlankan Airlines. The challenge is the same for component MROs where copyrights and royalties come in to play. The way forward is for MROs to define its market segment to include specific aircraft types that offers the MRO and advantage, he further adds.
MROs need to adapt
Sustainability and green aviation is the key to the future. MROs need to understand, train and adapt accordingly. If we consider the factor of newer variants, MROs generally adapt well to newer variants in the market says Laurie Alder, Vice President, Customer Service, Asia-Pacific at Airbus. According to him, the next big challenge for MROs will be the introduction of the next generation of aircraft with alternate sustainable propulsion means.
Evolving Technology
The opinion of Independent MROs vary slightly from that of the OEMs. Ravi Menon, Executive President at Airworks one of the leading Independent MROs in India says, The straight answer is no. Technology is continually evolving and adding value in terms of Performance (Engines, Airframe, Avionics, Fuel efficiency, economics, Passenger experience and environment). A totally new type of aircraft requires time to induct in terms of infrastructure (Training of manpower, Tooling, Test equipment and GSE). Transitioning from a single aisle to a wide body again requires adequate time for a proper induction, he concludes.
Most of the newer variants in the market are slightly upgraded models of their previous versions and most of the aircraft manufacturers provide a complete and through training on the new variant to the airline AMEs as a part of aircraft delivery contract. This solves the problem of MROs attached to the Airlines, however independent MROs have to upgrade themselves to keep abreast of the changing market dynamics.
Zilvinas Lapinskas sums it up correctly, the challenges and opportunities for MRO industry depend on the gap between the actual ever-changing demand of flights, including the (re)emerging next generation of aircraft, and the significant amount of time and resources necessary, to adapt current MRO capacities and capabilities to such new and dynamic business environment. The ‘variants’ reflect enhanced performance in the above fields. That being said, the fundamentals of MRO remain very much the same. Adapting to new technology is process driven and that process is well defined by the OEMs to ensure a seamless transition.
