INTRODUCTION
In an ideal world (of aviation), would it not be cost effective and hugely convenient for airline companies to go to ‘one stop’ MRO shops for all their maintenance, repair and overhaul needs and more? Given the catastrophic financial impact of Covid 19, airline companies have made it their priority to work towards paring losses, cash conservation, cost control, and improving profitability in order to remain economically robust. One major, and critical area of expenditure that airlines must allocate their resources towards is maintenance, repair and overhaul (MRO), without for once compromising on all-around SAFETY.
According to the International Air Transport Association (IATA), the global aviation industry lost over $118 billion in 2020, with several airline companies folding up their operations. This spelt doom for the aerospace MRO service providers, who saw a sizeable dip in commercial MRO spend by around USD 40 billion, according to Oliver Wyman’s Global Fleet and MRO Market Forecast 2021-2031. The study further states that not until end 2022 will the sector return to pre-pandemic levels, in tandem with economic recovery and fast- paced pick up in air travel, post withdrawal of restrictions.
Notwithstanding the above, the compound annual growth of the commercial MRO sector for the above forecast period is predicted to grow by 3%. The latest Oliver Wyman study predicts a positive growth trajectory for the maintenance, repair and overhaul (MRO) industry right up to 2028, ‘with the value set to rise to $114 billion globally – a jump of nearly 50 percent over 10 years.’
While OEMs with their industry-leading equipment try to push airlines to adopt their MRO offerings, their products and services do come with a hefty price tag. Given this reality, and with airlines under constant pressure to improve their balance sheets, committing to an expensive full-service contract with OEMs who offer overall maintenance, is difficult to bear. For smaller repair jobs (essential no doubt for operational safety and asset upkeep), airlines are having to go to other service providers. For an airline, the cost then becomes a galloping one for the complete maintenance of aircraft, covering the entire life cycle of assets.
MROs services on the other hand, have proved to be nimble and flexible where aircraft have been returned back into service at a minimum of time and cost, albeit, safety checks complete.
‘ONE STOP’ MRO SHOPS – INTEGRATED SERVICES UNDER ONE ROOF WITH A GLOBAL REACH
Integrated services offered under one roof from a reliable MRO service provider ensuring safety and airworthiness of aircraft and components used, as mandated by regulators – is the best fit. But it does not end there. Providing reliable 24×7 AOG (Aircraft on Ground) support to airlines, anywhere, anytime and an attractive price, is key to choosing a comprehensive MRO service provider. The reach must be global, especially for big airline brands operating across continents.
MROs have the advantage of acquiring vast experience from working for leading global carriers. This allows access voluminous airline maintenance data that is retained by them for effective use subsequently. Armed with relevant information, MROs are able to cost-effectively service aircraft with a quick turnaround from being under maintenance to going back to regular airline operations.
The depth of expertise and services available at a ‘one-stop’ MRO shop can be truly mind-boggling – covering an aircraft’s entire lifecycle, ‘nose to tail’, that is.
FORGING PARTNERSHIPS – NEWER DEVELOPMENTS IN THE LONG TERM
With independent MROs ramping up their offerings and capabilities along with the usual traditional maintenance service, is helping them win contracts from airlines of all sizes from countries around the world. Thus, for the OEMs, these MROs then become formidable competitors, causing the former to forge joint ventures with MROs.
SCOPE OF WORK @ ONE -STOP MRO SHOPS
MROs are able to expand their scope of work and competencies to take on assignments from diverse customers who want to outsource a plethora of jobs to them. The scope of work at a ‘one-stop’ MRO shop would be vast, expanding over and above aircraft maintenance, repair and overhaul. The service offerings at these integrated centres could include fleet management and line planning for different aircraft types, retrofitting activity ensuring quick turnaround, at the best possible price, various support services and a great deal of customisation.
Integrated ‘one-stop’ MRO facilities have spacious floorplates to carry out essential services, such as scheduled maintenance activities for engines, line maintenance, jobs relating to airframes and aircraft components, and have dedicated shops for fabrication, testing, and stocking and pooling parts and many other activities that benefit their airline customers.
Most MRO companies concentrate on only one segment or more. For example,
- General Electric, is a global provider of jet and turboprop engines, as well as avionics and engine maintenance work for commercial, military, business aircraft
- Lufthansa Technik is the world’s leading provider of aircraft maintenance, repair, overhaul and modification services for commercial, civil aircraft to VIP and special mission aircraft
- AAR Corp offers customized supply chain and repair management programmes for commercial airlines. Focus areas are Power-by-the-Hour (PBH) component support for aircraft, assistance with AOG on a 24×7 basis across the globe, and making available Main Base kit and support located with the carriers themselves
REPAIR MANAGEMENT
However, with newer generation aircraft enhancing a particular fleet, means less time spent in heavy or line maintenance facilities for those assets. This frees up time slots for the MRO allowing the service provider to extend its services in other areas such as management and planning expertise, design and engineering, original equipment manufacturing, aftermarket spares inventory management, asset management and leasing, along with the usual maintenance services. Integrated MROs are able to take up conversion and refurbishment of aircraft from ‘passenger-to-freighter’ activities and related services.
Furthermore, airline customers are constantly expecting and demanding improved and advanced services from their authorised MROs, and the latter have had to constantly deliver and better maintenance operations by leveraging newer technologies. This has given a winning edge to MRO providers to take on a complete range of activities under a ‘One-stop MRO shop model.
Several reputed MROs have immense capabilities (as required by customers), to provide dedicated teams across geographies on a 24×7 basis to afford a quick turnaround of AOG situations. Airline companies go in for long-term agreements with MROs for Power-by-the-Hour support for their fleets. 24X7 support for customer requirements of inventory needs are also fulfilled through inventory hubs located strategically across the globe.
Whereas, at ‘One- Stop’ MRO shops the following basic maintenance services will be on offer and many more, that clients can choose from, and several of these are appended herewith:
Line Maintenance services are the basicMRO servicesand include the full range of line maintenance jobs, including cabin maintenance and AOG recovery services round- the- clock, at key airport locations across airline networks.
Engine Services include on-wing support and hospital shop visits, engine overhaul, repair and testing are provided while minimising customers’ engine downtime.
Airframes Services – extensive airframe maintenance capabilities in state-of-the-art facilities, for clients who are some of the largest aircraft manufacturers and OEMs.
Component Services – provide repair and overhaul, and preventive maintenance of components at the facilities need-based shops. The components cover systems that are Mechanical, Avionic, Safety equipment, Landing gear, Nacelles, Radomes, as also Wheels and Brakes.
Parts Manufacturing include fabricating ofairframe parts and spares for OEMs and aircraft manufacturers. Specialised work on machined parts, sheet metal parts and wire bundles are designed and fabricated. Some key activities carried out at workshops are non-destructive testing (NDT), standard laboratory testing, and tool calibration facilities, and certification thereof. Some of these capabilities extend to Hydraulic fluid analysis, Air data testing, Calibration of radio navigation equipment, Aircraft weighing system, Fuel quantity test set and Underwater beacon tester.
Machining Shop
Sheet Metal Shop
Surface Treatment Shop
Heat Treatment Shops
Wiring Shop
Non-destructive Testing (NDT) shop
Inventory Management
An established ‘One-stop’ MRO entity anticipates clients’ needs and extend their services to provide the all- crucial Inventory Management support, including inventory pooling. Participating in an inventory pool allow customers to forego heavy investments in inventory and the resultant savings are then allocated to other main areas of the airline business.
Warehousing and Logistics, as also support in Component Trading and exchange -Going a step ahead, a one-stop MRO shop make available their in-house Asset Management and Trading team to offer sales and component loan and exchange services. MROs are able to offer marketing and trading services of surplus inventory if any, on behalf of customers, resulting in reduced unutilised assets for the airline customer.
Cabin Interior Solutions
Cabin completion centres at One-stop MRO shops offer clients wide-ranging solutions like designing and installation of seats, galleys, lavatories, Wi-Fi connectivity points, and stowage options. Obtaining regulatory certification on behalf of clients for fresh jobs or modifications done are part of the package.
One-stop MRO shops for Private and Business Jets
A One-stop MRO shop can take on jobs for business and private jet aircraft ranging from industrial designing, engineering and certification, dedicated and secure cabin completion centres, after-sales support, as well as airframe maintenance.
For Business and Private Jets too, a ONE-STOP MRO shop is a ‘go to’ centre for a complete range of customisation. Cabinetry, veneer, upholstery and cabin livery and cosmetics are selected and designed as per customer requirements.
Support Services
One-stop MRO shops go every step of the way to include client-servicing in the areas of Supply Chain Management, After-sales Support on a 24×7 basis, stringent security cover and controlled access across areas such as hangars during fabrication, shops and storage areas, including safeguarding technical documents and all images digitally stored within the hangar.
Importantly, MROs obtain all necessary certification and regulatory approvals from regulators (like EASA), for designs and all minor changes and modifications, get accreditation training, examination and qualification of personnel for the calibration and test laboratories.
What one-stop MROs and all their companies must ensure, is strict compliance with aviation industry’s regulations, certification that is current and valid from FAA and EASA amongst others.
LEADING PLAYERS IN AVIATION MRO MARKET
HAECO (Swire Pacific)
Hong Kong based Hong Kong Aircraft Engineering Company Limited (HAECO) provides a full spectrum of services, in the true spirit of ‘one-stop’ MRO shops. These include airframe services, line services, component services, engine services, inventory technical management, fleet technical management, cabin solutions, private jet solutions, freighter conversion, parts manufacturing and technical training, structural modification, non-destructive testing and other similar quality checks, and every other support that afford their clients, peace-of-mind.
ST Aerospace Singapore Technologies Engineering Ltd
ST Engineering operates at the global level and has affiliates and service facilities in the US, Asia Pacific, and Europe. The company provides a wide range of aviation services including airframes, components, engine MROs, aviation materials, asset management services, aircraft Includes internal solutions, technical businesses, and air charter services.
Lufthansa Technik AG
Lufthansa Technik is the world’s leading provider of aircraft maintenance, repair, overhaul and modification services from commercial civil aircraft to VIP and special mission aircraft. With services spreading across the globe, its success comes from delivering technical excellence in their service delivery.
Air France Industries and KLM Engineering & Maintenance
Air France Industries and KLM Engineering & Maintenance enjoys a leadership position in the MRO world. Company’s success supported by the MRO Lab innovation program focusing on strategic areas of the MRO sector, ranging from technician mobility and the customer experience through to the Internet of Things, Big Data applications, predictive maintenance, and Artificial Intelligence. Aircraft maintenance, repair and overhaul form this MRO makes use of their digital prowess.
AAR Corp.
US based AAR CORP’s Aviation Services provides aftermarket support, inventory management, distribution services, and of course the core activities being maintenance, repair and overhaul, and engineering services.
There are leading and dominant engine manufacturers who offer specific MRO services as is indicated below:
GE Aviation – MRO giant GE Aviation, is a global provider of jet and turboprop engines, as well as avionics and engine maintenance for commercial, military, business and general aircraft.
Rolls-Royce
Rolls-Royce (established in 1904), designs, manufactures and maintains aircraft engines and primarily focuses on aircraft engine MRO and its development.
Read more stories… Digital MRO
Pratt & Whitney
Pratt & Whitney is an American engine manufacturer also known for its wide network in engine MRO services.
Reference Credit:
- Aerotime.aero
- Stengg.com
- Aar.com
- Haeco.com
- Marketresearchreports.com
