For anyone paying attention to the aviation Maintenance, Repair, and Overhaul (MRO) sector, the trends are crystal clear. MRO spending is projected to eclipse $115 billion in the next decade. From now through 2028, North American aftermarket MRO spending is expected to surpass $187 billion, with the increase driven, in part, by more expensive components and technologies. Oliver Wyman pegs the average MRO growth rate between now and 2029 at a strong 3.5%. And among the nation’s biggest passenger airlines, MRO outsourcing has increased by 1% since 2017. (If that doesn’t sound significant, consider this: Outsourcing now accounts for 48% of all MRO spending among the Top 10 airlines.)
But as the aviation industry evolves, so do the MRO strategies responsible for keeping aircraft in the air delivering revenue. As more OEMs enter the aftermarket with turnkey programs, MRO providers are upgrading their capabilities to deliver new levels of value for customers.
The Rise of OEMs in the MRO Sector
Like any business, airframe OEMs are seeking new revenue streams to drive profitability. With the rise of aftermarket MRO, more OEMs are setting their sights on maintenance and repair for the components they manufacture. According to MRO-Network, one of the most mature OEM offerings in the arena is airframe component MRO, with systems MRO spanning hydraulics and actuators also gaining traction.
According to market research firm Oliver Wyman, airframe MRO is expected to be the slowest-growing segment through 2029, with an annual growth rate of 1.7% compared to an overall 3.5% projected growth for aviation MRO. The increased use of composites, titanium, and other proven design materials will reduce the need for maintenance checks for corrosion and fatigue. The same study cites long-term service packages and shifts in the PMA segment as key areas for increased OEM activity in the component MRO market in the decade to come.
What does rising OEM prominence in the MRO sector mean for aviation customers? Fueled by increased competition and a desire to maximize value for their customers, MRO providers are delivering new capabilities that extend beyond OEM offerings.
Benefits of an Aftermarket MRO Provider
Aftermarket MROs are key value drivers in the dynamic aviation market. The best MRO partners deliver specialized regional expertise, robust customizations, and a full-service approach that extend beyond OEM turnkey packages. At AerSale®, we continually invest in our people, infrastructure, and capabilities to deliver new levels of value for our commercial aviation customers.
- Proprietary engineered solutions: We leverage our tremendous in-house engineering expertise to deliver FAA-approved solutions that bring aircraft into compliance with less downtime and cost. Our FTFR solution, AerSafe®, and our ADS-B Out solution, AerTrak®, are cost-effective alternatives to OEM systems that typically require longer lead times and exponentially higher spend.
- Integrated solutions: By working with a single powerful partner rather than siloing your MRO across various OEMs, you can spot more opportunities for savings. This, in turn, maximizes value across an aircraft’s life cycle and ensures no aspect of your fleet’s success gets overlooked.
AerSale is more than an MRO provider. We’re a one-stop source for non-stop service. Our team is equipped to help customers at every stage of an aircraft’s life cycle with relevant products, expert services, and integrated solutions. In addition to our unmatched range of MRO and engineering expertise, we also offer aircraft asset management services, aircraft and parts sales, flight equipment acquisition, warehousing, distribution, and even full supply chain solutions. Through this integrated solutions approach, customers can streamline their supply chain, improve efficiency, reduce costs, and minimize downtime.
- Customized programs: OEMs are in the business of mass production, and their MRO programs understandably follow a “one size fits all” approach. At AerSale, we understand that every aviation business is unique. From innovative engine leasing programs to tailored MRO packages, we customize our offering to connect each customer with the services that deliver the highest level of value. This customization will be increasingly critical as diverse business models require operators to match their MRO strategy to flight schedules and fleet mix.
- State-of-the-art facilities: AerSale strategically integrates our products and services at facilities that boast unparalleled people, equipment, and technology. Combined, our aircraft MRO facilities deliver everything commercial airlines need to achieve timely, efficient maintenance, repair, and overhaul: 10 bays totaling 550,000 square feet; a storage capacity of more than 650 aircraft; a 17,000-square-foot facility for engine maintenance and disassembly; and a 100,000-square-foot component repair facility. Our team is home to more than 500 support staff specialized in the complexities of aircraft MRO.
As the MRO market continues to expand and evolve, choosing the right partner will be critical to the success of commercial aviation businesses. Explore AerSale’s comprehensive MRO capabilities, including our dedicated structural component MRO and systems component MRO divisions. Then, contact us to see how our integrated approach can help you maximize your assets across the aircraft life cycle.