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MRO market to rise 25% in 2014, says IBA Group

According to an estimate by The International Bureau of Aviation (IBA Group), an organisation that reviews airline maintenance procedures for cost efficiency, aircraft maintenance expenditure has decreased by 15-20% in the past five years. Attributing this reduction to the economic downturn and lower utilisation, airlines have been forced to assess their expenditure, rationalise their fleets and ground older aircraft, says IBA Group.

However, as global economies begin to improve, the bureau predicts the overall annual market for MRO services is set to rise nearly 25% to US$4.5-5bn in 2014.

Phil Seymour, IBA Group’s president and COO, commented, “For many emerging markets, such as India and China where over 200 aircraft have been delivered in the last five years, the associated MRO activity will be huge.

“The MRO business is truly global, and being one of the best European MRO facilities is not enough. Examples, such as Lufthansa Technik, show how companies need to expand their services into the emerging markets, providing lower costs combined with exceptional service, similarly the Swire Group's purchase of TIMCO in the US shows us that they are not content to rely on Asian growth, but they are also looking for global business. This can only be achieved by expanding and co-operating through joint-ventures,” Seymour added.


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