Pre-COVID-19 , the USM market was around $ 5B . It ’ s currently about $ 4B and is set to reach $ 7B ( constant dollars ) by 2030 . Since retirements are currently low and there are supply chain pressures on OEMs , there is increased demand for part stockists to provide aftermarket parts , including new-OEM parts .
The European MRO market is competitive and dynamic . Introducing a new aircraft type allows operators to change their maintenance behavior . This has been seen as operators with 787s , A350 XWBs , Pratt & Whitney GTF engines , and CFMI LEAPs embraced outsourced maintenance offerings . Airlines that used to in-source maintenance took the opportunity to outsource maintenance as new high-tech aircraft arrived . They didn ’ t see the business case to invest in inhouse capability , given the variety of outsourced options available .
There ’ s now a more exact path for recovery . We need to get through the summer and winter , but the strong shoots of recovery are there — summer 2022 looks much healthier . We must continue leveraging expertise , best practices , and lessons learned . It ’ s vital that we take advantage of the opportunities that can ’ t come soon enough .
If you are interested in participating in the MRO Europe under the Washington State Department of Commerce umbrella , please reach out to :
Amandine Crabtree Aerospace International Trade Specialist
Washington State Department of Commerce Cell : 206-485-8541 Email : amandine . crabtree @ commerce . wa . gov LinkedIn : linkedin . com / in / amandinen
As for the MRO suppliers , OEMs , MRO integrators , and independent suppliers each have their strengths and challenges depending upon the aircraft lifecycle ( e . g ., new / growth / mature or sunset aircraft ). It ’ s all about choice , flexibility , and customization .
Suppliers are battling for a position to support aircraft , from entry-into-service through to retirement and tear-down . In addition , OEMs , integrators , airline MROs , independent MROs , and parts traders are attempting to extend their reach across the lifecycle . As aircraft age , operators become more price-sensitive and may embrace alternatives to traditional new parts or MRO . Examples include surplus parts , part repair , and DER . In addition , we ’ ve seen partnerships formed between European MROs ( e . g ., Lufthansa Technik or Air France KLM ) and OEMs . That ’ s so aftermarket suppliers can address a broader customer base .
COVID-19 is calling into question several contract types , and in-sourcing / outsourcing practices as airlines are laser-focused on cost reduction . So , we may see some changes going forward , an area we are closely watching .
THE BUSINESS TRADE ASSOCIATION FOR THE PACIFIC NORTHWEST DEFENSE & SECURITY INDUSTRY .
LEARN MORE AT WWW . PNDC . US OR CALL 888.701.7632
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AUGUST | SEPTEMBER 2022 ISSUE NO . 28 49