World Market for Aircraft MRO to Reach $55.2 Billion by 2015

Aircraft Maintenance, Repair And Overhaul (MRO) is a highly volatile market subject to rapid and unexpected changes in economic and international business conditions. Short-term challenges abound in the form of the ongoing economic downturn, high prices, market saturation, slower new aircraft deliveries, shortage of skilled labor, and airline consolidation. The weakness in the global market is presently the result of tight financial conditions, rising fuel costs, falling air traffic demand, and reduced spending on air travel by both households and corporates. Expansion plans, which had started to recede in the early 2008, widened back out as persistent news about deferred aircraft deliveries injected yet another dose of uncertainty into the MRO market. An estimated 1,025 aircrafts were deferred in 2008 and the oldest, most maintenance-demanding aircraft were the first ones in hangar. Nearly 75 percent of the deferred planes were of North America. Gains in Asian MRO market have beleaguered but haven't completely stalled as they have in the United States.

However, as the market recovers poise, strong demand fundamentals will re-emerge to prop up growth. Resurgence of the aviation industry, reduced airfares, greater connectivity, increase in low cost airlines, technological innovations, and expansion in the overall capacity of air seat miles, will drive growth in the medium to long-term. Asian markets will emerge as the hub of activity, for instance, expanding air traffic has already led to the establishment of numerous, low-cost MRO facilities in high growth potential Asian markets including Singapore, China, India and Malaysia. Dramatic proliferation in air traffic and increase in number of passengers has been and will continue to remain an important factor in attracting foreign investment and paving the way for future development. The growth in the domestic as well as international fleet movement has led to a heavy appreciation in the stocks of the aviation industry. This in turn leads to the requirement for an effective maintenance and overhaul system and service structure for aircrafts and their engines.

World market for Heavy Airframe Maintenance is poised to grow at a steady pace over the years 2006 through 2015, as stated by the recent report published by Global Industry Analysts Inc. Engine Overhaul is forecast to grow the fastest in Asia-Pacific over the analysis period.

Key players dominating the market include Air France KLM, Aveos Fleet Performance Inc., AAR Corp, Ameco Beijing, Ametek Inc., Abu Dhabi Aircraft Technologies, Bedek Aviation Group, Delta TechOps, ExelTech Aerospace Inc., Aviation Technical Services Inc., Hong Kong Aircraft Engineering Company, Lufthansa Technik (LHT), MTU AeroEngines, Singapore Technologies Aerospace (ST Aerospace), SR Technics, SIA Engineering Co., Snecma Services, STAECO, TIMCO Aviation Services Inc, and VEM/TAP M&E, among others.

The report, titled "Aircraft Maintenance, Repair And Overhaul (MRO): A Global Market Report' published by Global Industry Analysts Inc.," provides a comprehensive review of the industry, market trends, issues, challenges, and drivers, product/service overview, profiles of major players, and recent industry activity. The study quantifies latent demand potential in key markets, such as, Heavy Airframe Maintenance, Modifications, Components Maintenance, Engine Overhaul, and Line Maintenance. Quantitative analysis is also provided for major geographic market verticals including the United States, Canada, Japan, Europe, Asia-Pacific, Middle East, Latin America, and Africa.

For more details about this research report click here.

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