LONDON--(BUSINESS WIRE)--Technavio’s latest market research report on the global aircraft line maintenance market provides an analysis on the most important trends expected to impact the market outlook from 2016-2020. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
Avimanyu Basu, a lead analyst from Technavio, specializing in research on maintenance repair and overhaul sector, says, “The global aircraft line maintenance market is expected to grow along with the aerospace industry with the procurement of new aircraft and establishments of new facilities. The inclusion of new aircraft in the global fleet along with aging aircraft, which requires frequent maintenance, will fuel market growth.”
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The top three emerging market trends driving the global aircraft line maintenance market according to Technavio aerospace and defense research analysts are:
- Outsourcing of line maintenance services
- Technological advancements
- Increase in consolidation of MRO market
Outsourcing of line maintenance services
The aviation industry outsources non-core activities (like aircraft MRO) to reduce the overall costs. For instance, Air Works performs third-party line maintenance services at the Chennai, Trichy, Thiruvananthapuram, and Bengaluru airports in India. It costs around USD 200 and takes around 45 minutes to complete line maintenance for each narrow-bodied aircraft, and USD 400 and two hours per wide-bodied aircraft.
Due to the volatility of the commercial aviation industry, line maintenance operations are also being handled by third-party service providers, since it is more convenient to avail services from other countries that are covered by the airline routes. Also, it is often more cost intensive to station employees in other regions. Outsourcing helps in increased availability of spares to reduce the risk of long aircraft on ground (AOG), turn time reliability, and person hour rates for cost efficiency and scheduled services.
Technological advancements
The global aircraft line maintenance market is driven by continuous innovation in technology to enhance services and cost efficiency. Information and communication technology is an area which is constantly evolving due to the direct impact it has on the third party's operations and finances.
Organizations like Lufthansa Technik are investing in R&D to develop smarter IT technologies to find better ways to provide services. Also, airlines like Delta Air Lines are investing in IT-enabled MRO services to streamline operations and data flow, enabling them to connect better with their customers and provide mobility and analytics through business intelligence.
The growing demand for next-generation products and systems is increasing the demand for aircraft modernization. For example, Airbus has been developing additive layer manufacturing technologies and studying innovations such as new fuselage paradigms. These technologies pave the way for a swift customization process for cabin components with a lightweight design.
Increase in consolidation of MRO market
The increased presence of OEMs in the after-service market has resulted in the MRO market becoming more competitive. This competitiveness has a huge impact on small third-party MRO providers as airline carriers prefer OEMs due to factors like quality assurance and reliability. Also, the entrance of airline carriers into the market has intensified competition. For example, Delta Air Lines has 51 maintenance stations to provide services to its customers and British Airways provides services to more than 40,000 customers per annum.
“This has resulted in the acquisition of smaller companies, JVs, and partnerships with other companies to combine their core strengths and provide better services to their customers. This also helps bigger players expand their market share by establishing new line maintenance facilities locally by acquiring local players,” says Avimanyu.
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