MRO Industry Landscape 2012
Market dynamics create a new point of leverage
Each year Oliver Wyman surveys executives from airlines, airline and independent MROs, and OEMs to gauge their views of the aviation MRO market. This year we received over 100 responses, and they showed an impressive degree of diversity and experience.
For 2012, key topics covered in the findings report include:
- Maintenance spend trends
- OEM engagement in the aftermarket including specific competitive moves and airframe maintenance offers
- PMA spend expectations and actuals
- Carrier leverage in the Maintenance negotiation process
- MRO and OEM performance evaluation
Snapshot of key findings
Our analysis of the survey responses suggests that the MRO industry is rebounding as expected in 2012, with carrier maintenance costs increasing and the aftermarket ramping up once again to take on this increased demand. This year’s survey also highlights the ever-increasing strength of OEMs in the aftermarket. In the face of this dynamic, carriers have less leverage than ever in negotiating their aftermarket deals. Many respondents noted that one of the few ways by which airlines can better dictate the terms of their maintenance relationships is to move some of these discussions and decisions upstream, back to the point of purchase. While this is an acknowledged opportunity for airlines, few are seizing it.
Also interesting, the survey responses show that airlines noted a diminished overall satisfaction with the services provided by OEMs and MROs. This could well stem from the fact that what maintenance service providers seemed to believe is most important to airlines was often not aligned with what those customers reported as their highest priorities.
While many respondents admitted that there was work to do in several areas, they were confident that improvements were being continually made. In any case, this year’s survey findings suggest that MROs and OEMs have an opportunity — if not a mandate — to improve their performance.