Insights

MROs Must Broaden Their Shrinking World

For years, major engine and component manufacturers have moved into the aircraft maintenance market, limiting MROs from winning work on new models that comprise the lion’s share of modern fleets.

MROs are left fighting for a vanishing piece of the pie: end-of-life aircraft destined for retirement or second lives in far-flung emerging markets.

These dynamics have reduced opportunities for airlines to find cost-competitive maintenance following aircraft delivery, where MROs and OEMs once fiercely competed. In response, airlines now increasingly conduct maintenance procurement in parallel with equipment selection processes, forcing OEMs to compete against each other. While this trend benefits airlines, it has blocked independent MROs from major procurement campaigns altogether.

To  thrive rather than survive, MROs must find a way around OEMs and into aircraft sourcing campaigns. MROs must seek partners who can inject them into the selection process. Two candidates are aircraft lessors and airframe manufacturers.

MROs Must Broaden Their Shrinking World


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