As the global MRO industry transitions towards new technology, India’s MRO market could find new opportunities – if only the right environment is created.
The recently-concluded Farnborough International Airshow 2018 (FIA 2018) showcased once again the enormous opportunity that awaits India in the MRO market. Successive governments have failed to enable growth in the MRO sector, which has allowed other countries to establish them as MRO centres due to active government support and business-friendly policies. Airbus’ new Global Services Forecast released at FIA, identified a worldwide market for commercial aircraft services from 2018 to 2037 valued at $4.6 trillion. The forecast mentioned that “aircraft-focused lifecycle services represent the largest segment of growth and include maintenance, spares pool access, tooling, technical training and system upgrades – which are needed to keep the airlines aircraft flying”, which would represent a cumulative market value of $2.2 trillion by 2037.
These services are provided throughout the lifecycle from design to dismantling and the large aircraft orders from Indian carriers could provide a real fillip towards delivery of “paid by-the-hour” (PBH) contracts, which could be undertaken by MRO firms in India. Indian MRO companies could also greatly benefit from the increasing drive towards outsourcing maintenance-related activities. The Airbus forecast also concluded that the growing requirement for composite repairs capability – jetliners such as the B787 and A350 feature composite fuselages and the A220 features a composite wing – will drive the trend for further outsourcing. Engine PBH contracts in particular, will also be a significant growth area as it allows airlines to secure and predict their maintenance costs. Airlines are now also showing a greater inclination towards outsourcing inventory management of stocks and spares to take advantage of pooling, thereby saving on having to invest in the procurement and storage of their own stocks of equipment.
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