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Air Transport MRO market expected to reach $61 billion by 2017

Ann Arbor, Mich., 10 May 2008. The commercial air transport maintenance, repair, and overhaul (MRO) market in 2007 was worth $45 billion according to the latest update of the AeroStrategy/OAGback MRO market model. This reflects a 10 percent increase over the 2006 market spend of about $41 billion. Growth of MRO spend over the next decade is expected to be 3.1 percent per annum, resulting in a market of $61.3 billion in 2017 (in constant $).

AeroStrategy also predicts several structural changes to take place in the next 10 years:

• AeroStrategy predicts that outsourcing of maintenance will increase from 52% in 2007 to 73% in 2017;
• The amount of airframe heavy maintenance being outsourced to independent airframe MRO suppliers is predicted to increase from 20% in 2007 to 50% in 2017;
• The amount of component maintenance done in-house by the airlines is predicted to decrease from 30% in 2007 to 15% in 2017, with over 50% of all component MRO being performed by airline third party suppliers;
• PMA parts penetration will increase from 2.5% in 2007 to 8% in 2017;
• Aircraft OEMs will become important suppliers of integrated MRO contracts on the next-generation single aisle aircraft




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