ASDWire distribution date: Fri, 9 May 2008 19:27:00 GMT +0100

Air Transport MRO Market To Reach $61B and Restructure Significantly By 2017

May 2008 --[ASDWire]-- The commercial air transport maintenance, repair and overhaul (MRO) market in 2007 was worth US$45B according to the latest update of the AeroStrategy/OAGback MRO market model. This reflects a 10% increase over the 2006 market spend of about $41B. Growth of MRO spend over the next decade is expected to be 3.1% per annum, resulting in a market of US$61.3B 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

A copy of AeroStrategy’s latest Conference speech on the air transport MRO market can be downloaded at www.aerostrategy.com

AeroStrategy is a premier management consulting firm specializing in strategy and market analysis for the aviation and aerospace industries. The firm has offices in Europe and North America.

For further information, see www.aerostrategy.com

Company Information