The rapid rise of MRO (maintenance, repair and overhaul)

 

The MRO industry in Middle East has met the fastest increase Since 2003, the increase of annual average is 10.5%. In 2009, the value of the Middle East MRO industry is approximately 2.2 billion dollars, which is about 5% of the world¡¯s total value. It was expected that the MRO industry in Middle East would meet 8.9% of annual average increase, however, the current trend is that the MRO business shows a slight declining in 2009,and will not revive (to the same level of 2008) until 2010.

 

Rapid growth of India civil aviation fleet brings in the increasing need of MRO, the expected annual average increase of India MRO industry is 10%, the value of the MRO industry will be up to 1.17 billion dollars in 2010, and will reach 2.6 billion dollars in 2020.However, there will be many challenges to build a MRO center in India, and the challenges comes from the indirect tax structure, especially the user tax and service tax.

 

Increase of Africa MRO industry shows a slight higher than the world¡¯s average level, however, because of the small amount, it still catches less attention than China, India and the Middle East.

 

 

As for the Asia and the Pacific region, according to the report by Frost & Sullivan Company on January 2009, the economic situation of MRO industry will be continually increasing in both recent and future. It was also reported that, the profit of MRO industry might meet 3% of decrease as for the decline of civil aviation market. However, Frost & Sullivan Company Asia and Pacific branch believes that the Asia-Pacific region will meet the highest increase of the world¡¯s aviation maintenance industry, and the source of the increase is the engine maintenance.

 

China MRO industry presents moderate and continual increase, which shows the high regulatory capacity of the Government. A new engine MRO joint venture is being built in Shanghai, and the collaborators are Pratt & Whitney (PW) and China Eastern Airlines.

The joint venture plans to repair the CFM56 engines for China Eastern Airlines, which was installed in the Airbus A320 and Boeing 737 aircraft.

Singapore is still one of the biggest markets for MRO in Asia-Pacific region, and is the aviation maintenance center since a long time ago. Recently, Singapore is constructing an  ¡°Aviation Garden" of 300 hectares (741 acres), and will built a set of integrative aviation facilities, then the MRO will be founded, and manufacture and other business will also be started.