16 Feb 2022
Mounting Costs, Aircraft Shortage Hamper Aviation Maintenance Market Rebound
The Index Today
Climbing labour costs and a shortage of widebody aircraft has significantly stalled the recovery of the global aircraft maintenance, repair and overhaul (MRO) industry following its pandemic-induced slump.
As per data from consultancy firm Oliver Wyman, the MRO sector has been affected by older, obsolete aircrafts and limited flying time for the rest. This comes after the sector was estimated to be worth $68.4 billion in 2021.
Kailash Krishnaswamy of Spirit AeroSystems contended that inflation is “definitely a challenge” when it comes to recovery in the MRO sector. "There is a general labour shortage and the only way to get labour back to work is higher rates," he said.
Chris Cholerton, the Civil Aerospace President at Rolls-Royce, revealed, "The modern aircraft – the 787s, the A350s, A330neos, probably by before the middle of this year, they'll be back to where they were in 2019." He also contended that "the reduction in flying hours is from the parking of capacity from older aircraft."
©Photo: financial times