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Component MRO Predictions | Aviation Week

21 Apr 2020

A recent Aviation Week article explores the impact of COVID-19 on the aviation MRO market.

Growth in the parts repair segment is expected to be stunted by the novel coronavirus pandemic but component MRO specialists believe demand will remain in specific areas of the market. 

 

Shops downsize expectations

 

Accounting for around 28% of the market, according to Aviation Week Fleet & MRO Forecast data published before the novel coronavirus pandemic, growth in the segment was occurring at a compound annual growth rate of 4.8% annually. Shops were routinely full, with some smaller operators routinely working to backlogs surpassing more than one month.

 

However, given the mass fleet grounding worldwide, these backlogs will likely dry up in 2020. Yet, still existing pre-crisis backlog will mean some repair shops will maintain some workflow in the short-term before expected shortfalls occur.

 

Sajedah Rustom, CEO of AJW Technique at our in-house MRO facility in Montreal says:

 

“We currently have a healthy backlog, with two to three weeks of workload, but we are slowly seeing a drop-off in demand and adjusting to match customer requirements.”

 

"While no existing work has been cancelled, we have fielded customer requests for hold of components until they are required. This is why we've launched a Quote & Hold Offer - to support customers in this difficult time."

 

Quote & Hold Offer

 

AJW Technique's latest offer allows customers to send units for technical evaluation without facing interim costs. Allowing customers to conserve cash flow, plan financial exposure and take control of their finances.

 

Discover our Quote & Hold offer >

 

Component MRO Predictions | Aviation Week

Demand will remain in specific areas of the market

 

Sajedah also identifies a slight upturn in components being removed from aircraft, due to some airlines choosing to use the downtime to perform heavy maintenance inspections. In terms of specific components, Rustom is seeing removals based on calendar life rather than flight hours in demand, such as escape slides, rafts and crew oxygen masks.

 

“We have not seen a reduction in this group of components, but that may change as most aircraft are grounded,” she says. “However, we expect operators to maintain their fleet in airworthy condition, therefore these segments will continue to be in demand.”

 

Read the full Aviation Week article.

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