The aviation industry is close to operating at pre-COVID-19 levels, but does this automatically mean the MRO sector has recovered to the same degree?

 

AviTrader MRO Magazine’s David Dundas spoke to SVP Operations at AJW Technique, Louis Mallette about his outlook for the Group’s Montreal and European based MRO operations in 2024.

 

Amid the ongoing impact of global geopolitics and recurring supply chain issues relating to materials and parts, those involved in the MRO sector continue to embrace and overcome challenges. This reflects the immense resilience the aviation industry has built over the past few years.

 

The engine MRO market is poised for growth and to meet this demand, providers must enhance operational efficiencies, leverage advanced technologies, optimise inventory management, utilise data analytics, and minimise aircraft downtime for prolonged lifespan and competitive advantage in the global market.

 

IATA (International Air Transport Association) believes that one of the primary challenges still facing the aviation industry is staffing and suggests that while digital transformation is vital, this should work alongside the workforce and not against it. Dundas asked Mallette what he saw as the key trends and developments impacting the aviation maintenance industry in 2024.

 

Mallette concurred with IATA’s views on the impact of the shortage of skilled labour on the MRO industry but held the optimistic view that “Industry analysts are predicting a full recovery of the aviation sector in 2024.”

 

While reducing carbon emissions is foremost on the agenda of industry stakeholders, the road to carbon neutrality is a long one. AJW Technique’s SVP highlighted the Group’s commitment to environmental sustainability as a fundamental aspect of its business practices and support for the UN Global Compact. 

 

The eco-friendly headquarters, featuring rainwater harvesting systems and solar panels, exemplifies responsible resource management, he says. As the company focuses on local energy reduction programs for its facilities it has made a commitment to economically repairing and returning components to service through aircraft teardown activities, with proper recycling and reprocessing for non-serviceable parts to minimise environmental impact.

 

“AJW is dedicated to sustainable business practices, forming one of the cornerstones of our Group business practices."

 

 

Looking to sector recovery in the coming year, he notes that the Group expects the component repair shops such as AJW Technique to be operating at close to maximum capacity. In terms of demand, most MROs are back to pre-covid levels and expect to be above that level in 2024. However, the OEMs continue to struggle with their post-covid production ramp up and as a result, the industry continues to experience stress due to supply chain capacity.

 

The industry is responding and adapting to trends and challenges but as MRO order books fill up with the increase in demand for used serviceable material – the general outlook for 2024 is a positive one.