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Aircraft repair market to double in a decade
News Update
The Middle East’s aviation maintenance and repair market is expected to double in the next 10 years as the number of aircraft operating in the region is growing.
Last year, the industry netted $2.1 billion in revenues, of the global $42.7 billion and is expected to hit $4.4 billion, according to a report by global investment advisory firm AlixPartners.
Additional opportunities will be brought as the region’s position as a logistics and passenger hub grows, bringing an increasing number of international carriers stopping over for maintenance.
“Most dramatic opportunities in terms of growth and net new capacity for the world is in MRO (maintenance, repair and overhaul),” said David Fitzpatrick, a managing director in the firm’s Aerospace and Defence Practice, “given the massive fleets that are being built here and the tremendous logistics and passenger volumes that are likely to occur as a result.”
An airline’s budget for MRO is about 10-12 per cent. “If you think about the turnover of all these operators in this area and you think about the 10 per cent of that as opportunity for maintenance providers in the region… it is a huge business,” he said.
Local airports such as Fujairah International and newly launched Al Maktoum International in Jebel Ali have plans for dedicated maintenance facilities as a result of significant demand, while local companies have also begun to enter the market.
Abu Dhabi investment firm Mubadala acquired sole control of Swiss aircraft maintenance company SR Technics, with a 40 per cent stake, and discussed possibilities of building a facility in the UAE.
Source: Nadia Saleem, zawya.com – 7th July 2010
