World Commercial Aircraft Maintenance, Repair & Overhaul (MRO) Market 2013-2023


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World Commercial Aircraft Maintenance, Repair & Overhaul (MRO) Market 2013-2023

  1. 1. Page 47www.visiongain.comWorld Commercial Aircraft Modernisation,Repair and Overhaul (MRO) Market 2013-20234.5 Evaluating the HMV/Mods MRO Submarket 2013-20232013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013-23Sales $bn 8.5 8.8 9.0 9.2 9.5 9.6 9.9 10.2 10.6 10.9 11.3 107.6AGR (%) 2.5 3.7 2.6 2.0 2.7 1.6 3.0 2.5 3.8 3.2 3.92018-23 (%) 2013-18CAGR (%) 2013-232013 2018 20230%1%2%3%4%5%0246810122013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Mkt Value ($bn) AGR (%)YearSales$bnAGR17.3%16.2%15.3%Source: Visiongain 2013Table 4.5 HMV/Mods MRO Submarket Forecast 2013-2023 ($bn, AGR %, CAGR%,Cumulative)Source: Visiongain 2013Figure 4.12 HMV/Mods MRO Submarket Share Forecast 2013, 2018 and 2023 (%Share)Source: Visiongain 2013Figure 4.11 HMV/Mods MRO Submarket Forecast 2013-2023 ($bn, AGR%)
  2. 2. Page 67www.visiongain.comWorld Commercial Aircraft Modernisation,Repair and Overhaul (MRO) Market 2013-20235.5.3 The Next Few Years will be Crucial for AFI-KLMAlthough AFI-KLM is one of the largest providers of MRO service activities to have operationsthere, the company has not escaped the effects of the economic downturn on its business. Withfuel prices continuing to eat into its profitability margin, the company has resorted to a programmeof restructuring in order to return to sustainable profitability. The three year transformation plan willsee a slight reduction in the active fleet belonging to Air France whilst the company plans tomaintain existing flight capacity. It also plans to increase its share in the engine MRO submarket byimproving its economic efficiency, increasing its revenue generated from third party airlines andrestructuring hangar space. Whilst AF-KLM is just one of many companies which operate in theFrench MRO market, it current state of affairs is reflective of the challenges facing many otherMRO providers. For this reason, Visiongain predicts that the French MRO market will lose marketshare and only achieve a moderate CAGR rate during the forecast period.AFI-KLM October 2012 Signed a long-term maintenance and pooling contract with Flybe-Finnair joint venture Flybe Finland. The agreement covers anextensive array of components, including the propellers of theturboprop aircraft which included three ATR 42s and eleven ATR72s. The contract includes access to a spares pool located at AFIKLM E&Ms Roissy-CDG Logistics Centre, and the lease of a MainBase Kit, to be positioned at Flybe Finlands Vantaa-Helsinkiairport main base.AFI-KLME&MJuly 2012 LOT Polish Airlines signed a long-term component supportagreement with AFI KLM E&M for its fleet of Boeing 787Dreamliners, which will ultimately comprise eight aircraft. LOT wasscheduled to deploy the Dreamliner in January 2013. The supportprovided for LOT Polish Airlines covers repairs and pool accessfor more than 600 part numbers, together with logistics support andthe provision of a stock of spare parts at the customers main base.AFI-KLME&MMay 2012 Aigle Azur renewed work with AFI KLM E&M by signing acomponent support contract for its fleet of A320s. The contract is aflight-hour agreement for component support, with pool access andrepairs. It also includes major overhauls (C-Checks) on a non-exclusive basis.Table 5.13 France Commercial Aircraft MRO Major Contracts & Programmes(Company, Date, Details)
  3. 3. Page 83www.visiongain.comWorld Commercial Aircraft Modernisation,Repair and Overhaul (MRO) Market 2013-20235.10 Indonesian Commercial Aircraft MRO Market 2013-20232013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013-23Sales $bn 1.1 1.2 1.3 1.3 1.4 1.5 1.6 1.7 1.9 2.0 2.1 17.2AGR (%) 6.4 6.7 6.8 6.9 6.9 7.0 6.8 7.0 6.8 7.0 6.82018-23 (%) 2013-18CAGR (%) 2013-232013 2018 20230%1%2%3%4%5%6%7%8% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Mkt Value ($bn) AGR (%)YearSales$bnAGR2.2%2.6%2.9%Source: Visiongain 2013Table 5.25 Indonesian Commercial Aircraft MRO Market Forecast 2013-2023 ($bn,AGR %, CAGR%, Cumulative)Source: Visiongain 2013Figure 5.22 Indonesian Commercial Aircraft MRO Market Share Forecast 2013, 2018and 2023 (% Share)Source: Visiongain 2013Figure 5.21Indonesian Commercial Aircraft MRO Market Forecast 2013-2023 ($bn,AGR%)
  4. 4. Page 101www.visiongain.comWorld Commercial Aircraft Modernisation,Repair and Overhaul (MRO) Market 2013-20237. Expert Opinion ____7.1 AFI-KLM E&MSébastien Weber is the Vice President of Marketing and Product Development at AFI KLM E&M.AFI KLM E&M is an international recognized major provider of maintenance, repair, overhaul andmodification services for commercial aircraft. Sébastien Weber kindly provided answers toVisiongain’s questions in April 2013.7.1.2 Understanding AFI-KLM’s Involvement in MROVisiongain: Could you outline your involvement with MRO and some of the recent work thatyou have been doing?Sébastien Weber: As you know, before 2004, AFI and KLM E&M were competitors in the MROmarket. We maintained the fleets of our parent companies, AF and KLM respectively, and weprovided MRO services to external customers. In 2004 AF and KLM merged to form a jointcommercial organization. AFI-KLM E&M became a division of this organization meaning that wehave one target plan, one budget and one reporting system. Subsequently, we created centers forexcellence to deal with specific products and services based on each company’s experiences.Traditionally, KLM were Boeing orientated before they ordered the A330 whilst Air France wasmore Airbus orientated even though it had some 777 and some 747s. Following the merger, bothcompanies split and spread the work which they were able to do at their own facilities in order toavoid overlaps. Of course, KLM still performs line maintenance on their own fleet and they do theirown work for the 777 and the A330 whilst Air France does the same thing for its own aircraft at itsmain base. But component and engine maintenance, heavy checks modifications and secondaryservices like working on APUs and thrust reversers are all done at these centers of excellence.Presently, AFI KLM E&M is in the middle of a programme, known as Transform 2015, to reducecosts and restructure the company in such a way that will bring us closer to our customers.Our involvement within the MRO business is to serve our customers with a whole range of servicesincluding engineering and airframe, component and engine maintenance, APUs, modifications andeven training services. We can provide a turnkey solution to our customers who might need workdone on a very specific aircraft type, component part, or who have a limited budget or time frame inwhich they need to get work done on their aircraft. We also provide other customers with TotalCare packages. So our MRO services encompass a broad range of services from individual aircraftto airlines requiring maintenance on an entire fleet. We service every type of Airbus and Boeing
  5. 5. Page 104www.visiongain.comWorld Commercial Aircraft Modernisation,Repair and Overhaul (MRO) Market 2013-20238. Leading Companies in the Commercial Aircraft MROMarket8.1 AAR Overview2011Total company revenue $bn $2bnHeadquarters Illinois, USATicker AIRIR Contact Tel: 630-227-2075 SpecificationOverhaul and Maintenance Duluth – 80,000 Sq ft.Hot Springs – five nose to tail maintenance linesIndianapolis – 10 baysMiami - 226,000 Sq ft. for C and D checksOklahoma - Full Service at seven hangarsComponent Repair Overhaul, Replacement, Exchange, Scrap ReplacementOptionsComposite Repair Produces advanced structures using autoclave cure, ovencure, resin transfer moulding (RTM), compression mouldingand vacuum assisted resin transfer moulding (VARTM)Engineering Services n/aLanding Gear, Wheels andBreaksRepair for 43 types of aircraft, both commercial and militaryTable 8.2 AAR Products / Services (Product, Specification)Source: Visiongain 2013Table 8.1 AAR Overview 2011 (Total Revenue, HQ, Ticker, Contact, Website)Source: Visiongain 2013