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Aviation News Aviation maintenance: the dash to the East

Aviation maintenance: the dash to the East

Romain Guillot in Singapore
15 NOV 2018 | 346 words
Aviation maintenance: the dash to the East
Le Journal de l'Aviation - All rights reserved
Two major aerospace exhibition were being held at the same time in Asia last week: Airshow China (Zhuhai) and MRO Asia-Pacific (Singapore). Although they are quite different, these two events do have one particularly important point in common: the colossal maintenance requirements for commercial aircraft in the region.

The time when Asia hosted major maintenance checks for certain western airlines' aircraft for simple labour cost reduction reasons is one chapter in history that is coming to a close.

With the Asia Pacific region's fleet set to double within just ten years, the demand for services will be increasing a the same rate and will leave little capacity free for operators from other continents.

It is now becoming clear that the major MROs based in Asia will quite simply dominate the maintenance world in the not too distant future. Let's take the example of AFI KLM E&M, the world number two "Airline MRO" with its some two thousand aircraft under contract. Two thousand aircraft is exactly the number that an airline such as China Southern Airlines is also planning to operate in its fleet by 2035. We can already see the perspectives open to players such as GAMECO.

Asia represents a potential of 42 billion dollars generated in 10 years, just on MRO expenditure alone. It is already the number one market in the world for engine maintenance, with capacities which will be under significant stress for a few more years to come.

The governments of certain countries in the region have realised that MRO is a strategic activity which creates value and jobs, and competition will be hotting up, particularly in South East Asia. Thailand, Vietnam, Malaysia, Indonesia and the Philippines are clearly intending to take market share from Singapore over the next 10 years.

Of course, some of them are already apprehensive about recruitment difficulties, rising labour costs, the changes of mindset needed and even the possible appearance of a bubble. But there are still fine opportunities and one thing is certain: it'll be a case of first come first served.
Romain Guillot
Chief editor
Cofounder of Journal de l'Aviation and Alertavia


 
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