Professional Documents
Culture Documents
Industry Analyst
Nathan K. Smith
Topics
1. Commercial MRO
2
Commercial Aerospace Outlook
3
Commercial MRO
MRO Capabilities
Total Aircraft Support – One Stop
Shopping
Engine Test Facilities
Engine On-Wing Support
Engineering Design and Technical
Services
Trained Staff
4
Geographic Region Analysis of the Total Market in 2008
Eastern Europe /
North America Europe
Russia $1.50
$16.60 Billion $12.00 Billion
Billion
China
$2.80 Billion
Latin and South
America
$2.20 Billion
Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan
5
Geographic Region Analysis of the Total Market in 2013
Eastern Europe /
North America Europe
Russia
$17.10 Billion $12.80 Billion
$2.4 Billion
China
$3.70Billion
Latin and South
America
$2.60 Billion
Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan
6
MRO Outsourcing Analysis
Spending ($Billion)
Outsourced (%)
Competitive Pricing 76 5
4
74
Greater Operator Flexibility 72
3
2
70
Smaller Parts Inventory 1
68 0
North
Lower Operating Cost Asia Europe
America
Engine 71 73 77
Spending 3.2 3.5 5.3
Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan
Segment (%)
1.6
60 1.4
1.2
1
40 0.8
0.6
20 0.4 HMV Engine Compo Line
0.2
0 0 In-House 57 79 17 80
North
Asia Europe 43 21 83 20
America Outsourced
HMV 56 47 64
Spending 0.6 1.1 1.6 Aircraft Segment
Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan
7
Aircraft Components
Horizontal Stabilizer
Horizontal Stabilizer
Vertical Stabilizer
Vertical Stabilizer
Flaps
Flaps
Mid-Fuselage
Mid-Fuselage
Leading
Empennage LeadingEdge
EdgeSlats
Slats
Empennage Aft-Fuselage
Aft-Fuselage
Elevator
Elevator Doors
Doors
Forward-Fuselage
Forward-Fuselage
Windows
Windows
Ailerons
Ailerons
Interior
InteriorStructural
Structural Windshields
Windshields
Wing
Wing Landing
Engine
Engine LandingGears
Gears
8
Boeing B787 Outsourcing
Forward Fuselage Section II Kawasaki, Japan Center Wing Box Fuji, Japan
9
Airbus A380 Outsourcing
10
U.S. MRO Outsourcing – HMV / Mod
Heavy Airframe Maintenance Repair Stations for Nine Major U.S. Carriers (Global), 2008
Canada
69
Central America
81
11
MRO – PMA Parts and Inventory
IMM
OEM Vs Third Party
L
Economic Impact
PB
Growth Continuation
Power-by-the Hour
the Hour
ow er-by-
P
Performance Base Logistics (PBL)
12
Global Commercial Aircraft 2008
North America
7234
Asia Pacific
3329
13
Global Commercial Aircraft
Regional 17%
2013 craft
8 0 Air
226
N ar r o
18
wbod
20 Air
84
08 cr
6
3%
y 60%
19300 Aircra
2
a
dy
ft
o
2009
b
ide W
ft
CAGR 3.77%
14
Competitors
SAI Engineering
TAECO
AAR
Source: Frost & Sullivan
15
Competitive Assessment
Aircraft (000)
965
Component MRO 1,000 662
815 907
385 455
500
Line MRO
0
2003 2004 2005 2006 2007 2008
Year
Heavy Checks Outsourced
Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan
Engine MRO Revenue Share (Global), 2008 Widebody MRO Market Share (Global), 2008
GE Engine Services
3.1% 7.8%
4.6% Rolls-Royce
6.1% 6.7% Air France / KLM E & M
23.2% Lufthansa Technik ST Aerospace
6.1% Pratt & Whitney 5.9% HAECO
MTU Lufthansa Technik
5.8% TIMCO
7.7% Delta TechOps 50.0%
Ameco Beijing
Air France/KLM 5.9% SIA Engineering
13.8% Snecma TAECO
10.8% 4.1%
American Airlines British Airways Engineering
3.8%
SR Technics 3.6% AAR
3.1% 3.3% Others
12.3% 12.3%
Note: All figures are rounded ; the base year is 2008. Source: Frost & Sullivan Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan
16
Global Forecast
Forecasts of the global market, MRO Regional Market Share (Global), 2008
trends 25.0%
37.0%
North America
South America
Emerging Regions Europe
Asia Pacific
U.S. Market Share Decreasing Africa/Middle East
Narrowbody aircraft regional Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan
Continual expansion through joint MRO Market Share by Segment (Global), 2013
ventures, acquisition and consolidation
3%
MRO cost trends for next generation North America
33%
aircraft 30% South America
Europe
Asia Pacific
7% Africa / Middle
27%
Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan
17
Global Forecast
Global MRO Growth Flat in 2009 Global MRO Forecast , 2008 - 2013
$ Billion
9.5
Industry is Expected to begin recovery 21.8
18.7 18.9
in 2010
8.5 9.2 11
2008 2009 2013
Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan
MRO Revenue Forecast (Global), 2008 - 2013 MRO Revenue Forecast (U.S.), 2008 - 2013
54 3 20 3
52
Revenue Growth (%)
2.5 2
50 15
2
48 1
1.5 10
46 0
1
44 5
0.5 -1
42
40 0 0 -2
2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013
Year Year
Revenues
Revenues
Revenue Growth Rate Revenue Growth Rate
Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan
18
Conclusion
Key Take-a-Ways
19
Thank You