FEASIBLE STUDY OF

MRO
- AN INDIAN
PERSPECTIVE
 AGENDA
Airline Maintenance, Repair & Overhaul
Introduction
Objectives
Research Methodology
Factors
Indian aspect
Upcoming Ventures
References
 MRO
Ø MRO firms fall into three main categories: the
Original Equipment Manufacturers (OEMs),
the airlines, and the independent contractors.

Ø First two categories of firms—OEMs would

negotiate maintenance and overhaul
arrangements as part of sales packages, and
the airlines kept a large number of staff on
hand to take care of other maintenance
needs.
 MARKET TREND
Ø $41 billion worldwide market

Ø Compound annual growth rate (CAGR) of 4.8%

over the next five years

Ø By 2012, the value of the MRO market for

commercially operated jet transports is
expected to increase to $51.8 billion, and then
to $62.9 billion by 2017
 OBJECTIVE
The objective of the study is -
 
To Forecast MRO market.
 
To Analyze key MRO market trend
 
Comparison of MRO industry with other
countries
 RESEARCH
METHODOLOGY
Ø The data is collected through the sources
and is served as inputs in the report.

Ø The methodology used to determine the

objectives mentioned in the previous
section requires Qualitative research.

Ø The sequence of the research is based on

facts and figures updated on the web as
well as magazines, articles, newspapers. 
 FACTORS
Ø Heavy maintenance visits and
modifications
Ø Engine MRO
Ø Component MRO
Ø Line maintenance
GLOBAL ASPECT

Source:
INDIAN ASPECT

Source:
TeamSAI/Ascend
 INDIAN ASPECT
(Contd/-)
Ø Fleet size of all airlines operating in India is
expected to rise from 160 in 2004 to 620 in
2014

Ø In two decades in-house MRO has reduced

from 85% to 30%

Ø Low-cost carriers (LCCs)are turning to third-

party MROs to cut costs and focus on core
activities
 INDIAN ASPECT
(Contd/-)
Ø Assuming 1,000 aircraft in 2012 (both
commercial and business), there would be
a need for roughly, 50,000 weekly checks,
3,500 A level checks, and millions of night
halts.
Ø An aircraft undergoes a check after 600
flying hours. If an aircraft flies the
minimum of 12-14 hours a day, on an
average it flies nothing less than 2,500
hours annually, which implies that one
aircraft will go for a check 3-4 times a year
FLEET FORECAST
(INDIA)
INDIAN MRO MARKET
Fleet size of all regions:
 ANALYSIS AND
FINDINGS
Ø The critical factors for success in the
competitive MRO market of the future are:

Competitive service products.

Global scale.
The ability to run an MRO business: the right
contracts for the right price.
Customer focus.
 POSSIBLE FUTURE
SCENARIOS
1. OEMs take over spare parts but outsource
service to service suppliers.

3. Service suppliers take over; OEMs and spare-

parts manufacturers act as suppliers. Third-
party service suppliers provide full service.

5. OEMs take over, and service suppliers are

left out. OEMs control the spare-parts
distribution channel, and also perform
services themselves.
4. Airlines focus on MRO in a big way. Airline MROs
start providing service to external customers –
primarily to access the profitable aftermarket
and improve overall profitability.

4. Service suppliers provide onsite support to

airlines, while OEMs manage the “sense and
respond” side of the business and schedule
services. Service suppliers perform the actual
maintenance process; OEMs monitor aircraft
health and schedule maintenance and spare
parts based on the performance of the aircraft in
flight.
 CONCLUSION
Ø Major OEMs are determined to succeed in the
MRO market. These OEMs probably have the best
initial opportunity with airlines that have small
fleets.

Ø Service suppliers will continue to gain industry

influence.

Ø For maintenance of engines and complex

assemblies, the engine OEMs are in a strong
position.

Ø For component services and simpler assemblies,

 CONTD/-
Ø Airlines will focus more on their core business,
which translates into outsourcing even more of
their MRO work.

Ø Parts suppliers are likely to become the owners of

spare-part inventory in the distribution channel.
 RECOMMENDATIONS
Ø Lessening Tax-Burden on the MRO entrants.

Ø Liberalizing the sector in India to make it

competitive.

Ø Treat MRO industry as Service Providers and

not tax the setup they import.

Ø Set Quality Adherence norms for the units

being set up in India to allow healthy
competition.

Ø Make the MRO units globally competitive.

UPCOMING VENTURES
Ø Lufthansa Technik - GMR Group (Hyderabad, Rs
100 crore)
Ø Air India - Boeing (Nagpur / $ 100 million)
Ø Indian Airlines - Jupiter Aviation and Logistics –
EADS (Delhi and Hyderabad / $2.57 billion over
the next 15 years)
Ø Go Air - Singapore Airlines Engineering (13 MRO
Units)
Ø Kingfisher Airlines is in talks with GAMCO (Gulf
Aircraft Maintenance Company) of Abu Dhabi on
MRO in India.
 REFERENCES
Ø www.ficci.com
Ø www.teamsai.com
Ø www.aviationweek.com
Ø www.aia-aerospace.org
Ø www.lufthansa-technik.com
Ø www.aviationtoday.com/am
Thank You !!