Financial Express(28-06-2006)
http://www.financialexpress.com/fe_full_story.php?content_id=132027
Asian MRO market to grow 50% by 2011 study
NEW DELHI, JUNE 27 : India, China and West Asia are emerging as the
‘big drivers’ behind the growth in aircraft maintenance, repair and overhaul
(MRO) business globally. A study by Frost and Sullivan projected that the
MRO market in Asia is bound to grow almost 50% by 2011 from $8.7 billion
to almost $13 billion.
The study, conducted by Subhranshu Sekhar Das, titled ‘Booming aviation’
unleashes opportunity for aircraft maintenance, repair and overhauling in
Asia’, revealed that the global investment community was actively assessing
the Asian aviation scene with particular interest in aircraft and engine
MROs. Das is an industry manager & senior consultant with the Frost &
Sullivan Aerospace & Defence Practice.
The global MRO market at present stands at $39 billion, of which Asia has
a market share of 22%. In the Asian market, currently at $8.7 billion, India
has a very small share of 8%, which is less than half of China’s market share
of 19%.
The study attributed high air traffic growth, low-cost model optimisation,
increased demand for cargo operations, excellent fleet demographics and airlines
engaging in long-term partnerships with MRO companies to deliver total maintenance
solutions as the key drivers of the MRO market in Asia-Pacific region.
According to the study, outsourcing has been most favoured with regards to
fleet maintenance. Led by the low-cost carrier commercial model drive, many
airlines have sought to outsource maintenance activities so that they can
focus more on the core activities. Also, cost effective high quality services
are attracting foreign airlines to Asia.