Author name: cliste.global@gmail.com

MRO

Aging Commercial Fleets: Implications and Opportunities for Airlines, OEMs, and MRO Providers

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Commercial airplane fleets are aging at an unprecedented rate, creating challenges for operators ranging from escalating maintenance costs to obstacles in achieving sustainability targets. The average age of airline fleets is frequently used as an indicator of fuel efficiency and maintenance spending. Since 2000, the average fleet age has fluctuated in response to industry disruptions like 9/11 and the financial crisis, which forced airlines to defer new aircraft orders. By 2018, the average fleet age was already 1.3 years older than in 2000. Recent events, including the 737 MAX grounding, COVID-19, and ongoing supply chain delays, have only exacerbated this trend. From 2018 to 2023, the fleet aged an additional 1.5 years. Today, 83% of commercial aircraft are out-of-warranty—significantly increasing maintenance requirements for operators. AeroDynamic Advisory predicts this trend will continue, with aircraft delivery levels unlikely to return to 2018 rates until 2027 or later. By 2033, the average fleet age may rise by another 1-2 years unless a substantial increase in aircraft deliveries is achieved. This aging trend creates strong demand in the commercial aftermarket, providing growth opportunities for MRO providers and OEMs with aftermarket-centric operations. MRO providers, in particular, stand to benefit as older fleets require more intensive engine maintenance, additional heavy checks, and interior retrofits. The increase in nonroutine maintenance tasks is pushing airline maintenance expenses from around 10% historically to approximately 15% of operational costs, totaling $122 billion in 2023. Sustainability goals add another layer of urgency. The International Air Transport Association (IATA) targets net-zero emissions by 2050, with 13% of the pathway relying on new-technology aircraft. However, delayed deliveries of these platforms are jeopardizing progress, leaving airlines to rely increasingly on sustainable aviation fuel and market-based measures to bridge the gap. To adapt to this new reality, airlines will need to adopt best MRO practices from peers and seek cost-efficient solutions for older fleets. OEMs must balance their investments between new platforms and aging fleet support, while MRO providers should prepare to expand capacity and enhance services for a market that increasingly depends on maintaining older aircraft.

Defence

Indian Air Force to Partner with Indigenous Industry for MRO Services in a Move Towards Self-Reliance

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In a groundbreaking initiative, the Indian Air Force (IAF) is set to collaborate with the indigenous industry to outsource select Maintenance, Repair, and Overhaul (MRO) facilities. For the first time, the IAF plans to incubate private sector players to manage back shops, while providing access to aircraft body paint shop infrastructure at one of its Base Repair Depots (BRD). This strategic move aims to reduce reliance on foreign Original Equipment Manufacturers (OEMs) and foster self-sufficiency within the country. This initiative aligns with India’s ambitions to strengthen its domestic aerospace and defense capabilities and tap into the lucrative global MRO market, which was valued at $49.1 billion in 2023 and is projected to reach $66.2 billion by 2030. The Indian MRO market, valued at $1.7 billion in 2021, is also expected to grow significantly, reaching $4 billion by 2031, as per a NITI Aayog report. In an exclusive interview, Air Marshal CR Mohan, who recently retired as Air Officer-in-Charge Maintenance of the IAF, emphasized the importance of balancing military autonomy with industry partnerships. “We are exploring partnerships with Indian industry in innovative ways,” he stated, clarifying that combat-sensitive tasks will remain under IAF control, while non-combat-sensitive work can be outsourced to private entities. The IAF has identified different levels of engagement for outsourcing MRO facilities, a move that marks closer collaboration between the armed forces and the private sector. Recognizing that the industry has been hesitant to independently take on military MRO work due to limited volumes and certification challenges, the IAF aims to fill this gap by leveraging its expertise and infrastructure to support the industry. With approximately 80 outsourcing cases under review, the IAF began the process in 2022, and various approvals are currently underway. One key initiative includes dual-purposing heavy aircraft maintenance facilities at Hindon Air Base in Ghaziabad. This facility could be used by private airlines for repainting services, reducing the need to send aircraft abroad for these services. “Eleven industries have already shown interest in this project, and we have received responses to our requests,” Mohan explained. “We’re now preparing to issue Requests for Proposals (RFPs), and within four to six months, we hope to finalize contracts.” Through these collaborations, the IAF aims not to generate revenue, but rather to secure cost advantages for indigenous partners. Currently, RFPs have been issued for maintenance and overhaul work on various aircraft, including Mi 17 helicopters, MiG29 fighter jets, and AN32 transport planes. The incubation program is well underway, with “9 BRD” in Pune already signing contracts with Indian companies for repair, refurbishment, and component replacement services. In the immediate term, the IAF is prepared to offer opportunities in the maintenance of ground equipment and supply chain management, paving the way for further industry involvement. This strategic shift by the IAF signals a bold new chapter in India’s aerospace self-reliance journey, opening doors for local industries to develop expertise in critical MRO services while enhancing the operational readiness and sustainability of the country’s defense assets.

International

Dubai Set to Launch First Aerial Taxi Vertiport Near Dubai International Airport, Ushering in a New Era of Urban Air Mobility

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In a groundbreaking move, Dubai has taken a significant step towards becoming the first city in the world to offer urban aerial transportation with the approval of its inaugural aerial taxi vertiport. Situated near Dubai International Airport, this state-of-the-art facility will set new standards for efficiency, comfort, and convenience in urban travel by air, blending seamlessly with Dubai’s iconic skyline. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, has officially authorized the construction of this ambitious project. According to a recent press release, the vertiport will cover a sprawling 3,100 square meters, providing dedicated zones for take-offs and landings, along with aircraft charging stations, a taxi apron, and ample parking areas. The new vertiport is expected to handle an impressive 42,000 landings and serve up to 170,000 passengers annually, highlighting Dubai’s commitment to pioneering futuristic transport solutions. This project aligns with the city’s vision of revolutionizing urban mobility, offering residents and visitors a new, elevated travel experience that reduces congestion on the ground and opens up the skies as a viable transport option. With this vertiport, Dubai sets a precedent for other global cities looking to incorporate aerial taxis into their urban infrastructure, solidifying its position as a leader in innovative transportation solutions.