Business Aviation MRO in 2019
For Owners and Operators of aircraft, there needs to be a conscious effort to schedule projects well in advance, to sign longer term, forward looking contracts, and to collaborate with MRO facilities on maintenance plans for the year ahead.
Business Aviation MRO in 2019
Following strong global growth, business confidence and profitability, 2018 was a good year for business aviation on the whole. As economies boomed, so did the use of private aviation by businesses and individuals. Although new aircraft deliveries were stable, the pre-owned market was hot, which caused the number of aircraft on the market to fall significantly. Both people and aircraft flew more than ever before, and whether through technology, operational efficiency or the willingness to invest more in older aircraft, fleets became more active.
As we move in to 2019, pre-owned sales activity is set to continue, as is the high utilization rates of the in-service fleet, and requests for the 2020 ADS-B Out modification will ramp up significantly.
Trends
- In late 2018, JSSI published figures showing aircraft utilization increased 5.7% year-over-year - levels not seen since 2008.
- According to FAA data, just 30.3% of the US fleet is equipped with ADS-B, and only 46.2% of the fleet are predicted to meet the mandate deadline.
- The Aviation Technician Education Council reported a growing shortage of technicians, with 30% nearing retirement age and decreasing job popularity in the millennial labour market.
- And, driven by President Trump’s 2017 Tax Cuts and Jobs Act, as well as a widening trend to prolong the life of in-fleet aircraft, AIN show that pre-owned aircraft transactions are set to hit their apex in 2019.
The result is an ever-increasing demand for MRO services. The increased number of aircraft, flying more frequently, will request slots for periodic maintenance inspections now coming around quicker. The large pool of aircraft not currently ADS-B compliant will schedule the upgrade. And aircraft being sold on the pre-owned market will demand increasing numbers of PPIs, cosmetic upgrades, and base maintenance to clear them for sale.
But, available hangar space is not set to increase at the speed needed to service such demand, and technicians are becoming increasingly harder to find, meaning a tightening ability by suppliers to provide. As a result, 2019 will see increased competition for maintenance slots and an extension of lead times. For Owners and Operators of aircraft, there needs to be a conscious effort to schedule projects well in advance, to sign longer term, forward looking contracts, and to collaborate with MRO facilities on maintenance plans for the year ahead.
Like what you see? Want to chat?
+49 162 3294459