Capacity and labor shortages are prompting airlines to take over more of their own maintenance and build enough capacity to make it a new source of revenue
Share to linkedinTom is a vice president and Brian and David are partners with Oliver Wyman’s transportation and services practice.Since the mid-1990s, there has been a consistent, almost inexorable trend for airlines to outsource their maintenance needs. Today, the state of the maintenance, repair, and overhaul sector in aviation is encouraging some carriers to rethink that decision.
The shortages facing MRO can be seen to varying degrees in line, engine, component, and airframe maintenance, depending on the geographic region. Besides the difficulty in keeping up with demand in select market segments, there is also a looming shortfall across most geographies in the number of trained aviation technicians.
The buildup of in-house maintenance capacity is also a reaction to the state of play in the aviation aftermarket. Airlines are growing wary of the rising market position of aircraft and engine manufacturers in MRO. Simultaneous with the consolidation of the aftermarket in recent years, these original equipment manufacturers began to seek increased revenue through tighter control of their intellectual property , especially on newer aircraft models.
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