Middle East airlines increasing demand for MRO says consultant

Middle East airlines are expected to increase their demand for Maintenance, Repair and Overhaul (MRO) by 7.6 per cent a year over the next 10 years, bringing the total spend to US$4.8 billion by 2019.
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The comment was made by David Stewart, Partner at Aerostrategy, a UK-based consultancy specialising in commercial/military MRO market forecasting, who is speaking at MRO Middle East, the second edition of the successful conference and exhibition, presented by Dubai Airshow organiser F&E Aerospace and US magazine Aviation Week.

The prediction for the Middle East MRO market compares favourably against the global market growth of 3.2 per cent, to total US$58.4 billion over the same period.

MRO Middle East is one of three shows running during ‘Aerospace Week’, from 28 February to 4 March 2010, which will be inaugurated at Airport Expo, Dubai, by His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai’s Department of Civil Aviation Authority, Chairman Dubai Airports and Chairman & Chief Executive of Emirates Airline & Group.

Aerospace Week opens with the MRO conference and exhibition on 28 February which will bring together industry professionals to discuss the Middle East as the gateway to aviation’s global growth, the theme of this year’s conference.

Commenting on the recent IATA report that the region’s air passenger growth of over 11 per cent in 2009 was the highest in the world, Mr Stewart said: “Greater airline activity typically drives growth in MRO spend, so MRO suppliers serving the Middle East will likely see greater growth rates here than in other regions. However, competition is likely to increase and firms need to be intelligent and nimble about identifying where the best business opportunities lie.”

The issue of increasing competition is also noted by another conference speaker, Abdulla Al-Hudaid, Vice President Maintenance & Engineering at Jazeera Airways. “More companies are entering the market, resulting in competitive pricing. However, the region’s MRO industry could compete against other MRO centres, mainly in Europe, provided that they keep their labour costs low and use local, skilled manpower.”

Eng. Hisham Nasser, Quality Assurance Director at Egyptair’s Maintenance & Engineering division, will broach the subject of ‘end of lease return’. “Airlines are leasing more than ever before, due to the economic situation and MRO companies in the region will benefit from either end or beginning of leases when maintenance checks need to be performed.”

A topic of significant importance to the Middle East - the effects of the region’s harsh environment on the aircraft engine - will be discussed in a forum by Adil Al-Sheibani, Senior Manager Development Engineering at Oman Air. “In addition to discussing solutions to mitigate the effects,” he says “the forum will be an opportunity to initiate dialogue between various airlines that will allow for best practices for the region, based on in-service experience and maintenance practices developed by the individual airline.”

Running at the same time and location is the second Aircraft Interiors Middle East (AIME) show which includes workshops and an exhibition, showcasing cutting-edge design, innovative cabin fittings and technological advancements.