Market Trends of Europe Aircraft MRO Industry
This section covers the major market trends shaping the Europe Aircraft MRO Market according to our research experts:
Engine MRO Segment is Expected to Witness Highest CAGR During the Forecast Period
Engine MRO is an extremely important part of MRO. The increasing complexity of the engine parts and the increased number of military aircraft crashes, due to engine failures, have made the militaries focus on frequent engine maintenance and periodic checks. The engine manufacturers like Safran, Rolls Royce, and MTU Aero Engines among others are some of the major engine MRO providers in the region and support commercial, military, and general aviation customers. Also, the engine MRO providers are expanding their facilities to increase their capacity and efficiencies for customers, along with new airline partnerships. For instance, in November 2021, Rolls-Royce received a maintenance and services contract from MNG Airlines, covering the Trent 700 engines that power the airlines' two latest Airbus A330-300 P2F fighter aircraft. The 'TotalCare' agreement gives Istanbul-based MNG a secured cost of operating and maintaining its Trent 700 engines through a dollar-per-flying-hour payment mechanism The growth in the network of aircraft engine MRO providers in the region to expand their overhaul services is anticipated to propel the growth of this segment in the coming years.
United Kingdom is Expected to Witness Significant Growth in the Coming Years
The United Kingdom has one of the largest aircraft fleets in terms of commercial aircraft, military aircraft, and general aviation aircraft. The commercial aircraft fleet of major airlines like Jet2, British Airways, Eastern Airways, and Loganair have an age of 13.5 years, 13.6 years, 18 years, and 23.4 years, respectively. The aging aircraft fleet in the country is generating demand for new aircraft maintenance contracts. For instance, in February 2020, BA CityFlyer signed an agreement with MTU Maintenance to extend its CF34-8E and -10E MRO contracts. Besides investing resources to modernize its fleet, the UK MoD is trying to enhance the lives of its current aerial assets. In March 2018, the UK Army Air Corps awarded a contract to Vector Aerospace, in order to provide maintenance support to 26 of its Gazelle AH Mk1 helicopters, with the execution of the contract planned for April 2018-June 2022. Similarly, many joint ventures and partnerships were formed by the government to support and maintain F-35 aircraft. In February 2020, the United Kingdom partnered with Singapore to exchange aviation technology. The Civil Aviation Authority of Singapore (CAAS) and the United Kingdom (Civil Aviation Authority) have entered a Technical Arrangement on Aviation Maintenance (TAAM) that will streamline audits and reduce regulatory compliance costs for MRO organizations, significantly benefitting the United Kingdom. Such developments are envisioned to drive the UK military aviation MRO market during the forecast period.
