It has been a challenging year for MRO. The global aircraft MRO market shrunk from USD 82,4 billion in 2019 to an estimate of USD 68,5 billion in 2021. The rapidly changing market forces competitiveness between market players and the one profiting from that is non-other than the clientele.
“The Covid-19 pandemic had a great impact on the industry and now slowly recovering operators tend to look for ways to save budget,” explained Vytis Zalimas, CEO of JET MS, one-stop-shop for MRO solutions for business and regional aircraft. “Additionally, rising fuel prices, security costs and stiff competition pushes operators to outsource the MRO services. And the time to do that is right – the competition between MRO providers and OEMs is fierce and the companies invest a lot of energy and time to attract new clients.”
While MRO providers and OEMs rush to outperform one another, the biggest winner in the situation is the client. “Now is the best time to maintain aircraft. MRO companies bend over backwards to attract and retain clients so the service price-quality ratio is great,” CEO of JET MS commented.
Even industry leaders that previously stood strong behind their names and pricing, are now looking to compete with smaller MRO service providers for every client and are willing to slash their prices. “It is something we have never seen in the MRO industry before,” said Vytis Zalimas. “With the changing industry, big names are no longer as important to clients as they used to be and with prices assimilating between major brands and small providers, additional criteria, such as customer service, flexibility and convenience, come to the forefront.”
To strengthen their competitiveness, MRO providers look for means to optimise services and offer alternative solutions to attract potential clients. Companies implement smart information and process management tools, improve their procedures, and adopt new services for clients’ convenience.
With the growing appreciation for convenience and safety of private travel, business Jet MRO market is anticipated to register a compound annual growth rate (CAGR) of 4.03%, to reach a market value of USD 4.36 billion by 2024. “The MRO market in business aviation is already incredibly competitive, so service providers might additionally choose to strengthen their positions through mergers and acquisitions,” Vytis Zalimas explained.
The changes and competitiveness of the MRO market made every service provider more equal in the eyes of a client. Companies are expected to innovate, look for new possibilities and options that could entice clients to choose them. Only those who will be able to prove their unique approach, exceptional service quality and ingenuity, as well as offer competitive pricing, will thrive once the pandemic ends.