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          1. Aircraft Maintenance & Repair Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 6/22/2020
            SIC Codes: 4581
            NAICS Codes: 488190
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Aircraft Maintenance & Repair Industry Profile

            Companies in this industry provide aircraft maintenance and repair, as well as inspection and testing services. Major companies include AAR (based in the US), Hong Kong Aircraft Engineering Company, Lufthansa Technik (Germany), SR Technics (Switzerland), and ST Aerospace (Singapore).

            Global revenue for commercial aviation maintenance, repair, and overhaul (MRO) services is forecast to be about $88 billion in 2018, according to Aviation Week. Economic expansion in emerging markets in Asia is expected to drive industry growth. Countries in the Middle East, Latin America, and Africa are also being targeted for industry expansion.

            The US aircraft maintenance and repair industry includes about 3,800 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $20 billion.

            COMPETITIVE LANDSCAPE

            Demand for maintenance and repair services is driven by air transportation activity and the size and age of aircraft fleets. The profitability of individual companies depends on efficient operations. Large companies have an advantage in their ability to serve major customers and enjoy economies of scale in parts purchasing. Small companies can compete effectively by serving local markets and smaller customers. The US industry is concentrated: the 50 largest firms generate about 65% of industry revenue.

            Dedicated third-party providers of aircraft maintenance, repair, and overhaul (MRO) services compete against original equipment manufacturers (OEMs) and airlines. Engine makers and other equipment manufacturers often generate a significant percentage of their revenues from MRO services, and ...

             
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