European maintenance, repair and overhaul (MRO) service providers expect a downturn in air transport, and analysts say consolidation in the support market will likely result from this trend. Paradoxically, at the same time a skills shortage looms as forecasters predict global MRO spending to increase over the next five years at roughly 6 percent annually, growth primarily attributable to outsourced MRO services, expected to reach $43 billion in 2013.
“However, rising fuel prices forcing retirement of less fuel-efficient fleets will likely impact this growth,” consultant Olivier Fainsilber told AIN. “There will be a shakeout.” The downturn might translate into smaller fleets with a higher proportion of more modern, less maintenance-intensive aircraft, particularly in the U.S., while strong growth in India and the Middle East should help offset the effect of the North American downturn, he suggested.
