Consolidation continues in the North American commercial aircraft maintenance, repair and overhaul sector, and is likely to remain the trend as its customers - the region's airlines - brace for an anticipated recession.
How deeply any downturn bites into the sector's business will depend on the strategies airlines deploy in the hope of remaining profitable through the recession. The key this time will be what happens to the older, maintenance-hungry aircraft that still make up a significant part of the North American fleet. Will they be parked temporarily and retired permanently as carriers trim their capacity?
Other factors likely to influence the overhaul business over the coming year include the last-minute rush to meet the deadline to phase out Stage 2 aircraft, or modify them to meet Stage 3 noise limits. The continuing investigation of the Trans World Airlines Flight 800 crash also could result in a spate of "ageing systems" airworthinesss directives that could generate work for maintenance centres.
south of the border
For South American airlines, the economic downturn is already real, and not vaguely anticipated. There are few maintenance centres in the region that are independent of the airlines they serve, and Latin America has historically had difficulty attracting business from outside its borders, so the sector's performance is tied closely to the health of the region's carriers.
Positive trends include the long-awaited moves by Latin American airlines to re-equip. Airbus Industrie has been the main beneficiary, with the result that the region's maintenance centres must now upgrade the support the latest in airframe, engine and avionics technology.
Boeing has continued its move into the large aircraft modification business over the past year, moving MD-10 conversion work from an independent contractor to its newly established Aerospace Support centre at the former Kelly AFB outside San Antonio, Texas.
The regional and corporate aircraft maintenance business in North America has been boosted of late by booming business jet sales and the rapid introduction of regional jets. New players in the maintenance business are beginning to emerge as a result, and could further increase competition in the sector.
Dimension Aviation, formerly Sabretech, provides a range of services for widebodies and narrowbodies, including DC-9 overhaul
Source: Flight International
