Overcapacity caused narrowbody maintenance prices to fall 15% in 2009, and a repeat is likely this year.
That's according to SR Technics chief executive James Stewart, who addressed industry peers at Aviation Week's MRO Europe show in London on Wednesday.
With providers struggling to fill their hangars, some of this year's bigger maintenance deals have been closed at "marginal-type pricing", and it's difficult to predict whether and when prices might stabilise, says Stewart.
However, there is likely to be overcapacity for "the foreseeable future", by Stewart's reckoning. He notes a tendency among airlines constrained by labour rules to take filler work to keep their facilities busy, a practice that he hopes will end.
Stewart ascended to the top job at Mubadala-owned maintenance provider SR Technics in February, after a stint as chief financial officer.
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Source: Air Transport Intelligence news
