TeamSAI predicts strong MRO growth over next
By: Chris Doan
Posted: April 16, 2008
Denver, Co. – In yesterday’s opening session of the annual Aviation Week Group, North American MRO Conference, Chris Doan, TeamSAI President & CEO, presented the forecast for the world-wide Maintenance Repair & Overhaul (MRO) industry projecting a total revenue of $45.1B in 2008 with continued annual growth averaging 4.3% to yield a total revenue level of $68.6B in 2018. The forecast specifically covers western-built jet aircraft in commercial airline service world-wide.
Despite ominous signs from the airline industry, rising fuel costs and the weak US economy, the outlook for the MRO industry remains strong. In Doan’s presentation, he points out that key drivers include the fact that much of the scheduled MRO work has been queued up by fleet decisions made 5 to 10 years ago, as well as shortages in the work force pushing labor rates up, and the impact of the weak dollar on the international market. Doan went on to point out that fleet growth is predicted to continue at an average annual rate of 4.6% over the next 10 years with ASM growth achieving an even higher average rate of 5.7% over the same period.