No. 15: Wizz Air Hungary
Wizzair. Airbus A320-232

Airlines Wary Of Consolidation As OEMs Enter MRO

As OEMs increase presence in the aftermarket, airlines fear less competition and higher costs for MRO.

Printed headline: OEMS and Consolidation

Supplier consolidation and the increasing presence of original equipment manufacturers (OEM) in support services has triggered airline concerns about MRO going into 2018.

“The OEMs have taken over the aftermarket, and we do not support it. We’d rather maintain competition,” says Heiko Holm, chief technology officer at Central and Eastern European low-cost carrier Wizz Air.

But Airbus’ Senior Vice President for Services Laurent Martinez argues that the aftermarket is much more fragmented and competitive than aircraft manufacturing, saying Airbus and Boeing are “medium-sized players” in MRO. Services by Airbus yield turnover of $2.8 billion.

“What is it going to look like? Will the airframe OEMs take more of a share [of MRO] production?” asks Richard Brown, principal at ICF International. “Going forward, we see a much more consolidated market and the OEMs offering a much more consolidated product.”

Airlines are also having to figure out how they will handle the huge amounts of sensor data from the latest generation of aircraft such as the Airbus A350 and Boeing 787.

There is a lot of industry discussion about big data. “It’s highly contentious, and there are some really interesting debates about accessing the data coming from these highly connected aircraft. Many airlines are trying to figure out what their role is and what it means for them. Their concern is they have so much data that they don’t know what to do with it. They’re looking to suppliers—IT providers, consultants and the OEMs—to come and make a really meaningful impact on their operations,” Brown says.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish