adattrent500abudhabiaircrafttech.jpg ADAT
ADAT intends to expand capability on Rolls-Royce Trent 500s and 700s and on IAE V2500s and increase its engine shop throughput to 100 engines per year.MRO multiplies with fleet expansions in the Persian Gulf countries.Few places around the world have seen their economies grow as fast as the Persian Gulf states of the United Arab Emirates and Qatar, which over recent years have become an aviation powerhouse. On that journey, these countries have rapidly established fast-growing airlines and now are building airports, aerospace manufacturing and MRO industries to support their burgeoning fleets. Key drivers in this transition are Abu Dhabi’s Mubadala Development Co., Dubai Aerospace Enterprise (DAE) and the government of Qatar, all of which are supporting efforts to make their region a global aerospace hub that encompasses engineering, design and research and development.

Middle East MRO Market Forecast At $4.6 Billion

The Middle East commercial aviation MRO market is growing at a faster rate than the global average and the majority of expenditures are driven by widebody aircraft.

DUBAI—The Middle East commercial aviation MRO market is growing at a faster rate than the global average and the majority of expenditures are driven by widebody aircraft.

The Boeing 777-8 and -9 will account for the most new aircraft—12% of the 1,900 total aircraft delivered to the region over the decade, according to Aviation Week data.

Airlines in the Middle East will generate $4.6 billion in MRO expenditures in 2015, according to Aviation Week forecasts. Engine expenses account for 41%, followed by components at 22%.

ICF International also predicts the Middle East MRO market at $4.6 billion, but it pegs it to grow 6.7% per year, to $8.8 billion in 10 years, compared to $8.7 billion in Aviation Week’s data.

ICF Principal Richard Brown says 76% of that $4.6 billion is influenced by widebody aircraft, with narrowbodies accounting for 19%.

Four airlines—Emirates (29%), Qatar (15%), Etihad (15%) and Saudia (8%)—account for nearly two-thirds, or about $3 billion of Middle East MRO expenses, Brown says.

Those airlines all have in-house maintenance capabilities, which helps explain why 76% of heavy airframe MRO is done within region. Of that, 81% of is performed in-house by airlines, “which means the opportunity for third-party suppliers targeting Middle East airframe and modifications is relatively small,” Brown says.

Attracting and retaining technical talent has consistently been a challenge, however. “Is there enough capacity in terms of skilled labor to support this growth in region?” Brown asked the Aviation Week MRO Middle East Conference audience. “Can this be supported cost-effectively?”

The consultancy predicts that the Middle East MRO market will require 11.7 million maintenance man-hours to support the region’s growth by 2024, which has a compound annual growth rate of 6.7% compared to the global average of 3.8%.

TAGS: Middle East
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