MIAT booth at MRO Asia-Pacific 2019

MIAT Technics Plays To Its Advantages To Woo Regional Carriers

The Mongolian MRO is benefiting from the country's climate, labor costs and financial incentives.

Thanks to its unique geographical location, the Mongolian Airlines Maintenance and Engineering Organization (MIAT Technics) is seeing rapid growth in its MRO business, and is continuing to woo major airlines like Korean Air and All Nippon Airways (ANA). According to Chuluunjav Jamiyandorj, MIAT Technics’ production planning and control department manager, the company saw year on year profit growth of around 60%.

Its current aircraft capabilities are up to C checks for the Boeing 767, and up to D checks for the 737NG family. MIAT has secured 12 airlines customers in the region, including three LCCs from Korea (Jeju Air, T’way and Eastar Jet) and five Russian carriers. Chuluunjav says the company is now in the bidding process for a Korean Air Boeing 737 C check deal, and is also in talks with Japan’s ANA for a similar contract.

Interestingly, MIAT secured a 767 engine change contract with a Miami-based operator. Chuluunjav says MIAT has an added advantage, as the only Rolls-Royce storage site for RB211-524 turbofans is in Mongolia.

He adds that the dry and cold conditions in the landlocked country makes it a desired location for MRO operations.

In addition, Mongolia provides a custom tax waiver and no custom clearance period to clients, in addition to 50% off fuel fees for some customers such as Thailand’s Jet Asia.

“Labor costs are significantly lower and, with that, our prices are about 10% lower than most competitors,” he says. MIAT has around 170 engineers, including 92 who are EASA certified, and most of whom are educated in the West.

The Ulaan Bator based facility has capacity to handle 30 aircraft annually, and already has deals for 23 airframes in 2018 and 25 in 2019.

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