A trusted source of Asia-Pacific commercial aviation news and analysis


Special Report: MRO Asia-Pacific update

Asia-Pacific airlines shift to parts repair from component replacement

next article »

« previous article


August 1st 2021

Print Friendly

Asia-Pacific experts at global aerospace components and MRO conglomerate, AAR Corp. believe the region’s commercial aviation recovery will begin early in 2022. Read More » “We have seen a glimpse of hope for China and in Taiwan and India with increased activity in an uptick for business in the current quarter,” AAR’s vice president sales Asia-Pacific, Colin Gregory, and senior vice president strategic growth development and business development, Rahul Shah, said. “We have started to gear up for the increased opportunities by deploying the right investment and resources available to us,” they told Orient Aviation earlier this month.

“The recovery will depend on how fast each country vaccinates its population. The earlier they achieve 70%-80% in vaccinations travel will bounce back sooner for those countries. Except China, which has air traffic demand above pre-COVID-19 levels, countries like Australia, New Zealand, Taiwan, Brunei and Singapore have a good chance of achieving herd immunity with South Korea, India and Japan next in line. Acceptance of the IATA Travel passport initiatives in these countries will boost travel and utilisation of aircraft and therefore MRO,” they said in written answers to Orient Aviation.

“The reduction of commercial passenger air travel to near zero shortly before our fiscal year began and the persistently depressed levels of commercial traffic throughout the year tested our industry and our company to a degree that was previously hard to imagine. At AAR, one of our values is to “Find a Way, Every Day”. That has never been more important than it has been in the last 16 months. We are emerging from the crisis as a stronger more focused company,” Gregory and Shah said.

“One example is a reduced dependence on Power-By-Hour for component support of airlines. We have shifted to a ‘Time and material’ concept with exchanges and loans to support airlines in the AOG situation and in their operations,” they said.

“There also is an increased Used Serviceable Material (USM) requirement for both air frame and engine parts as airlines strive to save money on MRO.

“Historically in the parts business, the primary aftermarket focus has been engines and we expect to see the most opportunity for us in the sector to continue to be supplying engine parts, not overhauling engines, but supplying engine parts in most cases to shops that performed the overhauls.

“And again, there is a tremendous amount of cost savings opportunity for customers when they want to overhaul engines by using aftermarket engine part materials as opposed to buying new from the OEMs as 70% of the cost of overhauling engines are the parts.”

With the advent of COVID-19 across the globe, AAR consolidated multiple facilities, made permanent reductions in fixed and variable costs, exited or restructured several contracts in under-performing commercial programs and completed the divestiture of some unprofitable businesses.

“We believe USM, thanks to likely increased user adoption of aftermarket material, will grow back to pre-COVID levels. In particular, we created a partnership with Fortress to supply USM on the CFM56-5B and -7B engine types and we expanded our distribution relationship with GE subsidiary Unison. We also have entered into a 10-year agreement with Honeywell to be an exclusive repair provider for certain 737 MAX components. Most recently, we signed a multi-year agreement with United [Airlines] to provide 737 heavy maintenance at our Rockford [U.S.] facility,” AAR said.

Several scenarios have evolved in airline MRO in response to the pandemic. “Airlines are in cash-conservation mode, deferring MRO, leveraging green time engines, burning inventory and considering alternative material choices parts (USM, PMA, Part repair) to avoid maintenance events,” Gregory and Shah said.

“They also are leveraging big data from aircraft health monitoring & predictive maintenance to improve reliability and reduce costs. Partnerships are being created with OEMs, MROs and distributors for end of aircraft life strategies and sunset aircraft to reduce costs and better predict cash flow.

“Additionally, there is a trend towards repairing rather than replacing parts or to substitute with USM which impacts repair sales, and evaluating MRO outsourcing versus in-sourcing to reduce costs and competitiveness.

“But we are optimistic the significant recent increase in U.S. domestic leisure flying is both enduring and a leading indicator of a return to business in international travel. We’ve seen a nice recovery in heavy maintenance and expect that performance to continue. We have established programs to train skilled technicians, which serves us well.

On the parts side of the business, the AAR team and their colleagues forecast the USM market has the potential to exceed pre-COVID levels. Their prediction is based on customer responses that indicate there will be an increased acceptance of USM in the aftermarket in Asia, Europe and the U.S. “Obviously, we need to make sure we have material to supply them, but we see the potential for even greater growth out of that business over the next couple of years,” Gregory and Shah said.

Very bullish on aircraft new parts sector
“On new parts, we remain very, very bullish on that business. We have announced a number of new distribution agreements in the last couple of years. There are more in the pipeline that we plan to announce. That business, as we add more parts, both on the defense side and the commercial side, we definitely see growing beyond pandemic levels.”


next article »

« previous article



March 2nd 2023 06:50am

THE ONLY TRUSTED AND GUARANTEED RECOVERY EXPERT TODAY (MR MORRIS GRAY) Please everyone should be careful and stop being deceived by all these brokers and account managers, they scammed me over $279,000 of my investment capital, they kept on requesting for extra funds before a withdrawal request can be accepted and processed, in the end, I lost all my money. All efforts to reach out to their customer support desk had declined, I found it very hard to move on. God so kind I followed a broadcast that teaches on how scammed victims can recover their fund, I contacted MORRISGRAY830@GMAIL. COM , the email provided for consultation, I got feedback after some hours and I was asked to provide all legal details concerning my investment, I did exactly what they instructed me to do without delay, to my greatest surprise I was able to recover my money back including my profit which my capital generated. I said I will not hold this to myself but share it to the public so that all scammed victims can get their funds back. Contact; MORRISGRAY830@GMAIL,COM...

katie says:

September 29th 2022 11:47am

Do you have funds you wish to withdraw from your trading brokers? or are you new to trading and you want to start trading,or you need an expert to assist you in trading or you are having problems with the withdrawing of your funds and you don't know how to go about it kindly get in touch with Aaron Gabriel, via: Aarongabriel310@gmail.com. you can also message him on Whats-app +1 (314) 649-8612 and he'll be sure to guide you on how to get back your funds in an interval of two weeks.

Norah Clark says:

January 31st 2022 08:33am

I would like to inform you, you can ... Protect your business, Increase credit score, Prevent phone hack, social media hack, Recover lost documents and fund. inbox Armstrongquickfix At G mail dot com or (410) 424-7766 for cyber security assistance. You'll be happy by their service.

Tracy Smith says:

October 27th 2021 10:01am

Do you know just last week i contacted Mr ARMSTRONG anguished about my lost bitcoin wallet... I got my wallet recovered and i feel at peace today... Also my credit was significantly below average, Mr Armstrong the cyber guru again paid all my credit debts as well as my student loan now am considered good and heading for excellent credit . Every of this challenges was quickly resolved with professionality... Armstrongquickfix @ g m ail. c o m, +1410 424-7766 you can further discuss, I recommend him without hesitation.

Lydia Carol says:

October 25th 2021 05:07pm

HACK VANISH Credit specialist did it for me. Before the coronavirus pandemic, I had criminal Judgments, few evictions, and missed / late payment which negatively impacted my credit score down to 487 and left me in difficult financial situation, as a single mum of 3, I needed a loan to keep the family running after I lost my husband as a result of COVID-19, all hope were lost, until Mr. Kannan and Olivia reassured and referred me to HACK VANISH, a credit genius who was very helpful in fixing my report after I reached out to him via: +1(650) 499 5548 and Email: hackvanish (At) gmail (Dot) com, I carefully followed his protocols, throughout the process which lasted for about 6 days, I felt so involved because he maintained an open line of communication till I got my score back to 796, currently my loan application has been approved, I can now give my kids better life. If you need to hire a hacker, HACK VANISH is highly recommended.

Nora Owen says:

September 8th 2021 07:36am

Are you having a very low FICO score, and are desperate for a perfect and urgent fix? I confidently recommend CYBER CREDIT GURU. They cleared all negatives, late payments and collections from my credit report and boosted my FICO score from 505 to 800 excellent score, across all three bureaus within four days. CYBER CREDIT GURU does a very neat and perfect job without leaving any form of trace behind. You can give them a trial today and I bet you will never regret it. Contact: CYBERCREDITGURU (AT) GMAIL DOT COM or phone/text: +1 (650) 239 7249

Betty Kari says:

September 7th 2021 01:32pm

I am very pleased with the help CYBER CREDIT GURU rendered in restoring my credits. I am a disabled Veteran who over the past 2 years had to let my credit go due to health priorities that were not covered by VA & other insurance, my credit scores were 514 Experian, 515 Equifax, and 518 TransUnion. No public records, only 3 open Accts but several collection Accts with Zero Balances, few Weeks ago, I ran into some Credit blogs on the net which led me to CYBER CREDIT GURU the most talked about US based Russian hacker, who tremendously repaired and upgraded my credit score to 784, 789, and 802 within the 3 Bureaus in just a Week after I contacted him. If faced with similar challenge, connect with him via: C Y B E R C R E D I T G U R U (AT) G M A I L (DOT) C O M or Call / Text: +1(650) 239 7249 you too can be helped, I recommend him without hesitation.

Jessy Mark- CREDIT FIX says:

August 29th 2021 06:48pm

Beware of imposters! I was scammed 3 consecutive times, until I found CYBER CREDIT GURU on a blog with positive reviews and recommendations, with faith, sometime last Month, I decided to give them a try, in less than 8 days, everything about my credit report was fixed, my FICO credit score increased from 516 to 801 excellent score. I strongly recommend CYBER CREDIT GURU, they are the best and most reliable credit repair firm. Reach out to them via +1(650) 239 7249 or Email: cybercreditguru(at) gmail (dot) com


Your email address will not be published. All fields are required.

* double click image to change