Engine servicing is a very distinctive branch of the MRO sector, requiring highly specialised skills and characterised by high demand. Mario Pierobon finds out about recent shop visit activity, the supply chain issues that are currently being experienced, and the challenges and opportunities being faced.
Shop activity
With aging fleets and increased aircraft usage post-pandemic, shop visit activity is increasing, and the engine MRO business is doing well, affirms Martin Urwyler, managing director of Asia Pacific Aircraft Component Services (APACS). “Recent years have seen significant changes,” he explains, “including technological advancements, a shift towards predictive maintenance, and economic pressures influencing maintenance practices.”
According to Abdol Moabery, founder and chief executive of GA Telesis, the demand for engine MRO services has increased driven by the growing global fleet size, the return of aircraft to service post-pandemic, and the high utilisation rates of both new-generation and older aircraft. He says “Our GATES engine MRO business is experiencing a robust performance in terms of shop visit activity.”
As it concerns the development of customer requirements, the focus is on cost efficiency, quick turnaround times (TATs), stringent regulatory compliance, and sustainability, reflecting the evolving needs of the aviation industry. Moabery adds: “The high demand for CFM56 and PW4000 line replaceable units (LRU) highlights the critical role these engines play in commercial aviation, necessitating continuous and effective MRO activities.
“We specialise in LRU repairs for CFM56 and PW4000 engines, and we can strongly experience that there is a peak in demand for LRUs for these engine types.”
Thanks to investment in the new generation of engines, the adaptation of facilities, and obtaining capabilities to ensure a sustainable business increase, Iberia Maintenance has seen significant growth during the past few years.
Eylo González Merino, engine shop director at Iberia Maintenance, says: “In 2024, shop visits are going according to expectations and our forecast is to keep growing as the results of the previous year, where we closed achieving a double-digit growth compared with 2022.”
Supply chain
The engine MRO business is currently experiencing significant supply chain issues which are particularly affecting the availability and timely delivery of parts and components, according to Urwyler. “While there is strong demand, the supply chain for CFM56 LRUs is relatively stable but still faces occasional delays and shortages due to global disruptions,” he explains. “The PW4000 supply chain is encountering more pronounced issues, with frequent delays and shortages of critical parts. This is exacerbated by higher demand for these components.”
Delays in delivering new parts and components have strained the supply chain, points out Moabery. “Extended lead times for parts procurement have become a significant challenge, affecting maintenance schedules and causing delays in shop visits,” he says. “This is derived from the pandemic and many providers have simply not recovered.”
Moabery added: “Also, the shortages and increased costs of raw materials used in engine parts, such as metals and composites, are impacting the availability and pricing of components. Finally, challenges in global logistics, including transportation delays and increased shipping costs, have further exacerbated supply chain issues”.
According to González Merino, supply chain issues are still relevant but at a lower level compared with previous years. “In our facilities in La Muñoza next to Barajas-Madrid airport, we have a highly skilled department specialised in developing new capabilities to repair engine parts in-house,” she says. “This allows us to greatly speed up and adjust to the TATs offered to the customer, as well as to solve inconveniences derived from supply shortages and make us less dependent on the outside.”
Opportunities and challenges
According to Urwyler, the influx of used serviceable material (USM) from increased teardown activities of both CFM56 and PW4000 engines has made it less viable to sustain high-cost repair models.
“However, there is a significant opportunity to partner with engine teardown companies to repair and refurbish USM,” he says. “This can help MRO providers offer cost-effective solutions and meet the growing demand for affordable engine maintenance options.
“Overall, the MRO business must adapt by shifting focus from high-cost repairs to leveraging the benefits of USM through strategic partnerships and innovative repair solutions.”
Cost pressures and workforce shortages are two main challenges over the next five years in the engine MRO business, affirms Moabery. “This because the rising costs of labour, parts, and compliance with regulatory requirements are putting pressure on MRO providers to maintain profitability and, secondly, because there is a shortage of skilled technicians and engineers causing a major challenge, necessitating significant investment in training and development.”
Indeed, one of the main challenges faced by the MRO business and therefore affecting the engine business is the shortage of qualified professionals and forecasts for the aviation sector exacerbate this problem, highlights González Merino. “Over the next 10 years, the global fleet is expected to increase by 28% and 30% of current aircraft maintenance technicians are expected to retire, resulting in a shortfall of between 12,000 and 18,000 aircraft maintenance technicians,” she explains. “It is therefore very important to increase the sector’s visibility and promote vocational training, the branch from which most of these professionals come.”
The best attitude to face difficulties is to understand the challenge and define a plan to deal with it, according to González Merino. “In the Iberia Engine Shop there is a clear path of growth, so we defined a recruitment and training plan, and this has allowed us to increase the technical staff with a steady rhythm and keeping the quality standards,” she says. “At the same time, there are several agreements in place with different training centres for apprentices that complement our internal customised training.”
Another opportunity lies in the digitalisation of the sector, observes González Merino. She says: “This will allow professionals to focus on tasks that add value to the company, such as parts analysis, repairs or any task that consists of ‘touching’ the engine, leaving the more administrative tasks to digital tools.”
This feature was first published in MRO Management – July 2024. To read the magazine in full, click here.