Dubai: Middle East airlines are expected to increase their demand for maintenance, repair and overhaul (MRO) by 7.6 per cent a year over the next 10 years, bringing the total spend to $4.8 billion (Dh17.6 billion) by 2019.
The comment was made by David Stewart, Partner at Aerostrategy, a UK-based consultancy specialising in commercial and military MRO market forecasting, who is speaking at the MRO Middle East Conference and Exhibition, held tomorrow and Monday in Dubai.
The prediction for the Middle East MRO market compares favourably against the global market growth of 3.2 per cent, to total $58.4 billion over the same period.
MRO Middle East is one of three shows running during Aerospace Week, from tomorrow to Thursday.
Aerospace Week opens with the MRO conference and exhibition, which will bring together industry professionals to discuss the Middle East as the gateway to aviation's global growth, the theme of this year's conference.
Commenting on the recent IATA report that the region's air passenger growth of over 11 per cent in 2009 was the highest in the world, Stewart said: "Greater airline activity typically drives growth in MRO spend, so MRO suppliers serving the Middle East will likely see greater growth rates here than in other regions. However, competition is likely to increase and firms need to be intelligent and nimble about identifying where the best opportunities lie."
The issue of increasing competition will also be noted by another conference speaker, Abdullah Al Hudaid, Vice President of Maintenance and Engineering at Jazeera Airways.
"More companies are entering the market, resulting in competitive pricing. However, the region's MRO industry could compete against other MRO centres, mainly in Europe, provided that they keep their labour costs low and use local, skilled manpower."
Hisham Nasser, Quality Assurance Director at Egyptair's Maintenance and Engineering division, will broach the subject of ‘end of lease return'. "Airlines are leasing more than ever before, due to the economic situation and MRO companies in the region will benefit from either end or beginning of leases when maintenance checks need to be performed."
