Commercial Aftermarket Braces For Sharp Decline, Slow Recovery

Airlines that find themselves with surplus aircraft as demand picks up will likely use them to delay maintenance-related costs. Options include swapping them for aircraft or engines that need repairs and breaking them down to harvest usable parts to supplement stocks of spare materials.

Nothing scares the aftermarket world more than ramps packed with parked aircraft, since idle airframes and engines will not need much service. A close second: ramps with some spare aircraft that operators can tap when equipment they are using needs work, pushing off costly repairs and overhauls in the process.

Suffice it to say the global maintenance, repair and overhaul (MRO) community should brace for many unsettling days ahead.

  • Idle fleet means a sharp drop in MRO services
  • Airlines will seek to save money by avoiding MRO work if possible
  • Oliver Wyman sees MRO market losing more than one-third of 2020 forecasted sales

The novel coronavirus pandemic has wiped out global passenger air travel demand. First detected in China in the last days of 2019, the COVID-19 illness caused by the virus spread rapidly in the country and nearby regions, leading domestic carriers to ground aircraft and international carriers to suspend routes.