Wednesday, December 13, 2017

Airlines’ fleet expansion to spur growth of MROs

The expansion of the fleets of Malaysia-based airlines over the next decade will fuel the growth of aircraft maintenance, repair and overhaul (MRO) service providers in the country and give it a boost towards its aim of becoming an aerospace hub in Southeast Asia by 2030.

This huge fleet growth, led by the AirAsia Group (AirAsia Bhd and AirAsia X Bhd), will increase the demand for MRO services in Malaysia, says Pierre Reville, CEO of Sepang Aircraft Engineering Sdn Bhd (SAE).

“The market in Asia is growing above the world’s average at between 4.5% and 5%, so Airbus’ fleet in this region will double in 10 years. We (SAE) should be able to increase our market share and footprint,” he says in an exclusive interview with The Edge.

SAE is a wholly-owned subsidiary of European commercial aircraft manufacturer Airbus SAS, which acquired the remaining stakes it did not own in the MRO services provider in October for an undisclosed amount. Before the deal, Airbus owned 93.78% of SAE.

While Airbus has been a shareholder in SAE since 2011, it was prompted to increase its investment by the recent increase in aircraft orders in the region and the Malaysian government’s efforts to promote the aerospace industry.
13/12/17 Kamaul Azhar/Edge Markets