OEM and MRO Battleground? #MROEE


Is there a battleground where OEMs face independent MROs? The answer depends on who you talk with.

Here are at MRO Regional in Vilnius, Lithuania, the answers are yes, no and it's not even an issue.

Because the civil aviation aftermarket is worth $50-60 billion or so per year, everyone agrees it's a market worth pursuing. 

While this "battleground," or debate comes up frequently in aftermarket conversations, Jonas Butautis, CEO of FL Technics, provided a different point of view. "There is no battleground. OEMs are here. There's no debate and I see this as a new ecosystem," and for independents to survive and thrive, they need to adapt.

Sabena Technic's Martin Assmann, EVP civil sales, detailed strengths of OEMs and MROs and points out things like VIP completions and base maintenance is not a good place for OEMs.

Jorge Sobral, member of the executive board of TAP Portugal Maintenance & Engineering, pointed out airlines frequently have negative profit margins, 5-9% is a reasonable rate for MROs, and OEMs typically have double digital margins. All three need to exist, so battling each other can be counterproductive--but so can one party being too dominate.

Francois-Xavier Hussenet, GM product marketing for Snecma, pointed out that engine manufacturers make their money from the aftermarket--but agrees that competition is a good thing for the market. Guillaume Limouzy, Embraer's service center network manager, is a proponent of partnerships--and says operators increasingly are turning to OEMs for performance guarantees. 

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