Panelists on stage at Aviation Week’s AeroEngines Asia-Pacific.
HONG KONG—Lengthy turnaround times (TAT) and predictability issues were cited as the top risks in the Asia-Pacific’s engine MRO segment, leading aftermarket providers to increase their regionalization initiatives to reduce TATs.
During a discussion at Aviation Week’s AeroEngines Asia-Pacific, panelists emphasized that adopting a more localized approach is necessary to address fragilities in the global MRO supply chain.
Among these are Barnes Aerospace, which has engine component repair facilities in Taiwan and Singapore, with the latter location also having some manufacturing capability, alongside another manufacturing center in Malaysia. “Our presence continues to be well established and growing within the region,” says John McKirdy, senior vice president for strategy and growth MRO at Barnes Aerospace, which primarily focuses on Pratt & Whitney engines but is growing into other commercial programs from CFM International, GE Aerospace and Rolls-Royce. McKirdy believes this approach can help reduce TATs and increase predictability for operators.
"One of the solutions is proximity to the end user. This helps manage TAT and predictability. We’re adding capabilities across fleet types and support in the region," he says. Eigirdas Keblikas, vice president for asset trading and leasing at Estonian MRO Magnetic Group, says the company set up regional offices in Miami and New Delhi for its trading and asset management business, while Kuala Lumpur serves as the base for its Asia-Pacific operations. Keblikas estimates that 40% to 50% of work volumes come from outside Europe. He adds that acquiring engines for teardowns is currently difficult.
Wilson Liu, vice president of procurement at Chinese carrier Hainan Airlines, notes rising costs in the country over several years and changing dynamics, prompting operators to purchase more spare engines. “Transportation costs and TATs versus pre-COVID are crazy. Some long-term and short-term leasing prices have also increased.”
Operators in Asia-Pacific are expected to keep favoring engine module swaps over deeper overhauls to manage supply chain delays.
A growing acceptance of used serviceable material (USM) and Parts Manufacturer Approval (PMA) in Asia-Pacific was also noted. McKirdy adds: "Module swaps are absolutely necessary for airlines. They must make module swaps part of their overall strategy by working with downstream module suppliers. This ensures modules are ready and available at the right point in their life cycle."
Liu says Hainan Airlines, which operates a fleet of more than 220 aircraft, comprising Airbus, Boeing and Comac-manufactured aircraft, has pursued module swaps and similar tactics to reduce costs and TATs. Magnetic’s Keblikas adds that while the majority of carriers still prefer OEM-new parts, smaller operators with grounded aircraft are more willing to accept alternative sourcing, such as PMA and Designated Engineering Representative repairs.
A step change is happening in China, which has long resisted USM and PMA adoption. “More airlines see PMA as a way to control costs. This is just the beginning of Chinese PMA,” Liu says.
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