Is Now A Good Time To Invest In MRO Shop Capabilities?

aircraft and maintenance hanger
Credit: Sabena Technics

Ask the Editors: The Aviation Week Network invites our readers to submit questions to our editors and analysts. We’ll answer them, and if we can’t we’ll reach out to our wide network of experts for advice. 

Is now a good time to invest in MRO shop capabilities? If yes, which ones and why? 

Chief Editor-MRO Lee Ann Shay responds:

It is still too early to accurately ascertain exactly what the global fleets will look like post-COVID-19, but the one-stop shop concept isn’t going away, so component repair shops could be good investments.

Airlines will be very focused on cost containment, so parts repair and used serviceable material will be more popular than new parts, when possible. MROs should also be prepared for a shift to the next generation of aircraft and engines, so exploring aftermarket capabilities via partnerships, joint ventures or OEM [original equipment manufacturer] licensing could also be worth exploring. Interest in remote collaboration tools has soared during the coronavirus outbreak.

These tools can provide many benefits, including access to remote experts, process efficiencies, cost savings and workforce optimization. Smart MROs are investing in these capabilities now, and there will be no shortage of opportunities: The downturn’s pressure will likely force many businesses to seek lifelines through mergers and acquisitions.

Lee Ann Shay

As executive editor of MRO and business aviation, Lee Ann Shay directs Aviation Week's coverage of maintenance, repair and overhaul (MRO), including Inside MRO, and business aviation, including BCA.