1. Maintenance, Repair and Overhaul (MRO) Market & Current Trends in the Sector
by Risto Mäeots, CEO

2. Agenda MRO business and regulations State of the industry
Fleet forecast
MRO forecast
Transformation of MRO industry

3. Agenda MRO business and regulations State of the industry
Fleet forecast
MRO forecast
Transformation of MRO industry

4. Maintenance Repair Overhaul What does MRO mean?
Aircraft maintenance, repair and overhaul (MRO) is an essential requirement to ensure that aircraft are maintained in pre-determined conditions of airworthiness to safely transport passengers and cargo.

5. MRO Regulating Framework
Initial airworthiness
Continuation airworthiness
Design organisation – Part 21J
Production organisation – Part 21G
Continuation airworthiness (CAM) – Part M
Maintenance – Part 145 or Part M subpart F
Staff – Part 66
Training – Part 147

6. Magnetic MRO as an example

7. Agenda MRO business and regulations State of the industry
Fleet forecast
MRO forecast
Transformation of MRO industry

8. Market share by Region
2016 MRO Market Share by Region

9. Industry Outlook

10. Jet Fuel Price

11. Industry financial performance

12. Agenda MRO business and regulations State of the industry
Fleet forecast
MRO forecast
Transformation of MRO industry

13. Global fleet characteristics

14. Narrow-body deliveries

15. Number of Aircraft Global aircraft demand Wide-body deliveries
Regional jet deliveries
Turboprop deliveries

16. Average age by usage

17. Fleet growth by region

18. Agenda MRO business and regulations State of the industry
Fleet forecast
MRO forecast
Transformation of MRO industry

19. Global MRO Spend

20. MRO Spend by Region

21. Agenda MRO business and regulations State of the industry
Fleet forecast
MRO forecast
Transformation of MRO industry

22. Additional standard materials, consumables, structural items:
Historical labor intensive MRO
Additional standard materials, consumables, structural items:
EUR 100 thousand
Total charged:
EUR 600 thousand
Initial fixed fee:
EUR 500 thousand

23. Additional standard materials, consumables, structural items:
Historical labor intensive MRO
Additional standard materials, consumables, structural items:
EUR 100 thousand
Low cost labot driven MRO, focus on production efficiencies. Generally suffering seasonality and heavy competition. Few join the luxury of base-loading airline, which is a benefit and risk at the same time.
Total charged:
EUR 600 thousand
Initial fixed fee:
EUR 500 thousand

24. Additional services/ products sold:
MRO transformation into total technical care
Additional standard materials, consumables, structural items:
EUR 551 thousand
Additional workshop services sold (interior, wheels, brakes, batteries):
EUR 28 thousand
Engine sales:
EUR 830 thousand
Additional services/ products sold:
EUR 1.9 million
Total charged:
EUR 2.4 million
Initial fixed fee:
EUR 500 thousand
Additional labour sold due to findings:
EUR 231 thousand
Additional components:
EUR 265 thousand
Aircraft painting services:
EUR 49 thousand

25. MRO transformation into total technical care
Additional standard materials, consumables, structural items:
EUR 551 thousand
Additional workshop services sold (interior, wheels, brakes, batteries):
EUR 28 thousand
Engine sales:
EUR 830 thousand
Additional services/ products sold:
EUR 1.9 million
Total technical care organization with extensive in-house capabilities. Benefit from inter-organization cross-selling.
Preferred choice for airlines and asset owners.
Less vulnerable for seasonality and revenue fluctuation.
Total charged:
EUR 2.4 million
Initial fixed fee:
EUR 500 thousand
Additional labour sold due to findings:
EUR 231 thousand
Additional components:
EUR 265 thousand
Aircraft painting services:
EUR 49 thousand

26. MRO as asset management ‘vehicle’
A case study: Airbus 320 with V2500-A5 engines – an asset trade with lease attached 1
Business & Project Review
- Project commenced in Nov 2016
- Documentation review by MMRO’s engineers to determine the residual value and operational potential of the asset
- Detailed business plan prepared and new aircraft operator allocated 4
Purchase & Sale
- During transition, AC was purchased
Total deal value: EUR 9m
Time in hangar: 18 days 2
Preparation
- Preparation of AC transition plan 3
Works Performed
- Cabin modifications and layout change (Interior Department, Design and Production)
Mandatory maintenance works (BM)
Aircraft painting (Painting)
New escape slides and batteries (Workshop)
Fuselage inspection (Engineering)
Arrival:
21st of April 2017
Departure:
9th of May 2017

27. MRO as asset management ‘vehicle’
A case study: Airbus 320 with V2500-A5 engines – an asset trade with lease attached 1
Business & Project Review
- Project commenced in Nov 2016
- Documentation review by MMRO’s engineers to determine the residual value and operational potential of the asset
- Detailed business plan prepared and new aircraft operator allocated 4
Purchase & Sale
- During transition, AC was purchased
Total deal value: EUR 9m
Extensive historical know-how from labor intensive MRO, in addition total technical care capability enabling execution of complicated transition projects and this formula being supported by access to capital, gives a powerful asset management/trading tool.
Time in hangar: 18 days 2
Preparation
- Preparation of AC transition plan 3
Works Performed
- Cabin modifications and layout change (Interior Department, Design and Production)
Mandatory maintenance works (BM)
Aircraft painting (Painting)
New escape slides and batteries (Workshop)
Fuselage inspection (Engineering)
Arrival:
21st of April 2017
Departure:
9th of May 2017

28. Innovation

29. Thank You
Risto Mäeots, CEO