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Research and Markets: Indian Commercial Aviation MRO Market Assessment - Third-Party Service Providers to Cash in on Indian Commercial Aviation's MRO Needs

Dépèche transmise le 2 septembre 2009 par Business Wire

DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/5c2b78/indian_commercial) has announced the addition of Frost & Sullivan's new report "Indian Commercial Aviation MRO Market Assessment" to their offering.

The study aims to capture the market potential of commercial MRO in India. The MRO market has been estimated based on the current number of aircraft in the country and the number of aircraft expected to be added in the next 7 years. The maintenance cycle for different type of aircraft currently present and expected has been developed, revenue potential that can be addressed by a third party MRO and market break down by heavy maintenance, engine maintenance, line maintenance and modifications combined with components have been captured. The strategic recommendations for MRO to start and thrive in the country on an overall level has been mentioned in the study.

Third-party Service Providers to Cash in on Indian Commercial Aviation's MRO Needs

The commercial aviation MRO market in India is largely untapped, as there are hardly any third-party service providers with the ability to address the needs of the existing fleet. The prohibitive costs of getting the aircraft serviced outside the country, due to the absence of domestic service providers, are eating into airlines' profits. In fact, airlines are charged by the hour for aircraft maintenance, creating an urgent need for aviation MRO services in India. The development of the commercial aviation MRO market in India will not only provide cost benefits to airlines but also greater employment in the country. Proactive infrastructure set ups, along with the availability of manpower, will add value to the market in the long term. "Labor costs in India are around $30 to $35 per man-hour, compared to $55 to $60 in Southeast Asia and Middle East and even higher in the United States and Europe," say the analysts of this research. "Therefore, India has the potential to service not just Indian aircraft but also those from neighboring regions."

Growth rates for the various services in the maintenance cycle are positive and MRO service requirements in the country are expected to grow at a compound annual growth rate (CAGR) of 13.5 percent between 2009 and 2015. Moreover, the current fleet of 391 in India can bring in substantial business for any MRO provider with the required capabilities and certificates. Airlines tend to opt for MRO service providers with cost-effective and high-quality services, optimal turn around time, and those that adhere to best practices so that the aircraft lasts long, with the best operating efficiency and safety standards. "The brand name and credibility of the MRO service provider is expected to be the most critical success factor in India," observes the analyst.

Indian policies are mostly favorable to MRO operations and although service providers face some restraints in terms of taxes and duties, they are expected to become more transparent in the coming years. All segments of the MRO chain can be addressed in the country, but in different time frames, based on the need and ease of setting up the service. MRO service providers will be encouraged by the establishment of special economic zones (SEZs) and land allotment for setting up MRO operations. "MRO services, as such, are strictly defined by market needs; hence, it will be vital to understand existing fleet details and arrive at the market addressability to design the business model of the MRO," notes the analyst. "Airlines will also be keen to know the MRO's operating/service structure; therefore, the strategy for MROs will be to identify the key segments of the MRO value chain and address the needs of the current fleet and expected fleet additions."

Key Topics Covered:

1 COMMERCIAL MRO MARKET

• Introduction
• Executive Summary
• Industry Overview
• Market Overview
• MRO as a Business
• Market Drivers and Restraints
• Fleet Analysis
• MRO Market Demand Analysis and Forecasts
• Perspectives of Market Participants
• Strategic Recommendations
• Appendix
• About Frost & Sullivan

For more information visit http://www.researchandmarkets.com/research/5c2b78/indian_commercial