Industry Analysis & Industry Trends
The Aircraft Repair, Maintenance & Overhaul industry depends on demand from commercial airlines and the military. During the recession, demand from airlines was weak as most airlines experienced major losses and sought to cut costs. Airlines also reduced capacity and kilometres flown. This led to a drop in revenue for maintenance, repair and overhaul (MRO) providers. As such, sales collapsed in the aftermath of the recession. During 2011-12, revenue is expected to recover, growing by 2.0% to reach £3.01 billion. Demand will rebound slowly as airlines begin to rebuild their fleets and increase capacity. Overall, industry revenue will decline by an estimated 5.7% per annum over the five years through 2011-12... purchase to read more
Industry Report - Industry Analysis Chapter
The past five years have been volatile for the Aircraft Repair, Maintenance & Overhaul industry, mainly due to fluctuations in downstream markets. The industry provides MRO services for airline and defence aircraft. Therefore, demand depends highly on activity levels in these markets. The global air travel industries experienced a significant shake up during the recession, which resulted in a sharp drop in activity and demand for MROs. Demand from the military market remained more dependable, although it did decline slowly as involvement in the Middle East subsided. Conditions are expected to improve slightly during 2011-12. Revenue growth will be weak due to a slow recovery in the UK economy as government austerity measures cut demand... purchase to read more