Why airlines are expanding in-house maintenance after years of outsourcing:
Share to linkedinTom is a vice president and Brian and David are partners with Oliver Wyman’s transportation and services practice.Since the mid-1990s, there has been a consistent, almost inexorable trend for airlines to outsource their maintenance needs. Today, the state of the maintenance, repair, and overhaul sector in aviation is encouraging some carriers to rethink that decision.
The shortages facing MRO can be seen to varying degrees in line, engine, component, and airframe maintenance, depending on the geographic region. Besides the difficulty in keeping up with demand in select market segments, there is also a looming shortfall across most geographies in the number of trained aviation technicians.
The buildup of in-house maintenance capacity is also a reaction to the state of play in the aviation aftermarket. Airlines are growing wary of the rising market position of aircraft and engine manufacturers in MRO. Simultaneous with the consolidation of the aftermarket in recent years, these original equipment manufacturers began to seek increased revenue through tighter control of their intellectual property , especially on newer aircraft models.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Analysis | The Health 202: Why Congress isn't expanding virtual health careHospitals say it saves them money but Congress's official scorekeeper isn't convinced.
Read more »
Ethiopian Airlines CEO promises to find out why flight 302 crashedEthiopian Airlines will work with investigators in Ethiopia, the United States a...
Read more »
Investigators are close to confirming the lead theory about why the Ethiopian Airlines 737 Max crashed, report claimsInvestigators' preliminary conclusion is that the automated system suspected of causing the Ethiopian Airlines Boeing 737 Max crash activated.
Read more »
MySpace Music: A Forgotten Casualty Of The Streaming WarsWhile MySpace was once poised to lead the streaming revolution, it missed its chance to shape the future of the music business
Read more »
Analysis | For many of his critics, Trump is still ‘unfit’ to be presidentThose most opposed to theTrump presidency point to a host of factors to explain why he did not get their vote and why they will not be backing in his reelection.
Read more »
Alexandria Ocasio-Cortez likens Donald Trump to parasite during Seth Meyers appearanceThe New York representative also questioned why Fox News was so obsessed with her.
Read more »
Apple's announcements are a game changer for customers, but not Wall Street, Jim Cramer saysJim Cramer explains why the analysts are wrong about Apple's new products and why investors should buy the stock.
Read more »
Cramer: Why you should use your 'mad money' to buy some individual stocks hereJim Cramer explains why individual stock picking is making an exciting comeback.
Read more »