Aircraft engine maintenance times at historic high, Bain says
19/07/2024 10:47
By Lisa Barrington
SEOUL, July 19 (Reuters) - Airlines face their longest
ever waits for engine maintenance with demand likely to peak in
2026, according to consultancy Bain, constraining carriers'
growth and adding costs amid a concurrent shortfall in new
aircraft.
A shortage of parts, labour and new planes as aviation
emerged from the pandemic has collided with higher than expected
repairs for new generation engines, putting intense pressure on
maintenance, repair and overhaul (MRO) providers.
Turnaround times for new-generation engines are 150% higher
than pre-pandemic benchmark times, and 35% higher for legacy
engine types, Bain said in a report published on Thursday.
Adding to MRO demands, airlines experiencing delays in new
aircraft deliveries are not retiring older planes, which require
complex maintenance and parts.
"Aircraft engine MRO demand is likely to experience a
near-term peak in 2026 and remain constrained through the end of
the decade," said Jim Harris, co-leader of Bain's global
Aerospace and Defense practice.
"The next large surge in demand from new generation engines
will begin towards the end of 2030," he said.
The CEO of Malaysia-based MRO firm Asia Digital Engineering
(ADE) told Reuters this week his industry was booming, with ADE
set to open a new 14-line hangar in August.
"Unless MRO companies act quickly to close this capacity
gap, airlines will face higher costs to operate constrained
fleets. The financial burden, on top of growing costs to
decarbonize air travel, is likely to slow passenger travel
growth," Harris said.
Airlines have limited choice in which engines power their
jets. Some planes have one possible engine type, like the Boeing
737 MAX, or two, like the Airbus A320neo.
Pratt & Whitney, part of RTX RTX.N , said last July a rare
powder metal defect could lead to cracking of some engine
components in the A320neo and called for accelerated
inspections, which airlines report can take up to almost a year
to complete because of waiting times.
Latest data from IBA Insight shows 452 aircraft have been
grounded due to the issue, and 494 face future grounding.
Kane Ray, head of IBA's General Aviation and Aftermarket,
said the engines also needed other retrofit and overhaul work.
Indian operator IndiGo INGL.NS said last month it had
agreed compensation with Pratt & Whitney.
Vietnam's aviation authority this month told the country's
airlines to lease more aircraft to compensate for those grounded
due to engine issues.
(Reporting by Lisa Barrington in Seoul; Additional reporting by
Khanh Vu in Hanoi; Editing by Mark Potter)
((lisa.barrington@thomsonreuters.com;))