Senior Editor

Jerry Siebenmark

Maintenance, repair, and overhaul (MRO) providers are divided by what lies ahead for their business in 2020. While they benefitted to some degree from the FAA’s ADS-B Out mandate over the past couple of years—in some cases leading to entirely new avionics installations or as part of other larger projects such as cabin refurbishments and connectivity installations or upgrades—their business in 2019 continued to be driven largely&nbsp;by scheduled maintenance, equipment obsolescence, and improvements in avionics suites and connectivity.

 


But among some MRO executives like Constant Aviation CEO Stephen Maiden, 2020 looks to be an uncertain year because of the upcoming Presidential election, as well as talk of an economic downturn in some business aviation circles.

 


“I think we all go to; 'what is 2020 going to look like?'—and it’s going to tie to an election year,” Maiden told&nbsp;AIN. “And is there a downturn in the market coming and how is that going to affect not normal scheduled maintenance? But on what I talked about, discretionary spending: interiors, avionics upgrades, cabin management upgrades? What’s going to happen to those discretionary dollars? And I think that's where the concern is, or where the focus is.”

 


Duncan Aviation CEO Aaron Hilkemann told&nbsp;AIN&nbsp;he expects 2020 to continue to be a growth year for the Lincoln, Nebraska-based MRO, with work coming from scheduled maintenance and inspections, some ADS-B installations from “people who just waited to see if it really was going to happen,” as well as replacement activity for cabin management systems and connectivity upgrades. “I think Wi-Fi and cabin management will be important over the next few years,” Hilkemann said.

 


“There are some emerging technologies that may already exist, but we could see a trend toward, [technology such as] CPDLC, even in the U.S. at some point in time,” Hilkemann continued. “It's just an efficient way for communication and allows for fewer errors. So it may not be a mandate, but it may be something that operators will want in their cockpit as time goes on.”

 


C&amp;L Aerospace regional sales manager of corporate MRO Ron Jennings told&nbsp;AIN&nbsp;he’s seeing more activity in assisting owners and operators of aging business aircraft with determining whether to part out or upgrade their aircraft. For instance, C&amp;L is currently working with the owner of an older Challenger that needs new engines. The dilemma is that the cost of new or overhauled engines exceeds the twinjet’s value. “So we’ve tried to locate engines that are [around] half-life to put on the airplane to keep it going for several years. But everybody else is doing the same thing,” Jennings explained.

 


That aging market may explain the thousands of airplanes that haven’t upgraded to ADS-B. It may be that those owners are just looking to get out from under their airplanes, Constant’s Maiden suggested. “There's a significant number&nbsp;of airplanes that will be grounded,” he said. “And then there's going to be this second tier or third tier market that's going to go buy an airplane relatively inexpensively, upgrade it and either charter it, fly it, or sell it. I think that’s an opportunity in 2020.”

 


Despite concerns about the election cycle or an economic downturn, MRO is still in a good position, Maiden added.&nbsp;

 


“I do think it’s going to be a flat year, and I think everybody is a little concerned and on edge about the election and what's going to happen there,” he said. “And if there's going to be some budget cuts. But here’s the one thing that everybody needs to be aware of; there are more airplanes flying in the United States than ever. They're flying more hours, longer distances than ever. And their average age is older than ever. And that is good for maintenance.”

News and issues about aviation maintenance, repair and overhaul (MRO), covering all segments of the aviation industry; and modifications for aircraft and engines. Subjects include product support of aircraft, engines and avionics, MRO company mergers, acquisitions, announcements and personnel, Airworthiness Directives, Supplemental Type Certificate approvals and other topics.

MRO Providers Consider 2020's Challenges, Prospects

An election year and worries of a downturn create some uncertainty for the MRO industry in 2020.

2024 Corporate Aviation Leadership Summit

Curt Epstein

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

Expanding quickly, the MRO moved to a larger facility on the same field and is looking beyond for growth

 Haven Aviation: A Texas MRO with Texas-sized Ambitions

AmyWilder

CJ Aerospace to install the self-lubricating kits

Marsh Brothers Secures Australian King Air Retrofit Deal

Charles Alcock

News and developments about aircraft engines, including turbofan, turboprop, turboshaft and piston.

Facilities in Malaysia, Australia, and Dubai are now authorized service centers

Safran Appoints ExecuJet to Support Falcon 6X APU

Matt Thurber

News and information on safety procedures and concerns.

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

Halotron BrX is weight efficient and leaves no residue after application

STC Enables Halon-free Fire Extinguishers for Falcon 7X

The Dubai International Airport facility already supports the PC-12

Pilatus Adds Jet Aviation Dubai As PC-24 Service Center

News and issues concerning the aviation charter and fractional-ownership industries and markets, including company announcements, regulations, new developments and labor issues.

New developments at FBOs including regulations and noise issues; legal disputes; openings, acquisitions and mergers.

New EASA AOC gives easier access to the European Union

Gama Aviation Adds Maltese AOC and Mobile Service Team

News about bills, laws, regulations and other governmental decisions affecting aviation and aerospace. Topics include FAA re-authorizations, taxes on fuel and aviation activities, environmental legislation, ICAO decisions, governmental mediation of labor conflicts and World Trade Organization disputes and decisions.

More In Maintenance and Modifications

Haven Aviation: A Texas MRO with Texas-sized Ambitions

Expanding quickly, the MRO moved to a larger facility on the same field and is looking beyond for growth

Marsh Brothers Secures Australian King Air Retrofit Deal

CJ Aerospace to install the self-lubricating kits

Safran Appoints ExecuJet to Support Falcon 6X APU

Facilities in Malaysia, Australia, and Dubai are now authorized service centers

STC Enables Halon-free Fire Extinguishers for Falcon 7X

Halotron BrX is weight efficient and leaves no residue after application

Pilatus Adds Jet Aviation Dubai As PC-24 Service Center

The Dubai International Airport facility already supports the PC-12

Gama Aviation Adds Maltese AOC and Mobile Service Team

New EASA AOC gives easier access to the European Union

UAE Approves Aero-Dienst as Maintenance Organization

CAR 145 certificate issue helps German MRO expand support for Gulf region operators

Comlux Opens Dubai Maintenance and Service Center

New facility spans 20,000 sq m at the Mohammed Bin Rashid Aerospace Hub

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN