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MRO Americas market

MRO Market

Positive outlook for the MRO Americas market is tied to key structural challenges

While the rate of recovery observed on the American continent has been faster than in other regions, the prospect of a “return to normality” for the aviation industry remains disparate between north and south. The situation depends on emerging structural challenges for both aircraft operators and MROs: Franck Becker, VP Regional Sales Americas at AFI KLM E&M, gives us his market analysis.

The sense of momentum observed in the American market’s return to operations has been faster and starker than elsewhere in the world. As such, AFI KLM E&M, which operates in this region via its bases in the USA, has taken advantage of a particularly favourable domestic situation in order to recover significant levels of activity, after the two years of slowdown caused by the health crisis.

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“US airlines have been doing everything they can to get back to business as quickly as possible. This positive approach is reflected at Barfield, the Group’s forward operating base in the Americas, where business volumes are approaching pre-Covid levels for the domestic market, and the scope of certain contracts is even being expanded for Boeing 737 and Airbus A320 core products. While the recovery is somewhat less concrete in South America, the general outlook for flight traffic and its likely evolution across the continent is largely positive.”

Franck Becker

VP Regional Sales Americas at AFI KLM E&M

Market picking up, yet needs rebuilding

The wider dynamic may bring cause for optimism, but the sector is hardly emerging unscathed from a two-year slump of futile recoveries and misleading upticks. The task now is to make a smooth recovery, but this has proven complicated in several regards. To start, there is the issue of human resources: for both suppliers of MRO solutions and airlines themselves, the health crisis – and the current surge in inflation – has caused a drain of talent and skill sets. Rebuilding a qualified and high-performance workforce therefore stands as a top priority for 2022. The same is true of data protection, as the pharmaceutical and aviation sectors are among the most at risk of cyber-attacks in this region. Another issue involves the supply of parts; an area in which AFI KLM E&M has had an opportunity to showcase its capacity for innovation and adaptation.

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“The current state of the supply chain constitutes a major area of concern. MROs are running up against majorly disrupted OEM logistical chains; this hampers availability and leads to an increase in the cost of parts. These are issues that have an unavoidable negative effect on the services provided to the final customer, and their cost. In order to remedy this, AFI KLM E&M can rely on its mantra: ‘repair rather than replace’: we are increasing the numbers of repairs so we don’t have to wait around for parts or pay much higher prices for them. This is what ultimately enables us to deliver competitive solutions for the airlines.”

Franck Becker

VP Regional Sales Americas at AFI KLM E&M

From assembly to teardown: solutions for the entire aircraft life cycle

Another trend being carefully observed by AFI KLM E&M involves fleet renewal, whether initiated within existing airlines or reflected by the arrival of aviation start-ups launching their operations with new-generation products. For the MRO, this transition implies the need to solidify or restructure its positioning on new products through the implementation of adapted solutions.

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“We’re seeing a shift toward new aircraft, in particular the A320neo and the Boeing 737MAX, occurring rapidly in South America but also visible, albeit to a lesser extent, in the USA. Further down the road, the A220 is also likely to gain ground in the American aircraft mix as it is used to replace aging regional fleets. We are establishing a position on these new aircraft by studying and implementing ad-hoc and local solutions. With our Bonus Tech joint venture, we’re also in a position to take in engines that would otherwise have been left on the tarmac waiting to be dismantled.”

(Co-)Creating solutions

At a time when operators are having to juggle operational recovery and the need to streamline finances left bruised by the health crisis, the capacity for innovation, adaptation and support offered by an MRO like AFI KLM E&M is a precious asset.

MRO Americas 2022: Meet us booth #4047

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“We work closely alongside the airlines to identify, design and implement cohesive solutions that align with their real-world needs. Our American structures guarantee reliability, quality and inventiveness, and promote the MRO/Airline mindset inherited from our European parent companies. We combine this with our focus on proximity – as we always say, “Think global, Act local!” As a well-established and recognised outfit, Barfield is perhaps the most complete example of this promise: one that is being perpetuated by other entities such as Bonus Tech and, more recently, xCelle Americas.”

Franck Becker

VP Regional Sales Americas at AFI KLM E&M

Contact us

Meet us at the MRO Americas 2022 booth #4047

Franck Becker

Vice President Sales Americas

Franck will be present at the MRO Americas to meet you on site. Feel free to contact him.

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