MRO in China An Analysis and Forecast（PDF 31）.pdf

MROinChinaAnAnalysisandForecastPresentedbyHalChrismanMROChinaConference20September2005Beijing,ChinaAnnArbor,Michigan•GreatMissenden,&ImplicationsKeyMessages2AeroStrategyAviationWeek2005MROChinaConferenceAeroStrategy’sModelCoversFiveKeyMROSegmentsEngineOverhaul•Includes:majorengineoverhaulswithLLPcosts;impactofspareenginesubstitution;excludesunscheduledvisitsandupgradesAirframeHeavy•Includes:CandDchecklabourandmaterialcosts;impactofageonnon-scheduledwork;ponents•Includes:overhaulandrepaircostsfor22ATAChapters•Excludes:warrantyimpact,otherATAChapters(),inventoryoverheadcosts(.,warehousing,management)LineMaintenance•Includes:A,BandovernightchecksModifications•Includes:passenger-to-freighter,IFE,avionics,andothermajormodifications3AeroStrategyAviationWeek2005MROChinaConferenceNearly$100BillionIsSpentAnnuallyOnAircraftMRO–MoreThanTheValueOfNewAircraftProduction2004GlobalAircraftMROSpending$96BMarketSegmentActiveAircraftTotalAircraftMROOutsourcedAircraft%MROOutsourcedSpending($B)MROSpendingMilitary39,000$521631%AirTransport16,500$361850%Business&General>30,000~$8>7>90%Aviation*total55,50085,500~$96~41•ThevalueofaircraftMROnowexceedsthevalueofnewaircraftproduction(~$75B)•ountsfornearlyhalfofalloutsourcedaircraftMROactivitySources:AeroStrategy,TealGroup*includescivilrotarywingaircraft;4AeroStrategyAviationWeek2005MROChinaConferenceexcludesmajormilitarymodificationsCurrentAirlineExpenditureOnMROIsOver$36B;mercialMROMarket$%%34%$$ponent21%19952004Line23%Sources:AeroStrategy,1995figurefromTheCanaanGroup5AeroStrategyAviationWeek2005MROChinaConferenceEngineOverhaulIs$;OEMsCapture43%2004EngineOverhaulDemand$-80C2AIRLINE14%THIRDPARTY11%OTHER34%INDEPENDENTCFM56-312%12%OEM43%PW4000-948%CFM56-7JT8D-2004%6%V2500-A5/D5PW2000SELF4%5%34%RB211-524GHRB211-5354%5%CFM56-5A4%Sour