ENGINE PMA PARTS MARKET HITS HEADWINDS
A global engine MRO survey by AeroStrategy concludes that the growth rate of PMA parts for aeroengines is expected to slow as a result of the industry downturn and defensive measures by the OEMs during recent years. GE has been particularly active in its defense of the material flow on the GE and CFM engines. By allying with engine MRO providers such as Aveos, ST Aero and Iberia in return for long-term material agreements, GE has locked 17 percent of the material flow on GE/CFM engines on top of what it already controls via its own engine shops.
In contrast, airframe and component PMA markets are expected to continue robust growth, as airlines seek further opportunities to save costs. The component, airframe, and interiors markets are more fragmented, have fewer barriers to entry and OEM defensive measures are generally less robust.
AeroStrategy values the air transport PMA market at $381 million, and 8% decline from the prior year, but expects it to return to growth as aviation emerges from recession and reach $680 million by 2013.
AeroStrategy, with offices in Ann Arbor, Michigan, Amersham, UK, and now Singapore, is a premier management consulting firm focused on providing solutions to strategic issues for clients in the aviation and aerospace industry. AeroStrategy’s consulting practice areas include strategy, market analysis, customer satisfaction, and transaction support.
For further information, please contact:
Lynzie Babala
Media Relations
AeroStrategy
101 N. Main, Suite 400
Ann Arbor, MI 48104
(734) 929-6616 direct
lbabala@aerostrategy.com