Engine MRO will outpace the total commercial aviation maintenance, repair and overhaul market growth this year, largely because engine events are more expensive and because more powerplants propelling the narrowbody fleet will need overhauls. The main driver escalating engine maintenance costs is that "engine parts continue to get marked up at a rate exceeding CPI (consumer performance index) on an annual basis, often in the 5-7% range in terms of annual increases," says David Marcontell, Team-SAI president and COO. Material expenses represent 70-80% of total engine MRO costs, so this obviously impacts the engine aftermarket value.
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