PRTODAY / NewswireToday Free press release distribution service network

Written by / Agency / Source: Frost & Sullivan

Check Ads Availability|e-mail Article


Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!

Lucrative Times Ahead for Asia Pacific Aerospace MRO Sector Says Frost & Sullivan - Robust growth is projected for the MRO service providers beginning from the second half of 2010
Lucrative Times Ahead for Asia Pacific Aerospace MRO Sector Says Frost & Sullivan

 

NewswireToday - /newswire/ - Jakarta, Indonesia, 2010/11/12 - Robust growth is projected for the MRO service providers beginning from the second half of 2010.

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Aviation/Aerospace Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Various factors are shaping the present dynamics of the industry. Airlines throughout the world are keeping strict control on costs and there is substantial reduction in the maintenance activity of aircrafts. A large number of older aircrafts that require more maintenance activities have been grounded, thus magnifying the negative effect on the MROs.

Going beyond 2010, Frost & Sullivan expects that airlines would once again increase their capacity. However, the increase would be more in the form of newer aircrafts that require less maintenance. This means that the MROs' are not expected to regain their lost ground in the calendar year 2010.

According to Frost & Sullivan's Asia Pacific Consultant of Aerospace & Defense Practice Soumyajyoti Basu, there is also a huge pile up of inventory of parts with the MROs and the airlines, worth around 40 billion dollars. "Service providers and the airlines would try to use this stock rather than going for fresh orders, thus affecting the third party MRO suppliers" he adds.

He continues, "However, the practice of destocking & deferred maintenance is not sustainable. Hence, in the middle to long term, MRO businesses would once again become extremely profitable. Frost & Sullivan does not expect any cutbacks on the MRO revenue predicted for the nine year period into 2019 where it is expected to reach about USD63 billion". "The present reversal in revenue from negative to positive means the CAGR for the ten-year period will be revised upwards and is expected to be around 4.5%" Basu says.

Basu elaborates that Asia Pacific would record a comparatively higher growth stemming from all maintenance segments, the bulk of which will be driven by the engine segment. "This is in part due to long-term demand emanating from major economies in the Asia Pacific region that is expecting new aircraft deliveries from major OEMs such as Boeing and Airbus" he explains.

This provides excellent investment opportunity in the MRO field. MRO service providers that utilize this period to revamp their business model in anticipation of the future, building up capabilities to serve newer aircraft models, decreasing turnaround time & becoming green would be the ones that would drive growth in the coming years. "The prevailing low valuation in the industry also gives ample opportunity for mergers & Acquisitions. Hence, the process of consolidation that started since 2001 would continue. This would decrease operation costs in the MRO" Basu states.

"However, shortage of labour would drive up labour costs. There is also an increasing tendency of the OEMs getting into MRO activities & providing packaged
deals in the sales market. This process would pose serious competition to the MRO service providers. This can be countered by providing one-stop MRO service points that would be both cost efficient & convenient from the customer's point of view" says Basu.

Basu concludes, "In 2010, the dynamics within aerospace MRO would be very fast moving. There is a huge opportunity for growth in the market, promising high return on investments for service providers across the value chain. However, an efficient strategy needs to be implemented in order to tap the market".

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Aviation/Aerospace Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Written by / Agency / Source: Frost & Sullivan

 
 

Availability: All Regions (Including Int'l)

 

Traffic Booster: [/] Quick Newswire Today Visibility Checker

 

Distribution / Indexing: [+] / [Company listed above is a registered member of our network. Content made possible by PRZOOM / PRTODAY indexing services]

 
 
# # #
 
 
  Your Banner Ad showing on ALL
Aviation/Aerospace articles,
CATCH Visitors via Your Competitors Announcements!


Lucrative Times Ahead for Asia Pacific Aerospace MRO Sector Says Frost & Sullivan

Company website links NOT available to basic submissions
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name Newswire Today and LINK as the source.
 
  Is this your article?
Activate ALL web links and social stream by Upgrading to Press Release PREMIUM Plan Now!

|
Publisher Contact: Donna Jeremiah / Carrie Low 
603-6204-5832 / 603-6204-5910 djeremiah[.]frost.com / carrie.low[.]frost.com
 
Newswire Today - PRZOOM / PRTODAY disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.
IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Frost & Sullivan securities in any jurisdiction including any other companies listed or named in this release.

Aviation/Aerospace via RSSAdd NewswireToday - PRZOOM Headline News to FeedBurner
Find who RetweetFollow @NewswireTODAY



Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!


Read Latest Articles From Frost & Sullivan / Company Profile


Read Aviation/Aerospace Most Recent Related Newswires:

Safran Celebrates First Flight of Airbus A330neo
Airlink Becomes First South African Airline to Acquire Embraer E-Jets
Leonardo and NCI Agency Extend NATO Cyber Protection Service to Additional HQs on Budget and to Schedule
Leonardo and Hanwha Systems Team in South Korea for Avionics Technologies
Thales Alenia Space Wins Equipment Contract for ESA’s Biomass Mission
Leonardo - Firefighting Helicopters to be Deployed by Prefectures and Agencies of Tokyo, Shizuoka, Fukushima and Yamaguchi
Safran and Paris-Sud University Sign Partnership Agreement and Bolster Ties At Paris-Saclay Science & Technology Cluster
Embraer to Establish Major Aviation Training Center in Johannesburg
Commercial Aerospace MRO and Manufacturing Sector - Big Opportunities for Growth in Thailand Finds Frost & Sullivan
AW169 Helicopter Success in UK EMS Market Continues with Selection by the Cornwall Air Ambulance Trust
Safran Unveils Aneto - New Range of Engines for the Super-medium and Heavy Helicopter Market
Leonardo Introduces The AW189K Helicopter At Helitech 2017
Embraer Announces Firm Order for 20 E-Jets from SkyWest
Thales Alenia Space to Provide X-band Transmitter for South Korea’s KPLO Lunar Orbiter
Embraer Announces New IFEC Supplier for the E-Jets E2s

Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
NewswireToday Celebrates 10 Years in Business


PREMIUM Members


Visit  JobsWare.com

Visit  BizJobs.com





 
  ©2017 Newswire Today — Limelon Advertising, Co.
Home | About | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneurs newswire distribution prtoday.com freenewswiredistribution asianewstoday bizwiretoday USA pr UK today - NOT affiliated with PRNewswire as we declined their partnership offer in 2013
 
PRTODAY & NewswireTODAY are NOT affiliated with USA TODAY (usatoday.com)