Prior to the 1990s, airlines around the world staffed thousands of employees to keep their fleets airworthy and flying. A combination of the emergence of low-cost carriers (LCLs) and airlines being driven to reduce overhead created a competitive environment to purchase lower cost maintenance from third-party vendors. Seventeen commercial aircraft maintenance organizations, known as MROs, globally have earned a place on this 2019 Frost RADAR® for Global Commercial Aircraft Maintenance, Repair, and Overhaul Market. As demand continues to increase for aircraft maintenance, MROs attempt to adjust capacity to meet the demand. Results of MRO expansions have led to mergers, consolidations, buy-outs, many companies creating alliances, and some going out of business. Aircraft maintenance, once considered just a cost of doing business for airlines, has become a competitive business. Many airlines around the world have spun their MRO business off into a separate entity and have produced yet another revenue stream. Now, OEMs are jockeying for the same, to capture the aftermarket opportunities.
Specific restraints, such as available touch labor with the skill set to perform maintenance, reacting to reduced demand caused by heavy airline flight schedules, and outright competition have pushed MROs to get innovative and find savvy expansion in order to prevail. Tight profit margins and full liability are part of doing everyday business for MROs and there is no room for error when it comes to quality, schedule, and cost. This 2019 Frost RADAR® includes the premier MROs. The Frost Radar reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar methodology. The document presents competitive profiles on each of the companies in the Frost Radar based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.
Research Scope
This study focuses the global MRO market for third-party airframe maintenance and gives an overview of the current market landscape.
Included in this strategic analysis is the placement of the MRO companies on the Frost RADAR® based on growth and innovation displayed.
In addition to the Frost RADAR® chart, each company will be identified, profiled, and analyzed, along with the identification of the outlook and opportunities for each individual MRO.
Key Issues Addressed
- Who are the top MRO companies in the Frost RADAR®, according to Growth and Innovation exhibited?
- Which companies lead the global MRO market for commercial airframe maintenance in terms of innovation?
- Which companies lead the global MRO market for commercial airframe maintenance in terms of Growth?
- What significant partnerships are occurring in the MRO market?
- Which MROs have the best combination of Growth and Innovation, and which are poised to improve?
Author: Timothy Kuder
Industry Overview
The Frost RADAR®
Frost Radar—Description of Companies Plotted
AAR Corp
Aeroman
AFI KLM E&M
Aviation Technical Services
Etihad Airways Engineering
Evergreen Aviation Technologies Corp. (EGAT)
Flightstar
GAMECO
GMF AeroAsia
HAECO
Lufthansa Technik
Mexicana MRO
Sabena Technics
SR Technics
ST Engineering
TAP M&E
Turkish Technic
The Last Word—Key Takeaways
Legal Disclaimer
Frost Radar—2 Major Indices, 10 Analytical Ingredients, 1 Platform
Frost Radar—2 Major Indices, 10 Analytical Ingredients, 1 Platform (continued)
Frost Radar—C2A
Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform
Growth Index
Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.
- Market Share (previous 3 years)
This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years. - Revenue Growth (previous 3 years)
This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™. - Growth Pipeline
This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities. - Vision and Strategy
This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision? - Sales and Marketing
This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.
Innovation Index
Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.
- INNOVATION SCALABILITY
This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals. - RESEARCH AND DEVELOPMENT
This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline. - PRODUCT PORTFOLIO
This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue. - MEGATRENDS LEVERAGE
This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline. - CUSTOMER ALIGNMENT
This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.
Significance of Being on the Frost Radar™
Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.
- GROWTH POTENTIAL
Your organization has significant future growth potential, which makes it a Company to Action. - BEST PRACTICES
Your organization is well positioned to shape Growth Pipeline™ best practices in your industry. - COMPETITIVE INTENSITY
Your organization is one of the key drivers of competitive intensity in the growth environment. - CUSTOMER VALUE
Your organization has demonstrated the ability to significantly enhance its customer value proposition. - PARTNER POTENTIAL
Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.
Speak directly with our analytics experts for tailored recommendations.
Purchase includes:
- Report download
- Growth Dialog™ with our experts
Growth Dialog™
A tailored session with you where we identify the:- Strategic Imperatives
- Growth Opportunities
- Best Practices
- Companies to Action
Impacting your company's future growth potential.
Research Scope
This study focuses the global MRO market for third-party airframe maintenance and gives an overview of the current market landscape.
Included in this strategic analysis is the placement of the MRO companies on the Frost RADAR® based on growth and innovation displayed.
In addition to the Frost RADAR® chart, each company will be identified, profiled, and analyzed, along with the identification of the outlook and opportunities for each individual MRO.
Key Issues Addressed
- Who are the top MRO companies in the Frost RADAR®, according to Growth and Innovation exhibited?
- Which companies lead the global MRO market for commercial airframe maintenance in terms of innovation?
- Which companies lead the global MRO market for commercial airframe maintenance in terms of Growth?
- What significant partnerships are occurring in the MRO market?
- Which MROs have the best combination of Growth and Innovation, and which are poised to improve?
Author: Timothy Kuder
| Deliverable Type | Frost Radar |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Timothy Kuder |
| Industries | Aerospace, Defence and Security |
| WIP Number | K350-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9000-A1 |
Frost Radar in the Global Commercial Aircraft Maintenance, Repair, and Overhaul Market
A Measurement System to Spark Companies 2 Action (C2A)—Innovation that Fuels New Deal Flow and Growth Pipelines
30-Aug-2019
North America
Frost Radar
