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The aviation industry, known for its rapid pace of innovation, is facing unprecedented challenges in the post-COVID-19 era. One of the most significant hurdles has been the disruption of supply chains, which has had a profound impact on maintenance, repair and overhaul (MRO) facilities. As airlines grounded fleets and demand fell, MROs struggled with shortages of critical components and lengthy shipping delays. When demand rebounded and getting aircraft back in the air became a priority, this compounded the supply chain issues. MROs and original equipment manufacturers (OEMs) are taking a variety of measures to meet turnaround times as they strive to maintain their competitive advantage.
The COVID-19 impact
The pandemic dealt a severe blow to the aviation sector, leading to a sharp decline in air travel and the grounding of the global fleet. This, in turn, reduced the demand for MRO services. While the industry has gradually recovered, the lingering effects of the pandemic continue to strain supply chains. The war in Ukraine has further exacerbated these challenges, with sanctions on Russia driving up fuel prices and further disrupting global trade. Some in the MRO sector now view this post-pandemic landscape as the “new normal,” as there have always been inherent delays.
The parts shortage crisis
The lack of spare parts has emerged as a major bottleneck for MRO facilities. The shortage of critical components, including engines and landing gears, has led to significant delays in aircraft maintenance and repairs. This issue is compounded by a reduced talent pool, due to job losses during the pandemic.
To mitigate these challenges, MROs are seeking alternative suppliers, investing in inventory management systems and exploring innovative procurement strategies.
Aircraft suppliers specializing in components are strategically purchasing older aircraft for teardown operations to secure vital components and permit flexibility as they build back their inventory.
In addition to shortages, MRO facilities are also facing a significant increase in the cost of aircraft/engine parts. Factors contributing to this rise include increased demand, supply chain disruptions and rising raw material prices. To manage these rising costs, MROs are implementing various strategies:
- Cost-effective repairs: MROs are focusing on repairing and overhauling parts instead of replacements whenever possible.
- Inventory optimization: MROs are carefully managing inventory levels and using advanced forecasting techniques to maintain optimal levels.
- Supplier negotiations: MROs are actively negotiating with suppliers to secure better pricing and terms.
- Pricing transparency with customers: MROs are increasing their transparency regarding pricing to build trust with their customers.
- COVID-19 pandemic and subsequent geopolitical events have significantly disrupted aviation supply chain, leading to critical-component shortages and delays in MRO services
- Digitalisation such as blockchain and other innovative technologies can help MRO facilities maintain aircraft airworthiness amid these supply chain challenges
- Collaboration among airlines, MROs, OEMs and suppliers is essential for addressing these shared challenges and building a more resilient supply chain