Aviation and defence experts reveal road to recovery for global Maintenance, Repair and Overhaul sector

• The event revealed a need for industry leaders to create more efficient, digitally-led and prioritised workflows to ensure a speedier recovery for the sector 

• Webinar hosted by organisers of the Global Aerospace Summit 2020 

Abu Dhabi, United Arab Emirates:  Experts from commercial aviation and defence industries highlighted the impact of the COVID-19 pandemic on the Maintenance, Repair and Overhaul (MRO) sector. During a webinar - hosted by organisers of the Global Aerospace Summit 2020 – the aviation specialists revealed key elements needed for the recovery of the MRO sector both within the Middle East and internationally.

Rahul Shah, Senior Vice President Strategic Roles & Business Development, AAR Corporation, moderated the virtual panel and described the devastating impact that the COVID-19 pandemic has had on MRO and the aviation sector in general. He highlighted that there is currently a projection that there will be an almost 50% drop in MRO to a value of 42 billion USD. Shah added that he does not expect the value of the MRO market to return to 2019 levels until 2022 or 2023.

“There has been a significant drop in MRO spend and it is often the first part of the budget to be cancelled and the last to return. An L shaped recovery of the industry is most likely and it will take 18 to 24 months before air travel returns to some normality,” commented Shah.

Frederic Dupont, Vice President Technical Sales & Customer Service, Etihad Airways Engineering spoke about how his organization is working hard to make the most of the opportunities available during the slowdown in this pandemic.

He commented: “Our focus has been to increase ancillary revenue streams and diversify the portfolio. We are working to ensure that we have the necessary capabilities and fine-tune our service value across the different platforms available to us. Ensuring efficiencies during this time is critical, as is managing costs and maintaining productivity. We have focused on uplifting cabins to deal with the impact of COVID-19. In terms of maintenance, we are taking a phased approach to optimise the costs and ensure that we prioritise the essential work.”

Dupont also added that digital solutions are widely being used across the organization as COVID-19 has changed the way businesses operate. He expects this trend to continue.

Ziad Al Hazmi, Chief Executive Officer, Lufthansa Technik Middle East revealed that his company and and airlines they work with are looking at short term solutions. He added that he expects a challenge because of a surge in MRO requirements and that his organization is focused on using that as an opportunity to ensure there are no capacity issues.

“We are working on the financials with our customers to get through this difficult period. The most important focus for us has been on managing cash. Airlines need to have transparency on where parts are installed and whether repairs are needed or not so that we can manage fleets in a smart and cost-effective way,” added Al Hazmi.

Mark Krusemark, Aviation Industry Strategic Advisor, GAL explained that the defence sector has actually had less of an impact from COVID-19 when compared to commercial.

“The military side of the market has expectedly been more stable than its commercial counterpart, though this too is subject to rapidly developing circumstances. To maintain military readiness, what is key right now is to prevent maintenance backlogs from developing, given the long recovery time associated with such backlogs. The UAE’s extensive investment into technological capabilities has empowered the military in different ways, and so where still needed the focus should remain on areas that require manpower,” said Krusemark.

The webinar was held as part of a series of virtual events focused on a range of topics, which will form part of the virtual programme for the Global Aerospace Summit 2020 on 28^th & 29^th September. The international thought leadership forum will be hosted by Mubadala Investment Company and EDGE and is being organised by Streamline Marketing Group and Tarsus F&E. More details on the Summit will follow over the coming weeks.

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The Global Aerospace Summit 2020

The Global Aerospace Summit is an exclusive, invitation-only event for decision makers and government officials involved with the aerospace, aviation, defence and space industries. The 2020 edition will be the fifth in this biennial series. The Summit, which is hosted by Mubadala Investment Company and EDGE, will debate and analyse key issues and solutions that face the aviation, aerospace, defence and space sectors across the globe.

For more information, please visit - http://www.aerospacesummit.com 

About Mubadala Investment Company

Mubadala Investment Company actively manages a worldwide portfolio supporting the vision of a globally integrated and diversified economy, through sustainable returns to its shareholder, the Government of Abu Dhabi. In March 2018, Abu Dhabi Investment Council (ADIC) joined the Group.

Mubadala’s AED 841 billion (US $229 billion) portfolio spans five continents with interests in aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas, petrochemicals, utilities, healthcare, real estate, pharmaceuticals and medical technology, agribusiness and a global portfolio of financial holdings. Mubadala now has offices in Rio de Janeiro, Hong Kong, Moscow, New York and San Francisco.

Mubadala is a trusted partner, an engaged shareholder and a responsible global company that is committed to ethics and world-class standards.

For more information about Mubadala, please visit: www.mubadala.com 

About EDGE

EDGE is an advanced technology group that develops disruptive solutions for defence and beyond. Solving real world challenges, it is dedicated to bringing innovative technologies and services to market with greater speed and efficiency.

Consolidating over 25 entities and employing more than 12,000 brilliant minds, EDGE offers expertise in five core clusters: Platforms & Systems, Missiles & Weapons, Cyber Defence, Electronic Warfare & Intelligence and Mission Support.

Today, EDGE is reimagining capabilities through technology leadership with research and development at its core.

For more information, visit www.edgegroup.ae  

About Tarsus F&E LLC Middle East

Tarsus F&E LLC Middle East is one of the most influential names in the aerospace industry's events sector, and which launched the very first Dubai Airshow in 1989, in conjunction with Dubai Civil Aviation Authority, Dubai Airports and the UAE Armed Forces. Covering all aerospace-related events in the Tarsus portfolio, Tarsus F&E LLC Middle East has a long-standing relationship with the global aerospace industry, an in-depth knowledge of the market and a hard-earned reputation for delivering event excellence. Tarsus F&E LLC Middle East maintains offices in Dubai and London.

Events organised by Tarsus F&E LLC Middle East include Dubai Airshow www.dubaiairshow.aero , Aircraft Interiors Middle East www.aime.aero , Airport Solutions Global Series www.airportsolutions.com , Global Air Traffic Management (GATM) www.gatm.aero , Cargo Connect www.cargoconnect.aero , MRO Middle East www.mromiddleeast.aviationweek.com , MEBAA Show Morocco www.mebaamorocco.aero , and MEBAA Show www.mebaa.aero 

About Streamline Marketing Group (SMG) 

Streamline Marketing Group (SMG) is an events consultancy specialising in creating innovative events with a global profile and reach. Our success lies in the fact that we think differently about events – a strategy that has won us several international awards and nominations. We look at format and content as well as staging and marketing to create exceptional events that are of real value to our clients and audiences.

SMG also focuses on working closely with government entities and commercial partners to deliver content led, world-class events. Over the years we have worked with some of the world’s leading brands, government agencies and industry leaders including: The Emirates Group; Mubadala Investment Company; Etihad Airways, Dubai Municipality; Dubai Exports; The General Civil Aviation Authority; Ministry of Economy, UAE and more. Please visit www.smg-online.com  for more information.

For more information, please contact:
Mohaned Lafi
Associate director - Four Communications Group
gas@fourcommunications.com 

© Press Release 2020