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Inside MRO News Briefs And Contracts For October 2024
Airbus expects the number of global dismantling and recycling service centers to triple by 2043.
Highlights
Airbus Services Predicts Recycling Growth
Airbus expects the market for aircraft dismantling and recycling to grow considerably over the next 20 years.
The OEM hopes all the used serviceable material generated will alleviate the supply chain pain the industry is experiencing due to parts shortages, high parts prices and aircraft delivery delays.
In its 2024-43 Global Services Forecast, the OEM predicts that the dismantling and recycling market will see a 7.5% compound annual growth rate (CAGR) over the 20-year period as nearly 19,000 older-generation aircraft are replaced, generating around $52 billion in used serviceable material. Airbus noted that there are more than 100 global dismantling and recycling service centers—including its recently opened Airbus Lifecycle Services Center joint venture with Tarmac Aerosave in Chengdu, China—and it expects this number to triple by 2043. The OEM predicts global demand for around 500 aircraft teardowns annually over the next 20 years.
Airbus expects global MRO services demand to grow at a 3.5% CAGR, reaching $290 billion by 2043 from $150 billion in 2024.
StandardAero Aims To Raise $1.1 Billion in IPO
StandardAero announced the launch of its initial public offering (IPO) process on Sept. 23, seeking to raise $1.1 billion at a valuation of up to $7.5 billion.
Backed by private equity giant Carlyle Group and Singaporean sovereign wealth fund GIC, the aircraft engine maintenance specialist decided to go public in line with Carlyle’s preference. Carlyle had explored selling StandardAero but was seemingly underwhelmed with the bids it received.
Filings for the listing show that funds affiliated with Blackrock, Janus Henderson Group and Norway’s $1.8 trillion sovereign wealth fund have signaled interest in buying shares of StandardAero at the IPO price.
StandardAero’s decision to go public comes less than a month after its acquisition of military MRO provider Aero Turbine from private equity firm Gallant Capital for an undisclosed sum.
EFW Resumes A380 Support
ST Engineering and Airbus joint venture Elbe Flugzeugwerke (EFW) is reentering the Airbus A380 heavy maintenance market after securing a “multimillion-euro” contract with UK long-haul startup Global Airlines and signing firm contracts for 2025 with several other unnamed airlines.
EFW originally began supporting the A380 in 2013, performing around 50 heavy maintenance work packages in Dresden for customers including Air France, Emirates, Lufthansa and Qantas. It later extended its offering to include full cabin modifications. But EFW's A380 services came to an abrupt halt with the COVID-19 pandemic.
Under the contract, EFW will perform Global Airlines’ heavy airframe maintenance, along with all the airline’s scheduled maintenance, mandatory inspections and component replacements. Global Airlines plans to launch operations in June.
Contracts
AFI KLM E&M was selected by Cambodia Airways to provide Airbus A319/A320 component support.
Airinmar extended its repair cycle management services agreement with Singapore Airlines.
Asia Pacific Aircraft Component Services was selected by Magnetic Trading for repair services and warehousing.
Boeing signed a new agreement with Haeco to supply spares and consignment parts to support its global MRO services.
Honeywell signed a $1.1 billion VietJet contract to provide avionics and auxiliary power unit maintenance programs for the airline’s Airbus A320s/A330s. The deal includes Honeywell’s Flight Efficiency system to provide emission reduction and fuel-efficiency monitoring across the fleet.
Lufthansa Technik Shenzhen signed a Cebu Pacific contract to maintain Airbus A320ceo/A321ceo airframe-related components.
Pratt & Whitney has signed a 17-year AirBaltic contract to provide its EngineWise maintenance services program for the airline’s geared turbofan engines.
SR Technics extended its CFM International CFM56-5B maintenance agreement with Cebu Pacific to support about 25 aircraft.
StandardAero was selected by Turkey’s Corendon Airlines to provide CFM International Leap 1B maintenance in San Antonio.
Turkish Technic was selected by Garuda Indonesia to provide Airbus A330 and Boeing 777 component support.
Contract Source: SpeedNews
