MROs doing well with a 'mature' airline fleet

In its Insurance Market Outlook for 2010 Aon Aerospace finds that MROs are doing a good job with a relatively old airline fleet.

Aon reports that the average age of the global airline fleet appears to have reached a plateau, at 13.5 years old for 2009, the same as for 2008.

Aon says that, “This is the oldest that the average age of aircraft has been since 1997 and the second highest it has been since 1989, reflecting the slowdown in aircraft orders that has taken place as a result of the global economic conditions.

“As a result, while airframe manufacturers are having a difficult time avoiding further cuts, the chances are that maintenance, repair and overhaul (MRO) operations are likely to find their services in high demand during 2010.

“This reflects the high proportion, 60%, of MROs that are forecasting an increase in turnover during the course of their 2009/10 insurance policies.

“On average, MRO operations expect turnover to rise by 9% during 2009/10, while manufacturers as a whole expect turnover to fall on average by 3%.

“The age range of the aircraft involved in the losses that occurred during 2009 was pretty much in line with the five year average, suggesting that despite the relatively high age of the current global fleet, the level of maintenance is not a major cause for concern.

“In 2009, exactly half of the incidents that occurred involved aircraft that were less than 15 years old, 17% of which were under five years old, slightly above the five year average but in line with the long term average.

“The high average age of the global fleet is at first glance a cause for concern, but this needs to be tempered by analysis of the types of losses that are occurring and recognition of the work that has been taking place to reduce the risk of similar incidents occurring in the future.”

That’s a very encouraging perspective on the MRO sector.