Industry Analysis & Industry Trends
In the near term, the industry will be picking up the pieces from the aftermath of the recession. Falling capacity among major airlines and a decline in the total number of active aircraft have resulted in less demand for aircraft services. However, because industry services include prescheduled maintenance and repairs needed to uphold government regulations, declines have been kept low. In the coming years, airlines will expand their fleets and ultimately require greater industry services... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a low level of capital intensity, with wages accounting for a high proportion of revenue (33.8%) in 2014. The industry is significantly labor-dependent due to the nature of MRO work. Industry operators typically invest between 5 and 6 cents of capital for every dollar of labor, and this level has been relatively steady in the past five years.
Industry capital expenditure was growing before the economic downturn. Since then, the lack of credit and the unstable investment environment have resulted in a drop in expenditure in nearly all industries, including the Aircraft Maintenance, Repair and Overhaul industry. During the height of the recession, capital investment fell... purchase to read more