Middle East MROs Deploy Cost-Control Strategies | Airlines

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The aviation industry is experiencing dynamic changes that are dramatically affecting the cost and supply of MRO materials, and the Middle East is no exception to this trend. The material supply chain has seen considerable cost inflation post-pandemic, and as analysts at Alton Aviation suggest, demand for MRO services exceeds supply in the region.

In Europe, some MRO providers have seen a roughly 20% increase in material costs over the last three years. The situation in the Middle East is similar.

Most airlines in the region—such as Etihad Airways, Emirates, Qatar Airways and Saudia—have avoided the outsourcing trend for airframe heavy maintenance and maintained in-house capabilities. The limited number of independent third-party MRO suppliers in the Middle East, such as Joramco for airframe heavy maintvenance and Sanad Aerotech for engine MRO, are operating at nearly full capacity.

“The current climate presents a unique challenge in maintaining balance between airframe and engine materials supply and demand,” says Sultan Alaraj, CEO of Jordan-based Petra Aerospace, which provides asset management services, including airframe material sales and aircraft parts.  “As airlines and MROs stage a cautious comeback, it is a delicate juggling act. Some materials remain in abundance due to reduced operations, while others are in short supply due to global disruptions, but achieving stability in this dynamic landscape is our paramount goal.”

Compared with the material cost surge for European MROs, Alaraj argues that MRO shops in the Middle East have managed a more controlled increase. “This region’s strategy involves diversifying our supplier base and collaborative efforts with neighboring regions to further boost the resilience of our supply chain,” he notes. “However, we are affected by the repair cost from the vendors due to increases in raw materials.”

Abu Dhabi-based Sanad is tackling these challenges head-on and staying vigilant about material…

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