Maintenance is ~10% of airline operating costs, and airlines are in cost-conservation mode.
Airlines have several options to reduce MRO spend. Whether to perform the MRO or not may depend upon MRO type and MRO alternatives (e.g., leasing in an engine or part, burning greentime, USM, etc.).
They may have options regarding material to use, which may avoid new parts (critical to OEM profits).
Options depend upon airline and, if relevant, lessor policies. Also, there may not be any alternatives to the OEM part. The point is, however, that they may well have options.
It’s also vital to consider if the MRO is a relatively high cost (e.g., engine shop visit)? The higher the cost, the more likely for deferral or alternatives. Is the maintenance discretionary (e.g., cabin upgrade) that could be deferred? Is the aircraft owned or leased? What requirements does that place upon the operator (and is an end-of-lease check due)?
It’s worth considering the type of MRO contract that the airline has with its supplier. If they have paid by the hour, the operator may send the engine or component for overhaul/repair.
Finally, does the airline have the in-house capability, or is the MRO outsourced? That may also impact whether they perform the maintenance or delay it.
Industry Insights
More News
Date: September 03 , 2025 |
Naveo’s Richard Brown is Moderating MRO Asia’s Panel on Talent Retention & Recruitment in Aviation |
The air transport fleet in the Asia Pacific region is huge. There are~6,200 aircraft (17% of the global fleet) flying with Asia Pacific operators, and a further ~4,500 aircraft (12% of the global fleet) with operators... |
READ MORE  |
Date: September 03 , 2025 |
Naveo’s Richard Brown is Chairing the Predictive Aircraft Maintenance Conference in Singapore |
I’m excited to be chairing the inaugural Asia Pacific edition of the Predictive Aircraft Maintenance (PAM) Conference in Singapore on 15–16 September to be held at Marina Bay Sands. It's happening on Monday and Tue... |
| READ MORE |
Date: September 03 , 2025 |
Naveo Aircraft Retirements Update: Young A320neo Family Aircraft Are Already Being Retired |
You may have heard that recently, two A321neo aircraft powered by Pratt & Whitney GTF engines had been purchased to be torn down, their engines and parts reclaimed to support the existing A320neo fleet. Both aircr... |
| READ MORE |