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- W636681697 abstract "The maintenance, repair and overhaul (MRO) service businesses were already under pressure to integrate and downsize before the present downturn in aviation. The process is accelerating now. Other forces affecting the business include the high cost of servicing modern engines and the lower maintenance needs of the newest generation of aircraft. The cash value of work for MRO service for planes with more than 50 seats shrank by more than $2.5 billion since 2000 to total $34 billion for 2002. There are major differences in how that contraction plays out in the various segments. Shops that specialize in older aircraft have been hit hardest, which is made worse by a glut in capacity that pre-dated the Sept. 11 attacks. The largest single element is engine repair, at 30%, which is falling as the old Pratt & Whitney power plants are being replaced, and they were the staple of many independent shops. Component overhauls face similar trends, though the high ratio of labor costs will favor those with lower wages. Airframe overhauls are even more labor intensive, which requires massive scale to be economically feasible. Line maintenance is one segment that won't change much, because airlines tend to keep it in-house, no matter what the economic elements." @default.
- W636681697 created "2016-06-24" @default.
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- W636681697 date "2002-11-01" @default.
- W636681697 modified "2023-09-23" @default.
- W636681697 title "TRYING TO HOLD ON : MRO PROVIDERS SCRAMBLE TO SURVIVE THE DOWNTURN AS THEY RESPOND TO LONG-TERM CHANGES IN THE BUSINESS" @default.
- W636681697 hasPublicationYear "2002" @default.
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