Aviation MRO Business Model Categories
In a previous article titled MRO Aviation Business Models 101, we took a high-level look at aircraft MRO facility types and explored the aircraft towing equipment needed for a successful MRO aircraft management facility. In the second part of this two-part series, we're taking a more in-depth dive into the various aviation MRO business model categories and the typical support infrastructure required for each.
What is MRO in Aviation?
So, what does MRO stand for in aviation? To reiterate (if you didn't catch part one of our aviation MRO series), it's any professional maintenance, repair and overhaul facility that keeps airplanes running safely and reliably. This MRO aviation definition covers a broad swath of maintenance types. But, the specific business model categories that fall under this umbrella couldn't be more different.
Aviation MRO Business Models By Category
Each aircraft MRO business model varies greatly depending on which category the company falls into. In general, airlines do try to position MRO services and facilities near major hub locations to maximize efficiency. But this isn't always the case. The following are the four main MRO business model categories used in the airline industry.
Note that this list does not include military aircraft MRO facilities. While militaries around the world do regularly partake in MRO and are some of the largest purchasers of aerospace military ground support equipment (GSE), they are wholly inclusive and specific in how they are run. In addition, they do not operate with the goal of generating revenue. Because of these reasons and more, military MRO facilities don't fit within a well-defined category.
Regional Airlines And Air Taxi Services
Each regional airline tends to operate within its own business model, depending on the areas serviced. Regional airlines and air taxi services don't usually rely on major hubs to operate, unlike commercial airlines. Instead, they utilize aircraft designed to operate in smaller, less robust locations. However, some regional airlines do fly into hub airports in highly populated areas with a large amount of aircraft technicians. So, it can pay off to set up an MRO in these hub locations. But if this isn't feasible, a regional airline can contract out work to a privately owned aviation MRO facility.
It should be noted that it is not because of the land cost that regional airlines don't usually operate their own MRO facilities, but more so the nature of their business and the lack of certified techs. Typically, aircraft mechanics and technicians go where the work is. This is why you often see a large amount of potential employees and aircraft mechanic trade schools near major airline hubs. So, if a regional airline or air taxi service isn't located near a major hub with a pool of potential technicians at the ready, it can be extremely difficult and costly to set up a new MRO facility.
Commercial Airlines
Commercial airlines tend to forgo private-party MROs as they open the airline up to potential liabilities. Instead, a commercial airline usually opts to have its own MRO infrastructure in place. This is a necessity for large commercial airlines as they have to adhere to strict maintenance timelines.
Having their own massive aircraft MRO facilities, commercial airlines can control the flow and overall productivity of operations. In addition to this, a huge benefit of having an MRO infrastructure is that an airline can choose its own MRO facility locations, often aligning them with major airport hubs. An airline can then have the flexibility of working maintenance cycles into their flight patterns, moving an aircraft seamlessly from a gate into a maintenance hangar.
In-House Corporate Flight Departments
An in-house corporate flight department facility is typically located as close to the company and clientele being serviced as possible. Outside of the work needed for heavy corporate jets, these departments are used mostly for general and line maintenance, and they typically don't conduct much heavy maintenance. Because of this, additional space, scaffolding and specialized equipment aren't usually required. Typically, however, major corporate jet manufacturers offer maintenance programs. This negates a real need for an in-house aircraft MRO infrastructure.
Independent Repair Stations And FBOs
Independent repair stations and fixed-based operators (FBOs) make up a smaller segment of the aviation MRO market than other categories. These operators rely more on niche clients, usually catering their business toward general aviation aircraft and smaller commercial airplanes. It is important to note that not all independent repair stations and FBOs offer all services. In fact, most focus on services that don't make sense financially for commercial airline-owned MROs to provide. This could include everything from prebuilding a piston engine to installing interior components.
Equip Your Aviation MRO Facility with the Best Ground Support Equipment
It's important for your aircraft MRO facility to have the right GSE and technology in place. At Tronair, we're proud to offer aviation MRO companies the highest quality aircraft ground support equipment on the market. In addition, you can ensure you're getting the most out of your equipment with the use of our EBis Aviation Software. It can help your company develop and grow, reducing unnecessary costs and inefficiencies. Want to learn more about how Tronair's line of products can help your company thrive? Reach out today.
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