Question

• Explore offshoring as it applies to aircraft MRO activities. the offshoring trend for many industries is waning. Is this true for aircraft MRO activities?
• If so, is the trend only in certain MRO segments such as components, engines or heavy maintenance? Why or why not?
• what are the current and future state of MRO offshoring activities?

Answer 1

Offshoring for aircraft Maintenance, Repair and Overhaul (MRO) activities means that the aircraft company either does not have the expertise to carry out aircraft MRO activities itself or the cost incurred is higher if such activities are done inhouse. Hence such decisions to offshore the aircraft MRO activities is taken into consideration to reduce costs or due to lack of expertise.

Yes, in my opinion the offshoring trend is waning for aircraft MRO activities as well since most of the aircraft companies nowadays have an efficient inhouse aircraft MRO system and do not rely on external parties or contractors to carry out these activities on their behalf. Also it costs them less to carry out inhouse aircraft MRO activities. The trend is however still there in some MRO segments such as components, engines or heavy maintenance since these are critical components of aircraft and hence specific skillsets and expertise is required to carry out MRO activities of these components which is lacking in some of the aircraft companies and hence offshoring is still done for these components. However in future, in my opinion offshoring of these components shall also be eradicated and complete MRO of aircraft shall be done inhouse due to capacity building and inhouse expertise availability.

Please provide thumbs up if you like the answer.