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Partnerships key as Boeing taps Asian MRO demand

Boeing believes that pursuing strategic partnerships in Asia-Pacific will help it to tap the region's growing demand for MRO services.

In an email interview, Boeing Global Sservices vice-president of commercial connected programmes Ed Clark tells FlightGlobal that forming joint ventures with airlines or OEMs can be beneficial in select countries, through the sharing of risk and expertise, as well as gaining cost efficiencies and market access. At the same time, MRO companies working closely with airlines or suppliers over an extended contract can benefit from lower prices, gaining new and additional expertise, and offer a guaranteed work statement.

In Asia, it has formed partnerships with SIA Engineering Company (SIAEC) for Boeing Asia Pacific Aviation Services (BAPAS), which provides technical, component-based and maintenance services for Boeing aircraft.

Boeing Shanghai Aviation Services - a joint venture with Shanghai Airport Authority and China Eastern Airlines - conducts freighter conversions, upgrades to aircraft interiors, avionics, and entertainment systems, as well as line maintenance and heavy maintenance checks.

Elsewhere, Boeing works with airline and supplier-affiliated MROs to support the Global Fleet Care programme.

Asked if Boeing would consider having more dedicated facilities in Asia similar to that of BSAS, Clark indicates that BGS is open to making acquisitions and forming partnerships "when it makes sense for our business and industry".

On ways that airlines and the aviation industry can benefit from BGS, Clark touted the breadth of its products and services "few in the industry can match", and the use of its AnalytX product to create new products based on customer's need.

"Data insights, informed by our OEM knowledge and analytics prowess result in faster flow times, lower operational costs, and enhanced end-to-end reliability. Boeing is able to predict necessary aircraft maintenance, ensuring the relevant experts are ready and parts are sourced – positioning them in the right place at the right time," says Clark.

Boeing's service market outlook for 2018 indicates that MRO providers will have "plenty of room for growth", notes Clark. The Asia-Pacific market will double in size over the next 10 years, and southeast Asia will form 18% of the anticipated commercial services growth.

"Over the next 20 years, the Asia-Pacific region will have the greatest global demand for commercial airline pilots, technicians and cabin crew, with 38% of the global need for pilots, 39% for technicians, and 37% for cabin crew," he adds.

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