Beam Infotech HK - Supply Chain Solutions
Southeast Asia is experiencing rapid growth in air passengers (10%) with at least half of the region’s 10 countries recorded double-digit growth. India, posted the fastest full-year growth rate in RPKs (Revenue Passenger Kilometres) at 17.5% for 2017 followed by China (13.3 %).
However, it is also a region of intensifying competition, with several markets suffering from overcapacity. Yields have been steadily declining, resulting in very low profit margins, despite low fuel prices and relatively high load factors. Thus, pressure to reduce costs related to aircraft MRO (aircraft maintenance, repair and overhaul).
TeamSAI, an aviation consulting firm, has forecast that Asia will be the largest maintenance, repair and overhaul (MRO) market by 2024. Presently, only five to ten percent of the MRO work for domestic scheduled carriers is carried out in India with the rest outsourced to third-party service providers outside the country. Meanwhile, countries in the region such as Singapore, Dubai and others, are benefiting from the lack of MRO infrastructure in South Asia, i.e., India, Pakistan, Bangladesh and even Sri Lanka.
We at Beam, provide consulting services to aircraft operators in Southeast Asia to help them optimize the MRO costs. We also build strategy for sourcing spares and maintain a lean inventory to help reduce burden on working capital and improve return ratios.
