16-7-2024 (KUALA LUMPUR) The global aircraft maintenance, repair, and operations (MRO) sector is poised for significant growth over the next six years, according to Mahesh Kumar, CEO of Malaysia-based aviation services firm Asia Digital Engineering (ADE). This surge in demand is attributed to airlines prolonging the service life of their existing fleets amid a shortage of new aircraft deliveries.
Kumar highlighted the current challenges facing the aviation industry, including supply chain disruptions and escalating labour costs, which have led to a sharp decline in new aircraft deliveries. As a result, airlines are increasingly turning to MRO services to keep their older aircraft airworthy for extended periods.
“It’s a boom for the MRO business,” Kumar stated, underscoring the sector’s bright prospects. ADE, a subsidiary of Capital A (which also operates budget carrier AirAsia), has experienced remarkable growth since its inception in September 2020, despite launching during the peak of the COVID-19 pandemic.
The company, which provides both line maintenance and more comprehensive base maintenance checks, reported a doubling of its annual revenue to 574 million ringgit (approximately $106 million) in 2023. This substantial increase reflects the surge in flying activity as the aviation industry rebounds from pandemic-related disruptions.
ADE’s success is further evidenced by its fully booked maintenance slots through to the end of 2025. This includes bookings for its new 14-line maintenance hangar near Kuala Lumpur International Airport, set to become Malaysia’s largest when it opens in August.
While AirAsia remains ADE’s primary customer, the company is actively seeking to diversify its client base. Kumar revealed plans to attract more third-party airlines and expand services to cover a wider range of aircraft. Notably, ADE is exploring potential collaborations with Chinese planemaker COMAC, which aims to challenge industry giants Boeing and Airbus.
“They’ve approached us and we have visited COMAC’s facilities as well,” Kumar disclosed, though he emphasised that no formal cooperation plans are currently in place. He added, “There’s a lot of similarity between the Airbus and COMAC’s aircraft components. So from the MRO’s perspective, we are pretty excited to service their airplanes.”
To address industry-wide delays stemming from labour and supply chain challenges, ADE has developed innovative solutions. The company has created software to monitor and predict aircraft maintenance needs, which has successfully reduced average repair times by 20-30 per cent.
Additionally, ADE operates Aerotrade, an online marketplace facilitating the buying and selling of aircraft parts among airlines and aviation companies. This platform aims to streamline the procurement process and improve efficiency in the MRO sector.
