The Capacity Buildup: Airport Infrastructure & MRO - Part 3

The Capacity Buildup: Airport Infrastructure & MRO - Part 3

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The world of aviation continues to progress, with significant expansion into the Middle East and Indian markets. These regions are estimated to achieve significant GDP growth - a direct result of increased commerce and passenger footfall. In order toservice the growing passenger and cargo traffic, and therefore an increased need to service aircraft, we are witnessing rapid infrastructure spend as well as Maintenance, Repair, Overhaul (MRO) capacity expansion.

The Booming Airport Infrastructure

Across the region, airport infrastructure is seeing a boom, whether it is airport expansion, refurbishments, or greenfield projects. In India alone, ongoing project values are expected to cross $10 billion, with six airports in the billion dollar club. The Middle East is estimated to invest a further $151 billion by 2040 in airport expansions, whilst Africa has thirty-seven ongoing projects at an estimated $17 billion spend. These numbers are effective drivers of growth, employment, and increase in per capita earnings.

Airport infrastructure involves both the landside (passenger experience) and airside (technical area). These projects would include procurements in items like:

• Escalators
• Elevators
• HVAC (heating, ventilation, and air conditioning)
• Furniture
• Carpeting
• Display systems
• Lounge and duty-free shops
• PBBs (Passenger boarding bridges)
• GSE (Ground support equipment)
• Signaling and apron control equipment

Keeping up With MRO Capacity

To keep up with increased fleet sizes, and to reduce "time to market" and costs, MRO specialists are making plans to either set up shop across the region or increase their existing capacities. Each MRO operator needs to get certified by the OEM (Original Equipment Manufacturer), which allows OEMs to grow across the region. MRO services are actively attracting business from across the world due to slot availability, cost, and technical competence. Airlines and operators across the globe are opting to work with MRO services out of country if it means a faster turnaround time and is more cost-effective. MROs can operate not only for civil (passenger) aircraft, but also for aircraft engines, private aircraft, helicopters, and military aircraft. These segments bear a significant footprint in this region, and further growth is expected.

Expeditors maintains a local focus in the Middle East, Africa, and Indian subcontinent to support MRO customers and airport infrastructure customers. We provide service offerings through our global network, such as AOG, Customs Brokerage, and Warehousing and Distribution. We maintain dedicated logistics specialists for industries like yours. For more information about the aviation industry, contact your local Expeditors representative today.

Want more from our series?Read our first blog in this series here!