“The MRO industry indicates that in the time since Covid hit, it has focused on the basics – labour and materials cost management.  That said, spending on technology did not suffer as much as expected, indicating a commitment to technologies that really drive productivity and other efficiencies,” said Derek Costanza, Oliver Wyman partner and lead author of the report.

The MRO industry recovery is underway, and more than 60 per cent of respondents expect the MRO the sector to recover to 2019 levels in 2022 or 2023, in line with Oliver Wyman’s forecast of recovery to pre-pandemic levels in 2022.

Key findings include:

• Covid-19’s lingering effects on fleet plans and strategies are the primary disruptors;
• Continued cost management and competitive positioning of original equipment manufacturers (OEMs) versus MROs in the aftermarket are other key concerns;
• Airline respondents generally expect a slightly earlier recovery than MRO respondents likely as the airlines are one step closer to changes in passenger demand; and
• The survey also compared the tactics used to weather the pandemic across regions. For example, 89 per cent of Western European airline respondents said they reduced headcount, while only 40 per cent of North American airline respondents did so. Many carriers outside of North America were forced to cut capacity more severely due to travel restrictions, forcing them to make greater changes to their cost structures.