Market Trends of Business Jet MRO Industry
Engine MRO to Dominate Market Share During the Forecast Period
Engine MRO involves a comprehensive suite of activities, from inspections to overhauls, all aimed at ensuring aircraft propulsion systems' reliability, efficiency, and safety. These activities are tightly regulated, adhering to OEM (Original Equipment Manufacturer) specifications and industry best practices to guarantee compliance and airworthiness.
Aircraft engines, including turbofans, turboprops, and turboshafts, face intense operational challenges, such as high-speed maneuvers, extreme temperatures, and extended missions. Consequently, engine MRO demands a level of precision, reliability, and durability that surpasses that of commercial counterparts.
Due to rising engine failures linked to inadequate MRO practices, aircraft operators increasingly prioritize engine health. In the engine MRO landscape, OEMs command roughly 50% of the market share, with the remaining portion divided between independent entities and airline overhaul shops. A Checks ensure that emergency equipment, like life vests and oxygen masks, is fully operational and ready for immediate use. This check also inspects the plane’s landing gear, engines, and primary structure for any signs of strain or damage, typically occurring every 400-600 flight hours or after 200-300 flights.
OEMs in the engine MRO domain often capture a significant revenue share, primarily due to maintenance support contracts embedded in product purchase agreements. Operators commonly outsource engine maintenance, opting for comprehensive MRO-support programs for newer powerplant generations.
In July 2024, JSX inked a TotalCare and SelectCare service agreement with Rolls-Royce plc, encompassing JSX’s fleet of 162 Rolls-Royce AE 3007A engines. These engines power JSX's 77 Embraer ERJ-145 and ERJ-135 aircraft. Valued at USD 300 million, the decade-long agreement underscores the growing trend. With rising private jet usage and heightened demand for jet charter services, the engine MRO segment is poised for significant attention during the forecast period.
North America to Dominate Market Share During the Forecast Period
North America's aviation supremacy is anchored in its expansive fleet, elevated aircraft utilization rates, and state-of-the-art infrastructure. The region's well-entrenched aviation ecosystem, featuring a diverse array of MRO facilities and hosting premier OEMs and service providers, solidifies its leading stature.
Stable economic conditions in North America have significantly fueled the growth of its business jet market. With a robust economy marked by solid GDP growth and low unemployment, the region fostered an environment ripe for corporate expansion and investment. In 2023, North America's high-net-worth individuals (HNWIs) saw their wealth surge by nearly 8% from the previous year. North America witnessed the most significant uptick in its ultra-wealthy demographic, encompassing 66% of the global HNWI tally.
North America stands out, holding the lion's share of the world's private jets, with the US alone representing about 90% of the global jet fleet. This dominance positions the region at the forefront, both in terms of volume and value. As of December 2023, Mexico and Canada contributed 6% and 3% to the region's operational fleet, respectively.
Aircraft charter operators aiming for a tailored experience harness cutting-edge solutions to present a comprehensive range of flight services. These span from fixed-price charters to bespoke membership programs. Ownership perks, like evolving fractional ownership and private jet card initiatives, have been pivotal in drivingdriven the region's market growth.
In October 2023, Textron Aviation inked a deal with Fly Alliance, agreeing to purchase up to 20 Cessna Citation business jets, with an option for 16 more. Fly Alliance plans to deploy these jets for its luxury private charter services, with the inaugural aircraft, an XLS Gen2, slated for delivery in 2023.
