European military MRO market wide open

A new report tfrom Counterpoint Market Intelligence refutes the perception that Europe’s military Maintenance, Repair and Overhaul markets for aircraft and equipment are closed to competition.

A new report refutes the perception that

’s military Maintenance, Repair and Overhaul (MRO) markets for aircraft and equipment are closed to competition. European Military Aircraft and Equipment MRO 2006, which has just been published by aerospace analysts

, dispels the myth that military MRO contracts are only won by either state organisations or the country’s national champions.

The report provides analysis of military MRO in 16 European countries, highlighting the many different aspects of MRO. It recognises that there are still barriers, some perceived and some real, to winning cross-border MRO work. However, with the right mix of competitive pricing, innovative work practices, top quality and shorter turnround times, contracts are being successfully negotiated.

Counterpoint estimates that the European military aircraft and equipment MRO market was worth $16.5bn (€13bn) in 2005; this compares to an estimated €22bn in the US.

Increasing importance will be apportioned to the MRO sector as budgetary pressures lead the armed services to put greater emphasis on upgrading existing systems and extending platform life. The report notes that one of the trends is that large third party military MRO providers are achieving increasing success in winning cross-border work on platforms that were originally manufactured outside Europe.

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