Reporting for MRO Management Magazine, Bernie Baldwin speaks to Scott Symington, Chief Commercial Officer at AJW Group, about his predictions for the European MRO market, including current and expected challenges, and their possible solutions.  

Baldwin begins by asking Symington about his overarching assessment of the current position of the MRO market in Europe, and how factors such as supply chain pressures affect MRO departments and independent providers headquartered in Europe. 

Symington replies that while the industry may be experiencing supply chain pressures, AJW’s resilience and strategic business strategy has allowed it to navigate the situation and retain a positive outlook for the future of MRO.  

“AJW’s MRO operations are thriving due to high industry demand, meticulous inventory strategy, and efficient operations,” he reveals. 

When asked what strategies the company is taking to counter supply chain pressures, The CCO shares that AJW Group is adopting a multifaceted approach and addressing both immediate concerns and long-term sustainability. 

Continuing, Symington states that AJW investing in inventory and enhancing collaboration among stakeholders is a key focus for the Group. “By expanding our European MRO facility, AJW Technique Europe, and growing our regional support hubs, we have mitigated many of the issues that have arisen to offer our customers reduced TATs and improved efficiency while facing the challenges related to geopolitical unrest in the region,” he says. 

Next, Baldwin enquires about the strength of the teardown market and used serviceable material (USM) supply. 

Symington concurs with the industry consensus that there is a shortage in USM and adds that this has led to price escalations. “The bottleneck situation at the repair shops is another key factor in the supply and demand equation and since USM prices are primarily pinned to the OEM CLP (catalogue list price), they are following the market and rising.” 
 
“While nobody can predict when the market will rebalance, basic economic theory dictates that prices are trending higher in line with increased demand, and it will take some time to alleviate the situation entirely,” he suggests.   

 
Similarly, engine availability is expected to remain constrained due to ongoing supply chain disruptions, predicts Symington. “Operators are increasingly turning to leasing and extending the use of existing engines to manage costs and meet their operational needs. The market for CFM56-5B, CFM56-7B, and V2500-A5 engines is set to expand, with around 1,500-2,000 shop visits expected, as half of the twenty thousand strong fleet has yet to undergo major maintenance,” he states.   

 
When asked about new industry developments, the Chief Commercial Officer discusses predictive maintenance, which allows airlines to enhance efficiency and reduce downtime by anticipating issues before they arise. Sustainability is a further big focus for all global industries, including aviation. “AJW is incorporating eco-friendly practices and solutions into its operations, and we have embraced innovation and technology to improve our service delivery and operational capabilities,” Symington concludes.