Under sanctions' shadow, MROs still bullish but cautious--on Russia
by Paul Seidenman & David Spanovich
As Russian Airlines have modernized their post-Cold War fleets with western-built aircraft, MRO service providers and components suppliers have pursued promising opportunities with those carriers. Now there is a concern as to whether those opportunities will withstand the increasingly strained relationship between the West and Russia over that country's involvement in Ukraine.
Russia's airline MRO market is considered ripe for growth by industry analysts and suppliers. According to data assembled for this story by TeamSAI, as of January, there were 664 aircraft powered by 1,390 engines from Western OEMs operated by Russian airlines. Together those airframes and engines are expected to generate $1.5 billion in MRO services in 2014, expanding at a compound annual growth rate (CAGR) of 6.2% to $2.7 billion by 2024. For the 2014-24 forecast period, TeamSAI projecs deliveries in excess of 500 aircraft to Russian carriers, including the Airbus A320 and A320NEO, Boeing 737-8 MAX and 737-800, Sukhoi Superjet 100, and the Irkut MC-21.