Market Trends of Nigeria Aircraft Maintenance Repair And Overhaul Industry
Engine Segment to Dominate the Market During the Forecast Period
- Engine maintenance, repair, and overhaul (MRO) is a vital and expensive part of an MRO. The increasing complexity of engine parts and the increased number of aircraft crashes due to engine failures have made operators focus on frequent engine maintenance and periodic checks. First and foremost, aircraft engines undergo significant wear and tear, necessitating regular maintenance and overhauls to ensure optimal performance and safety. The complexity and critical nature of engines make them a focal point for maintenance activities.
- In the engine MRO sector, original equipment manufacturers (OEMs) control approximately half of the market, with the other half roughly split between independent and airline overhaul shops. Operators frequently outsource engine maintenance and use complete MRO-support programs for new powerplant generations. The high number of active domestic airlines, such as Air Peace and Aero Contractors, further contributes to the demand for engine maintenance. With 23 active domestic airlines in Nigeria, each with its fleet of aircraft, the cumulative need for engine-related MRO services becomes substantial. These airlines, operating in a competitive environment, seek to enhance operational efficiency and reduce operational costs by ensuring their engines are well-maintained.
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Large Number of Grounded Aircraft Fleet to Drive the Market
- Nigeria has a high number of grounded aircraft, with 79 out of 123 planes, or nearly 64%, currently out of service. This is a significant issue as the country operates around 100 commercial aircraft, and over 48 of these are grounded, impacting the country's total fleet capacity. The Nigerian government still needs to fulfill its commitments to the industry, particularly in the areas of MRO facilities and aircraft leasing businesses, which are crucial for meeting local demand and reducing capital flights. The substantial number of grounded planes in Nigeria has emerged as a driving force behind the growth of the MRO market in the country.
- Several Nigerian airlines need help with conducting major maintenance checks overseas due to the absence of comprehensive MRO facilities domestically. With a reported 23 active domestic airlines and the Nigerian Civil Aviation Authority recording 913 licensed engineers, the demand for MRO services is evident.
- The situation has resulted in flight delays, with major airlines such as Air Peace, Arik, Dana Air, Green Africa, and Ibom Air experiencing significant disruptions. In 2021, Air Peace, which holds 40% of the local market share, delayed 55% of its 17,861 flights, while Arik delayed 57% of its 9,024 flights. Similarly, Dana Air, Green Africa, and Ibom Air faced delays of 55%, 49%, and 27%, respectively, of their operated flights. This issue has led to increased demand for MRO facilities in Nigeria, which is expected to drive the growth of the country's MRO market during the forecast period.
- For instance, in April 2022, Ibom Airlines Limited announced that the training of its staff in aircraft maintenance at the company's MRO facility was 85% complete. This strategic approach aligns with the goal of creating a hub in West Africa, offering maintenance services comparable to leading centers in Africa, reducing the reliance on foreign MRO services, and potentially attracting business from airlines across the region.
