Aircraft Manufacturers And The Future Of MRO Services In Africa
The aviation industry in Africa is poised for growth, continuing the recovery witnessed in the industry. One major sector that will play a critical role in this growth is the Maintenance, Repair, and Overhaul (MRO) services sector. Industry figures project that between 2024 and 2033, Africa’s MRO spend will be approximately $32.6 billion USD. Boeing projects that between 2024 and 2043, the Africa MRO market size will be USD 85 billion. With the industry embracing greater liberalization, spending is expected to increase. The major challenge is determining the quantum of this figure that will be retained on the continent.
Aircraft availability has always been a major challenge for airlines; the aircraft delivery delays and supply chain issues in the industry have only magnified its relevance, especially in the African airline context. In 2023, Allan Kilavuka, CEO of Kenya Airways, bemoaned the negative effect of maintenance delays on the airline’s operations. In November 2024, during the African Airlines Association (AFRAA) AGA in Cairo, the Group Chairman of EgyptAir, Engr. Yehia Zakaria noted that aircraft delivery delay was impacting the airline’s expansion. In Nigeria, many airlines have complained about the late return of their aircraft from overseas maintenance shops. The impact has included rolling back on certain routes, adjustments to flight operations, schedule unreliability, and overall poor customer service. Many airlines have had to resort to leasing aircraft, and companies like Zela Aviation have been forthcoming in bridging the gap.
Some of these aircraft unavailability issues would be resolved if there were sufficient aircraft maintenance organizations on the continent, both in size and maintenance capabilities.
Though there exist major repair centres in North Africa (EgyptAir Maintenance, Royal Air Maroc) in East Africa (Ethiopian Airlines MRO), Southern Africa (SAA Technical and others), with the exception of West Africa were there are no big MROs, many of the MROs on the continent are restricted in size and scope of services they offer.
What Are Aircraft Manufacturers Doing?
There is generally an understanding by aircraft manufacturers that nearness to maintenance sites and timely spare parts support are crucial for the choice of aircraft acquisition. As a result, manufacturers support MRO facilities and service centres as a way of encouraging operators to purchase their products. In Nigeria, Embraer recently commenced work with Air Peace on its MRO ambitions. Similarly, aircraft manufacturers are also actively increasing the capacity of African MROs to maintain their product types. In one such case, the regional aircraft manufacturer, ATR, is partnering with Ethiopian Airlines MRO to build capacity for ATR aircraft maintenance on the continent.
ATR says the partnership, which will enable “enhanced support to local operators,” would “cover the development of Ethiopian MRO’s maintenance capabilities for the ATR aircraft types and the establishment of a local spares stock to reduce response time for ATR operators in the region.” ATR’s CEO Nathalie Tarnaud spoke to the need of African airlines, noting: “ATR operators will benefit from an improved quality of service, lower maintenance cost, reduced downtimes and lower emissions through the support of an experienced partner closer to their needs.” Downtimes for AOG in Africa are time-consuming.
Equally, Airbus says its “supply chain in Africa represents more than 100 direct or indirect suppliers for products and services that range from design engineering, manufacturing of aero-structures and components to composites.” Airbus says it operates sites in both Morocco and Tunisia. In Southern Africa, Airbus says South Africa’s aerospace industry “is a major supplier of parts, components and sub-assemblies that are incorporated across the Airbus product range.”
The Boeing company has also not been left out. In August 2024, it signed a Memorandum of Understanding with the government of Nigeria on aircraft acquisition and MRO development.
These efforts signal a growing understanding among manufacturers to leverage MRO collaboration and expand their market shares on the continent.
Eyes On The Future
More Investments in MRO capabilities in Africa will reduce maintenance costs and, by extension, the cost of flying, which in turn will lead to more travelers flying within the continent. With the implementation of the Single African Air Transport Market (SAATM), the introduction of more routes and frequencies results in increased flight operations and, consequently, higher maintenance requirements. No doubt Africa needs larger MROs with enhanced maintenance capabilities, which is where more effort is required from aircraft manufacturers. Many airlines are developing internal maintenance capabilities, and aircraft manufacturers may wish to collaborate more closely with these airlines. Recent technological trends and innovations, including predictive maintenance, demand more investments, which are often beyond the capacity of the nascent African MROs. Ultimately, more partnerships are needed with aircraft manufacturers to build the critical mass of maintenance capacity required to support the projected growth in African air transport.
The existing large MROs in Africa may form the foundation of a consolidated MRO establishment, with investments from aircraft manufacturers to increase their capacity for third-party maintenance work and expand the scope of their maintenance capabilities.
Manpower Training and Capacity
Development is needed within the continent, and aircraft manufacturers have a significant role to play in this regard. Boeing, in its 2024 global market forecast, projects that Africa will need 25000 technicians between 2024 and 2043. Skills shortage in Africa had preexisted the current state, attributed to COVID-19.
Therefore, the requirement for a pool of young talents from Africa to work in technical, maintenance, and other areas to scale up MRO work in Africa is very present. At the 2024 MRO Africa in Addis Ababa, African Airlines Association’s Secretary General, Abderahmane Berthe, said: “The two critical challenges for MRO activities growth to be addressed are: The Supply Chain challenge and the Labor shortage challenge.” Berthe says, “To operate more aircraft, we need to develop human resources”. Aircraft manufacturers will need to partner with governments and institutions in Africa to address this challenge. Enhancing training capacity may also be built into negotiations for aircraft acquisitions.
Forex Challenges
Many countries in Africa face significant foreign exchange liquidity challenges, which are already making it difficult for operators to either take their aircraft out for maintenance or return those with completed maintenance abroad to their fleets. With increased collaboration and enhanced local capacity, the need for foreign exchange will be further reduced, ensuring the economic sustainability of many African carriers, especially small carriers.
Ultimately, enhancing MRO capacity in Africa is a win-win for airlines, MRO service providers, and aircraft manufacturers in Africa. The anticipated growth of aviation in Africa will place more demands on existing MRO facilities in Africa. The patronage for the MRO facilities in Africa is assured, but the huge investment outlay is a disincentive. Furthermore, more human capacity will be required for any expansion of MRO capacity, necessitating intentional efforts aimed not only at providing training opportunities but also at creating an environment that fosters professional growth and development. The collaboration of aircraft manufacturers is critical to achieving these objectives. Many of these opportunities exist only as MOUs; the time has come to take critical actions for the future of MRO services in Africa, and the aircraft manufacturers hold some of the aces.
by Monday Ukoha
