THE Asia-Pacific market for maintenance, repair, and overhaul (MRO) services would appear to favour well-resourced providers offering certainty to airlines, reports New Jersey's Air International News AIN.
Airframers and engine OEMs have come to benefit in that environment, as have big MRO providers such as Lufthansa Technik (LHT), which has invested much to serve the region's varying needs.
For the technical arm of the German flag carrier new business opportunities depend on strong ties with the various governments in the region, most notably China's.
Here LHT controls 80 per cent of a joint venture in Shenzhen with Beijing Kailan Aviation Technology Company.
While the Asia-Pacific region accounts for some 20 per cent of its revenues, China theoretically presents a huge growth opportunity but also challenges to navigate its bureaucracies and develop relationships, according to LHT's head of corporate strategy and market analytics Sven Taubert.
China ranks as the region's biggest market and will remain so for at least another 10 years, he said, meaning no company doing business in Asia can afford to discount it.
Other major MRO providers exhibiting at the Singapore Airshow this week include locally-based SIA Engineering and SR Technics.
'The uncertainty over Taiwan and the trade war with the US, we all know about that,' said Mr Taubert.
'And every company I guess is a little bit cautious about that, but no one is in the position to ignore China's potential. However, talking to my colleagues from the other companies about China, there is a lot of uncertainty on many faces,' he said.
LHT prefers to grow organically at its existing facilities in Shenzhen. 'That's our strategy worldwide,' he said. 'We first start with our existing footprint, see where we can grow organically, and try to have more centers of excellence somewhere. This reduces complexity and is how we started in Hamburg.'
Lufthansa Technik also expects to apply a version of that model in Bangalore, India, where it now operates an AOG desk. Although the company hasn't yet established a workshop at the facility, it performs 'a lot of digital stuff' there.
'I would say India is definitely a very, very interesting country for us,' said Mr Taubert.
LHT counts Air India Group and Vistara as major customers in the subcontinent, while it also works with IndiGo, the largest Airbus narrowbody customer in the world.
Mr Taubert applauded the Tata Group's takeover of Air India as a significant move toward stability in a country that has struggled in that regard.
'You need political and economic stability,' he said. 'And, of course, some of the countries in Asia are not there yet.'
He pointed to Japan as an example of a country in the region whose stability tends to attract Western companies.
'It's always easier for a Western company to step into these markets compared to, for example, emerging markets like Indonesia, which is still very vibrant and where a lot of airlines come and go.'
Asia hasn't suffered from the shortage of skilled mechanics seen in North America and Europe, largely due to the region's large pool of young professionals graduating from a comparatively ample number of technical schools.
SeaNews Turkey
Airframers and engine OEMs have come to benefit in that environment, as have big MRO providers such as Lufthansa Technik (LHT), which has invested much to serve the region's varying needs.
For the technical arm of the German flag carrier new business opportunities depend on strong ties with the various governments in the region, most notably China's.
Here LHT controls 80 per cent of a joint venture in Shenzhen with Beijing Kailan Aviation Technology Company.
While the Asia-Pacific region accounts for some 20 per cent of its revenues, China theoretically presents a huge growth opportunity but also challenges to navigate its bureaucracies and develop relationships, according to LHT's head of corporate strategy and market analytics Sven Taubert.
China ranks as the region's biggest market and will remain so for at least another 10 years, he said, meaning no company doing business in Asia can afford to discount it.
Other major MRO providers exhibiting at the Singapore Airshow this week include locally-based SIA Engineering and SR Technics.
'The uncertainty over Taiwan and the trade war with the US, we all know about that,' said Mr Taubert.
'And every company I guess is a little bit cautious about that, but no one is in the position to ignore China's potential. However, talking to my colleagues from the other companies about China, there is a lot of uncertainty on many faces,' he said.
LHT prefers to grow organically at its existing facilities in Shenzhen. 'That's our strategy worldwide,' he said. 'We first start with our existing footprint, see where we can grow organically, and try to have more centers of excellence somewhere. This reduces complexity and is how we started in Hamburg.'
Lufthansa Technik also expects to apply a version of that model in Bangalore, India, where it now operates an AOG desk. Although the company hasn't yet established a workshop at the facility, it performs 'a lot of digital stuff' there.
'I would say India is definitely a very, very interesting country for us,' said Mr Taubert.
LHT counts Air India Group and Vistara as major customers in the subcontinent, while it also works with IndiGo, the largest Airbus narrowbody customer in the world.
Mr Taubert applauded the Tata Group's takeover of Air India as a significant move toward stability in a country that has struggled in that regard.
'You need political and economic stability,' he said. 'And, of course, some of the countries in Asia are not there yet.'
He pointed to Japan as an example of a country in the region whose stability tends to attract Western companies.
'It's always easier for a Western company to step into these markets compared to, for example, emerging markets like Indonesia, which is still very vibrant and where a lot of airlines come and go.'
Asia hasn't suffered from the shortage of skilled mechanics seen in North America and Europe, largely due to the region's large pool of young professionals graduating from a comparatively ample number of technical schools.
SeaNews Turkey
