Rising Aircraft Operating Costs likely to Increase PMA Adoption

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c85250) has announced the
addition of "Strategic Analysis of Asia Pacific PMA Parts Market" to
their offering.

Rising aircraft operating costs are expected to ignite the
penetration of parts manufacturer approval (PMA) parts in the Asia
Pacific region. On account of the cost of aero engine overhaul and
maintenance, material costs represents at least 60 percent of the
overhaul price, and due to this, many airlines are looking to make
massive savings through the extensive use of lower priced PMA parts
for their replacement instead of sourcing them to the original
equipment manufacturers (OEMs). What is more, the growth of the PMA
and maintenance, repair and overhaul (MRO) markets is largely
dependent on air traffic growth and the Asia Pacific region continues
to witness a massive surge in this regard.

However, one of the challenges in using PMA parts is the risk that
will be faced by either the airlines operator or the owner of the MRO
company. The risk involved is not in terms of quality but that of
warranty, which is not as comprehensive as the warranty provided by
the OEM parts suppliers. "Airlines and MROs - the main customers for
PMA parts - are still of the perception that PMA parts are not as good
and trusted as OEM parts," notes the analyst of this research service.
"However, PMA parts used in certain circumstances are found to be
better than compared to the OEM parts, as normally PMA manufacturers
use the latest technology to manufacture PMA parts."

Military MRO Segment Generating the Largest Revenues

Penetration of PMA parts in the Asia Pacific commercial and civil
MRO market is in the range of 0.73 percent to 1.41 percent of the
total Asia Pacific aircraft and engine aftermarket parts. The
penetration percentage of PMA parts is likely to grow at a compound
annual growth rate (CAGR) of 6.8 percent from 2003 to 2013, resulting
in revenue CAGR of 18.1 percent. Penetration rate in the Military MRO
segment is about ten times higher with penetration rate from 10.2
percent to 14.8 percent, but with expected lower revenue CAGR of 9.2
percent.

Overall, the Asia Pacific PMA parts market is still dominated by
suppliers from the North American region due to the Federal Aviation
Administration's long-standing involvement in the PMA parts market. In
recent years, the European Aviation Safety Agency (EASA) has been
looking at the aftermarket industry with the introduction of the
European Parts Approval (EPA) certification requirements. Although
PMA/EPA manufacturers are commonly considered to be the competitors of
OEM parts suppliers, they also have gained the rights to manufacture
parts under the OEM license.

This Frost & Sullivan research service titled Strategic Analysis
of Asia Pacific PMA Parts Market provides current and future industry
dynamics, revenue forecasts, and market penetration strategies. In
this research, Frost & Sullivan's expert analysts thoroughly examine
the PMA parts market penetration in commercial and military MRO.

Key discussions:

Strategic Analysis of Asia Pacific PMA Parts Market

- Executive Summary

- Market Overview

- Overview Of PMA Parts Market

- Market Engineering Measurement Analysis

- Strategic Analysis

- Key PMA Industry Participants

For more information visit
here

Research and Markets
Laura Wood
Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com

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