Airlines Are Paying More And Waiting Longer
The global aviation industry has largely recovered from the disruptions of the pandemic. Passenger traffic continues to rise, aircraft utilization is at record levels, and airlines are aggressively expanding fleets to meet growing demand. Despite geopolitical tensions, supply-chain disruptions, and periods of fuel-price volatility, global air travel demand has remained remarkably resilient.
Maintenance, Repair and Overhaul (MRO) refers to the inspection, repair, overhaul, modification, and servicing activities required to keep aircraft airworthy and operational. Despite spending more on MRO services than ever before, airlines are facing longer turnaround times, extended aircraft groundings, and increasing difficulty securing maintenance slots.
The reason is simple: maintenance demand is growing faster than maintenance capacity.
What began as a temporary post-pandemic disruption has evolved into a structural challenge for the aviation industry—and a significant investment opportunity for markets capable of expanding MRO capacity.
A Market Growing Faster Than Its Infrastructure
According to Airbus’ Global Services Forecast, the commercial aviation services market is expected to grow from approximately US$150 billion in 2024 to nearly US$290 billion by 2043. Over the same period, the global commercial fleet is expected to expand from roughly 24,700 aircraft to more than 49,000 aircraft.
At the same time, Oliver Wyman estimates that the global MRO market reached approximately US$136 billion in 2025 and could approach US$193 billion by the end of the decade.
Normally, fleet growth and maintenance capacity evolve together. Today, however, that relationship has broken down.
Aircraft delivery delays, supply-chain disruptions, labour shortages, and growing engine maintenance requirements, and growing threats in geo- politics worldwide impacting trade and transport of resources, have created a capacity deficit across the global MRO ecosystem.
The result is an industry where maintenance demand continues to rise, but available maintenance capacity struggles to keep pace.
What Is Causing Engine Maintenance Bottlenecks?
The most significant constraint is engine maintenance in the MRO landscape.
Engine overhauls (approx.30%) represent the largest and fastest-growing segment of the aftermarket. Airbus forecasts the off-wing maintenance market—including engine shop visits, repairs, and overhauls—to grow from approximately US$107 billion in 2025 to US$218 billion by 2044.
However, engine shops worldwide continue to face shortages of critical parts, skilled technicians, and repair capacity. In many cases, facilities have available labour and infrastructure but remain unable to complete repairs due to supply-chain constraints and these shops are not available to airline operators to their schedule.
This has created lengthy maintenance queues, forcing airlines to lease spare engines, retain older aircraft longer, and absorb higher operating costs.
According to industry estimates, continuing supply-chain and maintenance disruptions are expected to cost airlines more than US$11 billion globally.
In today’s market, airlines are no longer simply paying for maintenance—they are paying for access to maintenance capacity.
Why can India Emerge As A Global MRO Hub?
As airlines, OEMs, and MRO providers search for additional maintenance capacity, a few GCC countries have started investing heavily on MRO to capture this attractive market, as attention is increasingly shifting toward emerging aviation hubs. Among them, the Indian MRO market is attracting growing interest due to its scale, talent base, and policy support.
India stands out for three reasons:
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One of the world’s fastest-growing aviation markets
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A large pool of engineering and technical talent
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Increasing policy support for aviation and MRO development
According to Airbus, India’s commercial aircraft fleet is expected to triple to approximately 2,250 aircraft by 2035, while the domestic MRO market is projected to reach nearly US$9.5 billion.
Government initiatives, including the rationalisation of GST and aviation-sector reforms, have further improved the economics of operating MRO facilities in the country.
At the same time, major aerospace companies are already expanding their presence. Airbus has partnered with HAL to strengthen maintenance capabilities, while Safran is investing in LEAP engine MRO infrastructure in Hyderabad. On their part, two major airline operators are also investing in MRO infrastructure, with Air India developing a major MRO facility in Gurugram and IndiGo establishing maintenance infrastructure in Bengaluru. However, time is of great essence to ensure that all planned MRO infrastructure is commissioned without delay. India can then hope to save millions in foreign exchange by possessing indigenous capabilities for major MRO activities such as engine overhauls, LLP replacements, and D-checks for all domestic airline operators.
The opportunity extends beyond serving domestic airlines. As maintenance backlogs persist globally, India is increasingly positioned to become a potential regional MRO hub serving Asia-Pacific, the Middle East, and Africa.
The Investment Opportunity need not be just Greenfield
When discussing Indian MRO market entry or MRO expansion, the focus often falls on building new facilities. However, the faster opportunity may lie elsewhere. Across India, several independent and mid-sized MRO providers already possess operational facilities, skilled workforces, customer relationships, and regulatory approvals. Many are active in airframe maintenance, component repair, line maintenance, avionics, NDT services, and engineering support.
For global aerospace companies seeking capacity expansion, these businesses present attractive partnership and acquisition opportunities. Rather than spending years developing new facilities, investors can potentially accelerate market entry and capacity creation through strategic transactions.
Joint Ventures
Joint ventures can provide:
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Faster market access
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Local regulatory expertise
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Existing infrastructure
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Lower capital deployment
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Access to skilled engineering talent
Strategic Acquisitions
Acquisitions can provide:
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Immediate operational capacity
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Existing certifications and approvals
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Established customer relationships
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Platform opportunities for regional expansion
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Faster scalability than greenfield development
As maintenance demand continues to outpace available capacity globally, access to operational MRO assets may become increasingly valuable.
From Service Providers to Strategic Infrastructure Assets
Historically, MRO businesses have often been viewed as service providers supporting airline operations. That perception is changing.
In an environment where airlines are struggling to secure maintenance slots and engine shop capacity remains constrained, MRO infrastructure is becoming a strategic asset within the global aerospace supply chain. Investors are increasingly evaluating MRO businesses not only on current revenues, but on their ability to provide scalable capacity in a supply-constrained market.
This shift could significantly increase interest in regional MRO platforms capable of supporting future industry growth.
SAS Partners Perspective
The global MRO capacity crunch is creating a rare convergence of operational demand and investment opportunity. For OEMs, MRO operators, aerospace suppliers, and private equity investors, The Indian MRO market offers a compelling combination of aviation growth, engineering talent, policy support, and cost competitiveness.
However, capturing this opportunity requires more than capital investment. Companies must identify the right partners, evaluate acquisition targets, navigate regulatory requirements, structure tax-efficient transactions, and develop scalable operating models.
At SAS Partners, we work with aerospace and aviation businesses across the investment lifecycle, supporting market entry strategy, partner identification, transaction advisory, financial and tax due diligence, regulatory compliance, and post-deal integration.
As global maintenance demand continues to exceed available capacity, strategic investments, joint ventures, and acquisitions within India’s MRO ecosystem may offer one of the most practical routes to expansion. In the years ahead, the most valuable asset in aviation may not be an aircraft or an engine, it may be access to maintenance capacity itself. India has an opportunity to become a key part of the solution.
