Supply chain strategy for life time support of military aircraft

Abstract

Every aircraft undergoes multiple overhauls in its lifetime. Overhauling an aircraft involves disassembly of all parts, checking each assembly part, system and sub-system, replacing wornout components, and then putting together the rejuvenated aircraft. Each aircraft will have designed lifecycle time (Generally 40 years or 6000 flying hours for a military aircraft) and overhauls will be carried out at prescheduled intervals. In addition to overhauling, aircrafts undergo regular repair and maintenance activities as and when required. All these activities are collectively called as MRO. MRO service also includes inspection, alteration, and supply of spare parts, adhesives, accessories, raw materials, coatings, sealants, and consumables. Due to the nature of the industry, these are highly regulated and subjected to national as well as international standards. Due to the stringent requirements for airlines as well as defence operators, MRO is emerging as a lucrative opportunity. Global MRO Business is expected to be 3/4th of production industry and was valued at $135 billion in 20151 . Currently, Asia Pacific region has 27% of global air transport fleet; this is expected to raise to 32% by 20251 . The MRO industry is expected to grow at 4% CAGR over next ten years. The MRO industry is further segmented into Narrow body jet, Wide body jet, Turboprop and regional Jet. In addition to these helicopters also undergo predefined re-fitment and overhauls.