Welcome to AVIAN’s Airmail
- staff writers
- May 13
- 5 min read
Updated: May 14
… where we share insights into key trends impacting our aerospace industry, MROs, and airlines globally, as well as what’s going on at AVIAN. Some of us (ahem…) might even remember what an actual Airmail envelope looked and felt like. Thin, lightweight and efficient. So in the same spirit we’ll strive to keep our virtual Airmail brief and to the point!
– Ian Gurekian, CEO & Founder
Our Key Takeaways from MRO Americas 2025
Despite near term volatility around tariffs, interest rates and economic headwinds, the aerospace industry remains globally resilient – as it miraculously did post-Covid – and is poised for significant growth with global annual MRO spend soon expected to eclipse $100 billion and further expanding to ~$150 billion in the next 5-7 years. MRO Americas highlighted the importance of this industry segment in the aircraft lifecycle, with a focus on skilled workforce development as well as the adoption of new technologies like AI, drones and predictive service modeling based upon machine learning.
Market Growth
If anything, the ability of the MRO space to see through the volatility and maintain their ability to service the industry through supply chain disruptions, varying OEM aircraft production forecasts and the dearth of employment talent felt like the main topics of discussion during our meetings on the floor. The need for stability, long-term planning horizons and a coordinated (global) supply chain will all be hallmarks of an efficient MRO offering to an industry that is demanding more and more from it by the day.
Legacy vs. Next-Gen Aircraft/ Fleets
With new technology teething problems not simply isolated to one airframe or engine OEM, the need to refocus efforts on maintaining legacy fleets, efficiently finding green time power and sourcing the materials to do so over an unclear time horizon is proving challenging to most of the players. Inventory is scarce and slots are scarce to get the work done, but luckily capital appears plentiful at the moment to help players work through the system inefficiencies.
The goal should always be to keep the existing fleet flying as long as economically possible, but the perception (on some aircraft) is the industry needs to better balance its focus on maintaining legacy fleets with the adoption of next-generation technologies and capabilities. Growth is not going to slow over the longer term and airlines are struggling to find and maintain aircraft given production slowdowns, and longer MRO downtimes.
Workforce Development
The conference highlighted the need for attracting and retaining talent in the MRO field. We have lost significant top talent over the past several years while simultaneously not doubling down on training and replacements. Given growth needs and new tech struggles, we need to better fill the ranks and plan for the next generation of talent to service and maintain the predicted almost doubling of the global fleet over the next two decades. Once again, stability over this time horizon is key to human resource planning and attracting the talent needed. Take air traffic control concerns as a recent and adjacent example.
Technological Advancements
The adoption of AI (real or in name only), predictive services models based on machine learning, drones, and other technologies are expected to revolutionize MRO operations, improving efficiency, and reducing costs.
Global Expansion
The MRO market in India is experiencing extremely strong growth, highlighting increasing demand for MRO services in emerging economies.
At AVIAN we believe that increased demand for mission-ready aircraft, lagging new technology aircraft production/ deliveries, and an overall supply chain that is still in recovery mode points to increased value in particularly in-demand part pools.
We offer OEMs, MROs and Airlines the ability to monetize these desirable assets, allowing them to invest in expansion and higher yield investments.
We don’t just offer Capital Solutions, we touch, warehouse, repair, and deliver metal.
Tariffs: A real threat? Or a Wait and See? (or what day is it?)
It’s too early and too volatile to make any forecast on how tariffs will impact the dissemination of aircraft parts throughout the balance of 2025 or beyond. It is unclear if tariffs will impact used parts, or only new parts, and unclear if other countries reciprocal tariffs will impact new and/or used material as well. And if they are in place, how long will they be in place? Like every other industry, nobody knows right now and the unstable/ volatile on-again off-again nature of the tit for tat tariff war must settle down before anyone can forecast the longer-term impact. As of now there does not appear to be any carve outs for civil aircraft, engines, or their components.
For now, however, those who already own aerospace parts could benefit from a rising price-tide, but likely offset by an ebbing ‘wait and see’ demand tide. If the cost of new parts rises, then used or new-surplus material will trade at a discount to the higher (tariff-adjusted) pricing. A form of escalation that is likely to buoy those with spare parts in the waiting. A little like used cars at the moment IF new cars become more expensive. But this is really only weeks old at this point and has yet to fully play through the system and be absorbed.
No matter what, the US Administration has introduced unprecedented volatility into the world aviation market, and either companies will have to pay higher prices for parts and services, or they will have to contingently plan for paying higher prices, whether that happens or not. Airlines cannot keep charging the same fares in the hope that they will not experience inflation/escalation on the price of aircraft, engines, MRO services and the parts they consume. Volatility necessarily = capital allocation, buffer stocks, de-risking = higher prices. Full stop. No way around it now. Until or IF it settles down for a while.
More than ever though the supply chain needs to continue producing, and suppliers will need to purchase buffer stock (like capital allocation, just stock allocation) to account for the volatility. This is something that AVIAN will be able to help OEMs, MROs and Suppliers with as they seek to monetize stock and have it on hand simultaneously.
AVIAN is proud to be a capital and inventory solutions provider to OEMs, MROs, and operators of all sizes and geographies and across all aspects of the aerospace industry. Our goal is to deliver service excellence to our customers, intelligent capital solutions and new channels of growth for our partners.
About the AVIAN Inventory Management Orlando, FL Distribution Hub:
89,000 PNs/ 210,000+ line items/more than 13M parts received
Opened in October, 2021; facility designed to spec
AS9120 / ISO 9001 Certified
Meets FAA AC-00-56B requirements
Operates to FAA standards
72,000 sq.ft. Class A facility with a 12,000 sq.ft. climate-controlled storage room
AvSight integrated IMS
Use of on-site Sales Channel Partners (“SCPs”) to speed parts to global customers
About AVIAN Inventory Management
Designed to promote accessibility and speed to market, AVIAN’s focused distribution center in Orlando, Florida delivers unparalleled product availability to all aircraft operators, and maintenance and repair stations around the world, providing a one-stop, same-day, go-to access point through its multiple Sales Channel Partners.
