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Growth of Outsourcing in Aircraft MRO Market

Author

Listed:
  • Aleksandr Alekseevich Nikitenko

    (Russian Foreign Trade Academy, Moscow, Russia)

Abstract

Civil aviation makes a significant contribution to the growth of the world economy; it enables transportation of passengers and commercial cargo in increasing volumes. In the article, the author focuses on the analysis of the structure and changes in the aircraft maintenance, repair, and overhaul (MRO) market, contract pricing for outsourcing services in the civil aircraft market, and the market prospects. He concluded that the main groups of services in the market under consideration are heavy maintenance services, i.e., airframe maintenance, maintenance of the main aircraft components, engine maintenance and relatively simple line maintenance. In the section covering the contract pricing, the author highlights a model for setting fixed prices, a cost model, a model that establishes incentives for contract performers, and a model that provides risk sharing and bonuses for certain achievements in the execution of an outsourcing contract.

Suggested Citation

  • Aleksandr Alekseevich Nikitenko, 2021. "Growth of Outsourcing in Aircraft MRO Market," Russian Foreign Economic Journal, Russian Foreign Trade Academy Ministry of economic development of the Russian Federation, issue 12, pages 40-49, December.
    • Handle: RePEc:alq:rufejo:rfej_2021_12_40-49
    DOI: 10.24412/2072-8042-2021-12-40-49
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