Middle East Maintenance, Repair and Overhaul Market – 2013 Market

Overview and Growth Opportunities

February 2013

Produced by the Canadian Trade Commissioner Service

Table of contents

Introduction

1. Regional Airline Overview

2. Regional MRO Market Profile

2.1 Engine Overhaul

2.2 Airframe heavy maintenance

2.3 Component Overhaul

2.4. Line Maintenance

3. Primary Suppliers

4. Key Market Trends and Challenges

5. Opportunities for Canadian Aerospace Suppliers

Appendix A: Glossary of Terms

Appendix B: Airline maintenance approaches

Appendix C: Supplier Details

Appendix D: Data Tables

Introduction

Over the last decade, the Middle East region, and in particular the GCC[1]countries, has established itself

as a key driver of growth in the global commercial aviation market. The significant success of some of the

region’s airlines, in particular Emirates, Etihad, and Qatar Airways, has positioned the Middle East as a

force of change in the global airline industry. As a result of this and the more significant and parallel

growth in Asia, the inexorable long-term shift of the centre of gravity of the airline industry from North

America and Europe to “points East” is well underway.

Such growth inevitably provides commercial opportunity. Hence, the Canadian Trade Commission in the

United Arab Emirates Consulate has sponsored this report to facilitate the strategic and commercial

growth of the Canadian Aerospace sector in the Middle East region.

Specifically, this report is focused on the airline maintenance, repair and overhaul (MRO) sector. This is

set to grow at 8.1% per annum over the next decade, representing significant challenges for local

companies and also opportunity for Canadian MRO supply chain participants who offer excellence and

added value.

The report is structured to provide foundation information on the Middle East MRO sector:

1. Regional Airline Overview: who are the major airlines in the region? Who is driving growth?

What is the main airlines’ approach to MRO provision?

2. Regional MRO Market Profile: what is the size and breakdown (by activity) of the Middle East

and GCC MRO market? How much of this supply is outsourced?

3. Primary Suppliers: who are the main locally based and owned MRO suppliers? What non-Middle

1

East firms have established capability in region?

4. Key Market Trends and Challenges: what are the main issues and challenges facing the airlines

and MRO supply in the Middle East today and in the near future?

5. Opportunities for Suppliers: given the above market features, what are the major opportunities

for suppliers based outside the region?

Appendix A provides a “Glossary” that gives definitions of certain terms used.Appendix B provides

summary information on the maintenance and outsourcing philosophy of the major airlines in the

GCC. Appendix C provides capability information for the main in-region maintenance suppliers. Appendix

D provides a data table that include detailed information that is referred to in the report.

1. Regional Airline Overview

There are over 130 (including privately owned) operators of commercial aircraft in the Middle East, flying

a total of about 1,290 jet and turboprop powered aircraft. This fleet today represents about 4.8% of the

total global fleet of 27,050 aircraft.

This Middle East fleet is spread across multiple aircraft types[2], but fleet commonality is quite high with

five types representing 60% of the total [Exhibit 1-1]. The largest fleets by aircraft type are (in order of

magnitude) Airbus A320, Boeing 777, Airbus A330, Boeing 737NG and the Airbus A380.

Exhibit 1-1: 2013 Middle East Active Fleet (Total = 1,290)

Source: ICF SH&E MRO Model

Concomitant with this fact are the engine fleets, with the most significant engines operated in the region

being (in order of magnitude) the GE-90, CFM56-5B, V2500-A5, CFM56-7 and Trent 700.

The GCC countries account for about 990 aircraft or 77% of the region’s fleet. At the country level, the

largest 2013 fleets are based in the UAE, Saudi Arabia, Iran and Qatar.

Looking to the future, the Middle East is a region with a very significant order backlog and with high

expected long term growth. Airlines in the region have 780 firm orders (i.e., excluding option aircraft)

which by itself represents 9.3 % of the aircraft manufacturer’s global order book.

The Middle East fleet is set to grow at 5.7% per annum through 2022, to 2,160 aircraft in 2022 [Exhibit

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1-2]. Relative to other regions across the globe, this rate of growth is the highest.

Exhibit 1-2: Global Air Transport Fleet Growth

Source: ICF SH&E MRO Model

This strong fleet growth applies especially to wide body aircraft, with a growth rate of 8.2% per annum

over the period [Exhibit 1-3]. The main aircraft types driving this long-term growth are Boeing’s 737NG,

777 and 787, and Airbus’ A350XWB and A380. It should be noted however that the Middle East fleet for

turboprop and regional jet aircraft is relatively small, representing just 8% of the total. Expected growth

of this sub-fleet is also low.

Exhibit 1-3: Middle East Air Transport Fleet Growth

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Source: ICF SH&E MRO Model

2. Regional MRO Market Profile

These 1,290 aircraft generate an MRO spend of $3.7B [Exhibit 3-1], which breaks down as follows[3]:

engine overhaul 40% ($1.5B);

airframe heavy maintenance 23% ($0.8B);

component overhaul 20% ($0.7B);

and line maintenance 18% ($0.6B).

Exhibit 2-1: Middle East Air Transport MRO Demand

4

Constant 2013 US$

Source: ICF SH&E MRO Model

Like the fleet, this demand is concentrated with the major airlines. For example, the GCC-based airlines

account for MRO spend of $3.1B or 83% of the total.

Over the next ten years, the Middle East MRO market is expected to grow at 8.1% per annum to almost

$8B[4] . That is, the level of spend in absolute terms more than doubles. This is driven by the component

overhaul (9.9% per annum) and engine overhaul (9.2% per annum) markets respectively.

Whilst this growth is significant and no doubt appears an attractive potential source of growth for MRO-

related suppliers outside the region, the nature and extent of this opportunity depends very much on the

maintenance approach of the region’s airlines. For example, Emirates and Qatar Airways both plan to

establish full in-house airframe heavy maintenance capability. By 2022, they will be outsourcing little of

this activity and the associated spend will simply be “unavailable” to third party suppliers. However, this

does not mean opportunity does not exist. To achieve this goal by 2022, Emirates and Qatar Airways will

need to ensure a robust supply chain for labour, consumables and parts, and build infrastructure and high

quality, IT and logistics capabilities. Suppliers with added-value services related to these aspects of the

MRO supply chain will have opportunity.

That is, it is important to understand the behaviour of the specific airlines to determine the nature of the

MRO supply opportunity and the potential targets for related services. Hence a summary of the

maintenance approach of the major airlines is provided in Appendix B.

The dynamics of future commercial aircraft maintenance demand and supply also vary by type of activity,

and these are described and explained in the following four sub-sections.

2.1 Engine Overhaul

Three engine types (GE90-115B, Trent 700 and V2500-A5) account for about 50% of the $1.5B 20135

engine overhaul spend [Exhibit 2-2]. Spend is driven by large engines on wide body aircraft with nine out

of the ten top markets by engine type, the exception being the V2500-A5.

Exhibit 2-2: 2013 Middle East Engine MRO Market

Source: ICF SH&E MRO Model

In terms of supply, very little, less than 5%, of this activity is today conducted in-house by the Middle

East airlines and indeed very little is conducted even within the region. Why? A major reason is that the

cost of establishing maintenance capability on engines (especially high thrust ones) is very high, making

the business case for internal capability hard to make. A second reason is that the engine OEMs are very

proactive is selling the maintenance service at the point of the new engine sale. Hence, most of this

outsourcing (50%-60% of spend) goes to the main OEMs, Rolls-Royce (with facilities in the UK and

Singapore), GE (main facilities in UK and USA) and Snecma (France). The use of OEMs is particularly

apparent on newer aircraft when aircraft and engines are under warranty. Other significant suppliers are

LH Technik and MTU (both Germany) and Air France Industries (France).

Saudia Airlines is the only airline in the Middle East today with full (as opposed to modular) engine

overhaul capability (on the Rolls-Royce RB211 and IAE V2500-D5). More in-house airline capability is

already planned (Saudia Airlines on the CF34-8/CFM56-5B and Emirates on GE90/GP7200). There are also

two “independent” engine overhaul suppliers in the region: Jordan Airmotive and ADAT with the latter

currently extending its engine capability via agreements with the engine OEMs. However, the takeaway is

that a significant proportion of this activity is actually supplied outside the region.

As for the future, engine overhaul demand is set to more than double to about $3.25B in 2022 [Exhibit 2-

3]. Much like current demand, growth is driven by the wide body engines where the number of annual

shop visits grows rapidly from under 300 to about 500. This will put inevitable demand on the engine

overhaul supply chain (LLPs, LRUs, C class parts, specialist repairs) and logistics (moving that number of

engines in and out of the region each year).

Exhibit 2-3: Middle East Engine MRO Demand

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2.2. Airframe Heavy Maintenance

Middle East airlines current annual spend on airframe heavy maintenance is $0.55B ($0.8B including cabin

modifications), and this will grow to almost $1B in 2022 [Exhibit 2-4]. GCC-based carriers account for

75% of this 2013 spend.

Exhibit 2-4: Middle East Airframe Heavy Maintenance Demand

Constant 2013 US$

Source: ICF SH&E MRO Model

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Once again and unsurprisingly, the market is driven by wide body airframes. The growth rates are

somewhat lower than seen for engines and components because the newer airframes that have been and

will be introduced into the fleet are significantly less manhour intensive (from a maintenance perspective)

than their predecessors.

In terms of supply, about 50%-60% of this activity is conducted in-house by airlines. Since this activity

is more labour intensive (than engine overhaul which is material intensive), it is easier and less expensive

to establish capability. It is also important to have the relatively short “minor” checks conducted close to

or on an airline’s network to increase the availability of the aircraft for its primary role – generating

revenue.

Most of region’s airlines conduct the minor, shorter and easier checks in-house. Exceptions would be the

smaller carriers who don’t have the scale or those that seek to exploit a competitive third party market

place to keep costs low (typically low fare carriers such as Jazeera Airways or Air Arabia).

The third party suppliers that serve the remaining 40%-50% of demand are mainly based in-region and

include ADAT (Abu Dhabi), Joramco (Jordan), and MASCO (Lebanon). Turkish Technic and Egyptair are

other nearby suppliers who offer third party services. Some but very limited airframe heavy maintenance

travels further afield into Asia and Europe. An example is Qatar Airways that has contracted with SR

Technics (noting that in the long run, Qatar Airways plan to bring some of this work and capability in-

house).

2.3 Component Overhaul

The Middle East component overhaul market is today about $715M [Exhibit 2-5]. This is set to grow

significantly at almost 10% per annum to almost $1.7B.

Source: Constant 2013 US$

Source: ICF SH&E MRO Model

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Exhibit 2-5: 2013 Middle East Component O&R Demand (Total = $715M)

Source: ICF SH&E MRO Model

The main drivers of spend are, by component grouping, wheels and brakes (25%), avionics (12%), APU

(10%) and cabin systems (7%). By type of aircraft, the main drivers are Boeing 777 (27%), Airbus A330

(21%) and the Airbus A320 (15%).

The level of in-house capability in the region is relatively low and varies by carrier[5]. Saudia Airlines has

an already broad capability, others are planning to grow capability (e.g., Emirates) whilst others have

capability on a select narrow band of activities[6] e.g., seat refurbishment, evacuation slides. Overall, ICF

SH&E estimates that about ~20% of component work is done in-house by Middle East airlines.

Much of the rest of supply is provided by the component OEMs such as UTC Aerospace Systems,

Honeywell, Parker, or by non-OEM suppliers. Work by the OEMs is today mostly conducted outside the

Middle East region (in a mix of the USA, Europe and Singapore, depending where the OEMs have their

repair facilities), with only a few having established repair or distribution presence in-region. The most

notable is UTC Aerospace Systems’ Dubai (former Goodrich) facility in Dubai. Exhibit 2-6 shows the main

aerospace (OEM and MRO)- related inward investments in the UAE.

Exhibit 2-6: Aerospace Investment in UAE

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Source: ICF SH&E

The non-OEM suppliers are a mix of local and non-local firms. The continued trend for airlines to

outsource their component support to one supplier (across all components) on a flying-hour rate basis

has fed the success of global suppliers of such services - like LH Technik, Air France Industries/KLM

Engineering and Maintenance, and ST Aerospace. These firms each have customers in the Middle East.

The main local non-OEM, non-airline component overhaul supplier is ADAT (Abu Dhabi).

2.4 Line Maintenance

This activity is primarily “operational” with work done as part of an airline’s day-to-day activity. That is,

performance, responsiveness and control are vital to the integrity of the airline’s schedule. As a result,

about 85%-90% of this work is conducted in-house by airlines. Outsourced work has to be done (with a

very few exceptions) at an airport on an airline’s network and would typically would be conducted by

another airline with line maintenance capability at the airport in question. Hence, the nature of this

activity limits the extent of “available spend” and limits the scope of alternative suppliers.

That being said, line maintenance spending (and therefore related supply chain activities) is set to grow

from $650M to $1.2B between 2013 and 2022 at 6.7% per annum [Exhibit 2-1]. Such growth creates

challenges for the recruitment, training and retention of technician resources, and the management of

inventory to ensure the right parts are available at the right place and time to support operations. Such

challenges can create support/service opportunities.

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3. Primary Suppliers

Examples of the typical and primary suppliers have been identified in the previous section. This section

consolidates the supply-side profile.

There are three main categories of third party suppliers: airlines offering third party services; the OEMs;

and independents (non-OEM, non-airline affiliated).

In terms of the main MRO suppliers that are based in the Middle East, the numbers are limited:

Third party airline MROs: MASCO (part of MEA); Saudia Aerospace Engineering Industries (SAEI),

part of Saudia Airlines

OEMs: B/E Aerospace (in UAE); UTC Aerospace Systems (former Goodrich, in UAE); Panasonic (in

UAE); GE (joint venture with ADAT, in UAE); Thales (joint venture with ADAT, in UAE). There are

also a number of relatively small OEM JV based companies in Saudi Arabia that have been set up

as part of offset strategies.

Independent MROs: ADAT (provides all four main maintenance service areas, in UAE); Joramco

(airframe heavy maintenance, in Jordan); Jordan Airmotive (engine, in Jordan)

More details on specific capabilities by aircraft or engine type are included in Appendix C.

Pertinent observations and information that readers of this report should be aware of include:

ADAT is owned by Mubadala, which also owns (among other aerospace interests) SR Technics.

The current intent and strategy for the ADAT/SR Technics combination is to establish a global

MRO firm to compete with e.g., LH Technik; to establish robust relations with OEMs; and to be a

one stop shop.

Growth in the Middle East and GCC will likely ultimately result in more OEMs establishing some form

of physical presence in the region. At a minimum, this will be a distribution centre/spares

warehouse. Others may establish repair/overhaul shops.

SAEI has announced significant investments in expanding capability e.g., additional hangar

capacity.

The region’s primary growth airlines (Emirates, Qatar, and Etihad) are likely to in-source more

maintenance as they gain scale (noting that Etihad is aligned with its sister company ADAT).

Airframe heavy maintenance is the initial focus, but components and engines will be considered

where appropriate (witness the development of the Emirates GE-90 and GP7200 engine shop).

4. Key Market Trends and Challenges

There are five main market trends that are impacting the MRO supply chain and need to be considered

when considering future opportunities. These trends are relevant in both global and Middle East frames of

reference.

Increasing proportion of the aircraft fleet that are “new technology” aircraft. This will be

particularly rapid in the Middle East given the volume of orders. MRO-related suppliers whose

portfolio is driven by mature aircraft/engine platforms (e.g., 737 Classic, MD80, A300) will face a

declining market and a limited opportunity set in the region.

Such new technology aircraft, especially airframes such as the Boeing 787 and Airbus A350XWB,

will be data/information “intensive”. This will create significant IT system, maintenance system

and automation challenges that airlines will need help from expert suppliers to address. An

additional implication of this shift in technology is that the skills required by airline maintenance

staff will inevitably change, with a resulting impact on training needs and solutions.

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The MRO market is becoming more OEM-centric in terms of supply. This is already well established

in the engine market, but is also well underway in the component market. MRO supply chain

participants need to recognize that the “channel to market” is changing along with access to

customers. This implies new commercial relations may need to be developed in order to access

the growth occurring in the Middle East market.

Over the next decade, there will be a significant ramp up of new aircraft (Boeing 787. Airbus

A350XWB, Airbus A320NEO, Boeing 737MAX) and engine types (P&W Geared Turbofan, CFM

LEAPX). Such changes in or switch over to new aircraft provides airlines with an opportunity to

change the way the aircraft is supported in terms of maintenance, and for example, to cease

conducting MRO in-house. This in turn provides a point-of-aircraft-sale opportunity to the

aircraft, component and engine OEMs to put in place long term maintenance contracts.

The volume of aircraft retirements globally is set to expand rapidly in the next decade. For

commercial jets, recent history has seen about 200-300 retirements per year. By the end of this

coming decade, this number will be in the 600-700s. This will create significant surplus with

implications for OEMs and parts repair providers. Whilst the average fleet age in the Middle East is

lower than in some regions, aircraft retirements will inevitably increase here as well.

5. Opportunities for Canadian Aerospace Suppliers

Canadian Aerospace suppliers cover a very broad range of capabilities and services, and the opportunity

set available in the Middle East will depend on and be very specific to the market position and nature of

each individual firm’s business. For example, what aircraft/engine platforms are served by the supplier and

are these the relevant platforms driving growth in the region? Do sources for the Canadian supplier’s

services or technology already exist in, or closer to, the region?

That being said, the above market description leads to a number of evident conclusions on where

opportunities lie and could be targeted by suppliers with the right capability, ambition and strategies.

Information management related services. The region’s aircraft fleet is rapidly migrating to

newer aircraft types and many airlines still depend on legacy/old information management

systems.

Supply chain management. The expected growth will put significant pressure on the supply

chain capabilities of airlines. Specific capabilities that need to be improved include inventory

management / control and logistics.

Training/human resource solutions. The expected growth will depend heavily on excellent

human resource management in terms of long and short term planning systems, training

development and executive management recruitment.

Part repair or specialist repairs. Such providers that support components / parts that are on

the growth aircraft/engine platforms should target the region as a source of growth

End of life cycle supply chain services. More aircraft will be retiring thereby creating

opportunities for providers who focus on this sunset stage of aircraft life cycles. This includes

part out companies and surplus dealers.

Aerospace ambition. It is evident that there is a dichotomy of supply and demand. This report

demonstrates that there are a limited number of locally based MRO suppliers in the Middle East,

yet the market demand growth is significant. Local investors, notably Mubadala, and the region’s

governments, are seeking and will continue to seek to leverage this airline growth to build some

level of local aerospace capability. Inevitably, for the right firms, opportunities for inward

investment in the Middle East will arise.

These are high-level yet fundamental features of the MRO market in the Middle East. Each will spin off

opportunities for a variety of different suppliers. To realize such opportunities, it will be important to raise

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awareness within the Canadian Aerospace community – one purpose of this report. Furthermore,

promotion will be needed to cultivate the Middle East industry. At a more tactical level, every airline and

local supplier has its own unique needs, strengths, weaknesses, and gaps in capability. There is no

substitute to “knowing and understanding the customer”, and determining where one’s business can add

value. With such strong inherent growth in the Middle East, it behoves suppliers to pay attention, learn

more and seek opportunities pertinent to their business.

Appendix A: Glossary of Terms

Airframe heavy maintenance

C and D airframe checks that are carried out scheduled intervals, and cabin upgrades

Component overhaul

Repair and overhaul of components

Engine overhaul

Full engine overhaul, off wing in an engine shop

ESV

Engine shop visit

Firm order

Order with a paid deposit and specific delivery slot

GCC

Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, United Arab Emirates

Line maintenance

Transit, daily and A checks

LLP

Life limited parts – engine parts that must be replaced after a certain number of cycles

LRU

Line replaceable units

Middle East

Bahrain, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, Syria, United Arab

Emirates, Yemen

MRO

Maintenance, repair and overhaul

Narrow body

Jet aircraft typically greater than 100 seats with a single aisle. Examples include: Boeing 737 Classic, 737

NG and 757; Airbus A319/A320/A321.

OEM

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Original equipment manufacturer

Regional jets

Jet aircraft typically less than 100 seats. Examples include: Bombardier CRJ700/900; Embraer E-Jets

(170/190).

Turboprop

Turboprop powered aircraft. Examples include: Bombardier Dash 7, Dash 8 and Q400; ATR 42 and ATR 72

Wide body

Jet aircraft with twin aisles. Examples include: Boeing 747, 767, 777. 787; Airbus A330, A340, A350XWB

and A380

Appendix B: Airline Maintenance Approaches

Summary of current maintenance and outsourcing approach for main CCC airlines

Airline Component Overhaul Airframe Heavy

Maintenance

Engine Overhaul

Emirates Currently outsourced, primarily

to component OEMs; publicly

stated intent to build some

internal capability in select

categories

In-house Primarily outsourced today with

OEMs under long term contracts.

Building GE90 and GP7200

capability jointly with GE and

Engine Alliance

Etihad Currently outsourced, primarily

to component OEMs and for

select types, to one stop shops

(LH Technik and SR

Technics/ADAT)

Outsourced primarily

to its “sister”

company ADAT

Primarily outsourced today with

engine OEMs and with some

work managed by ADAT. ADAT

has a mix of capabilities (see

Appendix C)

Gulf Air Outsourced, with most

components covered by a Flying

Hour agreement with ST

Aerospace

Outsourced to a

variety of mostly in-

region suppliers such

as Joramco

Outsourced to engine OEMs

Kuwait

Airways

Some capability in-house (e.g.,

avionics, wheels/brakes, cabin

interiors). Remaining work

outsourced to a mix of OEMs

and independents

Narrow body minor

checks are in-house;

wide body and major

checks are mostly

outsourced

Outsourced primarily to engine

OEMs except for CFM5605B

where Air France Industries in a

supplier

Oman

Air

Outsourced to component

OEMs, primarily on flying our

deals

Outsourced Outsourced to engine OEMs

Qatar

Airways

Outsourced to component

OEMs, primarily on flying our

deals

Outsourced today,

but intent is to bring

the activity in-house

Outsourced to engine OEMs

except for V2500 where a mix of

suppliers is used

14

over the next 5-10

years

Saudia Mostly in-house In-house Mix (see Appendix C)

Appendix C: Supplier Details

Supplier Details (main firms based in Middle East)

Supplier Location Owner Current Capability

Airframe Component Engine [7]

ADAT Abu

Dhabi

Mubadala Airbus: A300, A310, A320,A330,

A340 Boeing:

737NG,757,767,777,747

Broad

capability

GE: CF6-50,

CF6-80C2

IAE: V2500*

Joramco Jordan Abraaj Airbus: A300-600, A310, A320,A330,

A340 Boeing: 727, 737C, 737NG

Embraer: E-Jets

Circa 1,000

Components

Nil

Jordan

Airmotive

Jordan ? Nil Nil P&W: JT3D,

JT8D

Rolls:

RB211-524

MASCO Lebanon MEA Airbus: A300, A310, A320, A330 Limited Nil

SAEI Saudi

Arabia

Saudi

Airlines

Airbus: A320, A330

Boeing: 747, 777, MD90

Embraer: E-Jets

Broad

capability

IAE:V2500-

D5

Rolls: RB211-

524

GE: CF34-8

*, CFM56-5B

*

Appendix D: Data Tables

Summary of current maintenance and outsourcing approach for main CCC airlines

Country OperatorName

Aircraft Type EngineType

2013ActiveFleet

Avge.FleetAge

FirmOrders

Bahrain Bahrain Air A318/319/320/321 CFM56-5B 4 6

Bahrain Bahrain RoyalFlight

727-1/200 JT8D-200 1 34

15

Bahrain Bahrain RoyalFlight

747-1/2/300 RB211-524

1 25

Bahrain Bahrain RoyalFlight

747-400 CF6-80C2B*F

1 11

Bahrain Bahrain RoyalFlight

AVRO RJ LF507 1 17

Bahrain DelmunAviationServices

737-1/200 JT8DStandard

1 35

Bahrain DHLInternationalAviation ME

757-2/300 RB211-535E4

2 29

Bahrain Gulf Air 190/195 CF34-10E 2 4

Bahrain Gulf Air 787-8/9/10 Undecided 16

Bahrain Gulf Air A318/319/320/321 CFM56-5B 18 4.6

Bahrain Gulf Air A318/319/320/321 V2500-A5 4 2

Bahrain Gulf Air A330-2/300 Trent 700 10 12.6 20

Bahrain MAE AircraftManagement

ERJ-135/140/145 AE3007A 1 8

Bahrain MenaAerospace

Cargo

737-3/4/500 CFM56-3B 2 24

Bahrain RoyalBahraini Air

Force

AVRO RJ LF507 2 13

Bahrain SAAD Group A318/319/320/321 CFM56-5B 1 1

Bahrain SNAS Aviation 727-1/200 JT8DStandard

4 38.8

Iran ATA Air A318/319/320/321 V2500-A1 1 21

Iran ATA Air MD-80 JT8D-200 1 23

Iran CaspianAirlines

MD-80 JT8D-200 3 21.3

Iran Governmentof Iran

707 JT3D 1 38

16

Iran Governmentof Iran

737-1/200 JT8DStandard

1 37

Iran Governmentof Iran

A318/319/320/321 V2500-A5 1 14

Iran HESA 228 TPE331 1 21

Iran Iran Air 727-1/200 JT8DStandard

2 40

Iran Iran Air 747-1/2/300 CF6-50 2 29

Iran Iran Air 747-1/2/300 JT9D 7 36.9

Iran Iran Air A300 CF6-50 9 30.8

Iran Iran Air A300-600 CF6-80C2A

4 20.8

Iran Iran Air A310-2/300 CF6-80C2A

1 21

Iran Iran Air A318/319/320/321 CFM56-5A 4 19.3

Iran Iran Air A318/319/320/321 V2500-A5 1 18

Iran Iran Air F70/F100 Tay 600 14 21.6

Iran Iran Airtours MD-80 JT8D-200 2 22

Iran Iran AsemanAirlines

228 TPE331 4 22

Iran Iran AsemanAirlines

727-1/200 JT8DStandard

4 34

Iran Iran AsemanAirlines

A340-2/300 CFM56-5C 1 22

Iran Iran AsemanAirlines

ATR42/72-500 PW100 3 15.3

Iran Iran AsemanAirlines

F70/F100 Tay 600 16 21.1

Iran Iranian NaftAirlines

F50 PW100 4 21.5

Iran Iranian NaftAirlines

F70/F100 Tay 600 4 19.5

Iran Islamic Repof Iran Air

707 JT3D 7 39.1

17

Force

Iran Islamic Repof Iran Air

Force

747-1/2/300 JT9D 7 42.1

Iran Islamic Repof Iran Air

Force

F27 Dart 11 41.8

Iran Islamic Repof Iran Army

F27 Dart 2 36

Iran Islamic Repof Iran Navy

F27 Dart 5 39.2

Iran Kish Air F50 PW100 4 21

Iran Kish Air MD-80 JT8D-200 5 20.8

Iran Mahan Air 747-1/2/300 CF6-50 2 28

Iran Mahan Air A300 CF6-50 4 33.3

Iran Mahan Air A300-600 CF6-80C2A

11 25

Iran Mahan Air A300-600 PW4000-94

1 12

Iran Mahan Air A310-2/300 CF6-80C2A

7 23.4

Iran Mahan Air BAE 146 ALF502 5 23.6

Iran Meraj Air A318/319/320/321 V2500-A5 1 19

Iran NationalIranian OilCompany

DHC6 PT6A 3 38.3

Iran Payam Air EMB-110/120 PT6A 5 30.6

Iran Saha Airlines 707 JT3D 2 39

Iran Saha Airlines A300-600 PW4000-94

2 18.5

Iran Taban Air MD-80 JT8D-200 2 20

Iran ZagrosAirlines

MD-80 JT8D-200 7 24.9

Iraq AlNaser 737-3/4/500 CFM56-3C 1 22 18

Airlines

Iraq Iraqi Airways 737-1/200 JT8DStandard

2 33.5

Iraq Iraqi Airways 737-6/7/8/900 CFM56-7B 2 7

Iraq Iraqi Airways 747-400 CF6-80C2B*F

1 20

Iraq Iraqi Airways 767-2/3/400 CF6-80C2B

1 21

Iraq Iraqi Airways 787-8/9/10 Undecided 10

Iraq Iraqi Airways CRJ-7/9/1000 CF34-8C 6 4.5 4

Iraq IraqiGovernment

737-6/7/8/900 CFM56-7B 30

Iraq IraqiGovernment

A300 CF6-50 1 31

Jordan Arab Wings ERJ-135/140/145 AE3007A 2 5

Jordan Barq Aviation L1011 RB211-22 1 32

Jordan Barq Aviation L1011 RB211-524

2 32

Jordan JordanAviation

737-3/4/500 CFM56-3B 3 26

Jordan JordanAviation

737-3/4/500 CFM56-3C 4 21

Jordan JordanAviation

767-2/3/400 CF6-80A 2 24

Jordan JordanAviation

A310-2/300 CF6-80C2A

1 26

Jordan JordanAviation

A310-2/300 JT9D-7R4 1 29

Jordan JordanAviation

A318/319/320/321 CFM56-5A 1 25

Jordan JordanAviation

A330-2/300 PW4000-100

1 15

Jordan Petra Airlines A318/319/320/321 CFM56-5A 2 19.5

19

Jordan Royal FalconAirlines

737-3/4/500 CFM56-3C 1 20

Jordan Royal FalconAirlines

767-2/3/400 CF6-80C2B*F

1 20

Jordan Royal FalconAirlines

A318/319/320/321 CFM56-5A 1 16

Jordan Royal Flightof Jordan

A318/319/320/321 CFM56-5B 1 5

Jordan RoyalJordanian

170/175 CF34-8E 3 5.3

Jordan RoyalJordanian

190/195 CF34-10E 5 7.2

Jordan RoyalJordanian

787-8/9/10 Genx-1B 11

Jordan RoyalJordanian

A310-2/300 CF6-80C2A

3 25.3

Jordan RoyalJordanian

A318/319/320/321 V2500-A5 15 4.5

Jordan RoyalJordanian

A330-2/300 PW4000-100

3 5.3

Jordan RoyalJordanian

A340-2/300 CFM56-5C 4 20.5

Jordan Royal Wings A318/319/320/321 CFM56-5A 1 18

Jordan Solitaire Air 767-2/3/400 JT9D-7R4 1 30

Jordan TeebahAirlines

737-1/200 JT8DStandard

1 31

Kuwait ALAFCO 737-6/7/8/900 LEAP-X1B 20

Kuwait ALAFCO 787-8/9/10 Genx-1B 8

Kuwait ALAFCO A318/319/320/321 LEAP-X1A 35

Kuwait ALAFCO A318/319/320/321 PW1100 50

Kuwait ALAFCO A350-8/9/1000 TrentXWB

6

Kuwait JazeeraAirways

A318/319/320/321 CFM56-5B 9 4.8 1

20

Kuwait KuwaitAirways

747-400 CF6-80C2B*F

1 20

Kuwait KuwaitAirways

777-2/300 GE90-94B 2 16

Kuwait KuwaitAirways

A300-600 CF6-80C2A

5 20.6

Kuwait KuwaitAirways

A300-600 JT9D-7R4 1 30

Kuwait KuwaitAirways

A310-2/300 CF6-80C2A

4 21

Kuwait KuwaitAirways

A318/319/320/321 CFM56-5A 4 19

Kuwait KuwaitAirways

A318/319/320/321 CFM56-5B 1 5

Kuwait KuwaitAirways

A340-2/300 CFM56-5C 4 19

Kuwait NationalLegacy for A/c

Mngmnt

ERJ-135/140/145 AE3007A 1 8

Kuwait UnitedAviationRescue

ERJ-135/140/145 AE3007A 2 9

Lebanon Adnan Kassar ERJ-135/140/145 AE3007A 1 8

Lebanon Blue SkyAviation

(Lebanon)

ERJ-135/140/145 AE3007A 1 5

Lebanon Emerald Jets CRJ-1/2/400 CF34-3A 1 19

Lebanon Med Airways CRJ-1/2/400 CF34-3B 1 16

Lebanon Middle EastAirlines

A318/319/320/321 CFM56-5B 3 2

Lebanon Middle EastAirlines

A318/319/320/321 V2500-A5 11 6.5

Lebanon Middle EastAirlines

A330-2/300 Trent 700 4 5.3

Lebanon TMA A300-600 PW4000- 1 8 21

94

Lebanon Wings ofLebanon

737-3/4/500 CFM56-3B 1 19

Oman Oman Air 170/175 CF34-8E 4 2.5

Oman Oman Air 737-6/7/8/900 CFM56-7B 15 7.6 6

Oman Oman Air 787-8/9/10 Trent1000

6

Oman Oman Air A330-2/300 Trent 700 7 4.4

Oman Oman Air ATR42/72-500 PW100 2 16

Oman Royal AirForce ofOman

A318/319/320/321 CFM56-5B 3 4.7

Oman Royal Flightof Oman

747-1/2/300 JT9D 1 35

Oman Royal Flightof Oman

747-400 CF6-80C2B*F

1 13

Oman Royal Flightof Oman

A318/319/320/321 V2500-A5 1 9

Oman Royal OmanPolice

170/175 CF34-8E 1 3

Oman Royal OmanPolice

228 TPE331 1 30

Palestine PalestinianAirlines

F50 PW100 2 25.5

Qatar Qatar Airways 777-2/300 GE90-115B

40 3.6 2

Qatar Qatar Airways 787-8/9/10 Genx-1B 9 1.6 21

Qatar Qatar Airways A300-600 PW4000-94

3 23.7

Qatar Qatar Airways A318/319/320/321 V2500-A5 47 6.1

Qatar Qatar Airways A318/319/320/321 PW1100 50

Qatar Qatar Airways A330-2/300 CF6-80E1 29 8.9

Qatar Qatar Airways A330-2/300 Trent 700 1

22

Qatar Qatar Airways A340-5/600 Trent 500 4 7.8

Qatar Qatar Airways A350-8/9/1000 TrentXWB

81

Qatar Qatar Airways A380 GP7200 8

Qatar Qatar Airways A380 Undecided 2

Qatar Qatar AmiriFlight

A310-2/300 CF6-80C2A

1 21

Qatar Qatar AmiriFlight

A318/319/320/321 CFM56-5B 1 4

Qatar Qatar AmiriFlight

A318/319/320/321 V2500-A5 4 9.5

Qatar Qatar AmiriFlight

A330-2/300 CF6-80E1 2 11

Qatar Qatar AmiriFlight

A340-2/300 CFM56-5C 2 16

Qatar Qatar AmiriFlight

A340-5/600 Trent 500 1 11

Qatar QatarExecutive

CRJ-1/2/400 CF34-3B 2

SaudiArabia

Al-anwa Est 727-1/200 JT8D-200 1 34

SaudiArabia

Almousa VIPFly

737-3/4/500 CFM56-3B 1 23

SaudiArabia

Alpha StarAviationServices

A318/319/320/321 CFM56-5B 4 11

SaudiArabia

Arabasco Ltd 1900 PT6A 1 24

SaudiArabia

Arabasco Ltd 727-1/200 Tay 600 1 46

SaudiArabia

Arabasco Ltd 737-1/200 JT8DStandard

1 32

SaudiArabia

Arabasco Ltd 737-6/7/8/900 CFM56-7B 1 15

Saudi Dallah 737-6/7/8/900 CFM56-7B 1 15 23

Arabia Albaraka

SaudiArabia

Executive JetAircraft

737-1/200 JT8DStandard

1 35

SaudiArabia

Executive JetAircraft

A318/319/320/321 CFM56-5B 1 1

SaudiArabia

FAL Aviation ERJ-135/140/145 AE3007A 1 4

SaudiArabia

KingdomHoldings

747-400 PW4000-94

1 22

SaudiArabia

KingdomHoldings

A380 Trent 900 1 2

SaudiArabia

Maz Aviation A318/319/320/321 CFM56-5B 1 6

SaudiArabia

Mid East JetInc

737-6/7/8/900 CFM56-7B 3 13.7

SaudiArabia

Mid East JetInc

757-2/300 PW2000 1 17

SaudiArabia

Mid East JetInc

767-2/3/400 CF6-80C2B*F

1 18

SaudiArabia

Mid East JetInc

767-2/3/400 JT9D-7R4 1 31

SaudiArabia

Mid East JetInc

777-2/300 GE90-94B 1 16

SaudiArabia

Mid East JetInc

A318/319/320/321 CFM56-5B 1 5

SaudiArabia

Mid East JetInc

A318/319/320/321 V2500-A5 1 13

SaudiArabia

MohammedBin Salem Al-

Marri

MD-80 JT8D-200 1 22

SaudiArabia

Mr AbdullahAhmed

Bugshan

737-6/7/8/900 CFM56-7B 1 13

SaudiArabia

nas air 190/195 CF34-10E 14 3.1

Saudi nas air A318/319/320/321 CFM56-5B 21 3.3 1024

Arabia

SaudiArabia

NasJet A318/319/320/321 CFM56-5B 2 8.5

SaudiArabia

National AirServices

737-6/7/8/900 CFM56-7B 2 12

SaudiArabia

National AirServices

A318/319/320/321 CFM56-5B 1 6

SaudiArabia

Nofa Aviation 737-6/7/8/900 CFM56-7B 1 9

SaudiArabia

PrecisionInternational

727-1/200 JT8D-200 1 36

SaudiArabia

Prince TalalBin Abdul

Aziz

737-6/7/8/900 CFM56-7B 1 15

SaudiArabia

Royal SaudiAir Force

707 CFM56-2 13 27.3

SaudiArabia

Royal SaudiAir Force

737-6/7/8/900 CFM56-7B 2 13

SaudiArabia

Royal SaudiAir Force

J31/J41 TPE331 1 28

SaudiArabia

SAAD Air Ltd A318/319/320/321 V2500-A5 1 6

SaudiArabia

Saudi AircraftManagement

Co

ERJ-135/140/145 AE3007A 1 12

SaudiArabia

Saudi ArabianAirlines

777-2/300 GE90-115B

5 1.2 2

SaudiArabia

Saudi ArabianAirlines

A318/319/320/321 CFM56-5B 4 1.5

SaudiArabia

Saudi ArabianAirlines

A330-2/300 Trent 700 2 1

SaudiArabia

Saudi ArabianVIP

747-1/2/300 JT9D-7R4 1 31

SaudiArabia

Saudi ArabianVIP

747-1/2/300 RB211-524

2 33.5

25

SaudiArabia

Saudi ArabianVIP

747-400 CF6-80C2B*F

1 13

SaudiArabia

Saudi ArabianVIP

757-2/300 RB211-535E4

1 20

SaudiArabia

Saudi ArabianVIP

A340-2/300 CFM56-5C 1 16

SaudiArabia

SaudiARAMCOAviation

170/175 CF34-8E 3 4

SaudiArabia

SaudiARAMCOAviation

737-6/7/8/900 CFM56-7B 4 13.5

SaudiArabia

SaudiARAMCOAviation

767-2/3/400 CF6-80C2A

1 11

SaudiArabia

SaudiCommissionfor Tourism

DHC6 PT6A 1 26

SaudiArabia

Saudi Oger 737-6/7/8/900 CFM56-7B 1 14

SaudiArabia

Saudia 170/175 CF34-8E 15 8.1

SaudiArabia

Saudia 747-1/2/300 RB211-524

3 30.3

SaudiArabia

Saudia 747-400 CF6-80C2B*F

4 16

SaudiArabia

Saudia 777-2/300 GE90-115B

5 2 8

SaudiArabia

Saudia 777-2/300 GE90-94B 23 15.6

SaudiArabia

Saudia 787-8/9/10 Genx-1B 8

SaudiArabia

Saudia A318/319/320/321 CFM56-5B 46 3.8 1

SaudiArabia

Saudia A330-2/300 Trent 700 8 3.8 2

26

SaudiArabia

Saudia MD11 CF6-80C2D*F

4 16.8

SaudiArabia

Saudia MD-90 V2500-D5 1 16

SaudiArabia

ShazinTrading

727-1/200 JT8DStandard

1 48

Syria Syrian ArabAirlines

A318/319/320/321 V2500-A5 6 15.2

Syria Syrian ArabAirlines

ATR42/72-500 PW100 2 4

UAE Abu DhabiAviation

DHC8-1/2/300 PW100 4 12.3

UAE Abu DhabiAviation

DHC8-Q400 PW150 1 6

UAE Abu DhabiPresidential

Flight

737-6/7/8/900 CFM56-7B 1 11

UAE Abu DhabiPresidential

Flight

747-400 CF6-80C2B*F

2 15

UAE Abu DhabiPresidential

Flight

777-2/300 GE90-115B

1 5

UAE Abu DhabiPresidential

Flight

777-2/300 GE90-94B 1 15

UAE Abu DhabiPresidential

Flight

A318/319/320/321 V2500-A5 1 9

UAE Abu DhabiPresidential

Flight

AVRO RJ LF507 2 15.5

UAE Air Arabia A318/319/320/321 CFM56-5B 34 3.7 24

UAE AJA - Al JaberAviation

190/195 CF34-10E 4 3.3 3

UAE AJA - Al JaberAviation

A318/319/320/321 CFM56-5B 1 5

27

UAE AJA - Al JaberAviation

ERJ-135/140/145 AE3007A 2 5

UAE Al-AtheerEstablishment

A310-2/300 CF6-80C2A

1 27

UAE Aria Air F50 PW100 2 23

UAE Ave.com 737-1/200 JT8DStandard

2 32.5

UAE Ave.com 737-3/4/500 CFM56-3B 1 19

UAE CelestialAirwaysLimited

737-6/7/8/900 CFM56-7B 1 15

UAE DaalloAirlines

BAE 146 ALF502 1 27

UAE DanaExecutive Jets

A318/319/320/321 CFM56-5B 1 12

UAE DanaExecutive Jets

ERJ-135/140/145 AE3007A 1 1

UAE Dubai AirWing

737-6/7/8/900 CFM56-7B 4 11.8

UAE Dubai AirWing

747-400 PW4000-94

4 17.5

UAE Dubai AirWing

AVRO RJ LF507 2 16

UAE Dubai AirWing

DHC6 PT6A 1 25

UAE East Air (UAE) 737-1/200 JT8DStandard

2 27

UAE East Air (UAE) 737-3/4/500 CFM56-3B 1 27

UAE East Air (UAE) 737-3/4/500 CFM56-3C 1 19

UAE East Air (UAE) A318/319/320/321 CFM56-5A 1 22

UAE EasternSkyjets

737-3/4/500 CFM56-3C 2 23

UAE EasternSkyjets

J31/J41 TPE331 1 18

28

UAE EmiratesAdvanced

Investments

DHC6 PT6A 10 1.7 2

UAE EmiratesAirline

747-8 Genx-2B 2 1 5

UAE EmiratesAirline

777-2/300 GE90-115B

103 5 70

UAE EmiratesAirline

777-2/300 Trent 800 21 14.5

UAE EmiratesAirline

A330-2/300 Trent 700 25 13.1

UAE EmiratesAirline

A340-2/300 CFM56-5C 8 17.1

UAE EmiratesAirline

A340-5/600 Trent 500 10 10.5

UAE EmiratesAirline

A350-8/9/1000 TrentXWB

70

UAE EmiratesAirline

A380 GP7200 41 3 49

UAE EmpireAviationGroup

ERJ-135/140/145 AE3007A 3 5

UAE EtihadAirways

777-2/300 GE90-115B

21 3.3

UAE EtihadAirways

787-8/9/10 Genx-1B 41

UAE EtihadAirways

A318/319/320/321 CFM56-5A 1 22

UAE EtihadAirways

A318/319/320/321 V2500-A5 18 6.4 16

UAE EtihadAirways

A330-2/300 Trent 700 26 6 3

UAE EtihadAirways

A340-5/600 Trent 500 11 6.8

UAE EtihadAirways

A350-8/9/1000 TrentXWB

12

29

UAE EtihadAirways

A380 GP7200 10

UAE ExecuJetMiddle East

190/195 CF34-10E 1 4

UAE FalconAviationServices

190/195 CF34-10E 2 2.5

UAE FalconAviationServices

ERJ-135/140/145 AE3007A 2 5.5

UAE FalconExpress Cargo

Airlines

1900 PT6A 4 25

UAE FalconExpress Cargo

Airlines

F27 Dart 1 43

UAE Fazza Sky DHC6 PT6A 2 45

UAE FlyDubai 737-6/7/8/900 CFM56-7B 39 2.6 16

UAE GamaAviation FZC

A318/319/320/321 CFM56-5B 1 3

UAE GamaAviation FZC

ERJ-135/140/145 AE3007A 1 6

UAE GCS Cargo A300 CF6-50 1 28

UAE GlobalAerospace

Logistics LLC

DHC6 PT6A 9 1.7 7

UAE Global JetAirlines

737-3/4/500 CFM56-3B 2 26

UAE Global JetAirlines

737-3/4/500 CFM56-3C 1 24

UAE Global JetAirlines

A300-600 CF6-80C2A

2 22

UAE JBJE ERJ-135/140/145 AE3007A 1 10

UAE Maximus AirCargo

A300-600 PW4000-94

4 13.5

UAE Midex Airlines 747-1/2/300 CF6-50 3 23.7 30

UAE Midex Airlines A300 CF6-50 2 32

UAE PAB Air Wing A318/319/320/321 V2500-A5 1 6

UAE Palm Aviation BAE 146 LF507 1 22

UAE PlatinumCorporation

ERJ-135/140/145 AE3007A 1 2 1

UAE Prestige Jet 190/195 CF34-10E 1 7

UAE Prestige Jet ERJ-135/140/145 AE3007A 2 7.5

UAE RAK Airways 737-3/4/500 CFM56-3C 1 20

UAE RAK Airways A318/319/320/321 CFM56-5B 2 7.5

UAE Rotana Jet ERJ-135/140/145 AE3007A 2 13

UAE Royal Jet 737-6/7/8/900 CFM56-7B 6 14.5

UAE S S LootahGroup

ERJ-135/140/145 AE3007A 1 2

UAE Sharjah RulerFlight

A318/319/320/321 V2500-A5 1 15

UAE SheikhAbdulla Al

Hamed

ERJ-135/140/145 AE3007A 1 2 1

UAE Skydive Dubai DHC6 PT6A 1 33

UAE Skylink Arabia 727-1/200 JT8DStandard

1 35

UAE Skylink Arabia F28 Spey 1 27

UAE Titan Aviation(UAE)

190/195 CF34-10E 1 1

UAE Titan Aviation(UAE)

ERJ-135/140/145 AE3007A 1 6

UAE United ArabEmirates Air

Force

DHC6 PT6A 2 18 1

UAE United ArabEmirates Air

Force

DHC8-1/2/300 PW100 2 8

UAE United Arab SAAB 340 CT7 2 16.5 31

[1] GCC Countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates

[2] Appendix D – Aircraft and engine type fleet data by airline

[3] Definitions of what is included in these maintenance spend categories (e.g., engine overhaul) are in

the Glossary

[4] Forecast is in constant US$ (i.e., escalation/inflation is excluded

[5] More detail by airline is provided in the final section

[6] Typically those that can directly impact operations or are very labour intensive

[7] Full overhaul only internally; excludes module disassembly/assembly and excludes where overhaul

service is offered via an OEM JV (e.g., ADAT/Rolls Royce on Trent 500). “*” means capability under

development

Emirates AirForce

UAE Unknown(United Arab

Emirates)

DHC6 PT6A 1 34

Yemen Felix Airways CRJ-1/2/400 CF34-3B 2 15

Yemen Felix Airways CRJ-7/9/1000 CF34-8C 2 6 6

Yemen Felix Airways MA60 PW100 6 2

Yemen Govt ofYemen

747-1/2/300 JT9D 1 34

Yemen Yemenia 727-1/200 JT8DStandard

1 35

Yemen Yemenia A310-2/300 PW4000-94

3 19

Yemen Yemenia A318/319/320/321 V2500-A5 10 1.6 2

Yemen Yemenia A330-2/300 Trent 700 2 10

Yemen Yemenia A350-8/9/1000 TrentXWB

10

Yemen Yemenia DHC6 PT6A 2 33.5

Yemen Yemenia DHC8-1/2/300 PW100 3 22.3

32