The aviation supply chain has seen some relief from bottlenecks, but new aircraft orders continue to outpace production capacity, keeping pressure on deliveries. In response, airlines are extending leases on older jets to mitigate fleet shortages, driving up demand for after-sales services and maintenance capacity.
Carriers are expanding fleets, but supply chain recovery remains sluggish. As a result, airlines are prioritizing lifespan extensions for existing aircraft. China Airlines, for example, is extending leases on eight A330-300s and ten 777-300ERs in 2024. The carrier initially expected to receive seven A321s this year but has revised that figure to five. Boeing's 787 deliveries, set to begin in 2025, are also subject to potential delays. Other airlines, including Evergreen Aviation and Tigerair, are following similar lease-extension strategies.
Maintenance, repair, and overhaul (MRO) services have become increasingly vital to keeping aging fleets operational. The global MRO market, valued at US$74.37 billion in 2023, is projected to grow to US$93.92 billion by 2028, with a CAGR of 4.78%. Meanwhile, the average aircraft age has climbed from a post-pandemic low of 9.1 years to 11.3 years and is expected to rise further.
Taiwan's role as a key Asia-Pacific aviation hub positions its MRO sector for growth. AirAsia is expanding into military and commercial aircraft maintenance, engine overhauls, and component supply, targeting 200 A320-series maintenance projects this year while deepening ties with Japan Airlines. Aerospace Industrial Development Corp. (AIDC), which generates 36% of its revenue from civil aerospace, is also ramping up its presence in the engine MRO sector.
Evergreen Aviation is broadening its maintenance footprint in Europe, adding British Airways, Austrian Airlines, Luxair, and Neos Airlines to its client list. New customers in North America are also joining, and by 2025, the company expects to secure two Asian clients for A350 maintenance. With Evergreen Airlines set to introduce the A350, its MRO division is poised to handle upkeep for the fleet.
