Colombia Commercial Aircraft Mro Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Colombia Commercial Aircraft Mro Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Colombian commercial aircraft MRO market is projected to grow with a CAGR of over 3% during the forecast period.

The Colombian aviation sector witnessed reduced air traffic due to the COVID-19 pandemic. In March 2020, after the arrival of the COVID-19 pandemic in full force in Latin America, it led to travel restrictions across Colombia. The country witnessed a significant drop in air traffic due to the shutdown of airport and airline operations from April 2020 to August 2020. After international and domestic flight resumption, air traffic immediately recovered from September 2020.

An increase in demand for new aircraft due to rising air traffic, modernization, and aging aircraft fleet upgrades are driving the market growth. In May 2021, international air passenger traffic to and from Colombia reached approximately 543 thousand travelers. Furthermore, the Colombian civil aviation authorities projected that the number of air passengers traveling to and from Colombia would close to 46 million by the end of 2022. The country will show growth of nearly 12% compared to 2019, when the country reached 41.13 million travelers.

Thus, an increase in the number of air passengers leads to a rise in demand for new aircraft, which drives market growth across Colombia. According to the Latin American and Caribbean Air Transport Association (ALTA), Colombia witnessed a growth of 9% in international passengers till July 2022 and a 22% growth in the domestic sector compared to 2019. Thus, increased spending on the procurement of new aircraft and modernization of aging aircraft fleets will likely drive market growth during the forecast period.

Colombia’s aviation sector has witnessed a significant increase in air passengers. Rising demand for new regional jets and growing air traffic to and from the country drive market growth. Colombia is the third largest aviation market in Latin America, with 16 international airports and 26 airlines connecting the country with 28 countries. In 2022, Ultra Air became the new Colombian airline. It transported more than 900,000 passengers by November 2022. It currently operates with 6 Airbus A320ceo on fifteen domestic routes and plans to launch its first international routes by 2023.

Furthermore, JetSMART is planning to launch domestic flights in Colombia. The company plans to have 12 Airbus A320neo, which will be incorporated over three years. These aircraft will be based at El Dorado International Airport (BOG), Bogota. Furthermore, Viva Air, the Colombian low-cost carrier, plans to expand its aircraft fleet in the next few years. It plans to add 28 more Airbus aircraft to its existing fleet and reach 50 units by 2025. Thus, growing investment in new planes and increased domestic flights from airlines boost the market growth.

The narrow-body aircraft segment will showcase remarkable growth during the forecast period. The increase is attributed to sizeable narrow-body aircraft fleets in airlines such as Avianca S.A., LATAM Airlines Group, Viva Air, and others driving the market growth. Growing spending on aircraft modernization and increasing MRO contracts from Colombian airlines boost the market growth. For instance, in April 2022, Safran Nacelles signed a 10-year service contract with Viva Air Colombia for the nacelles for the airline’s growing fleet of A320neo aircraft powered by CFM International LEAP-1A engines.

Also, Viva Air, a low-cost carrier in Colombia, signed a contract with the IFS, a cloud enterprise applications company for MRO software. Under the contract, the IFS’s MRO and fleet planning software will support Viva Air’s maintenance planning and execution across its fleet of aircraft. The airline operates 21 Airbus A320-200 and A320neo aircraft. Thus, increasing narrow-body aircraft modernization programs and MRO contracts will drive market growth during the forecast period.

The market of Colombia commercial aircraft MRO is consolidated in nature and is characterized by a few players who provide MRO services to Colombian airlines. Some prominent players in the market are Safran SA, SGS Colombia S.A.S, ACC Columbia Jet Service GmbH, Avianca Group, and others. With the growing competition in the market, the key players focused on introducing advanced technologies in maintenance that will improve overall aircraft performance and safety. The original equipment manufacturers also focus on enhancing the efficiency of their MRO operations by adopting emerging technologies, like AI and predictive analytics, which will help their revenue growth during the forecast period.

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