Procurement Market Intelligence Report
Aircraft Maintenance & Repair
Sourcing Guide & Market Intelligence
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Aircraft Maintenance & Repair Global Overview
Definition
Summary
Aircraft maintenance and repair services include fixed-wing and rotary-wing maintenance services. Services provided include aircraft inspection, testing, and parts repair. Services also include both scheduled and unscheduled maintenance repairs. Aircraft maintenance and repair companies are primarily multinational jet engine and aircraft manufacturers, as well as small to midsize service-based companies. Key buyers include commercial airlines, cargo airlines, business aviation operators, military and defense organizations, and aircraft maintenance, repair, and overhaul facilities.
This Report Includes:
- Parts Repair
- Aircraft Inspection
Not in this Report:
- Truck Maintenance & Repair
- Navigational Equipment Maintenance & Repair
Global Aircraft Maintenance & Repair Procurement Trends
Discover the top international trends affecting procurement in the global Aircraft Maintenance & Repair market.
Neutral
GSA memo asks agencies to review consulting contracts
- The General Services Administration (GSA) recently issued a memorandum asking government agencies to review their consulting contracts with the ten highest-paid firms. The ten firms are Accenture PLC (Accenture Federal Services), Booz Allen Hamilton Inc., CGI Group Inc. (CGI Federal), Deloitte Touche Tohmatsu (Deloitte Consulting), General Dynamics Corporation (General Dynamics IT), Guidehouse Inc., Huntington Ingalls Industries Inc. (HII Mission Technologies), International Business Machines Corporation (IBM), Leidos Holdings, Inc., and Science Applications International Corporation, Inc. (SAIC).
- The memo states that agencies are strongly encouraged to cut non-essential consulting contracts, providing a list of those intended to be terminated by March 7, 2025. By April 19, 2025, agencies must submit their reviews of non-GSA consulting service contracts.
- According to the GSA, the ten consulting firms identified are set to receive $65.0 billion in fees in 2025. The Department of Defense (DoD) has stated its intention to terminate or descope contracts non-essential to the DoD’s purposes; some of the largest market players with high-value DoD contracts include Booz Allen Hamilton, Deloitte, and Accenture.
- According to the Government Accountability Office, in the fiscal year 2023, government agencies spent $478.0 billion on services, with the DoD accounting for $230.0 billion and non-defense agencies accounting for the rest. The DoD spent $21.3 billion on support, professional, and engineering and technical services, while non-defense agencies spent $21.4 billion on professional services, which includes consulting, training, and support services.
- The Department of Veterans Affairs (VA) initially cancelled 875 contracts (amounting to around $2.0 billion) but has currently paused efforts. However, contract terminations across most agencies are expected to continue.
Global Aircraft Maintenance & Repair Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Oceania & Southeast Asia | 13,115 |
| #2 Europe | 9,570 |
| #3 China | 8,225 |
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2
Geography Drilldown - US
Average Cost of Aircraft Maintenance & Repair
United States
2026 Market Pricing$500.00 to $XXX,XXX.XX
per flight hourAverage Price
Prices in the Aircraft Maintenance & Repair market range from $500.00 to $XXX,XXX.XX, depending on Aircraft Class, Systems Serviced, Service Time, Extent of Maintenance & Repair and Geographic Location. For example, lower prices are associated with Single-engine fixed wing ($461 to $1,500 per flight hour), whereas higher prices are associated with Helicopter ($1,500 to $5,000 per flight hour) and Multi-engine fixed wing ($800 to $5,000 per flight hour).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Aircraft Maintenance & Repair Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Aircraft Maintenance & Repair market, prices in the US have declined -0.0% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Aircraft Maintenance & Repair
Total cost of ownership is Low in the Aircraft Maintenance & Repair market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Scope Changes may raise the total cost of ownership unexpectedly.
Negotiated Before
Other Fees
Billed During
Warranties
Unforeseen
Scope Changes
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.4 in the United States. Buyer power is most positively impacted by Availability of Substitutes. It is most negatively impacted by Recent Price Trend. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Engine & Turbine Manufacturers
- Gasoline & Petroleum Wholesalers
- Aircraft, Engine & Parts Manufacturers
2nd
Tier Suppliers
- Iron & Steel Manufacturers
- Screw, Nut & Bolt Manufacturers
- Gasoline & Petroleum Bulk Stations
- Computer Peripheral Manufacturers
- Semiconductor & Circuit Manufacturers
Biggest Aircraft Maintenance & Repair Suppliers in the US by Revenue
The largest Aircraft Maintenance & Repair vendors by revenue in the US are Singapore Technologies Engineering Ltd, Aar Corp and Raytheon Technologies Corporation. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Boeing Co | Global | ARLINGTON, WA | >10,000 | 10-15 | ||||
| Deutsche Lufthansa AG | Global | Cologne, DE | >10,001 | 10-15 | ||||
| General Electric Company | Global | EVENDALE | >10,000 | 15-20 | ||||
| Singapore Technologies Engineering Ltd | Global | Singapore, SG | >10,001 | 15-20 | ||||
| Raytheon Technologies Corporation | Global | WALTHAM, MA | >10,000 | 25+ | ||||
| General Dynamics Corporation | International | RESTON | >10,000 | 5-10 | ||||
| Air France–KLM SA | Global | Paris, FR | >10,001 | 5-10 | ||||
| Delta Air Lines, Inc. | Global | ATLANTA, GA | >10,000 | < 5 | ||||
| Hong Kong Aircraft Engineering Co. Ltd. | Global | Lantau, HK | >10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Aircraft Maintenance & Repair market is 8.5% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Vendors face moderate risk in the aircraft maintenance and repair market. Vendors face no competition from substitutes, but vendors must adapt to fast regulatory change and governance issues.
Market share concentration is moderate in the aircraft maintenance and repair services market. Several large companies from adjacent markets such as Boeing and Raytheon are present, but most of the market is controlled by a large number of smaller players.
Supply chain risk is moderate in the aircraft maintenance and repair services market. Vendors face lower price volatility when purchasing most tools or computers, but higher price volatility when purchasing oil or steel products.
As a net exporter in the aircraft maintenance and repair market, US buyers' procurement strategies are influenced by the advantage of having domestic suppliers and a surplus of goods to sell. This aids buyer power and gives buyers more leverage and bargaining power because they will have a wider pool of sellers to choose from, potentially leading to increased competition among suppliers, favorable pricing options, and better negotiation terms.
Supplier Information
Boeing Co
Boeing Co is a public company operating globally in the manufacturing sector. The company's offerings include unmanned aerial vehicles, aircraft maintenance & repair and aeronautical engineering services. Founded in 1916, the company is currently headquartered in Seattle, Washington, United States of America... Subscribe to learn more
Deutsche Lufthansa AG
Deutsche Lufthansa AG is a public company operating globally. The company's offerings include international air travel and aircraft maintenance & repair. Founded in 1953, the company is currently headquartered in Cologne, Germany with an estimated employee count of over 10,000. Subscribe to learn more
General Electric Company
General Electric Company (dba GE Aerospace) is a global aerospace company that provides engines, systems, and services to commercial, government, and military markets. It organizes its business into two segments: the Commercial Engines & Services segment, which designs and manufactures jet engines for commercial... Subscribe to learn more
Singapore Technologies Engineering Ltd
Singapore Technologies Engineering Ltd is a public company operating globally in the manufacturing sector. The company's offerings include refrigerated trailers, aircraft maintenance & repair and aeronautical engineering services. Founded in 1997, the company is currently headquartered in Singapore, Singapore... Subscribe to learn more
Raytheon Technologies Corporation
Raytheon Technologies Corporation is a public company operating globally in the construction, manufacturing, information, professional, scientific and technical services and other services (except public administration) sectors. The company's offerings include gas turbines, dampers, strobe & warning lights,... Subscribe to learn more
Air France–KLM SA
Air France-KLM SA is a public company operating globally. The company's offerings include international air travel and aircraft maintenance & repair. Founded in 2004, the company is currently headquartered in Paris, France with an estimated employee count of over 10,000. Subscribe to learn more
General Dynamics Corporation
General Dynamics Corporation is a global aerospace and defense company that designs, engineers, and manufactures solutions for the aviation and defense markets. It organizes its business into four segments: the Aerospace segment, which provides aircraft, aircraft repair, and support and completion services... Subscribe to learn more
Aar Corp
Aar Corp is a public company operating globally. The company's offerings include aircraft maintenance & repair. Founded in 1951, the company is currently headquartered in Wood Dale, Illinois, United States of America with an estimated 4500 employees. Subscribe to learn more
Delta Air Lines, Inc.
Delta Air Lines, Inc. is a public company operating globally. The company's offerings include domestic air cargo transportation services, international air cargo transportation services, international air travel, domestic air travel and aircraft charter services. Founded in 1925, the company is currently Subscribe to learn more
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Procurement Management KPIs for the Aircraft Maintenance & Repair Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Retention Rate and Employee Training Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Compliance and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Retention Rate |
|
Number of Customers at Start of Period Number of Customers at End of Period Number of Customers Added within Period |
The customer retention rate represents the number of customers a company is able to retain over a set timeframe. The customer retention rate can be used to determine the extent to which a company’s customer base fluctuates over time. |
| Employee Training Rate |
|
Number of Employees that Undergo Evaluation Number of Employees that Pass Evaluation |
The employee training rate represents the share of employees a company is able to successfully train. The employee training rate can be used to determine a company’s ability to train quality employees. The employee training rate can be used to determine a company’s ability to familiarize and adapt its employee base to shifting market conditions. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Supplier Size
What is your past experience in working with a company of my size?
How many repair and maintenance facilities do you have around the United States?
Reputation
How long have you been providing services to your longest-standing client?
What quality control procedures do you implement?
Training
What methods are used for applicant background screening?
What qualifications must aircraft maintenance technicians have before being hired?
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Aircraft Maintenance & Repair RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organizations and explain why they are seeking aircraft maintenance and repair services.
Buyers need to give a description of how many and what types of aircrafts they have.
Statement Of Need
Buyers should provide a detailed description of their fleet and how often the aircrafts are flown.
Buyers should also include a detailed description of the type of repair services they require.
Project Budget
Buyers should explicitly state the amount of the award.
Buyers should explain whether they expect to pay for services after each maintenance or repair job or at some other point during the life of the contract.
The RFP process made easy
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
