Aviation Support Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,400 aviation support services in the US provide airport operation, repair, maintenance, storage and ferrying services. Primary services offered include maintenance and repair; fixed base operators (FBO) services; airport administration and operation service; and handling services for goods (cargo, baggage). Other services include air traffic control, runway services (cleaning, snow removal), de-icing, and parts inventory management services.
Regulated Environment
The US aviation industry is heavily regulated by the Federal Aviation Administration (FAA) which sets the standards for repair and operation of all aircraft and parts.
Advances in Technology
Advances in technology have fundamentally changed the need for maintenance, repair and overhaul services.
Industry size & Structure
The average US aviation support services provider employs about 58 workers and generates $7-8 million annually.
- The US aviation support services industry consists of about 4,400 firms that employ 255,000 workers and generate over $32 billion annually.
- The industry is moderately concentrated at the top and fragmented at the bottom; the top 50 companies account for about 57% of industry revenue.
- Large MRO firms include AAR and Aviation Technical Services (ATS). Foreign firms, such as HAECO, offer aviation support services through domestic subsidiaries and joint ventures.
- The top 100 US aviation markets typically contract with a chain fixed base operator (FBO), such as Signature Flight Support and Atlantic Aviation.
Industry Forecast
Aviation Support Services Industry Growth
Recent Developments
Nov 7, 2024 - M&A Activity Remains Strong
- The aviation industry has seen substantial merger and acquisition activity in recent months, according to Goldman Sachs. Alternative investment firm Stonepeak agreed in October to acquire aircraft leasing and support provider Air Transport Services Group for about $3.1 billion. Apollo Global Management acquired Barnes Group, a 167-year-old provider of engineered products and innovative solutions, for $3.6 billion in early October. Snow Peak Capital purchased TurbineAero, a provider of maintenance, repair and overhaul services for aeroengine components, while H.I.G. Capital acquired STS Aviation Group from Greenbriar Equity Group.
- The aviation industry is expected to recover fully from the effects of the Covid-19 restrictions in 2024, with global passenger traffic estimated to reach 9.4 billion passengers, according to the Airports Council International. North America is the stand-out region in terms of financial performance and was the first market to return to profitability in 2022, according to the International Air Transport Association. Aviation in the USA supports over 1.1 million jobs and has an economic impact of over $246 billion every year, according to a 2024 study from the National Association of State Aviation Officials, the Alliance for Aviation Across America, and the American Association of State and Highway Transportation Officials.
- The Federal Aviation Administration (FAA) is finalizing new rules requiring charter, commuter, air tour operators, and aircraft manufacturers to implement Safety Management Systems (SMS), a safety tool aimed at reducing accidents. SMS are a set of policies and procedures to proactively identify and address potential operational hazards. US airlines have been required to have SMS since 2018 and some aerospace companies already voluntarily have SMS programs. The National Transportation Safety Board has urged the FAA to require and verify the SMS systems in all revenue passenger-carrying aviation operations.
- Aviation support services slightly raised their prices during the first nine months of 2024, according to the US Bureau of Labor Statistics (BLS). Aviation support industry employment and average wages for nonsupervisory employees increased moderately during the first nine months of 2024, according to the BLS.
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