01 May I have noticed that Air France KLM offer a Maintenence (M
I have noticed that Air France KLM offer a Maintenence (MRO) service for aircraft and jet engines. This sounds like a potentially big threat to engine manufacturers like Rolls Royce who makes around 50% of its revenue from its TotalCare MRO servicing contracts. I would have thought the price of buying saying a Rolls Royce jet engine would be far higher if an airline customer did not take the MRO TotalCare package from RR and in addition the airline may suffer from reduced engine warranties if they employ a 3rd party to service the engines. Do you think engine manufacturers business will get competed away by independent MRO businesses like Air France KLM’s?
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