“The most significant issue facing the maintenance community in 2010 is financial sustainability,” Aaron Hilkemann, president of Duncan Aviation, told AIN. “As demand decreased this past year, additional incentives were provided to operators. These incentives have reduced or eliminated already low profit margins for many maintenance providers. At the same time, increased regulatory burdens imposed by the FAA and EASA have increased administrative overhead costs for repair stations. Maintenance providers will need to increase their pricing to offset the increased regulatory burdens and generate financial capital for future growth.”
Hilkemann said many maintenance providers reduced staffing levels, salaries or work hours last year when maintenance demand decreased. While it was a necessary evil, it might come back to haunt the industry.
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