Structural changes could pose headwinds for MRO firms in post-Covid landscape

AS THE recovery in travel inches forward, maintenance, repair and overhaul (MRO) firms are finding themselves grappling with structural headwinds that will likely persist in a post-Covid landscape.

International borders have been slow to reopen even within the Asia-Pacific where a number of countries have made strides in containing the virus, resulting in a slower than expected recovery.

Data from consultancy AeroDynamic Advisory suggests that MRO activity may return to pre-Covid levels only by 2024, while MRO firms here are further hampered by the lack of a domestic market, which is translating to depressed demand. Meanwhile, companies in the aerospace sector will also see payouts under the government's Jobs Support Scheme taper off from March 2021. Until then, they are receiving 50 per cent of the first S$4,600 of gross monthly wages per local employee.