Airlines Fold, Impact on MRO

In 2012, when Aviation Week held the first MRO Baltics, Eastern Europe and Russia Conference in Vilnius, Jonas Butautis, then CEO of FL Technics, talked about "hangar mania" and problems it creates in this region. He urged for efficiencies and the need for right sizing the industry.

Fast forward to this year's conference here in Budapest and there is discussion about how Russian airlines' shrinking fleets (yet potential for strong growth potential) is impacting the aftermarket--and lessons learned from how Malev's abrupt closing in 2012 can be applied to operators such as Eurolot, which ceased operating last month.

While no one likes to see people lose jobs, market consolidation can force market improvements. As one person said about the Russian airlines, "if it doesn't kill them, it will make them stronger."