From the start of the year, the Tallinn-based Magnetic MRO, a sub-brand of Magnetic Group, has already lined up a number of large-scale projects and developments. Aavo Kuus, Business Development Manager at Magnetic MRO, provides a digest of the latest updates and business insights.
What is Magnetic MRO currently working on, including its latest projects?
Aavo: In 2025, we are continuing to develop the new Base Maintenance hangars that we started last year. The launch is in progress and has been long-awaited, so hopefully, it will be in operation by the end of Q4 2025 or the beginning of Q1 2026. The expansion will result in 3 new hangars that will provide more capacity for our customers while also generating about 50 new jobs and positively impacting the community at the airport.
Another milestone is the implementation of the AMOS software, which will go live at the beginning of the summer. It’s a must-have solution to automate processes, increase efficiency, and improve utilization of the company’s resources. Needless to say, both developments are driven by better and improved customer experience and our commitment to the aviation industry.
Are there any changes in terms of market demand for services, ranging from checks to painting?
Aavo: The demand for both line and base maintenance has increased over the years, an average of 10% annually. The shortage of new aircraft and the overall aging fleet determines additional maintenance requirements. End-of-lease checks are often postponed due to a lack of new aircraft. Even adding new hangars won't solve all inquiries during winter maintenance season, but it's a step towards taking the burden off customers' shoulders.
As for painting, the Tallinn base has been quite limited with painting slots and painted aircraft only during the summer season. Soon, we will announce the news and start painting aircraft all year round, supporting customers with regional jets, business jets, and narrow-body fleet painting events.
Are there new opportunities emerging for MRO providers due to rising airline fleet expansions?
Aavo: Since the start of this year, we have surpassed pre-pandemic passenger air traffic, and the number keeps rising. Certainly, there will be more opportunities for MROs and companies in aviation in general - an increased number of flights and a larger fleet means higher demand for maintenance and other services.
The effect will be felt all across, not just airframe maintenance but also a higher volume for line maintenance, engine maintenance and repairs, landing gear overhauls, spare parts trading, workshops, engineering support, and so on. However, the availability of slots is not growing at the same pace, and demand will cause some lag and shortages in the market. Customers are willing to commit to 5 years or even more to secure hangar and maintenance slots and take similar preventative actions. As a general trend, airlines are increasingly planning maintenance during the summer to avoid extended downtime in the winter.
What are airlines and aircraft operators looking for in an MRO provider today?
Aavo: Today, the key is flexibility and having capabilities as a one-stop shop so that all required services are under one roof. Most customers are looking for a combination of high quality and capacity to support their increasing fleet and needs. Both scheduled and unscheduled maintenance come into play, and this is what operators appreciate.
As the supply chain remains challenging, in-house workshop support is crucial. Also, parts manufacturing or fabrication capabilities due to shortages and long lead times from OEMs are very important. It is a partnership and long-term cooperation, no matter how turbulent the market can become sometimes.
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