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Yet, while the trajectory is upward, capacity constraints, particularly in talent and training, are threatening to impede progress and increase operational risk, with direct consequences for airlines and their insurers.

The battle for talent

Aviation maintenance colleges continue to graduate new engineers, but many prefer to join airlines where pay and prestige are higher, leaving independent MRO providers struggling to attract and retain talent. At the same time, Asia’s historically lower labour costs have become a double-edged sword: while they’ve drawn international business, they have also led to a brain drain. Engineers from Asia are increasingly being recruited by Middle Eastern and Western MROS, which offer significantly higher salaries. The most acute gap lies in mid-career engineers with 10–15 years of experience, those best equipped to train the next generation.

Manufacturing developments

The aviation industry does not stand still, and constant technical development is accelerating its adoption of composite materials – lightweight, high-strength alternatives to traditional metals – as it seeks to improve fuel efficiency and performance, as well as enabling new markets to be developed.

The region is also gaining prominence in aircraft manufacturing and technology adoption. In China, the state-owned Commercial Aircraft Corporation (Comac) has introduced the C919 jet as a homegrown alternative to Boeing and Airbus.

Chinese drone maker EHang Holdings has introduced the EH216-S, a passenger-carrying unmanned electric vertical take-off and landing (eVTOL) aircraft. This aircraft received type certification approval in early 2025.

China is expected to dominate growth in this new transport category, driven by domestic aviation demand and heavy investments in both commercial and military aerospace sectors.

Training challenges

Yet, the complexity of modern aircraft has outpaced current training programmes. New recruits often require significant additional instruction once on the job.

Some MRO firms are using customer aircraft as informal training platforms for junior engineers. While this may provide necessary hands-on experience, it poses problems if not supervised by a sufficient number of experienced personnel.

The coronavirus pandemic exacerbated this reliance on informal training. When operations slowed during Covid-19, many veteran technicians retired, taking decades of experience with them. The resulting loss of mentorship capacity has left a gap that formal training alone cannot fill.

Competency and knowledge of their certifying personnel is also hampered by new, advanced technology that increases reliance on computers to perform troubleshooting and maintenance.

There are also emerging cultural challenges, including a perceived decline in long-term commitment and teamwork among younger recruits. While anecdotal at present, if substantiated, such trends could pose further challenges for already strained operations.

Impact on insurance

The growing reliance on less experienced staff has increased the risk of costly maintenance errors. These risks are particularly acute for next-generation aircraft and engines, which are both more complex and more expensive to repair.

MRO contracts increasingly include indemnity clauses, shielding airlines from liability if maintenance errors result in damage. The financial burden, in such cases, often falls to insurers.

As maintenance-related claims increase in frequency and cost, insurers may intensify their scrutiny of MRO providers’ capabilities, particularly in fast-growing but overstretched markets.

In summary

The Asia Pacific MRO market is growing, but beneath the surface, challenges persist. Without a deeper talent pipeline, better training infrastructure, and more rigorous oversight, the region’s capacity to meet rising demand may falter, impacting insurers and operators alike.

Tan Soon Keat, Asia regional director at McLarens Aviation .

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