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Aircraft Maintenance, Repair and Overhaul (MRO)

MRO presents an unusual combination of risk exposures. A strategic choice of broker not only helps to deliver innovation and efficiencies, it can provide you with a means to differentiate you from your competitors in the value chain.

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WTW has extensive experience of working with the providers of Aircraft MRO services to the aviation industry. In many cases these services are provided in-house by the airlines or aircraft operators and are often marketed to other operators. However, it is becoming increasingly common for airlines to contract independent third parties to provide ad-hoc, as well as scheduled, MRO services, as it is more economical for a small or medium airline than having its own facilities.

Risk factors for Aircraft Maintenance Repair and Overhaul (MRO)

We recognise the combination of risk exposures that make the MRO third-party liability risk unusual in the aerospace industry, such as:

  • Damage to aircraft while under the MRO provider's care, custody and control, either on the ground or during a test flight
  • Damage to components while being worked on at the MRO provider's facility
  • Damage caused to an aircraft, possibly catastrophic in nature, caused by work carried out by the MRO but occurring during subsequent operations by the operator
  • Injury to customers or other personnel while on the premises

Our deep expertise and understanding of the MRO landscape enable us, as your risk adviser, to accurately identify and mitigate the exposures you face through effective risk transfer, future proofing your organisation against unexpected and costly events. No matter how complex your risk, our aim is to help you achieve your goals.

How we can help you to achieve your goals: an MRO case study

We worked with an MRO identifying practical solutions and balancing ideal coverage requirements versus cost. We recognised that there will potentially be a reasonable number of relatively minor accidents - for example minor damage to aircraft while undergoing maintenance – but that the catastrophe element must also be addressed. WTW carried out an on-site risk review, employing independent consultants who are available to provide a range of risk management services ranging from ramp safety audits and contractual risk reviews to full business risk surveys. By working together with our client we helped to identify and present the risk exposures in the best possible light to insurers so that loss prevention measures could be put in place.

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