Ongoing conflict in Middle East will disrupt global MRO

Ongoing conflict in Middle East will disrupt global MRO

The US-Israel attack on Iran has not only caused the cancellation and diversion of tens of thousands of flights: maintenance, repair, and operations (MRO) will also be significantly disrupted.

Iran’s ongoing retaliatory strikes on Gulf states, including Bahrain, Qatar, and the United Arab Emirates (UAE) have constrained supply chains and forced the implementation of emergency risk strategies. As airlines evacuate their fleets out of conflict zones, MRO activity is MENA is now reconsolidating around Saudi Arabia and Turkey. The risk of greater damage to aircraft is leading to an increase in MRO activity, while in the long term the war will exacerbate existing supply chain issues.

MRO demand spikes due to conflict

In the short term, the conflict has led to many airlines relocating their fleets away from the Gulf states. Strikes on sites such as Dubai International Airport have further put expensive MRO facilities at risk. And with many thousands of flights cancelled, more aircraft are on the ground than usual, necessitating a pivot to preservation and storage maintenance.

At the same time, aircraft in the air require more thorough inspection and maintenance than usual. With a higher risk of contact with foreign object debris (FOD), regulators are shortening prescribed maintenance cycles to make sure aircraft remain undamaged. And as flight paths are diverted around the conflict zone, aircraft are taking longer routes than they might do normally. This places extra strain on engines and could bring expensive shop visits forward. Inspections on avionics hardware are also stepping up as incidences of spoofing and GPS disruption continue in and around the warring countries.

Conflict exacerbates supply chain issues

Aviation and aerospace logistics have already been hard hit by the pandemic and other geopolitical events. The closure of the Strait of Hormuz during the current US-Israel-Iran conflict will worsen matters further, disrupting the import and export of critical MRO materials. Transportation via non-maritime means is also surging in price: air cargo costs have gone up by as much as 400%.

MROs will be forced to rely on stockpiles, and in some cases may even be unable to secure the parts needed at a reasonable price. Costs are set to go up, and with the situation remaining uncertain and unstable, it can’t be guaranteed that projects will complete on time.

World leaders are negotiating to end the conflict and reopen the Strait of Hormuz. However, even if the conflict lasts no more than a few weeks, the aftershocks will be felt for months down the line, especially in MRO. Higher prices and extended backlogs can be predicted in an aviation industry that is already suffering from lengthy delays and turbulence across the supply chain.

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Jet fuel prices surge as Middle East conflict continues

Jet fuel prices surge as Middle East conflict continues

Jet fuel prices have topped US$200 a barrel as the fallout from the US-Israel attack on Iran continues to destabilise Middle Eastern oil production.

IATA’s Jet Fuel Price Monitor found that the average price had more than doubled, with costs surging by 58.4% on 6 March compared to the previous week. Strikes on oil production infrastructure in Iran, Qatar, and the UAE have contributed to the spike, as well as Iran’s assertion that they “will not allow even a single litre of oil” through the strategically critical Strait of Hormuz. Jet fuel already accounts for around 40% of an airline’s operating costs.

In response to the growing crisis, the International Energy Agency (IEA) have said they will release emergency reserves of 400 million oil barrels. Several airlines have confirmed they can withstand the shock because they bought their year’s stocks of fuel at a fixed price ahead of time. This includes Air France-KLM, Lufthansa, and Ryanair, all of whom have sufficient stockpiles for fares not to rise too much in the short term.

However, many airlines say they have no choice but to pass higher costs onto customers. Air India and Scandinavian Airlines (SAS) are among the carriers who say additional surcharges will be needed to cover the higher costs of operation during this turbulent period.

Meanwhile, the Gulf region continues to be impacted by air strikes and airspace closures. KLM and British Airways are among the carriers who have paused all journeys to Dubai until the end of March, usually a popular destination with business travellers and tourists. Emirates, Etihad, and Qatar Airways continue to offer an extremely limited schedule of flights aimed at repatriating passengers. Operations at Gulf Air remain completely suspended as of 11 March, since the aviation authorities do not consider it safe to reopen Bahraini airspace. The carrier have even relocated some of its fleet to Saudi Arabia to protect aircraft from potential damage.

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Eve, Alt Air, Skyports to team up on Australian eVTOL network

Eve, Alt Air, Skyports to team up on Australian eVTOL network

Eve Air Mobility are partnering with Sydney-based startup Alt Air and Skyports to bring a commercial eVTOL network to Australia.

The three companies will collaborate to develop sustainable infrastructure that will make air taxis viable transport in Queensland and New South Wales. With Brisbane set to host the Olympic Games in 2032, Eve believe Australia provides the ideal environment to build vertiports and develop systems for ground operations, route planning, and airspace integration. Johann Bordais, Chief Executive Officer at Eve Air Mobility, said:

Through this collaboration, we are laying the foundation for a world-class eVTOL ecosystem in Australia. New South Wales and Queensland present an incredible opportunity to deliver sustainable, quiet, and efficient urban air mobility solutions that will benefit residents, businesses, and international visitors, especially as we look toward the opening of Western Sydney International Airport and the global stage of the Brisbane 2032 Games.

The consortium is prioritising development on potential high-demand routes, including Western Sydney Airport to central Sydney. Aaron Shaw, Managing Director at Alt Air, added:

Our work with Eve Air Mobility and Skyports underscores our shared commitment to building meaningful aviation innovation in Australia. Together, we are designing an eVTOL network that will significantly improve connectivity and set a benchmark for advanced air mobility worldwide.

Eve have previously signed agreements with the government of Bahrain for developing commercial eVTOL service across the Middle Eastern country. Rivals in the space, including Archer, Joby, and Vertical, are in the process of designing potential air taxi networks in metropolises including Dubai, Miami, and New York.

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Equilibrion and Rolls Royce to develop nuclear-powered SAF production

Equilibrion and Rolls Royce to develop nuclear-powered SAF production

Equilibrion and Rolls Royce have signed a memorandum of understanding (MoU) to develop British sustainable aviation fuel (SAF) production through nuclear power.

The Rolls Royce small modular reactor (SMR) can support the deployment of cost-effective, sustainable energy. Equilibrion’s proprietary Eq.flight SAF production system, meanwhile, is designed to minimise energy use during the SAF production process. Each Rolls Royce SMR has the potential to produce 160 million litres of SAF a year, representing a significant contribution to the UK’s SAF target, set at 22% of aviation fuel by 2040.

Caroline Longman, Director at Equilibrion, said:

Aviation will only meet its climate commitments if SAF becomes available in large, dependable volumes. Nuclear‑derived fuel production offers the reliability, scalability and low carbon intensity needed to deliver that future. Delivering nuclear‑enabled SAF also creates long‑term, high‑quality employment—each Eq.flight facility has the potential to generate around 10,000 skilled local jobs over its lifetime.

IATA has previously warned that SAF production systems are lagging far behind what is necessary to meet net-zero targets, with supply meeting only 1% of global demand. Nuclear-powered production would not only accelerate the supply chain but lower the carbon footprint of the entire SAF process. Alan Woods, Director of Strategy and Business Development for Rolls-Royce SMR, addded:

Our SMR technology is designed to provide clean, affordable and dependable low‑carbon energy, exactly the qualities required to unlock large‑scale Sustainable Aviation Fuel production. The technical and economic assessment completed with Equilibrion will enable them to demonstrate how nuclear can power one of the most ambitious decarbonisation challenges in aviation.

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UK expand LEO satellite programme with £30m in funding

UK expand LEO satellite programme with £30m in funding

The UK government has issued £30 million in funding as it expands its low-earth orbit (LEO) satellite programme.

Run by the UK Space Agency, the investment supports British businesses developing innovative satellite components and technologies. LEO satellites are becoming increasingly critical infrastructure because they offer more complete global connectivity than ever before, including in rural or mountainous areas. The biggest company in the sector, Starlink, have already become one of aviation’s critical partners, supplying high-speed inflight WiFi to a growing list of airline customers.

LEO satellite use goes well beyond streaming films at 30,000 feet and can support a range of aerospace applications, including avionics, flight operations, and air traffic control. Enhanced weather forecasting, navigation, and positioning have pushed the LEO satellite market to a £40 billion global market value that is growing by 10% year-on-year (YOY).

Space Minister Liz Lloyd said the £30 million investment would position the UK at the heart of this growing supply chain. A first funding round worth £18 million has already supported eight British companies and 26 highly skilled jobs. Lloyd commented:

Space is now the cornerstone of our modern economy. Satellite constellations have revolutionised how we operate, digitalising industries, optimising logistics and connecting all corners of the globe.

This new funding will support the development of smarter satellites with better hardware, the use of AI to make data delivery faster and improved connections between spacecraft.

This is part of the government’s commitment to keeping UK companies at the forefront of satellite communications, delivering economic growth and strengthening our defence and national security.

UK Space Agency CEO Dr Paul Bate added:

UK companies are developing world-class satellite communications technologies, from advanced antennas to optical links that can transmit data between satellites at the speed of light.

Our first C-LEO funding round is delivering real results, and this second call will help even more businesses take their innovations from prototype to product, ready to be integrated into the constellations of tomorrow

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