A study on the enhancement plan to develop an MRO business complex at Cheongju International Airport based on low cost carriers

Abstract

The objective of this exploratory study is to examine the enhancement plan to develop an MRO(Maintenance, Repair, and Overhaul) business complex at Cheongju International Airport based on LCCs(Low cost carriers). In order to achieve that purpose, the author specifically analyzed related literature, government and business reports, domestic and international case studies, and also conducted expert group interviews. Because most of MRO activities on LCCs have been outsourced by overseas organizations due to maintenance cost reductions and lack of technical skills related to engine overhaul, the highly significant improvement plans for the development of an MRO industry in Cheongju are as follows. As the result of analysis, first of all it is essential not only to reinforce strategic networks with domestic business partners, but also to attract foreign MRO companies and their investment to have technical cooperation, and to organize competitive MRO services. Second, Cheongju Airport should be a specialized MRO station of LCCs to offer low cost and high maintenance quality. To do so, it has to reach an agreement for price competitiveness to adjust to current high labor charges for aircraft mechanics. Third, the MRO business, which is a rapidly growing industry, strongly requires certified high-level technical skills performed by well-trained, skilled employees; and it needs to offer effective TAT(turn around time) and implement international marketing strategies to secure overseas customers. Furthermore, it should also consider military aircraft MRO activities to expand market demand.