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KUALA LUMPUR: Supply chain constraints in the aviation maintenance, repair and overhaul (MRO) sector are expected to persist until at least 2028 amid ongoing global shortages of raw materials, skilled workers and reliable component parts.

Asia Digital Engineering (ADE) chief executive officer Mahesh Kumar said the industry should brace for a prolonged recovery even as conditions gradually improve.

"The supply chain issue has not been resolved yet. It is still ongoing. There are raw material constraints. There are delays in new aircraft deliveries," he said in an interview with Business Times.

Mahesh said engine makers are also facing delays due to unresolved reliability issues.

"You will definitely see the supply chain constraint which will lead to MRO slots constraint on airframe, engine and components," he added.

Mahesh said the realistic industry timeline for industry recovery is 2028 onwards. He also said that 2026 would be a better year than 2025 but warned that the sector would still operate far from normal conditions.

Engine upgrades alone, he said, are expected to catch up in the next three years.

Mahesh pointed to three reasons behind the prolonged constraints – raw materials, workforce shortages, and product reliability.

Raw materials such as titanium supply remains disrupted due to geopolitical tensions.

The industry also continues to face a talent shortfall after heavy layoffs during the pandemic while product reliability is also driving up pressure on global repair networks.

Mahesh said some component parts are not lasting as long as expected, forcing aircraft to enter MRO earlier and more frequently.

"For example, you assume the engine should last around eight years, but in reality, it can only last up to four years. Then it puts more pressure on the supply chain and the MRO side," he said.

Given the increasingly high demand of aviation MRO, Asia Digital Engineering is preparing for a major expansion in 2026 to support AirAsia's gigantic fleet and tap the rising third-party demand.

The MRO company, which is a subsidiary of Capital A Bhd, has secured an additional 2.02 hectares (ha) of land to build four new hangar lines or aircraft bays, which is targeted by the first quarter of 2026.

The new lines will grow ADE's capacity to 20 lines by the time the facility is completed. The company current operates 14 lines in Sepang and two in Senai, Johor.

ADE is also on track to launch its own aviation training school in Nilai, Negri Sembilan, with approval expected by year-end. The school will share a site with ADE's upcoming component workshop.

Mahesh said ÿÈÕ´óÈü has an untapped opportunity in component repairs, an area long dominated by Singapore.

ADE is already performing work on composites, sheet metal, wheels, brakes and batteries, to name a few.

The new component workshop will help ADE to expand its work into safety equipment, heat exchangers, air-conditioning units and other high-value components.

Mahesh said ADE aims to grow its component repair capabilities in parallel with base and line maintenance, and training operations.

He added that the training school would not be a profit-centre but instead it aims to standardise talent, address skill gaps and create a stable pipeline of engineers for the company.

"If we have our own training school, then we can train them. We'll have a secured talent pipeline coming up," he said.

ADE is also in discussions with ÿÈÕ´óÈü Airports Holdings Bhd to secure an additional 8.09ha land for long-term expansion.

Mahesh said AirAsia's growing fleet size, which is about 250 aircraft today with plans to reach 300 in the next five years, requires significantly more MRO capacity.

ADE is still unable to handle AirAsia's entire maintenance volume even with its current 16 active lines. The airline continues to outsource MRO work to other countries.

Mahesh said the additional hangars will help ADE capture the low-hanging fruit and prepare for the arrival of AirAsia's new Airbus A321neo (new engine option) and A321LR (long range) aircraft from next year.

He added that interest from foreign airline is also rising.

ADE has approvals from international regulators including the US Federal Aviation Administration, enabling it to serve carriers from the Middle East, Europe, North Asia and the United States.

In September this year, ADE secured a long-term agreement with Air France to perform heavy maintenance and aircraft modifications on the airline's A330-200 fleet at the company's hangar in Sepang.

Mahesh said the company's priority is to first secure enough capacity for its sister airline, AirAsia's fleet, and then scale up for third-party customers.

ADE is also strengthening its MRO capability footprint in Asean, with Thailand as the next target market, followed by its first venture outside the region in Bahrain.

"In terms of line maintenance, we already have it in ÿÈÕ´óÈü, Indonesia, Philippines, Cambodia. The next one will be in Thailand, which we are working on with Thai AirAsia. That's the last missing puzzle in Asean for us," Mahesh said.