Setna iO is actively developing its internal MRO capabilities, with plans for this segment to potentially surpass its parts trading business within the next five years, according to CEO David Chaimovitz. During the recent MRO Americas event, Chaimovitz expressed optimism about the company's growth prospects, highlighting recent acquisitions and expansion projects, including new facilities in Arizona and the UK.
The company aims to reach $35 million EBITDA from its MRO activities this year, with expectations to increase to $50 million next year. Its acquisitions of Zulu Global, Landing Gear Technologies, and J&C Aero are significantly contributing to this growth, along with strategic investments at setnix repair stations.
Chaimovitz emphasized the increasing demand for aircraft parts from both legacy and new-generation fleets, pointing out a significant shortage of widebody aircraft such as Boeing 787s and 777-300s for parts trading. He noted that while Setna iO maintains an agnostic approach to aircraft acquisitions, securing such assets would be advantageous.
"The industry is experiencing substantial growth in used serviceable material (USM) spend, driven by the expansion of the global fleet including Boeing 737 MAXs, 787s, Airbus A350s, and A320neos," said David Chaimovitz.
The CEO also discussed the challenges of sourcing assets, noting an improved pipeline but acknowledging the risk of market irrationality, where assets could be overvalued. Industry dynamics suggest a substantial growth in USM (Used Serviceable Material) spend over the next decade, fueled by the expanding global fleet of aircraft types including Boeing 737 MAXs, 787s, Airbus A350s, and A320neos.
In addition, the company is expanding operations in various regions, with Setnix UK completing construction on its new headquarters, and Setnix Arizona moving into a larger facility, both aiming for significant employment growth. The overall strategy points toward an aggressive expansion in MRO services, supported by investments in advanced testing equipment and facility upgrades.
