New complex gives boost to aircraft servicing business in Estonia
Aircraft maintenance company Magnetic MRO has opened a new facility in Tallinn, boosting Estonia's aircraft maintenance and repair capacity by one-third.
Aircraft maintenance company Magnetic MRO has opened a new maintenance center in Tallinn, creating jobs for an additional 80 skilled workers. The new hangar can accommodate up to three medium-sized aircraft.
Owned by Chinese company Hangxin, Magnetic MRO operates in 20 countries, but its headquarters remain in Tallinn. Until now, the company serviced about 100 aircraft annually in Estonia; the new facility increases that capacity by 40 planes.
"With around €160 million in revenue, about €40 million of that comes from Estonia. But the work done in Estonia is the most complex in our entire group. In other countries, we mostly deal with spare parts procurement, sales, exchanges and asset transactions. We also provide maintenance abroad, but generally lighter tasks," said Magnetic MRO CEO Risto Mäeots.
Aircraft maintenance is a massive global industry, exceeding $80 billion. Estonia currently holds a 0.2 percent share of that market, with room to grow. There are 27,000 aircraft in the world today and that number is expected to rise to 36,000 over the next decade.
"Our hangars are fully booked far in advance and we saw the potential to expand. We've grown relatively modestly, though demand would justify even greater expansion," Mäeots noted.
"We're also planning to expand our engine shop, where we see significant global demand. At the moment, we can service five engines at a time, but we're looking to build a larger facility that could handle up to 12 simultaneously. That will also require hiring many more specialists," he added.
Airport City, the business real estate development arm of Tallinn Airport, invested nearly €14 million in the new maintenance hangar. A major aviation and business hub is emerging next to the runway, already home to FedEx and DHL cargo terminals.
"The facility opened today includes three bays, but it has the potential to grow to eight. On the other side, we can also add logistics centers — that is, air cargo hubs," said Airport City CEO Veiko Keerberg.
"Developing commercial real estate like this is an important source of additional revenue for the airport, which is essential to keeping airport fees and other service charges lower," he added.
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Editor: Marcus Turovski, Valner Väino
