The MRO business in the Baltics/Eastern Europe region is being supercharged by traffic growth and the ambitions of individual airports. Kevin Rozario reports

While MRO is a globalised industry, some areas are punching above their weight due to faster-than-average aviation growth and/or more competitive labour costs for high value maintenance staff. The Baltics and Eastern Europe is one of these regions.

Perhaps the most obvious sign of the MRO industry’s importance and future role is at Bulgaria’s Sofia Airport. Towards the end of 2024, the gateway’s operator, SOF Connect, hosted a conference called Aviation-Event 2024 SOF in the capital – the first international aviation gathering to take place in Bulgaria on a large scale.

Plans for a new Terminal 3 were presented and a primary investment area underpinning the project is the development of MRO facilities. SOF Connect’s chief executive, Jesus Caballero, tells MRO Management: “With supply chains impacting the airline business, airports with MRO services on-site have a huge advantage. It is difficult to develop such services at airports, but in Sofia we are one of Europe’s MRO leaders.”

Bulgaria has a proud aviation history, and Sofia Airport maintains approximately 500 aircraft a year with about 2,000 technicians and engineers working at major companies such as Lufthansa Technik, Aero Technic BG and others. Having jumped through regulatory and certification hoops to establish its MRO credentials some years ago, Sofia is now taking full advantage.

Caballero says: “We will use this industry to pursue our ambition to become a regional hub in Europe. MRO already has a huge economic impact because we are talking about €130 million turnover annually from five or six companies based here. Becoming Europe’s largest MRO hub is achievable.”

 Costs, competence, and education

As part of this ambition, Sofia Airport will further expand its MRO abilities “because airlines will look for airports where they can also do maintenance” to reduce costs and increase efficiencies.

At least another 10 MRO hangars are planned in addition to the 19 existing ones. The gateway services many aircraft from outside Europe because long-haul carriers see this on-site option as attractive. “When opening a new destination, it’s not easy to find an airport that can take care of your aircraft,” explains Caballero.

Lufthansa Technik Sofia has been operating in Bulgaria since 2008 and has grown to be the largest MRO base outside Germany for its parent. The Sofia chief executive, Preslav Milchev, is keen on further expansion. He says: “We have a well-educated workforce here and we will work with the airport to utilise this in developing our operations.”

This kind of MRO expansion can only work with rising airport traffic and connectivity, something else that SOF Connect is working on which is why it is building a 20-million capacity terminal, the largest in the Balkans. “We even changed the position of the terminal to accommodate Lufthansa Technik’s future growth,” says Caballero.

George Kanchev, chief executive of Aero Technic BG (ATBG) comments: “Significant aviation expansion is occurring in Eastern Europe, primarily due to low-cost carriers growing their fleets and route networks.”

Kanchev adds: “According to Eurocontrol, intra-European traffic increased by 4% last year (versus 2023), contributing to 10.7 million flights in the region. The need for MRO services has significantly increased because of this growth and new opportunities have emerged. But if the workforce and infrastructure cannot keep up, there may be capacity issues.”

An available educated workforce is on everyone’s mind. At FL Technics, which has five heavy maintenance hangars worldwide (two in Lithuania), chief executive Zilvinas Lapinskas, says: “To address workforce shortages we collaborate with universities, providing scholarships for the most talented aviation mechanics, engineering and avionics students. We see the importance of investing for the future.” FL Technics, part of the vast Avia Solutions Group, also has a training academy where graduates can become aircraft mechanics and later obtain an aircraft engineer certificate.

Estonia-based Magnetic MRO has also launched its own academy to develop skilled aircraft engineers. Managing director Jan Kotka tells MRO Management: “Collaborations with educational institutions have been established to ensure a steady pipeline of talent.”

Similarly, Latvia’s Airline Support Baltic (ASB) is investing in training and works with regional aviation academies. “We also make sure to provide attractive career growth opportunities and support with relocation when needed to attract skilled workers from abroad,” says its chief executive, Gegams Hanamirjans.

Aviation growth has its challenges

These moves are essential for the Baltics/Eastern Europe region to stay ahead in the MRO race. Kotka explains: “The rapid growth in Eastern Europe, outpacing Western Europe, presents both opportunities and challenges, primarily the availability of skilled manpower. Companies that can attract and retain aviation specialists will be better positioned to provide comprehensive maintenance services, particularly in the line maintenance sector.”

Like Sofia, Lithuania’s Kaunas and Vilnius airports – where FL Technics has bases – are under development, according to Lapinskas. He says: “Kaunas Airport is increasing terminal capacity which is beneficial for us as an MRO because it allows for more aircraft parking spaces and suitable engine run-up areas. Vilnius Airport is also concentrating on infrastructure and we understand that a second phase of development will include improvements for ground handling, MRO, and fixed-base operator services.”

Like ATBG’s Kanchev, Magnetic MRO and ASB also cite low-cost carriers as a particular driver for Baltics/Eastern Europe growth.

Magnetic’s Kotka says: “For instance, airBaltic reported record-breaking passenger numbers in 2024, reinforcing its position as the leading carrier in the region.”

Hanamirjans adds: The growth of low-cost airlines has made it easier and cheaper to travel within Europe and Riga Airport is expanding and adding new destinations every year, which is helping it become a major hub in the area.”

Eurocontrol flight forecasts for this year show that, on a base scenario, average growth will be 3.7%. However, the Baltic States are likely to achieve double this at more than 7%, with above average growth of 4.2% or more in Central and Eastern European markets like Bulgaria, Romania and Serbia. Moldova tops the projections at 13%.

Keeping up with the Jones

To stay attractive to OEMs and airlines, MROs in the region are deploying modern technologies and equipment. For example, ATBG has launched an in‑house accredited calibration laboratory called In Lab Aeronautics equipped with cutting-edge technology from global manufacturers. Kanchev says: “These innovations enable the company to remain agile, reduce turnaround times and stay competitive.”

FL Technics has added a dent scanner that, along with specialised training for staff, helps repair parts instead of replacing them, making maintenance that much more cost-effective for clients. Lapinskas explains: “We also recognised the need for modern IT software solutions as most of our clients are transitioning to paperless systems and processes. Therefore, we have developed and launched a new bespoke Enterprise Resource Planning (ERP) system.”

ASB has already gone paperless by using digital planning systems which helps a lot, according to Hanamirjans. He adds: “We also track parts with RFID for better visibility and logistics and we’re testing out 3D scanning and 3D printing for some less critical parts. But what really sets us apart is our one-stop-shop model: everything gets done in-house, which helps us keep a close eye on quality and timelines.”

Meanwhile, Magnetic MRO is implementing the AMOS maintenance management system to streamline operations, and it is set to open new maintenance hangars at Tallinn Airport, incorporating advanced tech, possibly including automated warehousing solutions to optimise inventory management.

The use of Mototok’s electric, remote-controlled aircraft tugs will also speed up the movement of aircraft. Kotka adds: “Efforts are also underway to enhance AI-based purchasing processes in collaboration with SkySelect, reducing procurement time and improving supply chain efficiency.”

Future expectations

Looking ahead, and given the pace of growth – despite the continuing conflict in neighbouring Ukraine and general economic uncertainty, now complicated by Trump’s tariffs – MROs remain confident that the Baltics/Eastern Europe will boom.

Kanchev comments: “Rapid aviation growth in Eastern Europe is having a positive impact on ATBG. The regional momentum is allowing us to grow our customer base and we are expanding services and infrastructure to meet increasing demand.” The company has started the construction of a new hangar facility that will increase capacity and support future growth.

Hanamirjans agrees that opportunities are there, but warns: “Demand is rising, but so are costs, including labour and materials. The region can’t just depend on being cheaper any longer. Our plan is to focus on high-quality, flexible operations and great customer service. Keeping these values helps us stay strong in a market where expectations are on the rise.” To tackle supply chain issues, ASB also keeps a well-organised inventory and plans in advance for parts with long lead times, which is supported by long-term relationships with its suppliers.

In the context of high growth, FL Technics also reiterates that parts availability remains one of the primary challenges. Lapinskas says: “As a result, we are investing in maintaining high stock levels. Thorough preparation and analysis of anticipated defects and parts requirements, in collaboration with our customers, are essential to ensuring smooth project execution.”

For now, the Baltics/Eastern Europe region remains a solid choice for localised, affordable maintenance solutions. Expectations are for steady growth due to high MRO demand and limited availability of reliable, full‑service providers.

This feature was first published in MRO Management – April 2025. To read the magazine in full, click here.