Setna iO Plans Expansion of MRO Services

Setna iO Plans Expansion of MRO Services

Strategic Growth in Maintenance, Repair, and Overhaul Operations

Setna iO is intensifying its global maintenance, repair, and overhaul (MRO) activities to support the rapid expansion of its aviation parts business. At the Jefferies Aftermarket and MRO Summit on June 4, Hunter Edens, Partner and Chief Commercial Officer of Setna iO, detailed the company’s ambitious plans to broaden its MRO network, signaling a determined entry into a sector traditionally dominated by well-established competitors.

The company’s European division, Setnix UK, based near London, recently obtained maintenance organization approvals from both the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA). Specializing in wheels and brakes, this facility has been operational for approximately two months. Setna iO CEO David Chaimovitz revealed to Aviation Week Network that Setnix UK will soon relocate to a newly acquired 110,000-square-foot site, co-located with the company’s trading operations. The facility is set to launch with around 50 employees, with plans to double its workforce by the end of 2026.

Expansion of Facilities and Capabilities

Setna iO is also preparing to expand its Setnix facility in Tempe, Arizona, which currently focuses on auxiliary power unit repairs. The company intends to extend this operation to include main engine disassembly and repairs, aiming to enhance both internal and external component refurbishment. The Tempe site, presently employing about 70 staff, is projected to grow to over 140 employees by the end of next year.

In addition, Setna iO will inaugurate its fifth MRO location in Chicago, specializing in airframe rotables, galley equipment, lavatory systems, and other critical components. Operating under the Setna PartsLab brand, this facility will initially add five employees, with ambitions for rapid expansion. The company also opened a new headquarters in Lincolnshire, north of Chicago, in the summer of 2024.

Earlier this year, Setna iO acquired a majority stake in Miami-based Zulu Global, an MRO provider with expertise in airframe rotables and structural components. According to Chaimovitz, Zulu Global’s capabilities in airframe, accessories, instruments, and engine components, combined with its parts manufacturer approval and designated engineering representative repair development, will significantly bolster Setna iO’s service offerings.

Navigating Competitive Challenges

Setna iO’s aggressive expansion occurs amid intensifying competition within the MRO sector. Established firms such as Turkish Technic are also scaling operations, including plans to open a CFM Leap engine shop in Istanbul. Industry analysts have expressed reservations about Setna iO’s capacity to rapidly scale complex MRO operations, given the substantial investments required in infrastructure and skilled labor. Competitors may respond by enhancing their own service portfolios or expanding facilities to protect market share, potentially increasing competitive pressures across the industry.

Despite these challenges, Edens emphasized that Setna iO’s strategy focuses on vertical integration and internalizing costs through significant investment in repair capabilities, aiming to “control its own destiny.” The company anticipates that the majority of its projected $550–650 million revenue for the year will continue to derive from its expanding parts business. Currently, Setna iO manages six leased engines and six leased aircraft, with letters of intent for three additional aircraft. Edens expects steady growth, projecting the addition of three to five aircraft annually, while engine acquisitions will be driven by market opportunities.

As Setna iO accelerates its MRO expansion, the industry will closely monitor its ability to manage competitive pressures and operational complexities inherent in scaling such services.