Bosnia’s ORAO Expands Aircraft Engine MRO Portfolio, Eyes Egypt and Civil Aviation Growth
Bosnia’s aircraft engine overhaul specialist Orao is entering a new growth phase, expanding international cooperation, targeting the Egyptian market, and strengthening both military and civil aviation projects ahead of 2026.
ORAO, one of the core pillars of Bosnia and Herzegovina’s defense-industrial base, is entering a new growth cycle after closing a strong business year, with fresh international projects, capacity upgrades, and renewed cooperation with global aerospace leaders.
According to company director Marko Mrkajic, the Bijeljina-based aircraft engine overhaul specialist is heading into 2026 with a solid order book and reduced financial pressure, allowing management to focus on expansion rather than stabilization.
Following Orao’s participation at the EDEX defense exhibition in Cairo, Egypt’s Ministry of Defense has expressed concrete interest in cooperation, with formal requests expected in the next phase. Management sees this as a strategic breakthrough into the African market, traditionally difficult to access for companies from Southeast Europe.
Core military business remains, civil sector gains weight
Aircraft engine overhaul and maintenance remains Orao’s core business, particularly in the military segment. However, management confirmed that modernization of production facilities will also support a growing civil aviation workload, creating additional revenue streams and reducing dependency on purely defense-driven cycles.
Appearances at Partner 2025 in Belgrade and coordinated international outreach alongside other defense companies from Republika Srpska have generated new institutional and industrial contacts, opening the door to larger and more complex joint projects.
Institutional backing and investments planned for 2026
Orao expects continued backing from the Government of Republika Srpska, primarily through targeted measures supporting the defense industry. These are expected to translate into investment incentives, production upgrades, and new employment.
Company leadership emphasized that skilled personnel remain Orao’s most critical asset, particularly in a sector where certified expertise and long-term experience are difficult to replace.
Standards-driven growth and global partnerships
Acting executive director for economic affairs Mladen Lemez confirmed that contracted projects and internal projections point to another strong year ahead. He highlighted that Orao was among the first aerospace companies in the region to adopt ISO 9001 and EN 9100 standards, a prerequisite for operating in international aviation supply chains.
Further upgrades to quality and compliance frameworks are planned as part of the company’s technical modernization roadmap.
Pratt & Whitney cooperation regains momentum
Lemez also confirmed a renewed upswing in cooperation with Pratt & Whitney. After a slowdown during the COVID-19 period, Orao has resumed production of engine components for the U.S. aerospace group, with expectations that cooperation could expand further as global demand in both military and civil aviation rises.
Financial stability as a platform for expansion
Company management underlined that Orao is currently financially stable and fully liquid, meeting all obligations on time. With secured contracts, international outreach, and institutional support aligned, the company is positioning itself for long-term growth beyond traditional regional markets.
As demand across the defense-industrial ecosystem continues to rise, Orao aims to leverage its MRO expertise to strengthen Bosnia and Herzegovina’s role in global aerospace supply chains.
