MRO

ISSUE ONE 2011
www. av i at i o nne ws - o nl i ne . c o m
MRO GLOBAL
www.teamsai.com
TeamSAI provi des consul ti ng and techni cal ser vi ces to avi ati on i ndustr y cl i ent s i ncl udi ng
ai rl i nes, MROs, corporate/ fracti onal operators, OEMs, ai rpor t authori ti es, and i nvestment
banks around the worl d wi th a focus on strategy, operati ons i mprovement, cost reducti on,
safet y, cer ti fi cati on, and suppl y chai n.
4 THE MRO MARKET IN 2011
A review of the past 12 months in the MRO market and a look at whats ahead for 2012
16 Who combines the data?
Amalgamating two or more data systems is a costly and time consuming affair Swiss Aviation Software has the solution
22 More MRO for your money
MRO Global looks into the maintenance providers market.
32 Smoke and mirrors
The PMA parts market has enormous potential for growth if it can fight back against the OEMs.
44 Solving lessor issues
Ideas about how to handle third-party maintenance contracts
47 More than an afterthought
Inventory management planning from Inform
50 Pulled apart
Kellstrom shares how it intends to retain its share of the fragmenting parts market.
54 MRO Americas
62 MRO Americas Directory
66 A320-family maintenance
MRO Global surveys the best maintenance providers for A320-family aircraft
78 MRO Europe
90 MRO Europe Directory
94 High-tech, low maintenance
Boeing designed the 737NG with a reduced scheduled maintenance in mind
98 MRO Middle East
105 MRO Africa
108 MRO Middle East/Africa Directory
110 A340 maintenance
MRO Global examines the history of the A340
117 MRO Asia-Pacific
121 MRO Asia-Pacific Directory
2 Airline Economics: MRO Global 2011 www.airlineeconomics.co
CONTENTS
MRO GLOBAL 2011
EDITORIAL TEAM
Victoria Tozer-Pennington
victoria@aviationnews-online.com
Philip Tozer-Pennington
philipt@aviationnews-online.com
Kaleyesus Bekele
kaleyesus@aviationnews-online.com
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Kathy Alys, subeditor
DIGITAL ISSUE
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KEEPING YOU IN THE AIR
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4 4 Airline Economics: MRO Global 2011 www.airlineeconomics.co
MRO GUIDE
M
aintenance repair and
overhaul (MRO) is big
business, worth some
$46.9 billion and rep-
resents 12-15% of an
airlines cost base.
Although many airlines carry out their
own line maintenance, 60% of the worlds
carriers outsource heavy work in an efort
to lower costs, for the 40% who keep line
maintenance in-house huge investments
in infrastructure, facilities and parts are
required it is no wonder then that many
airlines have been unable to make it work
on a cost efective basis.
Some 30% to 50% of MRO work is
estimated to be completed by third par-
ties. While some airlines are getting out of
MRO, others believe they can nd econo-
mies of scale by bulking up the amount of
work they do and keeping MRO in house.
Airlines with their own in house MRO
argue that it is an integral part of their
overall business plan and that a third party
provider would not be able to understand
the complete operational environment.
For third party MROs to expand, in
many cases they must adapt to be more
than just a maintenance and parts supply
partner. They must become more involved
in the day to day running of an airline so
they know what is going on at any given
time and recommend solutions.
MROs also need to reduce costs: This
can be done by suppliers working together
to purchase parts, but more cooperation is
needed than is currently taking place, at
least in the European market. Some major
MROs are cooperating on stafng at vari-
ous locations so that they in efect establish
a joint partnership. Some major firms
have cut jobs at certain bases because they
are using employees from a competitor to
keep contracts running. In some cases an
engineer will be servicing a number of air-
MAINTENANCE REPAIR
AND OVERHAUL
www.airlineeconomics.co Airline Economics: MRO Global 201155
MRO GUIDE
craft in a day under contracts with two or
more separate MRO providers. The shar-
ing of staf has resulted in a large number
of engineers ooding the jobs market but
it has subsequently drastically cut the cost
base of many MRO rms and relieved some
pricing pressures for MROs. During 2011
airlines increased capacity once again and
MROs have forecast a much improved pic-
ture for this year, however the latter months
of 2011 are seeing dramatic cuts to sched-
ules across the globe as airlines react to yet
another sharp slowdown and plot a course
for winter 2011/2012 that forecasts passen-
ger numbers below that of 2009. Another
problem for the sector has always been over
regulation. Audits are hurting the industry
and, with the FAA trying its best to intro-
duce new draconian measures, it can only
get worse before it gets better. However it
should be noted that the eforts of the Air
Transport Association to highlight and deal
with the problems may yet bear fruit.
The MRO sector is reactionary, tting
services with client needs or perceived
needs. The problem is how do you per-
ceive the needs of a client, or potential
client when the client has no clue what-
soever as to what tomorrow may bring?
At the close of 2011 and into early 2012, the
only thing that is certain is that liquidity,
especially within the European sphere, is
drying up, banks are laying of staf, busi-
ness are having problems raising capital
and politicians seem willing to continue
kicking the can down what is left of the road
to scal collapse. Although unemployment
within most geographical zones is holding
at or even reducing, this silver lining does
not mean that business travel is secure it is
not. Unemployment within the all-impor-
tant nancial services sector is increasing
rapidly throughout just about every region
other than South East Asia and Australasia,
although even the latter has signs of weak-
ness. So as nancial services executives
either cease to y or take a one-way trip to
Hong Kong or Mumbai, over capacity on
major routes is at this time a real and pres-
ent danger. It can also therefore be assumed
that re-t orders for aircraft to have re-
vamped or extended premium seating, as
seen in 2010, is now a thing of the past at
least for the next fteen months and maybe
more depending on the possibility and
nature of any sovereign defaults within the
Eurozone during the same period. Previ-
ously an MRO was judged on the service
it provided and its client/orderbook, going
forward they are now also being judged on
the strength of their nances and nancial
backing. Any company at this point wishing
to renance will have to look to investment
which may also lead to MRO market con-
solidation, something that would indeed be
welcome at this time.
What to watch out for in 2012
The acquisition of TIMCO by SR Technics
was, and maybe still is, on the cards. This
would be a good move for SRT but every-
one is a little bit afraid of what is happening
in Zurich at the moment. Nobody really
understands what direction the Mubadala
group wishes to go. Heavy maintenance
out of Switzerland with a cost base in Swiss
francs (CHF) has been crippling for the
MRO. Only timely and decisive Swiss gov-
ernment intervention saved the day, but the
pressure is still on. It would be a challenge
for Mubadala to look for new business
opportunities in the near future with SR
Technics under pressure. That said oppor-
tunities are bound to present themselves.
SR Technics is not alone but simply an
example, even the mighty Lufthansa Tech-
nic is feeling the pressure of late. Everyone
is very cautious. The smaller MROs have
their market niche and they have a stable
customer base, but for the big MROs the
current market and 2012 outlook is a chal-
lenge at best.
The MRO industry outlook currently
shows that in 2011, global MRO spend
will be up 10.8% over 2010, to $46.9 bil-
lion. Global growth is expected to maintain
a 3.9% CAGR through 2021 seeing the
current $46.9billion industry grow to
one worth some $69 billion, within these
gures the engine repair market is the seg-
ment with the highest growth rate, in part
this is due to new aircraft requiring less
maintenance as per design specications.
It remains to be seen if this will be the case.
"Prav|ous|y an N Was
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prov|dad and |Is c||anI/ordar
boo|, go|ng IorWard Ihay ara
noW a|so ba|ng |udgad on Iha
sIrangIh oI Iha|r I|nancas and
I|nanc|a| bac||ng."
2011 2016 2021
Engines Compenent Line HMV&Mod
$56.4
$69.0
$46.9
CAGR
3.8%
CAGR
4.1%
$8.7
$21.6
$8.6
$8.0
$9.9
$27.1
$10.1
$9.3
$12.4
$32.6
$12.5
$11.5
2011 L8AL N FE0A8T
TTAL VALE $8
QUICK VIEW FACTS:
MRO in 2011
Global MRO spend will be up 10.8% in 2011, to
$46.9B. The drivers of the year-over-year change
are important to understand.
Fleet change alone drives a 3.2% increase,
due to fleet renewal
Utilization increase drives market up a small
amount (utilization up 1.5% for the year driv-
ing 0.4% for market)
Component increases outpace declines to
airframe and line for a small net increase of
1.0%
Engine MRO drives a significant 6.4%
increase
And last, labor rates have eased down ever
so slightly.
MRO in 2011
Fleet 2010 19,675
+ Deliveries + 1,076
- Retirements - 396
- Stored - 152
Fleet 2011 20,203
Source: TeamSAI Consulting
MRO GUIDE
1,000,000
2005 2006 2007
500,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
2008 2009 2010 2011
$15.0
$10.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
$5.0
$0.0 0
ASM (M) Total MRO ($B)
0APA0ITY NAhAENEhT`8 INPA0T h ThE N NAkET
Ih 2010, A8 AILIhE8 NAhAE 0APA0ITY 0AEFLLY 8Y E0Ih A8N8 8Y 1%, N 8PEh
8FFEE A 7.6% E0LIhE
The global business cycle has a strong
inuence on MRO activity as it does with
most areas of aviation and the last few
months of this year could change the 2011
outlook sharply. 2010 marked a notable
leveling of capacity. ASMs declined 1%
in 2010 (mostly long-haul trafc). But
the 1% decline in capacity has taken a
dramatic toll on the associated MRO
business with 2010s MRO market down
7.5%. With airlines now able to adjust
very quickly to global events and econom-
ic changes, it is time that MROs acted in
the same manner. For the remainder of
2011 and into 2012, a pattern mirroring
that of 2009 will emerge with the world
eet continuing to grow but with aircraft
being parked; newer, less maintenance
intensive aircraft will show their inu-
ence, with the contribution of the older
vintages in decline as retirements acceler-
ate. Meanwhile, younger vintage aircraft
have signicantly lower unit costs and in
just under two years there has been a sig-
nicant shift in the share of the younger
vintage eets which in turn has resulted
in the average MRO cost per aircraft
per year falling by some US$300,000.
2010 should have been a tipping point
as eet size and utilization increased to
meet demand, but the economic health
of the globe of late has lead to a return to
eet contraction whilst at the same time
MRO costs per aircraft continue to fall
rapidly. It is a worrying time indeed for
the MROs.
So is the MRO sector ripe for in-
vestment or is it a bit of a mineeld?
Overcapacity and OEMs are marching
into the aftermarket very heavily and
there is the ongoing war between the
PMA, DER and OEM strategies. SR
Technics managed to pull in some very
heavy weight investors to help them in
the form of Mubadala Development
Company. Airline Economics asked
Chris Doan, CEO of Team SAI, what his
experience was in trying to secure in-
vestment into the maintenance market.
The playing eld is somewhat inter-
esting, he says. It is cautious but pri-
vate equity seems to have a fair amount
of interest in the sector. They recognise
the potential of consolidation, the frag-
mentation that exists. That is the key.
It is not vying to make it grow because
there are a lot of mineelds that have to
be navigated today but to bring appro-
priate businesses together into a bigger
platform that has a very purposeful end.
It is an interesting play. We are starting
to see a little bit of that play out.
Investors do worry that the long-term
future for the MRO industry will
require mergers but this is also one of
the attractions. Investors are looking
at the plans around the world to lower
eet ages, lower retirement ages and
of course they have taken note of the
amount of new aircraft on order and
the lower maintenance requirements of
the same and they are worried for MRO
and aftermarket suppliers. At the same
time many have clamoured to invest
in new aircraft through funds such
as Doric Air Nimrod 1 and 2. Aircraft
maintenance will always be required;
the question is whether there will be
very serious overcapacity in the market
in the short-to-medium-term making
the investment a prolonged afair? One
large private equity investor of note told
Airline Economics under condition of
anonymity that an MRO can only be a
serious prospect in the long term if it
is global with strategic hubs that can
service just about anything in the air
and has serious exposure to South East
Asia. And even then the get-in point
has to be a good one as the continued
investment would need to be dramatic
to secure market share. In this market-
place, the appetite for this sort of invest-
ment intervention is weak, but as MRO
providers move into leasing and other
new areas, barriers start to remove
themselves.
Even so Chris Doan; when asked
about the interest from private equity
(PE) rms, stated: I would say there
has been a serious acceleration in the
past 12 months. In fact in the rst quar-
ter of 2011, in terms of transactions,
equalled the entire 2009 four times
the transaction volume. Unfortunately
this very encouraging trend has been
stied by the Eurozone crisis and the
global economic melee currently play-
ing out on the world stage. When asked
if he thought PE rms were looking at
the maintenance market because they
were hoping for buyouts, Doan replied:
Probably not in the short term. Most
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has a sIrong |nI|uanca on
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mosI araas oI av|aI|on and Iha
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sharp|y."
MRO GUIDE
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WE ASSESS AMOS AS A TOP LINE PRODUCT WHICH IS ENDEARED AND

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PE rms are going to be buying into a
business for three to ve years before a
turnover, but you do have a number of
MROs that are owned by PE today that
would be interested in that play. There
are a couple of PE rms that own some
of the big MRO rms that would typi-
cally be interested, after they have had
the company for four or ve years
Some of those PE rms that invested
in MRO before the crash are now in
difculty and wanting to get out of the
market but they are now, due to falling
values, more or less stranded. Doan
says: Timing into the market is very
critical and those that came in ve, six
or seven years ago with the intention of
having a three to ve year turnaround
got hit pretty dramatically in the world
economic downturn. Then the question
becomes where are we in the business
cycle at the bottom and starting to
grow and how stable is it? Of course
the stability question is an interesting
one today because we do see airlines
and therefore the MRO business being
quite a bit more sensitive to events in
the world. Even with the earthquake in
Japan, there was a huge downturn in
airline business and it is going to have
an impact in due course on the MRO
business. So there is that factor of sen-
sitivity that we have never seen before.
I think that there is more likelihood of
world events causing quick adjustments
on airlines to maintain their own prot-
ability.
The future for third party MRO
market share lies in geography. The
Middle East, the conduit for travel
between the APAC region and Europe is
seen as the perfect location and Turkey
seems to hold many aces for the future
of third party MRO. Turkish Technics
new HABOM facility is built with this
thought in mind, however it could all
come to grief if Turkey were ever to
join the European Union (EU) and be
subjected to Emissions Trading Scheme
(ETS) charges. As it is, and with the EU
preoccupied with the survival of current
members, it is likely that Turkey will
benet hugely from being at the centre
of global trading routes.
The facility is so very large and the
MRO growth rate in the Gulf region
so prolic that one wonders if Turk-
ish Technic will be able to ll it at any
given time. This facility is enough to
cause regional overcapacity in the short
term, provided that Turkish Technic is
prepared to hire the colossal numbers of
engineers that will be required to man
the entire facility. Global eet growth
projections show wide variations and
give some cause for concern.
While North America and West-
ern Europe have the largest eets and
MRO markets, the growth areas lie
in emerging regions such as Eastern
Europe, India and China. While these
emerging regions are growing fast, their
overall size represents just a fraction of
the total market. Nevertheless, the eet
forecast clearly indicates a shift to the
east, which is expected to drive a level
of parity when combining the Americas,
Europe (Western & Eastern) and Asia,
including China & India:
As a result, the APAC, European and
the Americas MRO markets are esti-
mated to reach parity within 10 years,
due to the population and eet growth
in the APAC region. Over the next ten
years, the Asian MRO market will come
into parity with Europe and the Ameri-
cas. Today the Americas commands
35% of the market; Europe is about 25-
6% and Asia is below that; this will level
out, which is a staggering statistic. The
growth has denitely shifted East and
from an investment standpoint that is
where the excitement is going to be over
MRO GUIDE
$0.0
$10.0
$15.0
$20.0
$25.0
Americas Europe Asia Middle East Africa
$5.0
2021 2011
Americas Europe Asia
$17.0 $13.7 $11.6 $3.1 $1.5
36% 29% 25% 7% 3%
2.4% 4.7% 6.8% 5.3% 3.5%
Market ($B)
Market Share
(2011)
CAGR
(2011-21)
29% 30% 30% 7% 3%
Market Share
(2011)
Africa Middle East
NOTE: Americas = North America and Latin America & the Caribbean
Europe = Western and Eastern Europe
Asia = Asia Pacifc, China and India
wTh LEVEL8 IFFE 8Y EIh wITh ThE hIhE8T wTh PJE0TE Ih ThE A8IA/PA-
0IFI0 EIh. ThI8 EALITY wILL E8LT Ih ThE NAJ wL EIh8 EA0hIh PAITY
wIThIh 10 YEA8.
MRO SPEND ($M) PER AIRCRAFT
Vintage Jan-08 Jan-09 Dec-10
1970s $2.9 $2.5 $2.2
1980s $3.0 $3.0 $2.8
1990s $2.0 $2.1 $1.9
2000s $0.8 $0.8 $1.1
Grand Total $2.4 $2.4 $2.1
$0.3
$0.5
$0.6
2006 2007 2008 2009 2010
$0.4
Line HMV
Average MRO Cost per Aircraft
2011
M
i
l
l
i
o
n
s
AVEAE hNV Ah LIhE NAIhTEhAh0E 08T8 hAVE PPE 8IhIFI0AhTLY
777 UPWARDS OF 50% LESS THAN 767
HMV FREQUENCIES MOVING FROM 4-6 TO 8-12 YEARS
A350 AND 787 PROMISING FURTHER IMPROVEMENT
the next ten years.
The airline MRO industry has been
in a state of rapid transition for many
years as airlines, seeking cost and ser-
vice improvements, have shifted from
in-house to outsourced maintenance as
the dominant model. The emergence of
MRO competitors in low-labour-cost
regions has also radically changed the
competitive dynamics of the industry,
forcing traditional MRO competitors
to adapt to ofer more sophisticated
services in order to remain relevant.
This pace of change then sped-up dra-
matically over the past ve years as the
OEMs entered the market in what could
be described as a forceful manner. This
OEM intervention lead to increasingly
sophisticated support services being
ofered, bundled full-service oferings,
global footprints and relentless ef-
ciency improvements. MROs are now
also unlocking unrealized value through
mergers, acquisitions, alliances and
the sale of non-strategic assets. Mean-
while, turmoil in the broader aviation
industry is creating signicant pressure
as airlines seek to cut costs, and ac-
celerated retirement of old-generation
eets is reducing forecast demand.
The rapid growth and evolution of the
MRO industry is ofering smarter and
more responsive competitors seeking
signicant opportunities for growth and
protability.
Preliminary estimates for the 2011
global MRO forecast indicate a return
to positive, albeit small, growth (2.1%)
with growth expected to increase slowly
at 3.4% CAGR through 2015 and 4.4%
CAGR through 2020. That said, 2011
has seen a sharp falling away of busi-
ness over the past six weeks to October
20 and the preliminary growth gure
could well fall. But total global MRO
is just starting a new growth cycle with
large numbers of narrow and wide body
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MRO GUIDE
AMOS
A STORY OF SUCCESS
IMPACTING OUR BUSINESS POSITIVELY IN TERMS

OF PROCESS OPTIMISATION AND INCREASE OF
LABOUR PRODUCTIVITY, SAYS AUSTRIAN AIRLINES
READ MORE ABOUT THE WORLD-CLASS M&E SOFTWARE SYSTEM AT
SWISS-AS.COM
2007 2008 2009
Africa
2010 2011
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Middle East APAC North America Europe Central/South America
N
u
m
b
e
r

o
f

A
i
r
c
r
a
f
t
Year
wL FLEET 8IZE 8Y EIh - Ih Ah T F ThE FIhAh0IAL 0I8I8
MRO GUIDE
Narrowbody
60%
Widebody
23%
Regional Jets
17%
2010
19,675
2021
28,591
2.7%
CAGR
3.5%
CAGR
2011
20,203
Narrowbody
60%
Widebody
23%
Regional Jets
17%
Narrowbody
57%
Widebody
24%
Regional Jets
19%
Lh TEN FLEET wTh ENAIh8 8LI
Latin America
& Caribbean
Asia Pacifc
Africa
Eastern Europe
North America
2011-2021 Regional CAGRs
Western Europe
Middle East
China
India
3.2%
3.5%
4.4%
4.9%
5.7%
8.4%
9.1%
9.6%
1.0%
8T VAIE8 0h8IEA8LY EIh 8Y EIh
2001
Historic MRO Market and Fleet Size
$42.2
2002 2003 2004 2005 2006 2007 2008 2009 2010
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
0
5,000
10,000
15,000
20,000
25,000
$37.8
$36.1
$37.0
$38.3
$38.8
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MRO Market Fleet
aircraft requiring heavy maintenance
checks in the months and years to come.
So taking overcapacity in the market
to one side, there should be a steady
growth in the number of aircraft being
maintained during this decade. MROs
nd themselves having to re-design
the way they do business, from how
they handle and agree a contract with a
client to how they maintain aircraft, en-
gines and parts and ow them through
on a shop visit All in the name of
cutting turnaround times while also
cutting cost to the operator at the same
time. This is something that to an out-
side investor would seem worrying as
market pressures are so extensive in the
aerospace aftermarket that MROs are
being forced to enhance their services
while also reduce the cost to the client
on what seems to be an ongoing basis.
The MROs are in efect doing more for
less with less and thus many have been
cutting their cost base and redesigning
their facilities to cut turnaround times.
Most long-term forecasts, be they
OEM, MRO or consultant forecasts,
are all relying on one thing: Population
growth and the growing middle class.
It is these factors which drive long term
aviation forecasts across the board with
MRO and the aftermarket being no
exception. Fleet growth forecast at 3.5%
CAGR (compound annual growth rate)
to 28,591 in 10 years with ASM growth
set to increase at 5.3% CAGR over the
same period with aircraft utilization
rates going into October 2011 remaining
high. As of August 2011, eet growth
was on pace for the year with the global
eet standing at 20,617, up 2.0% for
the year thus far from a 2011-21 CAGR
forecast of 3.0% in Jan 2011, this in part
is due to the continued expansion of the
North American eet.
To discuss any of your maintenance and engineering needs, please contact:-
email: engineering@monarch.co.uk
web: www.monarchaircraftengineering.com
or call us on: +44 (0)1582 398644
the height of excellence since 1967
Heavy, Light & Line Maintenance
Monarch Design Services - Part 21j
Engineering Services - Part M
Technical Training - Part 147
Technical & Safety Consultancy
Component Repair
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For over forty years Monarch Aircraft Engineering has gone about its business
providing first class service to major airlines around the world. Today,
we continue to provide valued solutions to the aviation industry.
MRO GUIDE
these services
THE BENEFITS
Provides total cost advantage
Ofers more exibility to operators
Shift risks and costs away from
airline
Gives independent MROs opportu-
nity to form credible network with
extensive capabilities
Regulation could temper outsourc-
ing growth somewhat, but large
players will adapt
The most successful MROs will be
those able to ofer a full array of services
across all aircraft types ofering total
maintenance through a long term
partnership. This is the key for MROs
independent from OEMs. The real
benet of opting for an independent
third-party or in-house provider is data
share. If an MRO is able to service a
mixed eet at any time in any zone
with one service provider, that will be a
signicant benet as the provider will
share data at all times over all types that
will also embrace the latest cost saving
technologies be they PMA, DER or
whatever is needed. This provides a cost
aftermarket remaining independent of
the OEMs and this will lead to lack of
data and choice for the operators on a
scale not imaginable just ten years ago.
Once the OEMs control the data then
there is no going back. This is why there
has been a scramble for maintenance
providers to be a part of the OEM pro-
grams, which has served to accelerate
the whole process.
Airlines are going to ask in ten years
time just how this has happened, just
as the lessors are today asking many
questions about their future handling
of aircraft and maintenance reserves
on the same. The key for the future will
be the control of price escalation, but
without viable alternatives to the OEM
programs, the airlines will not be in a
position to do a great deal other than
pay.
TECHNICAL SUPPORT SERVICES
Includes all back ofce functions
such as engineering, planning and
supply chain
Early stages of the emergence of
Tech Services outsourcing
Lately, larger carriers are recogniz-
ing the leverage of outsourcing
The bottom line for the MRO sector
The operator will continue to:
manage core operations (ying)
outsource maintenance as it choos-
es, basing outsourcing decision on
key guidelines
MROs therefore must:
identify new market needs and
value added services that support
airline requirements
reinvent the business model to
position itself to meet needs
develop business processes to opti-
mize service
Key decisions guidelines for choosing
maintenance services/outsourcing
Labour
Material
Terntime
Performance
Quality
The mainstay for MROs remains
the global narrowbody eet, this will
continue to expand for the foreseeable
future providing increasing amounts of
business over the long term: Or at least
that is the overriding message from the
MROs. The truth of the matter is that
MRO business will not increase over the
next ve to ten years on anything other
than the current expanding narrowbody
eet.
Aircraft age ranges and the efect on
the maintenance market over the next
ve to 10 years, in the US especially
where there are many MD and 757 air-
craft, is going to be monumental. Once
they are removed from the market and
the new aircraft come online the MRO
will lose business. The phenomenon of
new aircraft taking less maintenance re-
quirement leads to a very black market
for the Americas especially over the next
ten years with very low growth.
What can be said for global MRO as
a whole is that new airframes in produc-
tion will require less maintenance while
the new engines, which will cost more
to maintain, are on the whole being
captured by the OEMs by design with
the same scenario applying to compo-
nents also. Thus it is hard to see the
0%
20%
30%
40%
50%
HMV (Check) Engines Components Line Tech Support
10%
70%
80%
90%
100%
60%
Note: Outsourced MRO includes work outsourced to independent MROs or to OEMs but
not work done by operator-afliated MROs
L8AL T80Ih
www.airlineeconomics.co Airline Economics: MRO Global 2011 13
MRO GUIDE
efcient service that an operator will
be at pains to refuse. This is the blunt
truth of MRO moving into 2012 and
it is a truth that for many will require
either expansion, acquisition or invest-
ment. There is no middle ground and
although an MRO may inform you that
they are secure in their sphere of inu-
ence, if they do not meet the aforemen-
tioned criteria, then they are operating
on borrowed time as globalisation of the
aviation aftermarket speeds. An MRO
provider must be global particularly
with carbon taxes arriving in many
corners of the globe and fuel prices con-
tinuing to rise on a long term basis. An
operator cannot aford to y an aircraft
across the globe for maintenance checks
in the future, this is the silver lining for
the independent MROs. The operators
and OEMs alike will in the end need
them. As Chris Doan states: It is more
about rms setting up partnerships
within existing MROs in the growth
regions. You are not seeing opportunity
for a LHT or SRT to go in and set up,
but there is an interest in joining forces
in joint venture with MRO shops in the
Middle East, including India and China.
That is the way it is heading as it really
brings experience in with local inter-
est and creates a very robust business
model for the MRO.
Four basic strategies for MRO growth
LABOUR
Capitalize on outsourcing needs of
airlines
Develop expertise in core activ-
ity areas and outsource non-core
activity
With upward wage pressures, focus
on efciency and productivity
Actively develop new talent as a
Comparison of popular Narrowbody and Widebody aircraft order books
Manufacturer Aircraft type Model Aircraft in
service
Backlog No. of airline
operators
No. of aircraft
on operating
lease (approx)
Production
years (to date)
Boeing 737NG -700 1138 501 78 380 14
-800 2037 1445 130 957 14
777 300ER 247 198 23 114 8
Airbus A320 A319-100 1217 254 103 520 16
A320-200 2302 1756 210 1193 23
A321-200 528 214 64 214 15
A330 -200 377 256 65 191 13
Relationship Based
Inventory Tolerant
Asset Utilization Not a Focus
Little Accountability
Limited Competitive Threat
Metal & Mechanical
Western Focused
Performance Based
Inventory Tolerant
Turn-Around Time Prioritized
Accountability for Results
Global Competition
Composites & Electronic
Eastern Focused
ThE FTE TLk
hw ThE PIITIE8 AE 0hAhIh F AILIhE8 - ThE FTE TLk
88IhE88 EXPE0TATIh8 AE 0hAhIh APILY
hedge against a labor shortage
VALUE CREATION
Implement cost reductions and
new efciencies
Adopt supply chain innovations
Focus on reliability & dependability
Embrace new, smart aircraft sys-
tems
Manage and showcase eforts with
appropriate metrics
DIVERSIFICATION
Expand market oferings
Expand geographical reach
Pursue full-service capabilities
Create strategic OEM alignments
Balance portfolio with counter-
cyclical businesses
MERGER AND ACQUISITION
Identify value-oriented innovations
that contribute to airline customers
cost focus
Focus on the supply chain & distri-
bution channels for components &
material
Leverage JVs and alliances
14 Airline Economics: MRO Guide 2011 www.airlineeconomics.co
MRO GUIDE
using so many systems. They are now
adding 787s to their eet with all the
loadable software components and with
all of the headaches that new genera-
tion aircraft can have. The two airlines
which merged, would need to merge the
acquiring airlines data into the other
airlines older systems or vice versa even
before they can even think about an
integrated approach for future cost sav-
ings. In fact it is reasonable to assume
that such a large airline would not be
in a position to move forward with an
integrated eet management approach
for at least a decade. That said, Luf-
thansa too operates diferent systems
and is actually running with SAP/
point solution, but it has everything
under control and information ows
between MRO shops freely. But this is a
system that requires a huge amount of
investment both in time and resources
with many people stafng the same.
Lufthansa is an example to American
Airlines but if AA in the future wants to
be able to manage its mixed eet more
efciently, then it will have to invest
very heavily in bespoke systems that can
create an in-house crossover of data all
running on one platform. This cost over
the medium-to-long term will erase all
gains made through reduced aircraft/
engine prices at point of sale.
Our heartfelt thanks goes to Team
SAI for the provision of data and intel-
ligence used within this feature and
throughout this publication.
delivered with the aircraft type, which
for mixed eet airlines, however, loses
all the benets of having an integrated
system. It would be much easier if the
OEMs concentrated on building hi-tech
aircraft and provided hi-tech structured
information, and would not be engaged
in entering the market of providing IT
systems.
The American Airlines order of
September 2011, which consisted of
huge numbers of Boeing 737 Max and
Airbus A320neo aircraft, begs the ques-
tions what the future will be like for the
airline when it comes to maintaining
and tracking the needs of these aircraft
when comparable data between the two
eet types will not be easy to come by.
If the two systems dont look exactly the
same, maintaining these eets will be a
challenge.
When Airline Economics looked
into the eet management systems of
a large US airline, which subsequently
merged, it became clear that there
might be a need to become increasingly
nervous about their future maintenance
abilities. The US is one of the largest
potential markets for eet manage-
ment systems but many still use Maxi
Merlins outdated legacy systems. One
side of the airline was using one legacy
system and the other side was using
a diferent system; the shop oor was
using another system, and for compo-
nent control they were using Oracle and
so on. Just imagine the implications of
At this point, the question needs to be
asked: What will happen to operators
who are currently ordering mixed eets
of aircraft virtually free of charge on the
back of signing aftermarket contracts?
For now, it seems that unless there is
a change of policy at the OEMs, the
operator will not be able to compare
aircraft data at all and will not have the
in-house skills to deal with aftermarket
problems in a cost efective manner.
Thus the operators have in efect helped
speed the process of the OEMs control-
ling their eets.
One business on the frontline with a
headache on the subject of OEM incur-
sion is Swiss Aviation Software. When
asked about the efect on his business
of OEM additional services, Ronald
Schaeufele, CEO of Swiss Aviation
Software, which owns industry leading
IT product AMOS, stated: The OEMs
produce aircraft and that is their core
business. Apart from that, they provide
additional services, such as systems for
point solutions. The problem for us as
a software vendor is that some of these
solutions are open to connectivity while
others are not. I have just come back
from a customer that was asking me if
Amos could connect to a particular sys-
tem from Airbus, but Amos cannot and
it is obvious that this is not an Amos-
unique problem.
The Boeing toolbox is open to grab
information from and can be linked
with Amos to some extent. If you are a
customer with the right market power,
you can go to Boeing and ask for all the
manuals out of the toolbox and load it
into Amos. For smaller customers with
mixed eets the nancial implications
might be too tough to choose this way.
He adds: When Airbus delivers a new
aircraft, the documents delivered with
the aircraft including the component
list of the aircraft are completely dif-
ferent from those Boeing delivers. The
two manufacturers dont seem to com-
municate on this issue; they dont seem
to be preoccupied with the data format
of information they provide. They pro-
duce hi-tech aircraft and do not focus
too much on data format standards.
Sometimes they provide IT systems
bundled with a new aircraft. Airlines
with 787s on order, for example, might
prot from an IT management system
Knowledge
KPMG is a leading provider of
cross-border advisory services
to the international aviation
nance and leasing sector.
www.kpmg.ie/aviation
2011 KPMG, an Irish partnership and
a member rm of the KPMG network of
independent member rms afliated
with KPMG International Cooperative
(KPMG International), a Swiss entity.
All rights reserved.
To nd out more about how we can help you, please contact
Tom Woods on +353 1 410 2589 or tom.woods@kpmg.ie
DATA SYSTEMS
M
any airlines and main-
tenance companies
within the aviation
sector know all too
well from past mergers
and acquisitions and/or internal revamps
that data migration is a huge task and one
that cannot be undertaken lightly. The task
of data migration can be high in both cost
and labour hours, and can provide mixed
results in the rst instance until staf train-
ing and troubleshooting processes start to
take hold. One company that has been able
to get around this is Swiss Aviation Soft-
ware (Swiss-AS) which uses an innovative
and advanced migration tool that eases
the data transfer from the legacy systems
to their system.
Swiss-AS has gained substantial
knowledge over a number of years in per-
fecting the best possible data migration
procedure and the rm uses that same
knowledge to assist customers in mak-
ing the right decisions when it comes to
planning a data-transfer project. Many
mainstream Enterprise Resource Plan-
ning (ERP) system providers have not
entered the aviation maintenance and
engineering sector primarily because the
system optimises all the processes in an
engineering environment, which means
it has to be highly bespoke due to the
complex nature of the business. It is also
not a high volume market, which is prob-
ably why ERP system providers have not
successfully expanded into it. This leaves
the market open for targeted operators
such as Swiss Aviation Software, Trax
and Lufthansa Systems. Each of these
companies has a reputation for products
that are based upon best practice built
up over a number of years and with cli-
ents on a case-by-case basis.
Swiss-AS chief executive Ronald
Schufele says the business of providing
data management products is one that
goes well beyond the initial agreement,
installation and training processes. We
are open for any additional ne tuning
and reshaping of functionality and have
a real relationship with our customers
it is not just a black box, its a community,
we speak to each other, he says.
We optimise and adapt to new tech-
nologies to help move the customers
business forward. This often results in
reducing manpower because we can
prove that use of our system will be of
benet for new customers. They see the
value that the integration of the systems
brings, such as the ability to have infor-
mation at your ngertips for example
when users see with one right click what
logistics is doing and thereby prevent
that something in the planning is going
wrong. There are also minor functional-
ities where customers can send messages
within the company much like an inte-
grated email system where you can look
at one document to see all queries every-
body has raised over a set period. It brings
the departments closer to each other.
The decision driver for system inte-
gration for an airline, operator and/
or maintenance company is never the
same. Some companies will concentrate
on necessity while others will be look-
ing to increase margins. When asked
the question of how a system provider is
able to measure the benet to a customer
Amalgamating two or more data systems is a costly
and time consuming affair even though a company
may save time and effort in the long run. So how have
Swiss Aviation Software got round this thorny problem?
Who combines
the data?
DATA SYSTEMS
DATA SYSTEMS
in time and money only, Schufele is
unable to give an accurate response in
terms of gures. It is very difcult to
quantify the benet, he says. We have
benchmarking figures from various
business cases of customers who have
been reviewing what they have achieved
due to implementing a new system, but
we are in such a dynamic environment
that it is not always possible to compare
what rms can save after two or three
years with what they initially formulated
in their business case. Because the envi-
ronment will have changed so much over
the years. But of course our customers
are doing more business with less cost.
Schufele added that it is very hard
to quantify the benets in a general way
because a customers increase of efciency
heavily depends on the its productivity
prior to the software implementation
project. The nal comment reects the
reality of the situation for maintenance
and engineering rms it is a matter of
doing more business at less cost.
UNDER PRESSURE
The maintenance sector is under terri-
ble pressure today to lower turnaround
times, reduce costs and at the same time
provide an enhanced level of all-round
service to the customer. This against
a backdrop of airlines parking aircraft
again as passenger numbers fall and
increased competition from Original
Equipment Manufacturer (OEM) after-
market services. OEMs incursion in the
aftermarket has been highly successful
in the extreme with most agreements
coming at the point of sale for an air-
frame or engine.
For data management firms, OEM
agreements are providing a headache
because of the lack of data share that
the OEMs will allow. Under a usual data
management and integration agree-
ment, customers are provided with a
wide spectrum of generic interfaces
which promote an easy integration of
the system into the customers existing
system environments. However, this
is not always possible with some OEM
aftermarket agreements.
When asked if the OEM incursion has
had an efect on his business, Schufele
said: Yes, I have a headache. The OEMs
produce aircraft and that is their core
business. Apart from that, they provide
additional services, such as systems for
point solutions. The problem for us as
a software vendor is that some of these
solutions are open to connectivity while
others are not. I have just come back from
a customer that was asking me if Amos
could connect to a particular system from
Airbus, but Amos cannot and it is obvious
that this is not an Amos-unique problem.
The Boeing toolbox is open to grab infor-
mation from and can be linked with Amos
to some extent. If you are a customer
with the right market power, you can go
to Boeing and ask for all the manuals out
of the toolbox and load it into Amos. For
smaller customers with mixed eets the
nancial implications might be too tough
to choose this way.
He adds: When Airbus delivers a new
aircraft, the documents delivered with
the aircraft including the component
list of the aircraft are completely dif-
ferent from those Boeing delivers. The
two manufacturers dont seem to com-
municate on this issue; they dont seem
to care about the data format of informa-
tion they provide. They produce hi-tech
aircraft and do not focus too much on
data format standards. Sometimes they
provide IT systems bundled with a new
aircraft. Airlines with 787s on order,
for example, might prot from an IT
management system delivered with the
aircraft type, which for mixed eet air-
lines, however, loses all the benets of
having an integrated system. It would be
much easier if the OEMs concentrated
on building hi-tech aircraft and pro-
vided hi-tech structured information,
and would not be engaged in entering
the market of providing IT systems.
The problem of OEM data share will
be compounded where an airline orders a
mixed eet with aftermarket agreements
attached; the competition between the
Airbus Neo and the Boeing Max for air-
lines such as American Airlines that have
ordered a large mix of Boeing and Airbus
aircraft may have trouble in ve or six-
years when they need to have comparable
data between the two eet types. If the
two systems to maintain these eets dont
look exactly the same, it presents a prob-
lem, says Schufele.
Another factor suppressing the growth
of the data management sector currently is
the lack of cash at many airlines across the
globe which prevents the implementation
of modern, cost-saving systems, which in
turn afects the long-term bottom line.
This factor is however a very serious mat-
ter when one considers airline mergers
and acquisitions and the lack of cash that
carriers have to complete a merger.
CONFUSON IN THE RANKS
The US is one of our biggest poten-
tial markets but they still use outdated
legacy systems, says Schufele. I was
speaking to the technical staf from a
big airline, where one side of the airline
was using one legacy system and the
other side was using a diferent solu-
tion; the shop oors were using a third
system, and for component control they
were using an ERP system and so on.
Just imagine the implications of using
so many systems. Imagine they are now
adding 787s to their eet with all the
loadable software components and with
all of the headaches that a new generation
aircraft will produce. This will be a real
challenge for them. Lets further develop
this worst case scenario: The airline then
needs to merge with another airline with
a similar scattered system landscape and
the acquiring airlines data needs to be
transferred into the other airlines older
systems or vice versa. It is difcult to
believe in an integrated approach in such
an environment.
In the past data management com-
panies have concentrated on their own
regional sphere of inuence; Swiss-AS
has had particular focus on Europe,
while Trax concentrated on the Ameri-
cas, with the two ercely competing in the
Middle East and the Asia Pacic regions.
However, Swiss-AS is moving in on the
American market in a big way. Airline
Economics asked Schufele what has
changed: In the past, we mainly focused
on Europe, some parts of Africa and the
Middle East and previously we were not
really prepared to go beyond in markets
like Asia or Asia-Pacic or in the US. If
you want to expand your business into
the US, you need to have a separate legal
entity over there and you need to have
people working there that speak and
think like they do.
So we spread our wings to the US in
September/October last year [2010] and
have immediately generated a number of
leads. We have signed a deal with South-
ern Air and we hope to sign in a couple
of weeks with a second one and a third
is in the pipeline. We want to have this
project nished in such a way that we can
send a prospective customer to Southern
Air to see what we have achieved there.
We want to make sure that Southern Air
is happy with the system and exploits the
full potential of Amos and can therefore
be used as a good reference site.
Getting into the US market is no easy
task however, which is why Swiss-AS has
taken the decision to launch a joint ven-
ture with Lufthansa Systems Americas.
Swiss-AS is now represented in Miami,
Florida, as a business unit within Luf-
thansa Systems Americas.
Schufele says: Swiss-AS found in
Lufthansa Systems Americas the ideal
partner for its strategic expansion plans
to market Amos in the Americas. While
being the market leader in Europe and
having a substantial market share in
other parts of the world, Swiss-AS now
intends to intensify its presence in the
US market. The potential of the US mar-
ket is well-known to the MRO software
industry. Many airlines in the US cur-
rently use outdated MRO software and
will sooner or later screen the market
for best-of-breed, fully integrated MRO
software solutions.
Miami seems an excellent choice
to Swiss-AS since the city is the link
between South and North America and
at the same time a gateway destina-
tion to the rest of the world. Swiss-AS
was looking for a partner and found in
Lufthansa Systems Americas the ideal
set-up for its strategic expansion plans.
The American subsidiary of Lufthansa
Systems has been based in the US for
more than 15 years and has long-stand-
ing relationships and experience with
DATA SYSTEMS
"Tha poIanI|a| oI Iha 8
mar|aI |s Wa||-|noWn Io Iha
N soIIWara |ndusIry.
Nany a|r||nas |n Iha 8
curranI|y usa ouIdaIad N
soIIWara and W||| soonar or
|aIar scraan Iha mar|aI Ior
basI-oI-braad, Iu||y |nIagraIad
N soIIWara so|uI|ons."
DATA SYSTEMS
airlines in North and South America.
Amos has been positioned within Luf-
thansa Systems Americas as a business
unit that will be fully dedicated to Amos-
related activities. This approach enabled
the US Amos team to start its business
right away while profiting from the
infrastructure, sales distribution chan-
nels and good reputation of Lufthansa
Systems Americas. Lufthansa Systems
Americas has many years of experience
in implementing software solutions in
the aviation business. By co-operating
with Swiss-AS, the aviation IT pro-
vider complemented its portfolio for the
American market. The Amos business
unit will focus not only on sales but also
on project management and consulting.
THE BIG SQUEEZE
The business in the pipeline for Swiss-AS
is impressive and is telling. In such uncer-
tain times, airlines and MROs alike are
desperate to reduce costs and gain what
business is out there. We have signed a
considerable number of contracts this
year, says Schufele. We went through
a period where we were pushing ahead
with 30 potential customers. Nine have
signed so far, that is to say we are closing
the deals now, which we have worked on
for months, sometimes even years.
But this is only one side of the coin,
the other is the needs of customers to
drill even more out of existing contracts
with Swiss-AS. At the same time we have
large-scale developments in process.
Times have changed and we always have
to invest in keeping the system state-of-
the-art. We continuously screen trends
in the industry and add/enhance the
functional scope. We are now optimising
and reorganising the planning of main-
tenance events in Amos. Over years we
have been adding functions to the main-
tenance planning module, while adding
complexity and diversity. Now we go one
step back and consolidate the existing
business functions prior to adding new
ones. The same logic rules shall be applied
to all functions of the maintenance plan-
ning module, says Schufele.
He adds: Another big step forward
will be the introduction of a rule engine in
Amos, which is a graphical way to dene
complex behaviours of programmes in
the system, such as the hierarchy of con-
tractual terms in the program Contract
Management. Thanks to this new feature,
clients will be able to do visual program-
ming in Amos via drag and drop. They
will have a tool at hand that allows them
to visualise contractual rules. Swiss-AS
is in the process of introducing this rule
engine in all areas where the system deals
with very complex behaviours.
IN THE PIPELINE
We have a huge amount of develop-
ment in the pipeline for pure MROs. One
of these developments is devoted to the
subject material ow tracking. Currently
material is properly tracked when it is
inside the customers store or installed/
removed from an aircraft. The move-
ments between store and aircraft are not
really monitored. In future you can dene
per part number tracking points, which
indicate in the system where the part
number is moving through your organi-
sation. The client will have the possibility
to dene an unlimited number of ows
per component that they want to control.
We are developing this workow together
with our latest customer. You see, Swiss-
AS is denitely pushing Amos into the
MRO arena being a high-yield market.
Also for MROs have we introduced the
possibility that third-party maintenance
providers can work with mixed author-
ity/certication set-ups while the system
will always produce the right type of cer-
ticate dependent on the ownership of
the component/aircraft. This need arose
because we have environments in our
community where MRO providers work
for diferent companies under diferent
certication rules.
Many more projects could be men-
tioned here. I just want to refer to one
other project in this context. Currently we
have an approval rule system in place for
orders. In future, all Amos users can dene
at whatever place in the system which kind
of approval workow they want to imple-
ment. Since approval workows are so
diferent between countries and cultures,
we have agreed that the approval workow
system needs to be completely generic and
that it must be adjustable to the customers
needs. All of this will be released between
now and the end of next year.
UP FOR THE FIGHT
As companies such as Swiss-AS concen-
trate more on pure MRO and compete
more heavily against one another, they
involve themselves more heavily in a
market under great pressures. It would
be folly for the aviation data manage-
ment system providers such as Trax and
Swiss-AS to devalue what is currently
a highly investable arena that looks set
for strong and rapid growth. Schufele
sums up his thoughts in a manner that
would impress any investor.
We have grown over the past couple of
years with a growth rate of 2025%, but
we do not want to become the biggest.
Swiss-AS just wants to keep the optimum
balance between acquiring new custom-
ers versus maintaining what we have
already achieved. At the same time, we
are committed to continuously investing
in the product in terms of technology and
functionality. We think it can turn sour if
we start selling more aggressively and sell
at too high a premium. This is not good
for the customers and it is also not good
for the supplier. The only disadvantage
is our connection to the Swiss franc. Our
cost base is mainly in francs. Fortunately,
most of our income is still in Swiss francs.
Since the very beginning we were very
cautious not to have the currency risk on
our shoulders and customers were more
than happy to have Swiss franc contracts
because they expected this currency to be
more stable with lower ination rate risk.
Many airlines were really pushing to sign
franc contracts. Currently we have more
than 100 customers and we still sign
Swiss franc contracts. The ones we sign
in US dollars at the moment dont have a
real big negative impact on us, as we try
to have the cost basis of those contracts
in US dollars. We would like to charge
everyone in Swiss francs, but we had to
recognise that some customers want to
sign US dollar or euro contracts only.
"wa hava groWn ovar Iha pasI
coup|a oI yaars W|Ih a groWIh
raIa oI 20-26%, buI Wa do noI
WanI Io bacoma Iha b|ggasI.
8W|ss-A8 |usI WanIs Io |aap
Iha opI|mum ba|anca baIWaan
acqu|r|ng naW cusIomars
varsus ma|nIa|n|ng WhaI Wa
hava a|raady ach|avad"
DATA SYSTEMS
For over 20 years Swiss Aviation Soft-
ware (Swiss-AS) has been providing
a range of bespoke management sup-
port services to the aviation sector. In
order to be able to give customers the
most benet from the implementa-
tion of Amos, Swiss-AS ofers a full
package of services covering the whole
range of services and thereby guaran-
tee a successful and reliable product
performance. Ranging from initial
requirement studies to system instal-
lation, from user training to consulting
and continuous support. Amos Opera-
tion Services (AOS), a service ofered
by Swiss-AS, covers a predened set of
tasks related to the administration of
the application Amos and the underly-
ing database.
Swiss-AS provides strong leader-
ship throughout the project to ensure
the implementation stays on time and
on budget, while fullling the custom-
ers expectations. Swiss-AS helps its
customers to get the most out of their
Amos investment by providing reliable
consultancy services not only during
the implementation project, but also
for the complete life cycle of Amos,
including management consulting,
process analysis and system audits.
This process includes a comprehen-
sive support package through an Amos
Online Support tool and Amos Online
Documentation.
Over the past years, Swiss-AS has
gained a high reputation around the
world, which is the biggest diference
from ve or 10 years ago; there are fewer
names left in the market today acting on
a global level. Growth is being driven by
reputation and word of mouth.
Combining 20
years of innova-
tion and excellence
in the area of IT/
MRO, Swiss-AS has
become a xture in
the MRO software
market and the
i ndustr y-l eadi ng
maintenance man-
agement system in
Europe and beyond.
Since the late
1980s the mainte-
nance and engineering system Amos
has been setting the standards in a
highly specialised market segment
and has attracted more than 100 cus-
tomers from all over the world. Its
solid customer base ranges from pure
operators of all sizes, major low-cost,
regional and flag carriers to large
airline groups and MRO providers.
Ryanair has been a customer since
1997/98. Lauda-air being one opera-
tor of the Austrian Airlines group
joined the AMOS community in 1994
while the entire Austrian Airlines
group came on board in 2002.
Alitalia is a big customer, with 130
aircraft. Swiss is also becoming one
of the biggest customers because it is
migrating its data into Amos for its
entire eet. Amos lists GOL in Brazil,
and AirAsia in Kuala Lumpur, and it has
just signed with South African Airways.
Swiss-AS helps customers to
successfully manage the complex
requirements of a modern aircraft
eet whether in the context of air-
lines, MRO providers, pure operators
or ight schools. In its fully integrated
software package Amos delivers all the
required tools to meet the demanding
requirements in the elds of mainte-
nance, engineering and logistics.
Today, more than 100 customers in
four continents run Amos applications
and as customers actively participate
in the further development of soft-
ware, the scope of functions in Amos
is increased with every new customer.
Needless to say, Amos completely ful-
fils the airworthiness standards of
EASA and FAA and is continuously
updated accordingly.
"0omb|n|ng 20 yaars oI
|nnovaI|on and axca||anca |n
Iha araa oI IT/N, 8W|ss-A8
has bacoma a I|xIura |n
Iha N soIIWara mar|aI
and Iha |ndusIry-|aad|ng
ma|nIananca managamanI
sysIam |n Europa and
bayond."
Swiss Aviation Software and its Amos product
ENGINES
E
ngine original equipment
manufacturers (OEMs)
and maintenance repair
and overhaul rms (MROs)
are together responsible for
the performance of an asset, which is a
prerequisite to airline reliability, aircraft
availability and fuel burn the bulk of an
airlines cost base. It also represents the
largest share of maintenance spend. It has
often been said that the only real low-cost
shop visit is the one you dont have. But air-
lines are getting smarter at stretching time
on-wing by investing in a variety of tech-
niques and activities to enhance engine
life. These include regular engine washes
to ensure the working parts inside the
engine are as clean and contamination-
free as possible, as well as asking pilots not
to use full throttle unless strictly necessary
due to load, aireld altitude or atmo-
spheric conditions. According to engine
manufacturer CFM International (CFMI)
all these techniques can increase time on-
wing by 10% to 20%.
Growth rates in Asia (especially China
and India) will be high over this decade.
The active jet engine eet in Asia-Pacic
(including China and India) will grow
from under 10,000 at the start of this
decade to some 16,000 in 2020 thats an
additional 6,000 engines to support and
maintain. This is said to be larger than
the absolute engine eet growth in North
America and Europe combined during
the same period. Engine MRO suppli-
ers and others in the related supply chain
who have not already developed cor-
porate, capacity, customer support and
logistics strategies for the Asia region now
risk losing out on global market share by
some margin. Asia-Pacic accounts for
almost 50% of the absolute growth in
engine MRO spend and the region will be
a larger engine MRO market than North
More MRO for
your money
MRO Global looks
into the maintenance
providers market and
outlines some of the
options available certain
engine types.
ENGINES
availability from OEMs. So it is expected
adoption of PMA will recover and increase,
especially in the airframe components and
interior parts of the aircraft.
ENGINE OEMS LEAD THE AFTERMARKET
In the mid-1990s, engine OEMs
embarked on a strategy to capture the
total maintenance value as part of their
product lifecycle.
The OEM approach was simple:
ConlroI maleriaI rices, which are a
signicant portion of maintenance
costs.
ConlroI inleIIecluaI roerly.
The proposition they made to the air-
lines was logical:
Provide rediclabIe cosls (ower-by-
the-hour deals).
Remove assel ownershi cosl of sare
parts.
Oer exerlise lhal oeralors cannol
easily maintain on their own.
Provide singIe source for aII mainle-
nance needs.
Sread lhe inveslmenl in exolic looI-
ing over a larger base.
Manage lhe comIexily.
The effect on third-party/airline
MROs:
Comonenl and airframe OEMs have
adopted similar models
Comonenl and airframe OEMs have
developed less maintenance-intensive
equipment, which they control closely
Labour arbilrage aIies ressure lo
third-party/airline MROs
The result:
If you arent an OEM MRO, you need
a strategy to align yourself to deliver
maximum value and stable costs to the
customer over the long term.
On newer engine models, engine
OEMs have a competitive advantage
over other third-party suppliers. OEMs
are able to sell long-term MRO support
deals at the point of aircraft purchase
and they control access to technical data,
documentation and many parts. They
can also be more exible on material
ricing wilhin lheir MRO oers, shouId
they choose to do so. As evidence of the
market strength of OEMs, one just has
to observe the market penetration of
lhe RoIIs-Royce TolaICare oer on ils
MRO. Between 2007 and 2009 airlines
parked many old maintenance-intensive
aircraft, such as the 737 Classic and MD
aircraft, and reduced overall aircraft use
to better match capacity with demand. In
2010 aircraft were moved back into service
at pace, but now in the latter half of 2011
schedules are being cut once more and the
general global market slowdown will once
again see less aircraft in the air for the next
six to 12 months. Red ink is again owing
across the balance sheets of airlines across
the globe and so cost reductions are at the
vanguard of thinking, and airlines have
sought many ways to reduce their engine
MRO spend. Examples include: a reduc-
tion in work scope for shop visits; where
possible, more repairs and less replace-
ment of expensive parts; deferment of the
replacement of expensive life-limited parts
and use of short-stub engines; greater
leverage of spare or surplus engines in
lieu of an overhaul; and, of course, seeking
renegotiation of MRO contracts. All these
changes in behaviour have meant engine
overhaul suppliers, depending on their
engine and customer portfolio, have seen
revenues decline on average by 1015%.
Ironically, the recession has seen the
use of PMAparts decline by 17% since the
2007 peak. There are many reasons for
lhis, incIuding: airIine use of buer slock
rather than buying inventory; more repairs
rather than replacement of parts; parking
and cannibalisation of the mature aircraft
eets where PMA had a higher penetra-
tion of material content; reduced airline
resources available to the PMA approval
process; and, last but not least, OEM
defensive measures. This latter point can
be illustrated by GE/CFMIs agreements
with potential adopters/users of PMA, the
independent suppliers such as Aveos and
ST Aerospace. This has successfully given
GE/CFMI greater inuence over the parts/
material supply chain. Despite this, PMA
remains a strategic tool for airlines to use
in the face of increasing prices or poor parts
America and Europe by 2020. This is
driven not just by the eet growth, but
also by the age demographics of the eet
already in operation.
Engine cosl er hour conlinues lo
climb with each passing year.
IIeel ralionaIisalion (2uu8-2u1u)
helped to curtail average total spend
per engine.
However, lolaI oeraling cosls are
coming down when considering the
improvement in fuel consumption on
newer engine types.
The recent recession and global slowdown
during 2u11 has aecled send on engine
"0hangas |n a|r||na bahav|our
hava maanI ang|na ovarhau|
supp||ars, dapand|ng on Iha|r
ang|na and cusIomar porIIo||o,
hava saan ravanuas dac||na on
avaraga by 10-16%."
ments due immediately, some of the
majors offer PbH wilh aymenl er
event (PPE). Under a PPE agreement
the customer pays the rate per engine
hour own only when the shop visit is
being performed. This model allows
the operator to conserve cash until the
visit is due and could be favourable in
times of limited cashow, and this is an
option many operators have taken up in
the current climate. Additional services
provided by those such as MTU include
spare engine support, dedicated spare
engine services, e.pool, engine condition
monitoring, engineering support such
as eet management, line replaceable
unil (LRU) suorl, on-sile suorl and
customer training. Indeed, MTUs Total
Engine Care package can include several
MRO services besides core engine MRO.
A good MRO provider, no matter
its background, will operate on a phi-
losophy to repair engine parts wherever
possible. Component repair capabilities
should in this day and age range from
standard manual repairs and OEM
licensed repairs to the companys inde-
pendent bespoke repair solutions.
Advice to operators who have yet to
select an engine MRO provider:
Rely on a strong engine MRO provider
with signicant experience, one that can
best assess the optimum time for a cost-
eeclive sho visil and avoid incurring
any risks.
Gel oers from various roviders and
compare cost carefully, so as not to fall
for the expensive quick x. In general,
it might be worthwhile sending engines
to a few providers on a time and material
basis to get a feeling for which provider
oers lhe besl vaIue-for-money MRO
and turnaround time.
Especially for the newer engines, it
might be better not to sign a long-term
y-by-hour contract now as component
repair options continue to increase, and
operators might nd out later they have
been overpaying.
Generally speaking, operators should
pay careful attention to contractual
inclusions/exclusions to avoid cost sur-
prises down the road.
Arrange for shop-visit staggering and/
or spare engine solutions a long time
ahead or select an MRO provider that
oers lo lake of sare engine suorl.
all the wash efuent while eliminat-
ing overspray and dripping. As well as
addressing environmental, health and
worker safety concerns, the arrange-
ment means engines can be washed in
many more locations within airports or
maintenance facilities.
At the Paris Air Show 2011, ydubai,
the worlds fastest-growing start-up air-
line, signed a contract with GE Aviation
for the maintenance, repair and overhaul
of 109 engines over the next decade. The
OnPoint solution agreement represents
an investment of $2 million per CFM5-
6-7B engine, which power flydubais
fIeel of Boeing ,3,-8uuNG aircrafl.
Some engines will have more than one
shop visit, putting the total value of the
contract at more than $300 million.
Ghaith Al Ghaith, chief executive of Fly-
dubai, stated at the time: Flydubai is
constantly looking for the best services
and partners to ensure our eet remains
in the best condition to safeguard our
operational obligations and safety of our
passengers and crew. We have one of the
newest eets in the industry and signing
this agreement will ensure our engines
continue to perform at peak levels.
This agreement is just one recent
example of prolic OEM incursion into
the engine aftermarket. Their success
can be attributed to agreements made at
the time of selling an engine and pricing
benets at that time that erase much of
the aftermarket cost or the initial pur-
chase cost, whichever way you look at it.
Many independent MROs benefit
from a strong customer focus, reected
in their exible solutions such as power-
by-lhe-hour (PbH) deaIs for smaIIer
eets and customised work-scoping. As
weII as lradilionaI PbH conlracls, under
which the customer pays a monthly at
rate per engine hour own, with pay-
own engine models, especially the Trent
family, and the aftermarket agreements
made by GE]CIMI for lhe Lea X of Iale.
As the OEMs take greater control of
the aftermarket, airlines need to remem-
ber to develop strategies that enhance
competition and/or help protect/reduce
costs, especially on the larger, newer
engines where OEMs tend to have a
stronger market position. The ability of
the engine OEMs to raise/escalate their
prices even in the middle of the current
recession remains an open and regular
complaint of many airlines. This concern
will grow as we move towards 2020.
Since 1995, OEMs have increased
their share of the market by 30 percent-
age points, primarily by taking work from
in-house supply, the proportion of which
has dropped by 31 percentage points.
Interestingly, the combined share held
by airline third parties and independents
remains almost unchanged at 3334%.
As a result of this change in purchas-
ing behaviour by airlines, the available
or outsourced market has grown at just
over 10% per annum over this period, to
more than $12 billion in 2011. This out-
sourcing trend will probably continue,
albeit not at such a fast rate. There are
three reasons for this. First, as airlines
receive new aircraft, the associated new
engines are becoming increasingly reli-
able and the cost to establish overhaul
capability is getting higher. This makea
the business case for in-house capability
difcult to justify. Second, airlines today
are focusing more on their core business
of ying passengers, and engine main-
tenance to most airlines is non-core.
Third, a viable supply base exists for
many engine types, so airlines can and
should leverage this opportunity.
GE Aviations OnPoint long-term
maintenance and material solutions
include overhaul, on-wing support, new
and used serviceable parts, component
repair, technology upgrades, engine
leasing, and integrated systems with
support and diagnostics. The OnPoint
portfolio includes the ClearCore engine
wash and effluent-collection system.
Engine washing is an established
technique for helping reduce fuel con-
sumption and carbon footprint. GE has
stated that ClearCore is distinguished
by its efuent-collection system, with a
positive connection to capture almost
"AI Iha Par|s A|r 8hoW 2011,
I|yduba|, Iha Wor|d`s IasIasI-
groW|ng sIarI-up a|r||na,
s|gnad a conIracI W|Ih E
Av|aI|on Ior Iha ma|nIananca,
rapa|r and ovarhau| oI 109
ang|nas ovar Iha naxI dacada."
ENGINES
ENGINES
used to service the engine must be con-
sistent with CFM requirements for that
engine model. In addition, all mainte-
nance must comply with CFM-issued
engine manuals and other maintenance
recommendations. The qualication data
is obtained through a combination of eet
operational and maintenance records.
Commercial jet engines typically are in
service for more than 25 years and change
ownership at least once in their opera-
tional life. The engines conguration,
material content, maintenance history
and supportability impact overall value
as it changes ownership.
The TRUEngine designation also
facilitates CFMs ability to provide tech-
nical support. CFMs engine support is
built upon technical expertise for genu-
ine CFM56 parts and congurations, as
well as data gained from the vast opera-
tional history of the global CFM56 engine
population. The original manufacturers
argue that by changing one or more parts
manufacturer approval (PMA) parts in the
engine for cheaper versions at least when
initially purchased might result in reli-
ability issues, not to mention the possibility
the asset might realise considerably less
nancial return when it is eventually sold.
They are also concerned that the modi-
cation of engines they design and build,
beyond the type-certied conguration,
reduces their ability to provide technical
support. These concerns resulted in the
FAAs Aircraft Certication Service issu-
ing a Special Airworthiness Information
BuIIelin in Augusl 2uu8 aIerling own-
ers, operators, and certicated repair and
maintenance providers of the responsi-
bilities of type and production certicate
holders, supplemental type certificate
holders and the PMA holders to support
the continued operational safety of their
product or part design.
When CFM was designing the -7B
engine, now used exclusively on 737NGs,
future maintenance was one of the major
contributing factors considered by the
engineers. Use of the latest digital product
denition tools at all stages of the engines
design helped to reduce denition cycle
time and the rst -7B engines came to pro-
duction faster than had been done in the
OEM parts repair solutions, designated
engineering representative repairs devel-
oped by the company and approved and
certied by the airworthiness authorities,
and a strong customer focus. MTU is the
largest independent provider of commer-
cial engine MRO services both overall
and for the CFM56 product range, and
more specically the CFM56-7. In recent
years its market share on the CFM56-7
has uctuated around 10%, depending on
customer demand. The company added
the CFM56 to its MRO portfolio in 1999
and has accumulated extensive experi-
ence, particularly on the CFM56-3 and
-7, and has several CFM56-7 customers
with mature eets under exclusive agree-
ments. Overhauls of the -7 are carried out
at MTU Maintenance Zhuhai in China as
weII as al MTU Mainlenance Hannover,
and the company has sufcient capacity
to absorb short-term demand for engine
MRO as well as increased demand for
CFM56-7 in the years to come. Both facil-
ilies are fuIIy equied and Hannover has
a ow-line for inducting engines, mean-
ing any engine type can be inducted at
any time, no matter which type. And new
additional test cells have become opera-
tional over the past few years.
CFMs TRUEngine programme,
Iaunched in mid-2uu8, has been weII
received by customers worldwide. CFM
launched the programme to help the
industry more accurately appraise used
CFM56 engines and to enhance the resale
value of the same. To date, more than
5,000 CFM56 engines in service with
more than 40 operators around the globe
have been granted TRUEngine status.
CFM says it developed the TRUEngine
programme in response to industry
demand for better ways to determine the
value of engines as they are redistributed
in aircraft eets. The programme allows
companies to more easily evaluate used
CFM56 engines by serial number, based
on data not widely accessible. The TRU-
Engine designation is available to all
CFM56 engines meeting the criteria, and
several eets of engines are being evalu-
ated. To qualify for TRUEngine status,
the engine conguration, engine over-
haul practices, spare parts and repairs
CFM Internationals parent companies
GE and Snecma used digital product tools,
specically Catia, to develop the CFM5-
6-7B engine, making it the rst engine to
be developed using a full digital mock-up
at all engine and installation levels. Targets
included maintenance costs lower than
those for the CFM56-3, which powers
the 737 Classics, along with higher thrust
and improved efciency. The result of
optimising accessibility and removal and
installation envelopes is a claimed reduc-
lion of u lo 8u% in LRU removaI and
replacement times, and an online engine
replacement time of less than four hours.
The CFM56s massive global popular-
ity has fostered a correspondingly large
number of maintenance facilities and a
highly competitive market. There are 21
providers serving the market with as many
as 34 MRO shops, and at the same time
there is a limited number of large airlines
and a plethora of small- to medium-sized
operators with no dedicated engine MRO
provider. There is also only a handful of
providers with signicant experience on
the CFM56-7, and only such providers
can guarantee no surprises in terms of
slot availability, turnaround time, qual-
ity and nal cost. Further, there are not as
many CFM56-7 spare engines available
as there were in the past for other engine
types, and it is critical operators without
their own spares nd an adequate source
for spares during their shop visits, either
directly with the MRO shop or from an
engine lease company. This has been an
area of intense competition lately.
Support for the CFM56 is a major
contributor to revenues at GE Aviation
Services. Moreover, the company points
out, only 40% of the combined GE and
CFM installed eet have had their rst
shop visit, and the revenue generated from
servicing them through their 30+year
operating life can approach seven times
the revenue from the original engine sale.
Service activity on CFM56-7B engines is
growing at an annual rate of about 15%,
so it is not surprising that all quarters are
ghting hard for this business.
Of the independent engine service
providers perhaps the best known is MTU
Maintenance. Its expertise covers non-
CFM56-7B engine support
ENGINES
is a more widely available product gener-
ally running over a longer term of three+
years. There is an agreed delivery and
redelivery condition and the lease term
is xed. The airline pays for the engine
regardless of whether it is installed and
typically takes maintenance responsibil-
ity during the lease term. Operating leases
are an eeclive soIulion where execled
utilisation is high over a given period and
where an airline is not in a position to buy
its own spares. Engine sales and exchange
as anolher service can oer ils cuslomers
a wide range of CFM56 assets for sale at
any given lime. SES, among olhers, oers
an engine exchange programme whereby
an asset owner/operator may elect to swap
out its unserviceable or older generation
CFM56 engines with similar asset types
that have greater on-wing life remaining
with packages to suit specic customer
requirements. Guaranteed availability is
another service: this service is unique to
SES and more commonly known as GAF.
It is an insurance type product devised
to protect airlines against the risk of
an aircraft on ground. Engines are
made available for lease within 24 hours
of request.
performance. In addition, it is improving
engine cooling techniques and reducing
parts count to achieve lower maintenance
costs. In 2010, the engine completed an
extensive ground test programme, which
included a gruelling 150-hour block test
and an almost 60-hour ight test pro-
gramme on GE Aviations modied ying
testbed.
When an airline needs a replacement
engine fast CFM-subsidiary SES and the
engine lessors come into the frame. SES is
the worlds largest CFM56 engine lessor.
With a portfolio of more than 250 CFM56
engines and with ofces and pool locations
Iocaled in 13 dierenl counlries worId-
wide - SES is positioned to deliver exible
and cosl eeclive CIM6 sare engine
solutions to CFM56 operators around the
globe. As the CFM56 in-service eet con-
tinues to grow, SES continues to adapt the
size and mix of its engine pool to ensure
that its customers have access to a com-
prehensive range of CFM56 spare engine
soIulions. Il currenlIy oers a number of
CFM56 engine lease options including:
Short-term lease where customers pay for
the number of days they need and rede-
liver when nished. Operating lease: This
industry before. Its high-tech Catia-aided
design resulted in improved accessibility
as well as optimised removal and installa-
tion envelopes with remarkable results.
The reIacemenl limes for LRUs have
been reduced by u lo 8u% (comared
with the CFM56-3 engine) while an entire
engine replacement can now be achieved
within four hours. CFM56 Tech Insertion,
which is the production conguration for
CFM56-7B and CFM56-5B engines, had
a highly successful entry into service in
2007 on both the 737NG and A320 fami-
lies. Over the engines lifecycle, CFM56
Tech Insertion could provide operators
with up to 1% better specic fuel con-
sumption, which translates to better
fuel burn, and with longer time on-wing
through an equivalent 1520C additional
exhaust gas temperature (EGT) margin. It
also gives 515% lower maintenance costs
(depending on the thrust rating) through
enhanced durability. The engine meets the
International Civil Aviation Organisation
(ICAO) Committee of Aviation Environ-
mental Protections standards (CAEP 6)
lhal look eecl in 2uu8. These benels
are achieved through improvements to
the high-pressure compressor, the com-
bustor, and the high- and low-pressure
turbines. In addition to the compressor kit,
CIM aIso oers a fuII Tech Inserlion core
upgrade, as well as high- and low-pres-
sure turbine hardware, for the more than
7,250 CFM56-5B and CFM56-7B engines
that were delivered before the production
shift in 2007. In April 2009, Boeing and
CFM together launched the new CFM56-
7BE engine enhancement programme,
which will provide up to 4% lower main-
tenance costs, depending on the thrust
rating. This lower cost is achieved through
a combination of longer time on-wing,
improved durability, and a lower overall
parts count in the high- and low-pressure
turbines. CFM used advanced computer
codes and three-dimensional design tech-
niques to improve airfoils in the high- and
low-pressure turbines to improve engine
"IIs h|gh-Iach 0aI|a-a|dad
das|gn rasu|Iad |n |mprovad
accass|b|||Iy as Wa|| as
opI|m|sad ramova| and
|nsIa||aI|on anva|opas - W|Ih
ramar|ab|a rasu|Is"
ENGINES
Asset management delivers:
accessory lransorlalion lo vendor
repair station from line station and/or
overhaul base;
relurn lransorlalion of reaired or
new unit;
lransorlalion of engine belween air-
line main base and engine overhaul
facility for scheduled and unsched-
uled shop visits;
rovision of sare engines lo cover air-
lines requirement: in case of aircraft
on ground (AOG) due to engine reli-
ability; and for standard spare engine
provision; and
rovision of arls and recommenda-
tion of stock levels.
The line-support service provides special-
ist, non-routine engine line maintenance
own. Against an agreed cost per ying
hour, TolaICare oers lhe oorlunily lo
remove uncertainties from engine man-
agement and provides greater nancial
condence from managing predictable
cosls. The rogramme oers a suile of
engine-support services including: pro-
active in-service engine management,
overhaul shop maintenance, and the
collection and management of engine
data. Tailored to the customers individ-
ual needs, asset management optimises
inventory requirements. Rolls-Royce
can provide and manage all required
engine support equipment, including
spare engines, engine accessories, line
maintenance parts and tooling, remov-
ing the supply chain management
burden from the airline.
Rolls Royce remains at the vanguard
of original equipment manufacturer
aftermarket programmes. It has been
prolic in its aftermarket agreements to
such an extent that it almost completely
controls the aftermarket for its engines.
This programme has been highly suc-
cessful for airlines but at the same time
has been a burden for lessors.
TotalCare is a exible approach to
achieving an engine support service that
has the correct t and scope of services
to meet the operators specic needs. It
provides a single-source solution for the
lifetime of the engine, from the time the
engine is delivered to the customer until
it goes out of service. TotalCare is a total
support programme aligned to each cus-
tomers operation and paid against hours
The Rolls-Royce Total Care package is at the vanguard of OEMs march into
the aftermarket.
Rolls Royce TotalCare
ENGINES
limited parts requiring repair/replace-
ment when the initial life prediction is not
met within the agreed term.
The planned shop visit service pro-
vides all restorative/refurbishment
(planned) shop visits throughout the
TotalCare term, enabling minimum
operational disruption and maximum
time on-wing. More specically, this ser-
vice includes:
engine overhauI Ianning, worksco-
ing and overhaul work;
aII engine slri Iabour;
moduIe rework Iabour;
rebuiId and lesl Iabour;
reIacemenl maleriaI; and
incororalion of aII aIerl and rec-
ommended service bulletins and
airworthiness directives throughout
the term.
Services oered aIso incIude unIanned
o-wing mainlenance, which incIudes
engine overhaul scheduling, work-
scoping and overhaul work in the case
of unscheduled engine-caused events.
Also included are the non-insurable costs
associated with shop visits caused by non-
negligent foreign object damage (FOD).
Accessory repair and overhaul service
is about the repair of specic accesso-
ries both in the shop and on-wing, and
management of the repair loop. Replen-
ishment material is supplied in the case
of no available repair.
Engine heaIlh moniloring (EHM)
helps to optimise operating costs and
revenl service disrulion. High-quaIily
predictive support can highlight a main-
tenance requirement before a potential
event and can assist with maintenance
shop load planning and spares scheduling.
Optimised System & Solutions (OSyS)
is lhe rovider of lhe RoIIs-Royce EHM
service, providing trend monitoring of
on-wing engine erformance. EHM is
a state-of-the-art predictive health ser-
vice designed to minimise operational
disruptions and simplify data reporting
practices translating data into valuable
information, including: advance failure
prediction to avoid the cost of opera-
tional disruption and engine repair;
idenlicalion of eeclive Iine mainle-
nance to increase time on-wing; and
engine margin forecasting to maximise
on-wing life. This is over and above the
data handling and interpretation of ser-
vice to help save time.
operations centre, the unexpected is cen-
trally managed, providing a fast response
with optimised solutions. At present,
this fully operational service is available
al Hong Kong and Healhrow. In Hong
Kong, RoIIs-Royce has joined forces wilh
ils exisling joinl venlure arlner Haeco
lo suorl lhis inilialive and al Healhrow
the service is provided by an established
Rolls-Royce line maintenance support
faciIily based al Hallon Cross. RoIIs-
Royce is looking to enhance its on-wing
care global locations and will soon have
Frankfurt, Singapore, Dallas and Newark
fully operational.
Maintenance is controlled through
jointly derived engine management plans
and component management plans. A
TotalCare agreement also covers any life
activities, including: 24/7 coverage by
on-wing care airport service including
service bulletin/airworthiness directive
incorporation resulting in reduced engine
turnaround time. Qualied and equipped
maintenance engineers available at key
airports for operators to use in the eld
(that is, y-away teams to support in the
event of an AOG situation). Access to line
maintenance facilities (hospital shops) at
key airports. Co-ordinated through the
"o||s oyca has baan pro||I|c
|n |Is aIIarmar|aI agraamanIs
Io such an axIanI IhaI |I a|mosI
comp|aIa|y conIro|s Iha
aIIarmar|aI Ior |Is ang|nas"
ENGINES
lb rated GP7200 engine is identied
as GP7270 or the GP7270E (E stands
for extended) and the 76,500 lb rated
GP7200 is identied as GP7277. The
GP7277 was aimed at the freighter ver-
sion of lhe A38u, which was canceIIed.
Another thrust rating to be added soon
lo lhe A38u olion calaIogue, lo aIIow
a slightly higher MTOW of the passen-
ger version of lhe A38u, is lhe GP,2,2,
with 72,000 lb thrust. All versions have
lhe same hardware and lhe dierence
in lhrusl is achieved lhrough a dierenl
thrust rating plug. The GP7270 and the
GP7270E have exactly the same thrust
rating of 70,000 lb, but the GP7270E
has a higher at rating temperature at
lake-o ower (ISA + 22.2 C for lhe
GP7277E versus ISA + 15C for the
GP7270), which means the aircraft has
increased thrust available in hot day
conditions and the GP7270E provides
lhe lake-o erformance caabiIily of
the GP7277. On the aircraft side, the
100 engines. Emirates continues to be the
biggest GP7200 operator, followed by
Air Irance and Korean Air, which have
smaller eets. As with any growing eet,
ight hours and ight cycles are accru-
ing rapidly in June this year the eet of
GP7200 engines passed 500,000 ight
hours and 70,000 ight cycles. It can be
estimated that the milestone of 1 million
ight hours will be reached in the second
half of 2012. The average ight duration
for the GP7200 engines is about seven
ight hours. The average ight duration of
the GP7200 engines is shorter than for the
Rolls Royce Trent 900 engines, which are
aIso owering a arl of lhe A38u eel. This
is the result of Emirates using a number of
ils A38us on ighls lhal are nol so Iong.
The high-time engines have about 1,500
ight cycles and about 12,000 ight hours.
THRUST RATINGS
There are three thrust versions for the
GP7200 engines available. The 70,000
I
n 1996, Pratt & Whitney and Gen-
eral Electric ofcially announced
their joint venture, Engine Alli-
ance, to produce and sell large
engines for Boeings proposed
,4,-uuX]6uuX. This rogramme was
cancelled, but Engine Alliance was then
selected to design and develop an engine
lo ower Airbus`s roosed A3XX, which
Ialer became lhe A38u. The design of lhe
engine is built around the designs of the
core of the GE90 and the fan and low-
pressure system of the PW4000: GP7200.
The rst run of the GP7200 was in April
2004 and the rst ight with a GP7200-
owered A38u was in Augusl 2uu6.
Although the GP7200 is certied for up to
77,000 lb thrust, only the 70,000 lb thrust
version is in use by lhe dierenl airIines.
FLEET
With a growing eet of presently about
2 GP,2uu-owered A38us in service,
the number of installed GP7200s is about
A promising start
Maurick Groeneveld, director of aircraft management at Doric Asset Finance, takes a look
at the Engine Alliance engine developed for the Airbus A380.
ENGINES
oeralion in Augusl 2uu8. The sho visils
typically involved repairs and modica-
tions, and the extent of the work was light.
Based on the number of GP7200-powered
A38us in service and on order, lhe annuaI
number of GP7200 shop visits is expected
to increase signicantly from about 10 a
year now to about 100 a year towards the
end of this decade. At the moment, all
GP7200 engine shop visits are performed
in GE Wales, which is the only MRO shop
for lhe GP,2uu. However, Air Irance
Industries is gearing up its extensive
engine maintenance facilities to perform
GP7200 shop visits. It expects to perform
the rst GP7200 shop visit during winter
2013/2014 and have full overhaul and
repair capability for the GP7200 by winter
2u1]2u16, and il is oering ils services lo
Air France and other operators. Emirates
Engineering is also gearing up its engine
maintenance facilities from changing
modules on the GP7200s as of today and it
plans to perform GP7200 shop visits from
late 2014. Another MRO shop prepar-
ing for GP7200 shop visits is Abu Dhabi
Aircraft Technologies, which plans to be
able to handle GP7200s by 2013. All the
MROs are part of the Engine Alliance
MRO network.
SMOOTH ENTRY
Although the experience with the
GP7200 is limited, the GP7200 engines
have shown a smooth entry into service
wilh lhe dierenl oeralors so far. Like
any other engine, it features some issues,
but Engine Alliance either has a solution
in place or is working on it. The perfor-
mance demonstrated by the GP7200
engine also suggests this engine will live
up to its promise.
for around 3,000 engine cycles (for
first-run engines). The engines first
refurbishment is likely to feature light
maintenance of all modules, except for
the combustor and the high-pressure
turbine, which will undergo heavy
maintenance. Thereafter, a second run
of about 2,000 to 2,500 engine cycles
is likely to follow. The engines second
refurbishment would be more exten-
sive than the rst and also feature heavy
mainlenance of lhe HPC, lhe lurbine
centre frame, the low-pressure turbine
and the turbine exit case.
Like lhe GEu, lhe GP,2uu can be sIil
in the propulsor and the fan module to ease
transportation for shop visits. Obviously,
from an engine management perspective,
this requires additional tracking of the fan
modules and propulsors.
LIFE-LIMITED PARTS MANAGEMENT
The life-limited parts in the GP7200
engines have a target life of 15,000 cycles.
However, al resenl, a Iarge orlion of lhe
life-limited parts has certied life limits
weII beIow 1,uuu cycIes. The HPC 2-
spool has the lowest life limit (4,200
cycles) and other life-limited parts have
limits at various levels in between. This
Iife Iimil of lhe HPC 2- sooI means lhe
engines rst refurbishment is not caus-
ing a premature rst refurbishment of the
engine. Simultaneously, Engine Alliance
is working on extending the life limits of
those parts that have a lower limit.
SUPPORT
Up to now, the number of GP7200 shop
visits has been limited and only 20 shop
visits have occurred since the GP7200
engines commenced their commercial
GP7270E requires the thrust enhance-
ment kit modication to be embodied.
OPERATIONAL EXPERIENCE
Based on information available to Doric,
the GP7200s performance retention (up
to now) looks very satisfactory and the
exhaust gas temperature (EGT) deterio-
ration is presently not a contributor to
engine removals. As the EGT margin of
new GP7200 engines is signicant and
the deterioration not very high, it can be
expected that removals for EGT margin
if being a removal reason will only
start to occur around 2,500 to 3,000
ighl cycIes for rsl-run engines. How-
ever, due to the lower EGT margins of
the GP7270E engines compared with the
standard GP7270 engines, the GP7270E
engines will reach their removals for EGT
margin slightly earlier.
TECHNICAL ISSUES
There have not been any Airworthiness
Directives issued against the GP7200
engines. It is somewhat difcult, due to
the youth of the GP7200 engines, to make
general remarks and draw conclusions,
but in managing the GP7200 engines,
Doric has come across the following more
signicant issues:
High oiI consumlion: lhere have
been some premature engine remov-
als due to excessive oil consumption.
The root cause seems to be linked with
premature and increased wear of the
#5 carbon seal, which results in a loss
of oil through the seal. A product
improvement plan is in place.
High-ressure comressor (HPC) 2-
spool upgrade: engines with a par-
licuIar arl number for lhe HPC 2-
sooI have been aecled by remalure
removals as, due to higher-than-
normal seal rub (as a result of the
manufacturing process), the life limit
of these parts was reduced to 2,100
cycles. As a result, Engine Alliance
initiated a replacement programme
for HPC 2- sooIs wilh a new design
part that has a life limit of 4,200
cycles. This replacement and upgrade
programme has been completed on
lhe aecled engines.
SHOP VISITS
It seems possible the GP7200 engines
would be able to remain on-wing
GP7200 ENGINE CHARACTERISTICS
Fan Single stage with 24 swept wide-chord hollow
titanium blades
Low-pressure compressor Five stages
High-pressure compressor Nine stages
Combustor Annular combustion chamber
High-pressure turbine Two stages (cooled)
Low-pressure turbine Six stages (uncooled)
Fan diameter (inches) 116.7
Length (inches) 187.1
Dry weight (lb) 14,800
32 Airline Economics: MRO Global 2011 www.airlineeconomics.com
SMOKE AND MIRRORS
A
s owners and operators
of commercial aircraft
struggle to stay com-
petitive in todays global
economic environment,
using cheaper, yet safe,
aircraft parts, and contracting out main-
tenance to both domestic and overseas
providers, can make all the difference.
But there are consequences to such a
strategy: significantly the doubt that
has been cast on the integrity of parts
and services no provider by the original
equipment manufacturer (OEM). Those
consequences include higher insurance
costs, lost warranties, liability concerns,
lower aircraft resale values, and an
erosion of public confidence.
The parts market is split into three
main sections: OEM, FAA Parts Manu-
facturer Approval (PMA) parts and
approved repairs, or DER. [DER stands
for parts that are approved by a US
Federal Aviation Administration (FAA)
Designated Engineering Representa-
tive but for the purpose of this article
DER repairs also relates to Euro-
pean Aviation Safety Agency (EASA)
approved repairs.
Owners and operators of commercial
aircraft need PMA developed parts and
DER repairs accepted globally as read-
ily as OEM parts and repairs. Similarly
DER repair and alteration approval
holders and PMA holders need to have
their parts, repairs, and alterations to
be accepted globally because they are
marketing their products and services
to a global customer base.
However, there is fierce competition
between the OEMs (including their
"Thara |s I|arca compaI|I|on
baIWaan Iha ENs (|nc|ud|ng
Iha|r ravanua/r|s|-shar|ng
supp||ars) and Iha |ndapandanI
aIIarmar|aI parIs prov|dars oI
rapa|rs"
Smoke & Mirrors
A bitter feud, a possible future legal battle, misleading quotes and credit barriers the PMA debate has it all. The PMA market
has a small slice of the overall parts market but enormous potential for growth yet doors are closing. Ph|||p Totar-Pann|ngIon
explores the current state of the PMA market and the threats to its survival.
www.airlineeconomics.com Airline Economics: MRO Global 2011 33
SMOKE AND MIRRORS
guidelines are particularly relevant for
dominant firms or firms with market
power. When Airline Economics looked
at the guidelines it was clear that the
OEMs are sailing very close to the wind
and, as they expand so too they increase
the risk of catching the eye of the regula-
tors. On current form it is only a matter
of time.
PMA parts offer savings of up to 40%
against parts from OEMs. The market
for PMA showed a 7% growth rate in
2010 and is expected to top that in 2011
as airlines scramble to cut costs. The
PMA market has continued to grow
even though the aircraft lessors, that
dont accept non-OEM parts for the
most part on their aircraft, account
for over 40% of all commercial aircraft
in operation, which is set to increase
above 50% at any time. Given such dom-
inance, one would expect the market for
PMA to be shrinking but it has not. That
said, although PMA penetration in the
Americas is prolific, in Europe, with the
exception of Lufthansa and British Air-
ways, the market is more restrained.
The OEMs have been fighting to curb
the growth of the PMA market, however.
And have been backed in their campaign
by the various national Export Credit
Agencies (ECAs) that support the
OEMs in their respective countries.
Just a few years ago the OEMs con-
trolled 15% of the aftermarket but they
now control around 45%. If current
trends continue, the OEM s will control
more than 60% by the end of this decade
and around 75% of the engine specific
aftermarket, mirroring the automobile
market in many ways. This represents
both the success of the OEMs growth
strategies in a tough market but also
an erosion of choice for the airlines and
aircraft and engine lessors in the longer
term. Once that choice has gone, for
some areas of the aircraft and engine
For example, a major OEM that
owns over 25 repair stations worldwide
is repairing and fabricating parts and
applying for supplemental type certifi-
cates (STCs) and PMAs. GE for example
owns an estimated 20 repair stations
worldwide and also owns a major air-
craft leasing company (GECAS). Some
engine OEMs also lease engines on a
power-by-the-hour basis. Consequently,
the OEMs are increasingly gaining full
control over what parts, repairs and
alterations go into either aircraft they
own, or for which they offer warranties
and maintenance services.
It has been reported that OEMs are
cutting back or eliminating customer
product support if the owner/opera-
tor incorporates non-OEM developed
repairs, alterations or replacement
parts in their aircraft. OEMs have also
acquired independent companies that
held PMAs or had developed their own
repairs and alterations. Once an OEM
acquires an aftermarket company, the
repairs and parts which they had pre-
viously complained about suddenly
became acceptable.
As a consequence of all of these
factors, the OEMs and the leasing
companies and repair stations they
own, are putting pressure on owners/
operators not to use non-OEM parts
or unapproved repairs through plac-
ing restrictions on customer support
services, warranties, the use of Instruc-
tions for Continued Airworthiness, etc.
The OEMs have formed a loop around
the aftermarket and are cornering the
same at alarming speed.
When Airline Economics spoke to
the Directorate General for Compe-
tition at the European Commission,
concern was expressed over the poten-
tial stifling of competition. However,
because the OEMs are not proven to be
acting in collaboration, the issue is not
at this time seen as a problem. Never-
theless, owners and operators do have
the power to force an investigation in
the state of the aviaition aftermarket.
The Directorate General for Com-
petition, after some consideration, did
point to new vertical restraints rules
and guidelines that were adopted and
published in Spring 2010 that cover all
kinds of supply, purchase or distribu-
tion agreements in all sectors. The
revenue/risk-sharing suppliers) and
the independent aftermarket parts
providers of repairs, alterations and
fabricated replacement parts and
other maintenance services. Also many
owners and operators that provide
maintenance services, or have entered
into partnerships with non-Type certifi-
cate/production certificate holders to
develop repairs and fabricate replace-
ment parts, are further crowding the
market. As the major OEMs diversify
into maintenance, aftermarket parts
supply, and leasing, they are also vying
for a share of the very market that they
are criticizing, while at the same time
lobbying for policy changes in their
favour.
"Tha ENs hava baan I|ghI|ng
Io curb Iha groWIh oI Iha PNA
mar|aI, hoWavar. And hava
baan bac|ad |n Iha|r campa|gn
by Iha var|ous naI|ona| ExporI
0rad|I Aganc|as"
SMOKE AND MIRRORS
cheap copy of their original parts. They
say their OEM made parts are superior
because they have gone through a rig-
orous R&D and testing processes. This
has led to the generally-held percep-
tion that PMA or DER parts devalue
the value of an aircraft or engine. But
the real clincher for putting airlines off
the use of non-OEM parts is the repu-
tational risk impact should one of their
aircraft or engines to fail and cause
fatalities, and that failure were traced
back to non-OEM parts.
The reason many airlines dont
use PMA or DER parts is not because
they are seen as inherently unsafe or
unreliable, but for the concern over
reputational risk, says Sharp. One
well-known airline CEO said to me: If
one of my airplanes crashed and people
died and the cause of the accident was
traced back to PMA or DER, can you
imagine what sport the tabloids would
have? Airline X uses dodgy parts - peo-
ple would stop flying with us tomorrow.
And for that reason I will not accept
PMA/DER.
Fear of any potential reputational
damage has never stopped British
Airways, who is under the spotlight of
the most vicious domestic press on the
planet, from using PMA parts. BA, as
well as Lufthansa, United and ANA,
to name but a few, use PMA parts and
approved repairs on the aircraft they
own, which has directly improved their
bottom line with no adverse affects
whatsoever. In fact some senior airline
board members spoken to by Airline
Economics have expressed dismay
that more airlines, especially within the
EU and Asia-Pacific regions, are not
making more use of PMA and approved
repairs. British Airways has been using
PMA parts as standard since 2006
when a total of 28 new PMA parts were
approved. In 2007, when BA entered into
a deal with HEICO after watching Luf-
thansa take the lead, a spokesperson
for the airline stated: We will no longer
be the cash machine for OEMs These
are not bogus parts but approved by the
very same regulatory authorities that
approve OEM aircraft parts. BA reviews
all applicable PMA parts and approves
each one on a case-by-case basis. Once
installed, the parts are monitored for
any defect trends and we note failure
slow to see the benefits of aftermarket
sales, until the 1980s there was little
competition for their aircraft/engines
and parts so they had no need to get
involved with maintenance or did not
need to lock in customers at the point
of sale. Today, however, there are many
aircraft and engine manufacturers in
the market and as purchase prices fall
through increased competition on one
side, PMA parts manufacturers have
entered the market on the other forc-
ing the OEMs to react to the erosion
of their now essential aftermarket rev-
enue stream.
In 2011 an aircraft or engine manu-
facturer cannot make a return on an
aircraft program without aftermar-
ket sales/agreements; in fact in some
recent cases all of the profit is tied-up
in the aftermarket. The problem for
the OEMs was that they did not have
the expertise to maintain aircraft. Dur-
ing the 1990s and the last decade the
OEMs moved to change this by copy-
ing the automobile market template of
approved repair shops. The benefit for
the maintenance shop was guaranteed
business, while the OEMs benefited
from up-selling these extra services at
the point of sale as standard.
What the OEMs did not expect was
the infiltration of the PMA market into
essential areas of the aircraft/engine.
The OEMs believed that there was
always a line that would not be crossed
and also believed they could get away
with 5% per annum price increases.
However, the monopoly was broken
by engineering companies in the 1980s
that answered the need for airlines to
save money, leading to rapid PMA infil-
tration into most areas of an aircraft
and/or engine.
All of this is good competition. But if
PMA parts are as good as, if not better,
than the original OEM part thanks to
reverse engineering, while also being
much cheaper: why has the PMA sector
not achieved total market dominance
over the past three decades?
The answer lies in a clever smoke and
mirrors campaign waged by the OEMs
in the way PMA and repaired parts are
perceived by the market. The engine
OEMs have, from the beginning of the
PMA threat to aftermarket sales, been
talking up the fact that a PMA part is a
market, it will be gone forever.
Now is the time to sit up and take
notice of how the OEMs are extending
their market share and examine the
impact this will have on the aftermar-
ket landscape.
It is the very success of PMA parts
manufacturers and approved repaired
parts (DER) that has led to the OEMs
adopting such aggressive strategies to
protect and increase their share of the
aftermarket.
It is because of the growth of PMA
and DER that the OEMs have adopted
strategies to try to exclude PMA and
DER, says Jon Sharp, president and
chief executive of engine lessor ELFC.
The OEMs spend a huge amount of
money on developing new engines,
which they then sell at a loss and only
make money from spare parts sales over
the years. The intervention of PMA and
DER impacts their aftermarket profit
opportunities so they are developing
ways to curtail this including develop-
ing strategies to attract MRO business
to their own workshops. They have been
spectacularly successful at doing so. In
1999 around 15% of the engine MRO
market went to the OEMs, by 2009 that
had grown to 45%. For some of the new
engines types, 100% of the fleets are
on OEM care packages. That situation
presents a lot of problems for those of us
in the leasing business.
There is an argument, often used by
financiers, that the aviation aftermarket
is running at least a decade behind the
automobile market, therefore it is often
used as a means to predict the future of
the aviation aftermarket. This is not the
whole story however. It is not that air-
craft and engine manufacturers were
"A|| oI Ih|s |s good compaI|I|on.
8uI |I PNA parIs ara as good
as, |I noI baIIar, Ihan Iha
or|g|na| EN parI Ihan|s Io
ravarsa ang|naar|ng, Wh||a
a|so ba|ng much chaapar:
Why has Iha PNA sacIor
noI ach|avad IoIa| mar|aI
dom|nanca"
SMOKE AND MIRRORS
agreement and every lessor I have ever
heard of excludes PMA and DER in their
leases. That does not mean to say that
on return of an aircraft or engine, there
will be no PMA or DER parts in there,
indeed it is often the case, the airline
will simply ask the lessor to be excused.
In the case of an aircraft, if the PMA or
DER parts concerns things like seats or
cabin interiors, it probably doesnt mat-
ter because those are likely going to
get ripped out and reconfigured for the
next airline lessee. Does having certain
non-critical components exterior to the
engine, certainly within the gas path,
[being fitted with PMA or DER parts]
really matter? Probably not. However,
and herein lies the rub, it is not the les-
sor who originally says they are not
having PMA or DER, it is their custom-
ers, which in turn causes the lessor to
say they cannot accept PMA or DER.
He adds: We have between 50 and 60
remarketing events a year and if 50% of
those potential customers wont accept
PMA or DER that reduces my market
by 50%, which I cannot accept.
The reaction of the OEMs to the use of
PMA/DER parts has been to shockingly
abuse their dominant market position.
It has been widely reported that OEMs
tell operators they are on their own
when they call in with a problem on
an engine that has any PMA/approved
repairs parts. This action has been open
and widely publicised so it is a wonder
that no one has been in court over this
issue to date. The view from the OEMs
is that if a failed part was a PMA part,
then they shouldnt be held responsible.
When an OEM part fails they will take
responsibility for those parts and would
investigate but if a PMA part has been
fitted anywhere they shouldnt have to
spend time and resource dealing with
the issue.
In one particular engine failure that
is being investigated by the National
Transport Safety Board (NTSB), the
OEM concerned is claiming that it
shouldnt be held responsible and that
the authorities should be speaking to
the PMA manufacturer. The OEM takes
it even further to say that even if it was
an OEM part that failed, if there were
any PMA parts in the engine, because
those PMA parts are not tested within a
whole engine, it could have had a mate-
does PMAs for replacing GE parts and
GE returns the favour. The fundamen-
tal argument is that if dually authorised
and approved, a PMA part is considered
to be equally as airworthy as the OEM
part. They are supposed to be.
Moreover of all the airworthiness
directives (ADs) issued since the early
1990s, out of 290 directives, only three
have included PMA parts, parts that at
the time so closely matched the OEM
original that they carried over the same
problems that caused the ADs.
Back in the days when I was con-
fronted with the argument that a PMA
part or an independently developed
repair that was not the OEMs was an
inferior part, I have to say that in fact
it is equally as authorised, says Aldo
Prario. As a matter of fact there is a his-
tory of parts that have been ADd that
are OEM parts and I dont know of any
PMA parts that have been deemed to
be independently identified as a non-air
worthy part.
Alas the what if argument remains
a primary reason for airlines refusing
to use PMA parts. Ultimately though,
airlines blame lessors for holding them
back from using PMA more freely.
ELFCs Sharp says: Every lease
modes of PMA parts to check that they
are similar, if not the same, as their
OEM equivalent.
It should be noted, however, that BA
only uses non-critical PMA parts. Even
so, the UK flag carrier still achieved
between 30-40% savings over OEM list
prices after focusing on high-cost items.
United and ANA use PMA parts to their
fullest extent and achieve significant
bottom line benefits without downside.
The argument that OEM parts are
somehow better has long since been
defunct and the majority of the market
realises that many PMA parts, although
cheaper, benefit from improvements
on the original OEM design through
reverse engineering. This argument
was helped along eventually by the
OEMs themselves.
The parts that are approved under
PMA are considered by the FAA to be
equally as airworthy as those that are
made by the OEM, says Aldo Prario,
an FAA registered DER representa-
tive. There has strong objection by the
OEM for obvious reason to consider
PMA parts to be inferior. But since then,
driven by economic considerations I
am sure, both Pratt & Whitney and GE
make one anothers PMA parts. P&W
SMOKE AND MIRRORS
repairing any collateral damage not
covered in most cases, but the MRO
agency wants the airline to indemnify it
against claims from third parties.
This is something else in the indus-
try which is plain wrong and I think it
has to be changed, says Sharp. Until
such time that changes are made to that
contractual language and the stance
to pay a sum of money to the MRO shop
to repair their engines. It states that if
one of the parts it repaired fails, it will he
liability language in MRO contracts is
also a big obstacle for the acceptability
of PMA and DER parts. In a standard
MRO contract, it states that if one of the
parts fails, the MRO agencywill replace
it, and thats it. Not only is the cost of
rial affect on the OEM parts and cause
a failure. If an airline has any PMA parts
in the critical areas of the engine, they
are on their own in the view of OEMs.
The liability language in MRO con-
tracts is also a big obstacle for the
expansion of the use of PMA and DER
parts. In a standard MRO contract, in
the liability section, the airline agrees
The FAA on liability concerns and the OEM argument
The type certificate holders and the production certificate holders [classified here together as the OEMs for ease] and owners/operators are concerned
about the liability that a failure of an aftermarket part may affect their credibility and incur substantial costs. The OEMs are claiming that with non-TC/
PC holder approved parts (PMAs) and repairs (DERs) in the product that their ability to fulfil their Continued Operational Safety (COS) responsibility is
compromised. OEMs continue to call the product, their product and cite the fact the data plate required by 14 CFR 45, Identification and Registration
Marking, identifies them as the manufacturer when in fact there are replacement parts in the product that were produced by other entities. That has been
the situation for decades but now OEMs are contesting that long standing reality. The OEMs forget that the product is not their product. It belongs to the
owner/operator who is ultimately responsible for the airworthiness of the aircraft. The OEM is only responsible for the parts they design and manufacture
just as any aftermarket maintenance or replacement part provider is responsible only for the work they perform (including repairs) and the design and
fabrication of parts they provide. The fact that there are aftermarket parts, repairs and owner produced parts in an aircraft only means, as has always been
the case, that any accident/incident investigations must be a cooperative effort of all the affected design, production, operations, and maintenance provider
stakeholders.
Another aspect to this argument is that the OEMs want parts that are fabricated during maintenance and parts with extensive repairs and alterations
to not be marked [or re-marked] with the original OEM part numbers. They also noted that the traceability of PMA parts is often questionable because
aftermarket companies do not have tracking systems that are as comprehensive as theirs. The FAA concluded this is likely to be true in most cases. There
is no regulatory basis that requires marking of any parts other than parts subject to an Airworthiness Limitation (14 CFR 45.14), PMA parts (14 CFR 45.15)
and TSO parts or articles (14 CFR 21 Subpart O). Also, there is no requirement for manufacturers and fabricators of parts to track them or to have a tracking
system. The owner/operator is responsible for their aircraft configuration management, conformity, airworthiness, and records management to ensure
that airworthiness limitations are adhered to, ADs are accomplished, maintenance records are kept per the CFR, and the aircraft configuration conforms to
its approved design. The fact that the OEMs support the owners/operators in fulfilling some of those responsibilities is often misrepresented as the OEM
being responsible. The FAA says that they are aware of and are sensitive to the OEMs liability concerns.
In todays highly litigious world, anyone associated with an aircraft involved in an accident/incident regardless of their culpability could be forced to
share in a legal settlement. As a result some OEMs have recommended that the product data plate listing them as the manufacturer should be removed
from aircraft and engines that include a substantial number of non-TC/PC holder repairs, alterations and replacement parts because they claim that the
product no longer conforms to their type certificate design. The FAA disagrees with that proposal for both practical and regulatory reasons. There is a
subtle point to remember that the OEM owns the original type design but not the product once it is produced and leaves their quality control system.
Once in service, aircraft configurations very quickly diverge from the pure OEM/Type Certificate holders type design configuration due to maintenance
and alterations that are performed. Thus it is currently the case that if an engine fails and the failure is traced to a single part, then it is that part which is to
blame and therefore the burden of responsibility will fall upon that particular manufacturer. It is in the process in getting to the point of knowing which part
is to blame that is currently a grey area and might just end in court action at some point if a resolution is not found.
It is also noteworthy to point out that in most investigations, the owner/operator, who is ultimately responsible for ensuring the aircrafts airworthiness, is
rarely involved except for major accidents. In the past owners/operators and the FAA have expected the OEMs to investigate service events and accidents.
In todays environment when owners/operators are using a higher percentage of repairs, alterations and replacement parts that were not developed by the
OEM, the owners/operators need to become more active in leading investigations and engaging the responsible PMA companies (non-TC/PC holders)
/ repair shops when aftermarket repairs and parts are involved. It could be argued that the OEMs are in some cases being deliberately belligerent and
are scaring operators away from PMA parts through non cooperation in the event of a problem. This is of course a very poor show on the part of some
OEMs.
At this point it should be mentioned that some OEMs such as Boeing have been actively partnering with PMA companies to deliver safe and effective
replacement parts to market. Boeing issues technical assistance letters and enters into license agreements with PMA companies to support acquisition
of PMAs. Under the licensing agreements Boeing is at an arms-length relationship in which Boeing licenses approved data, but the PMA holder remains
responsible for their own manufacturing quality, and Boeing will not provide production oversight to a licensee except to the extent that the licensee is also
a supplier subject to Boeings normal supplier oversight protocols. Boeing has issued many licensing agreements, although an ongoing internal debate
has temporarily halted the issue of new license agreements.
SMOKE AND MIRRORS
ing with lessors and negotiating lease
contracts, that we are fairly comfort-
able with PMA parts being fitted to
the aircraft so long as they are not
engine parts. A DER modification can
be something relatively minor such as
the installation of a soap dispenser in
a toilet cubicle. They are not all engine
related or critical parts, they can be
very minor. Those do not mean the air-
craft cannot be transferred to another
operator. The simple rule there is that
is it could affect the airworthiness then
it is a critical part.
But appraisers can see both sides to
the argument. I can see why the mar-
ket developed because there is a lack
of response from the OEMs in terms of
pricing parts engine parts in particu-
lar were always increased by 5-6% per
annum, says Seymour. The expensive
parts within the engine that had fairly
minor discrepancies, airlines wanted to
repair them and get a DER sign off. If an
OEM was to say to an airline it did not
want it to use PMA parts, the airline will
ask them to reduce their prices. There
is a bit of that going on, some airlines
theoretical view and assume there are
no PMA parts or DER repairs on the
aircraft or the engines. However, that
is not a very practical stance to take
because it is more likely that many air-
craft have PMA parts and DER parts
in them. When it comes down to the
specific inspection of an aircraft and
the redeliver of it to a lessor the rea-
son we have to make assumptions is
because people just want a quick and
dirty valuation and they dont want to
pay much for it. When we are providing
our aircraft values book and our lease
rate digest, we have to make a whole
load of assumptions. It is only when we
are asked to do a more detailed valua-
tion and inspection of the aircraft; the
chances are that the aircraft will have
those parts on it. If a lessor comes to us
with an aircraft that has been used by
United for the past 20 years and they
want to operate it in Europe, is it going
to be ok. The chances are the aircraft
would have DER approved repairs on
it so might not be allowed to be used in
Europe.
We take the view when we are deal-
regarding exclusion of liability, and
indemnity, then airlines are not going to
accept PMA or DER. And the insurance
companies behind them arent either.
There has to be a change to make these
parts more acceptable and I think that
change needs to be in the liability lan-
guage.
It has been widely put out into the
market that insurance on parts and
engines that are fitted in is compro-
mised by the use of PMA parts. Airline
Economics has not been able to find any
evidence of this at the time of going to
press. But the FAA approval process
for PMA equipment and approved DER
repairs requires rigorous development,
reporting and test processes. PMA
equipment and DER repairs developed
by authorized manufacturers are FAA-
certified and perform equal to or better
than original equipment. Installed PMA
parts and repairs are fully insured to
cover operator equipment.
IMPACT ON VALUES
Another reason for airlines and lessors
to dislike PMA and DER is because of
the widely held perception that their
presence will devalue the aircraft or
engine.
Stephen Hannahs, CEO and group
managing director of Aviation Capital
Group, says: We dont like PMA parts
and we dont like DER parts because
they tend to have an effect on the valua-
tion of the asset. We try to do everything
we can to prevent PMA or DER parts
from going into our airplane. I think
though unfortunately they are a thing of
the future. I think more and more that
will get traction as time goes on but at
this juncture we prefer not to have them
in our aircraft for valuation reasons.
However the appraisers have a dif-
ferent view.
Phil Seynour, president and chief
operating officer of IBA Group, says:
As appraisers we like to think that in
the perfect world everything in an air-
craft is approved by the manufacturer.
PMA parts and DER repairs are not
approved by the manufacturer even
though they have been approved by the
regulatory authority. But a key issue
for us given the movement of aircraft
around the world and the market and
supply and demand, we take a very
"wa donÌ |||a PNA parIs and Wa donÌ |||a E parIs bacausa
Ihay Iand Io hava an aIIacI on Iha va|uaI|on oI Iha assaI. wa Iry
Io do avaryIh|ng Wa can Io pravanI PNA or E parIs Irom go|ng
|nIo our a|rp|ana."
SMOKE AND MIRRORS
needs to come close to breaking even.
Some have gone on record stating
that the Airbus programs are more
expensive compared to other options in
the market today, but we have learned
that Airbus is surprisingly flexible and
does indeed tailor contracts to a point
to save airlines money over five year
periods.
At Boeing the GoldCare program has
been growing rapidly, extending to most
aircraft types in service. The clincher
for Boeing came when they extended
the program to cover the 737 Next Gen-
eration product line. The company is
currently in advanced discussions with
multiple customers regarding the tai-
loring of GoldCare solutions for their
737 fleets.
GoldCare is available to 787
Dreamliner operators and Boeing is
expanding the service in response
to airline customer demand. Weve
designed GoldCare to bring value to
our Next-Generation 737 customers
by boosting airplane reliability, which
will reduce cost and improve efficiency
throughout the airplanes lifecycle,
said Jay Maloney, vice president, fleet
management for Boeing Commercial
Airplanes. The airline will be able to
focus on what it does best flying its air-
planes and serving its passengers.
Under GoldCare, Boeing leads and
integrates a global team to deliver
maintenance engineering, planning and
execution and material services with
a predictable cost based on airplane
flight hours. Simplified maintenance
operations and logistics allow GoldCare
customers to focus on their passengers
while their airplanes are maintained to
the highest standards of excellence by
Boeing, supported by GoldCare part-
ners.
The publicity states that Boeing pro-
vides GoldCare customers with 24/7
operations support using the latest
port.
The ECA angle is now very important
and should be noted by all in the PMA
argument. ECAs have been literally
propping-up the aviation finance sector
now since the start of the credit crisis
and this is likely to continue for the near
future as banks continue recover and
build reserves. This does not bode well
for continued PMA proliferation as the
bulk of aircraft coming into service will
either be financed by and ECA backed
loan or on an OEM aftermarket agree-
ment to cut the original purchase cost in
the first instance.
OEM CARE PROGRAMS
OEMs offer care programs to airlines
at the point of sale alongside joint ven-
ture agreements with the MRO market.
OEMs have shown themselves to be
adept at putting together repair net-
works that work for an airlines entire
fleet. In the past OEMs have been
thought of as having critical design
knowledge and strong cash reserves
but a distinct lack of on the ground spe-
cialist engineers able to perform and
adapt. This is here where the specialist
MROs come in. The engine manufactur-
ers have been controlling much of the
aftermarket through JV agreements for
quite some time but the speed at which
the airframe manufacturers are rolling
out networks is astonishing.
Manufacturers of airframes are
offering support for all non-engine parts
and repairs, these deals are extremely
ambitious. Airbus in particular has
become a very active player. Its cost-
per-hour support program has matured
substantially over the past two years as
new aircraft have been delivered. Sin-
gapore Airlines, for example, has signed
up to cover all support for its A380 and
A330 aircraft. The recent spat of A330
orders has been a catalyst. As Airbus
sought to save the A330 program and
with it a great many A350 orders that
were delayed, it decided to sell the A330
stop gap aircraft at rock bottom prices
with the proviso that customers bought
into aftermarket service programs.
This strategy has proved both a success
and highly popular to the extent that
Airbus is now able to up-sell onto other
aircraft as they are delivered, giving the
A350 program the commercial boost it
do get big discounts from the list price.
But a lot of airline purchasing people
are very sceptical they just dont like
monopolies and even if the prices were
reduced say they just want to have a
choice. We can see both sides of the
story; we just have to be very careful
in the appraisals as we cant say PMA
parts are fine.
MORE PROBLEMS FOR PMA IN ITS
CORE MARKET
PMA proliferation in the USA is due to
the fact that the fleet there is older. The
aircraft have no need to be financed;
they are owned and used by the airlines
to fulfil a role right up to the end of the
aircrafts useful life. This usage and
ownership cycle represents the core
market for PMA parts but what happens
when these old US fleets are renewed
under OEM aftermarket agreements?
The aircraft owner will still have the bal-
ance of power but in the future this will
not be the airline, it will be the financ-
ers either banks or ECAs and the
OEMs and it is this which should worry
the PMA market and investors in the
same.
One non ECA example of where
financing is all important to the use
of PMAS was highlighted by a senior
MRO figure recently when he stated to
Airline Economics: I have had many
meetings with leasing companies and
found just one that said we dont care,
you can put in whatever you want
and this is with the airlines support,.
Everyone else they said no. In one case
this was because their aircraft were
mostly owned by Special Purpose Com-
panies (SPC) through various financing
structures. Although the SPC was an
Airbus company, the financing was
done by Gecas I think you know what
the answer was after asking Gecas to
put a PMA part into a GE engine.
Aircraft bought using ECA-guaran-
tees are also often contain restrictions
on the use of PMA parts. The ECAs are
there to support OEM sales; therefore
they cannot back any sale that involves
an asset riddled with competing parts.
A spokesperson from the UK Export
Credits Guarantee Department says:
The European ECAs have a stated
policy not to allow the use of PMA parts
on aircraft which benefit from their sup-
"8uI a |oI oI a|r||na purchas|ng
paop|a ara vary scapI|ca| -
Ihay |usI donÌ |||a monopo||as
and avan |I Iha pr|cas Wara
raducad say Ihay |usI WanI Io
hava a cho|ca."
SMOKE AND MIRRORS
engine and use that money for its
repair or overhaul. Most importantly,
the lessor loses the security that it (and
where applicable, its lender) desires
from holding maintenance reserves
which under a care package are paid
to the OEM rather than the lessor. That
means that some airline credits simply
become unacceptable without reserves
and so a lease cannot be concluded.
Care packages therefore reduce com-
petition and the airlines options.
Moreover, the fund OEMs collect in
respect to certain engines may not be
fully transferable at the end of a lease.
Sharp explains: So the OEM has all this
money from airline A. When airline A
returns the engine to us, which we then
lease out to airline B, they will be in say
a half-life condition. When we ask for
the fund money for the hours and cycles
burned off to be returned to us, the
OEMs refuse. That is the first problem.
Secondly even if the fund is transfer-
able, it is often insufficient given that
the deal was probably struck at the time
of selection of the engine where the
manufacturer may have granted a con-
cessionary rate. For example they could
have asked for $100 per flying hour to be
paid into the fund even though the real
cost of maintaining the engine is $150
P&W states that all four aftermar-
ket segments are growing well. Fleet
management can cover non-P&W
engines, and the company has opened
two CFM56 shops in the past 18 months
alone. Overhauls of this engine doubled
for P&W in 2010 and P&W hopes to post
another doubling during 2011. Pratt also
has invested in repair of CFM56 compo-
nents to control the supply chain. P&W
is of the mind that airlines will increas-
ingly rely on third-party maintenance
even for line maintenance.
A side effect to this OEM incursion
into the aftermarket has been the
unbalancing of maintenance reserves
for lessors on both existing contracts
and potential new business. All leasing
companies engine and aircraft lessors
collect maintenance reserves in what
is universally thought of as being the
fairest system possible. All lessees dur-
ing the course of an aircraft/engines
life will pay the same per-hour costs
levelling the maintenance costs across
the life of the product so that no one les-
see, or indeed the lessor, has to foot the
bills while others enjoy maintenance
free periods. In addition, and maybe
more importantly, the reserves are held
as security, so in the event of a default,
the lessor can repossess the aircraft/
technology to turn airplane operating
data into diagnostic information that
enhances efficiency and maximizes
aircraft availability.
For lessors the programs are a bit of
a game changer. A new operator, when
receiving a leased aircraft covered by
GoldCare, is assured that the aircrafts
maintenance adheres to the require-
ments established by the manufacturer.
This is turn means that maintenance
reserves will slowly become a thing of
the past if current take-up continues.
But during the transitional period, les-
sors will have a number of headaches
to deal with not least when clients
come to them wanting to add the air-
craft or indeed engine onto their own
care program. This echoes Jon Sharps
concerns over the non-transferability of
care package reserves and the fact that
even though they may be transferable
there is often a shortfall.
Of the engine OEMs, it is perhaps
Pratt & Whitney that has focused even
more intently on the aftermarket than
most. It has seven engine-overhaul
shops and 15 component-repair shops
and offers material solutions for its own
and CFM56 engines as well as line ser-
vice, including the much publicised and
highly successful Ecopower.
Strategic Airlines signed an exclusive five-year maintenance services and expanded engine management program
agreements with Pratt & Whitney in 2010
goes back to the OEM and said ok you
didnt have the time to do it for me, we
did on our own authority, now put it in
your book. We have done all of the work
for you but we would like you to put it
in your manual so the world can use
it. There are things that happen in
the mature aircraft world that are not
very responsive to the operators needs
but they are understood to be so, not
because the OEM doesnt care about a
mature engine any more, just that their
priorities are different.
For independent MRO shops, form-
ing these kinds of partnership on the
DER side is essential to their near-term
survival. One senior engine MRO figure
who declined to be named stated: What
is important for us is that we have the
ability in our organisation to design a
repair in partnership with the OEMs
and get their approval. If you can do that
and work with the OEM and develop a
good relationship, then you can get the
OEM to approve the repair unless it
would be a major hit to their bottom line.
Occasionally we tie in the customer. We
often present a case to the OEM with all
of the facts for a repair and that there
SMOKE AND MIRRORS
is no technical reason why we cannot
do a repair. What is the OEM going to
say? If they dont say yes now, we say we
are going to be back tomorrow with the
operator, although we say it much more
politely that that.
Dr Robert Furlan, VP part repair,
engine maintenance at SR Technics
in Zurich, agrees that partnership
with OEMs for repairs is important.
This is understandable given the com-
pany is part owned by GE - but he also
highlights the importance for them to
remain independent from the OEMs
and focus on keeping costs low for the
customer.
He says: You can develop repairs
on your own like DER and PMA. Then
you make claims that your technical
solution is equal or in many cases bet-
ter than the OEM. You can the approach
the OEM and present a business case
for the repairs. It could be that if the
OEM already has some pressure to
come up with a repair in the area or if
they realise that this repair is not fixing
the problem, they will decide they need
your idea and will include the repair in
their manual. In some cases the OEM
puts themselves as the source but you
share the market.
However this approach doesnt
always work, says Furlan, as the repair
councils of the OEMs make purely
commercial decisions on whether it is
worthwhile coming up with a repair or
not. Thats my experience, he says. A
topic is raised and has a good idea, and
the aftermarket could have a demand,
but the OEM could say no that they are
not going to come up with this specific
repair because sales of their new part
are down and they would rather make
more money on that than devise a repair
service. This is just the way the OEMs
make money selling new parts.
Although partnerships and joint
ventures in the DER market provide
a way for independent MRO shops to
remain competitive, technology is being
developed that will result in the OEMs
controlling even more of the aftermar-
ket. Furlan explains:
The old world was about getting
licences and negotiation with the OEMs.
In the future and the next generation of
engines there will be major changes in
the game. Engines will be sold from the
Aldo Prario says: If a GE is devel-
oping a new engine programme and
they have limited resources they are
going to put those scarce resources on
the new engine program; maintaining
or supporting the needs and desires
of an airline with a mature engine is
less likely to be at the forefront. If I am
developing a new engine, all of my tal-
ent and most resources are portioned
to the people doing the new product.
Consequently, but not intentionally, the
product support of a mature engine
takes a back seat. I have seen circum-
stances where airlines under their own
121 authority develop a repair because
the OEM hasnt reacted quickly enough
for them. However the repair on the
aircraft has been documented in hours
and cycles, and the MRO shop then
an hour, somebody will have to stump
up the difference for the next overhaul.
And that is not something we should
be doing, or something the next airline
should be doing.
As more and more airlines ask les-
sors to include aircraft under their
OEM aftermarket programs so there
begins a problem for the lessors. They
must either double-up the cost to the
airline per hour and risk losing the
business or work out some other way to
move forward through agreement with
the OEM, lessor and lessee.
DER REPAIRS -
THE FUTURE SOLUTION?
Amid all of this OEM expansion, it is
important to note the growth in DER
repairs. The approved repair market is
growing rapidly and the OEMs are fully
aware of the significance that this could
have. But in most cases today, MROs
upon arriving at a solution or improve-
ment for a repair will revert back to
the OEM to arrange a joint venture on
specific repair going forward. This is
fast becoming the norm and for some
independent MROs this is a core part of
their business going forward.
Daniel Adamski of HEICO says: In
todays competitive market, owners and
operators are continuously searching
for ways to reduce costs while maintain-
ing safety. There are a variety of means
permitted under the CFRs for owners/
operators to maintain their aircraft and
restore or replace parts and compo-
nents. The proper implementation of
DER repairs is one method permitted
under the CFRs. DER repairs to parts
of any extent, short of 100% fabrication,
that restore them to an airworthy condi-
tion, when the applicant has determined
that repair is more economical than
purchasing or fabricating a complete
new part, are permitted, provided they
are in strict compliance with all appli-
cable regulatory and airworthiness
requirements.
DER repairs make sound financial
sense for aircraft operators and they
often improve on flaws in the original
parts. With most OEMs expending
much of their time and resources in the
development of brand new engines, they
have limited ability to work on develop-
ing repairs for more mature engines.
"whaI |s |mporIanI Ior us |s
IhaI Wa hava Iha ab|||Iy |n our
organ|saI|on Io das|gn a rapa|r
|n parInarsh|p W|Ih Iha ENs
and gaI Iha|r approva|."
SMOKE AND MIRRORS
with the OEMs through aftermarket
supply agreements and other joint-
venture contracts to such an extent
that they themselves have become an
integral part of the OEM web, even
though they repeatedly maintain there
are independent. Conversely it is this
interaction with the independent MRO
market that has protected the OEMs
from anti-trust investigations but has
attracted the attention of the European
Commission and Capitol Hill regulatory
commissions. A source at the European
Commission confirmed to Airline Eco-
nomics that they were looking into the
situation. In the meantime however the
concept of an independent MRO is being
completely eroded and the decision
power of the independent and airline/
operator with it. When MRO shops are
woven into the OEM structure to such
an extent that they are worried to upset
them by commented on the record,
then the term independent has largely
become redundant.
In conclusion, it is clear that as the
MRO market consolidates, the very
best option for the PMA firms is to be
bought by an OEM or MRO, or buy up
maintenance companies themselves.
If they are not large enough to do this,
then PMA market consolidation and
refinancing will need to take place to
facilitate the next phase of prolifera-
tion. The PMAs have spent hundreds
of thousands of dollars fighting their
collective corner and appealing to the
airlines and lessors to look again and
again at the correct facts. This has got
very little traction to date. Now as the
OEMs increase their grip on the after-
market, it is logical that the PMA firms
should seek to secure their position at
the front end in the maintenance shops
through merger and or acquisition
and then extend to offer PMA included
aftermarket care through base and line
maintenance and power by the hour
agreements. By controlling a section of
the front-end market, the PMAs will be
able to guarantee continued parts and
repair supply to the market no matter
the aircraft age. It is the only way to
secure a solid footing for PMA in the
commercial aviation sector for the next
decade and beyond. The only question
remaining is when will the PMA firms
stop talking and start acting?
very first day with long-term mainte-
nance contracts and there will be many
innovations in the new equipment that
the OEMs will keep proprietary.
The next generation of engines con-
tain composite fan blades; composites
require a great deal of knowledge and
experience to repair and also require
new and expensive machinery. Another
example Wolfgang cites is bladed disc
technology, which have to pass a spin-
ning test to show it is safe. This is
difficult for a non-OEM, he says. I
do not see the free market developing
in the next generation of engines that
there was in the more mature engines.
The OEMs are taking care that the
whole lifecycle of the product is in their
hands, including the aftermarket.
He adds: In the old world, I would
have said we would have to get more and
more technology to be a bigger player
in that market, but in the new world
with our ownership we are pretty well
in the market and still we are introduc-
ing technology we have to be attractive
to the OEMs. The climate is very good
between us and the OEMs and we have to
be an attractive partner. Our technology
is not to put the OEM under pressure; it
is more to be an attractive partner. We
want to deliver best performance so we
will be a partner to the OEM but we will
also challenge them. We will build up
our technology to provide the best ser-
vice for our customers. The change in
the industry in selling engines, requires
a totally new strategy. We are preparing
for composite repair, which requires a
lot of new technology. The good thing is
that we are not only an engine MRO, we
have a lot of know-how on the aircraft
side of composites and we have to build
it up right away.
In a world where the OEM con-
trols everything from conception right
through to D-check is one where there is
little room for competition. The aviation
sector is quietly moving towards huge
OEM control and this, coupled with
MRO consolidation, will mean higher
prices for airlines before the end of the
decade. If the fact that higher prices and
an increased monopoly of the OEMs is
forthcoming, why has no one stepped
up to the plate to argue against such a
situation? The very same independent
MROs are themselves intertwined
SMOKE AND MIRRORS
PMA LIMITATIONS
Organisation Allow PMA Limitations
Ex-Im NO It goes against our stated policy to allow
PMA on aircraft which beneft from our sup-
port
ECGD NO The European ECAs have a stated policy not
to allow the use of PMA parts on aircraft
which beneft from their support.
Coface NO
Hermes NO
Lessor Allow PMA Limitations If on care program or PBH agreement
does the lessee still have to pay towards
maintenance reserves
Jackson Square
Aviation
YES in non critical
areas on a case by
case basis
ECA funding exclusions It depends on the airline. Sometimes if we
can do a three party agreement with the
OEM we will forego MRs.
ELFC NO Limits the ability to lease or sell Sometimes, yes but most often, 75% of the
time no.
Willis Lease NO Operator either has to pay reserves or
agree along with maintenance provider to
a tripartite agreement
ILFC YES on a case by
case basis
ILFCs approach to the issue of PMA parts
is that we allow our customers to make the
decisions as long as all certifcations and
aviation authorities regulations are met.
Aviation Capital
Group
NO We do everything we can to avoid PMA/DER
but we accept that it is the future.
AerCap No Comment Airline Economics is aware of several clients
that have been allowed PMA in non critical
areas
FLY Leasing / BBAM NO We preclude the use of PMA at all times "Typically a lessee will not pay reserves to
both the OEM care program and to the
lessor for the same maintenance event.
In the scenario where the lessee pays the
reserves to the OEM, we have structures
in our agreements with the parties that
returns the lessor to the same position at
lease expiry had the lessor received the
reserve payments during the term."
GECAS NO
FINANCE
T
he main issue for a les-
sor is that, when the
lease expires, it holds no
reserves to apply towards
the next engine overhaul,
presumably when the air-
craft will be operated by a new lessee
whose lease will require the lessor to pay
the portion of the cost of the next over-
haul attributable to engine use before the
new lease began. There are a number of
ways to address this issue. None of them
satisfies all the parties all the time, and
each raises its own issues.
1. LEASE RESERVE PAYMENTS
One solution is to require the lessee to pay
reserves under the lease without regard
to the maintenance contract. Another is
to require the lessee to pay lease reserves
only to the extent they exceed the monthly
payments under the maintenance con-
tract. These solutions typically require the
lessor to pay the lessee an amount equal
to the paid-in reserves upon the success-
ful completion of an overhaul under the
maintenance contract, but enable the
lessor to retain the reserves paid after the
last overhaul and before lease expiry or
termination. Lessees often resist these
solutions as duplicate maintenance
payments and as depriving them of the
benefit of advantageous pricing under the
maintenance contract.
2. LEAVE IT FOR RETURN
In support of this solution, lessees argue
the engines will be maintained and over-
hauled under the maintenance contract
in a manner consistent with the corre-
sponding lease requirements and that
any deficiency can be addressed upon
return of the aircraft at lease termina-
tion or earlier expiry under the return
condition clauses of the lease. A finan-
cial adjustment, for example, would
compensate for an engine with greater-
than-allowed accumulated hours or
cycles or that otherwise does not com-
ply with all return conditions. But lessors
often encounter difficulty recovering
return condition payments, especially in
cases of airline bankruptcies. Top credit
airlines that would not pay reserves any-
way argue the maintenance contract is
not even relevant to the lessor.
The above two solutions do not
involve much negotiation with the main-
tenance provider. Discussed below are
other solutions that seek more middle
ground, but that do require the mainte-
nance providers agreement.
3. REFUND
The lessors key objective should be
to avoid a forfeiture of the unexpended
maintenance payments paid under the
maintenance contract. To accomplish
this, the maintenance provider and les-
see can agree that if the maintenance
contract is terminated with regards to
the lessors engines for any reason,
including expiration or termination of
the lease, the maintenance provider will
refund to the lessor all (or an agreed
portion) of the unexpended payments it
holds on the basis that the maintenance
provider will have been paid for an over-
haul it no longer has to perform. If the
refund is less than the reserves that
would have been paid under the lease,
the lessee can pay the difference.
The maintenance provider might
resist this approach because it might
Solving issues with third-party
maintenance contracts
John Karesh at Vedder Price sets out the issues arising from maintenance contracts
where, instead of paying engine reserves to the lessor, the lessee pays a maintenance
provider based on the hours or cycles of operation in exchange for engine overhauls.
FINANCE
the maintenance contract to secure its
performance under the lease, so if the
lessee defaults under the lease, the
lessor could seek to enforce the mainte-
nance contract for its benefit. However,
as a general rule, absent agreement
from the maintenance provider, it would
not have to perform for the benefit of the
lessor if the maintenance contract con-
tains a provision generally that it is not
assignable, and in any event, the main-
tenance providers obligation to perform
an overhaul or refund payments would
be limited to what is required under the
maintenance contract. Moreover, the
lessor could be stayed from enforcing
its security interest if the lessee were to
file a petition under Chapter 11 of the
Bankruptcy Code.
8. WHOLE NEW AGREEMENT
The best option. The best way to address
the concerns of each party is a sepa-
rate, three-party agreement among the
maintenance provider, lessor and lessee
providing that, following a lessee default
under the maintenance contract or the
lease, the lessor can elect to require the
maintenance provider either to make a
refund, or to overhaul the engine with
costs shared, or to permit the lessor or
next operator or purchaser of the engines
to step into the lessees shoes under the
The three-party agreement should also
provide that the maintenance provider
will: (a) notify the lessor immediately upon
a material breach by the lessee under the
maintenance contract; (b) following such
breach or a default under the lease, follow
the direction of the lessor to the exclusion
of the lessee in relation to the lessors
engines; (c) give copies to the lessor of
any notice it gives or receives under the
maintenance contract; (d) not modify
the maintenance contract including
by means of a private letter ruling, DER
repair or other exemption, exclusion or
alternative means of compliance, without
the lessors consent; and (e) not pledge,
assign or encumber its rights (including
its right to payment) under the mainte-
nance contract.
The lessor should agree to notify the
maintenance provider upon the occur-
rence of a lease event of default.
The lease should include provisions
that: (a) prohibit the lessee from (i)
occur after further operation of the engine
by a new lessee, the maintenance pro-
vider might resist contributing to the cost
of the next overhaul if differences in the
use profile or maintenance practices of
the new lessee could increase its obliga-
tion. A financial adjustment could solve
this problem.
5. CURE OF LESSEE DEFAULTS
Curing lessee defaults under the mainte-
nance contract to avoid termination might
not adequately address the concerns of
the lessor or the maintenance provider.
A cure can be expensive and would only
make sense if the maintenance provider
has agreed to overhaul the engines for
the lessor or a new lessee and otherwise
to continue performing under the contract
as long as the lessor makes the cure pay-
ments notwithstanding any other default
by the lessee under the maintenance
contract. If the lessor elects not to cure,
or if the maintenance provider refuses to
accept a cure, the maintenance contract
should require the maintenance provider
to refund to the lessor all unexpended
maintenance payments in its possession
attributable to the lessors engines.
6. ASSIGNMENT
A right to assign the maintenance con-
tract to a new lessee is often contentious
and might be of limited use to the lessor.
Offering an assignment of the mainte-
nance contract to a new lessee could,
in certain circumstances, enhance the
lessors efforts to re-market the aircraft.
But the new lessee might not want the
contract if it is too expensive or burden-
some, or if it has its own maintenance
programme.
The maintenance provider might
object to an assignment on the basis
that the monthly maintenance fees and
workscope were agreed with the exist-
ing lessee based on factors, such as
its use profile and assumed quantity of
work, that do not apply to the new les-
see. However, these factors should only
affect pricing, not the agreement to
assign. Some assignees might simply
be unacceptable to the maintenance
provider, such as a competitor.
7. SECURITY INTEREST
The lessee could grant the lessor a secu-
rity interest in the lessees rights under
view maintenance payments as its prop-
erty or as security for lessee obligations.
It could claim that the maintenance
payments form part of a pool to pay for
overhauls on a fleet of engines, that it will
be damaged by the premature termina-
tion of the contract because it anticipated
a certain workflow, or that it over-built
the engine at the last overhaul to reduce
its projected cost under the contract.
4. OVERHAUL COST SHARE
The maintenance provider might agree
to contribute to the cost of the next
overhaul the amount of unexpended
maintenance payments attributable to
the lessors engine held at the time of
contract termination. The contribution
may be limited to overhauls performed in
its shop and/or within a limited period of
time, or to the payment of a percentage
of the cost of the next overhaul based on
the ratio of the number of hours or cycles
for which the maintenance provider is
holding payment and the total number
of hours or cycles accumulated by the
next overhaul.
Since the next overhaul will usually
FINANCE
under the lease), then upon withdrawal:
(a) the maintenance provider should
pay to the lessor all unexpended main-
tenance reserves attributable to such
engines; and (b) the lessee either should
be required to (i) induct the engines
into another acceptable maintenance
programme or (ii) commence paying
reserves under the lease and make any
catch-up payment described above, and
pay any termination fee due under the
Artisans liens: Such liens (some-
times known as mechanics liens) are
generally limited to the agreed price and
reasonable value of the labour and parts
furnished by the maintenance provider for
the improvement of the particular engine.
Sometimes, the maintenance provider will
waive its artisan lien rights on the theory it
has already been paid for the cost of the
overhaul by the lessees periodic mainte-
nance payments. But some maintenance
contracts purport to give the maintenance
provider a consensual lien on the lessors
engine to secure all obligations under the
maintenance contract, including for unre-
lated engines. The lessor should seek a
waiver of these liens.
WHERE AND BY WHOM CAN THE
OVERHAUL BE PERFORMED?
The lessor should verify that the main-
tenance provider remains liable for the
work performed by its subcontractors or
designees and that any subcontracted
work is covered by the maintenance pro-
viders indemnity and warranty.
Warranty: All warranties of the main-
tenance provider should be assignable
to the lessor or new lessee.
PMA parts: Any lease restriction on
the use of PMA parts should be consis-
tent with the maintenance contract.
Replacement parts: The mainte-
nance contract should provide that title
to replacement parts will vest in the les-
sor, subject to the lease and the lien of a
lender, if any.
CONCLUSION
Third-party maintenance contracts are
here to stay, and are growing in impor-
tance. They can be of great benefit to the
lessee, and in many instances to the les-
sor as well. But they raise issues that the
parties can effectively resolve if they co-
operate reasonably in the process.
(or supplemented) to cover the lessees
obligations described in (a)(d) above.
OTHER LESSOR ISSUES
A number of other clauses in mainte-
nance contracts can also create issues
for lessors:
Confidentiality: The lessor needs to
know the provisions of the maintenance
contract to determine if any them (includ-
ing those discussed below) affect the
lease, and should be willing to maintain
such confidentiality. Even pricing of the
maintenance contract can be important
for the lessor to determine if it risks being
under-reserved or if the amount of a
refund becomes relevant.
Conditions precedent: Most mainte-
nance contracts will excuse performance
by the maintenance provider or permit it
to terminate the maintenance contract
if the lessee fails to make payment or
perform other obligations. This is par-
ticularly troublesome if the maintenance
contract contains a cross-default clause
to other agreements with the mainte-
nance provider or an affiliate.
Workscope: The lessee might argue
the workscope is not relevant to the les-
sors interests because the lessee will
remain obligated at its expense and risk
to perform all maintenance and meet
all return conditions required under the
lease, and the lessor will have a claim for
damages in case the lessee fails to do so.
Replacement engines: The mainte-
nance contract should permit the lessee
to induct a replacement engine into the
maintenance programme if a leased
engine is replaced, for example, due to an
event of loss. The lease should obligate
the lessee to pay any required induc-
tion charge. If the replacement engine is
not inducted, the maintenance contract
should require the maintenance provider
to refund the amount of unexpended
maintenance payments attributable
to the replaced engine, and the lease
should obligate the lessee to make any
necessary catch-up payment in case the
refund is less than the reserves that would
have been paid by the lessee under the
lease in respect of the replaced engine
absent the maintenance contract.
Engine withdrawals: If the lessee has
the right to withdraw the lessors engines
from the maintenance programme
(especially in contemplation of return
assigning, pledging or encumbering its
rights under the maintenance contract
and (ii) modifying or waiving any provi-
sion of the maintenance contract without
the lessors consent; (b) make a lessee
default under the maintenance contract
a default under the lease; (c) require the
lessee (i) to hold the lessor harmless if
the refund or credit of maintenance pay-
ments or contribution to the cost of the
next overhaul from the maintenance pro-
vider is less than the amount the lessor
would have been holding had traditional
maintenance reserves been paid under
the lease, and (ii) to indemnify the les-
sor for any loss resulting from a lessee
default under the maintenance contract,
including any cure payment made by
the lessor; and (d) require the lessee to
pay as additional rent (i) any amount by
which traditional maintenance reserves
payable under the lease exceed the
maintenance payments payable under
the maintenance contract or (ii) full, tradi-
tional maintenance reserves at any time
when the maintenance contract is not in
effect together with a catch-up payment
if full maintenance reserves become
required under the lease. The lease
security deposit should be adequate
John Karesh at Vedder Price represents lenders
and lessors in a variety of domestic and cross-
border aircraft finance transactions, including
mortgage financing and operating leases, and
investors and operators in domestic and cross-
border purchases, sales and financing of aircraft.
AFTERMARKET
demand volatility increases, the effect
on the amount of inventory required can
have a major impact on cashflow and
bottom-line profit.
The effects of the recent economic
climate have disrupted the normal pat-
terns of demand for a lot of industries,
and throughout the whole supply chain.
What will be the effect on the required
parts to service the aftermarket? Do we
know the knock-on effect of this yet, or
do we have to wait for the natural time
lag to affect the demand profile for
spares?
Companies that have greater visibil-
ity of future demand and can anticipate
the volatility will stand a better chance
costs, negative effects on service levels,
or significant firefighting.
While a strong understanding of the
efficiency of a standard supply chain
operation is commendable, many have
forgotten the aftermarket. Product life-
times are lengthening, and companies
are seeing changes in demand pat-
terns. Now is the time for the aftermarket
supply chain to be at an optimum,
rather than being treated as an also-
ran division.
DEMAND VOLATILITY
One of the main characteristics of an
aftermarket business is the large range
of parts that have to be stocked. If
T
he economic climate and
change in market require-
ments has seen supply
chain management move
up the business agenda.
This has led to many man-
ufacturers improving process efficiency,
smartening up performance metrics,
and investing heavily in technology to
increase the efficiency and cost-effec-
tiveness of their supply chain.
In recent years supply chain man-
agement teams have begun to look at
risk evaluation alongside their process
optimisation strategy. This has helped
to position organisations to better man-
age risks such as failure to supply, higher
In this climate it is vital that aviation aftermarket businesses optimise their aftermarket
supply chain. Informs Cathy Humphreys explains how to boost the efficiency of this
process with inventory management planning without making big changes to systems.
More than an afterthought
AFTERMARKET
versions of spare part are available.
Issues such as backward compatibility
and obsolescence have to be managed
carefully to ensure the right parts are
available in the right strategic location
for rapid delivery to the right customers.
Offering superior customer service
is more important than ever before as
it encourages repeat business. Manu-
facturers now need to review what parts
they will need to keep in stock to ensure a
smooth aftermarket service for products
being kept for longer periods of time.
Ultimately, this greater instability in
the demand of new products, as people
hold on to products for longer, affects
the supply chain dramatically, as it
becomes far more difficult to manage
the all important aftermarket.
EFFECTIVE PLANNING IS THE KEY
Supply chain management is constantly
evolving, and organisations should
recognise the role that decision-support
systems can play. These systems can
assist not only in supporting best practice
for strategic decision-making processes,
but also in the operational, transaction-
oriented decisions that typically get the
focus from supporting technology.
Businesses prepared for future
changes in demand of spare parts will
strengthen their market position. Predict-
ing future requirements, and planning
proactively, will create greater visibility
and the opportunity to enable a more
efficient (and profitable) supply chain.
The business benefits will be evident
if it can better manage the aftermarket
supply chain and achieve optimal stock
levels to satisfy service-level agree-
ments. Benefits include a release of
cash tied up from excessive stock,
improved process efficiency and less
emergency costs from firefighting, as
well as the potential for increased rev-
enue from happy customers.
Aftermarket supply chain manage-
ment is complex, but the rewards are
big for getting it right. The key is not
to use systems created for the main-
stream business by trying to shoehorn
them into a completely different envi-
ronment. Instead, it is paramount to
have the right tools for the job and to
use sophisticated systems to manage
the complexity, helping managers make
the right decisions.
product, and to efficiently source and
stock these items.
Although it is common practice for
companies to use sophisticated soft-
ware for the new-build market, many
still use spreadsheets for the manage-
ment of spare parts. With the pressures
of high service-level requirements and
high demand volatility, isnt it the latter
part of the business that needs the sup-
port of sophisticated software and not
the other way around?
IMPROVED DEMAND ACCURACY
Improving demand accuracy is the
single most effective action that will
cascade through all other supply chain
metrics, improving revenue and profit,
and reducing costs. If aftermarket parts
are inherently difficult to forecast, then
this is where businesses should look at
getting help.
Advanced planning and execution
software, catering specifically to after-
market products, can have a big impact
on demand accuracy. By applying the
appropriate algorithms (automatically)
to the historical consumption of each
and every item, as well as combining
known demand such as scheduled
maintenance or predicted failure rates,
accuracy will increase.
That said, some people argue that
forecasting based on historical con-
sumption is not right for their business.
But it is a good place to start. It pro-
vides a demand shape or pattern for
the profile of an item, which can then be
adjusted with known information about
the future demand.
It is also essential businesses under-
stand potential changes in the product
mix as well as overall volumes, so the
right parts can be stocked. The cost
of having the wrong parts could be a
breaking point. A lack of product avail-
ability will lose customers and increase
the cost of expensive emergency ship-
ments. Excess stock ties up capital,
incurs unnecessary storage costs and
affects cashflow.
Many businesses are now aiming
for 100% availability of spare parts, yet
their portfolio is set to increase, espe-
cially with the number of revision levels
required to support a larger base of
older products. The longer a product is
supported in the aftermarket, the more
of supplying customers in the most
optimised way.
By improving the performance of
the spare parts division of a business,
profit can be driven into the company
through increased revenue in the
aftermarket and reduced wasted cost.
This can potentially increase revenue
in the mainstream business through
increased customer loyalty. The length
of time a company spends doing busi-
ness in the aftermarket is often far
greater than the initial sale. This creates
an opportune time to sell more if the
customer is happy.
The key is continuous improvement.
A few years ago it was fine to have a
spare parts division whose focus was to
identify those existing production parts
that might be required in the aftermarket
and to keep a few to one side for later.
Then, when required, the appropriate
part is sourced at a higher price.
This is no longer the case, and the
requirement now is to dynamically and
accurately predict what parts might be
required during the lifecycle of each
Cathy Humphreys is UK country manager at
Inform, which specialises in planning and
decision-making software to improve busi-
ness productivity. She has been at Inform for
four years and was previously a director in the
aftermarket services division of rolling stock
manufacturer Bombardier Transportation.
THE PARTS MARKET
T
he global movement in
the aviation industry
towards younger aircraft
has had an efect on all
maintenance repair and
overhaul rms, and the
parts market is no diferent. Although it
is of course far more targeted, it remains
at the very front line of cost pressures and
demand. The parts market, from the point
of view of an investor, looks proliferated at
the moment, with many players compet-
ing for the same slice of market share.
This view is backed by Dennis Zalupski,
chief executive ofcer of Kellstrom Indus-
tries. The competitive landscape of the
aviation aftermarket has changed consid-
erably over the past decade. Not only are
there many more large competitors, there
is also a proliferation of small companies
that work out of other peoples invento-
ries, using a computer and the internet to
sell parts around the world, he says. Per-
haps even more importantly, there has
also been a deluge of investment dollars
coming into the used airplane market that
has resulted in nancial investors and a
few aviation companies taking large posi-
tions in asset classes that are approaching
their end of life. All of these factors have
contributed to a ood of material into the
aftermarket over the past few years.
The growing acceptance and availabil-
ity of used parts is helping to drive down
overhaul costs across the globe. Mainte-
nance specialists have an entire spectrum
Pulled apart
The parts industry is fragmenting, as more and more players enter the market. And
theyre all competing for the same slice of business. MRO Global talks to Kellstroms
Dennis Zalupski about how his firm intends to retain its share
THE PARTS MARKET
advantage we ofer them is we already
have the infrastructure in place and the
relationships with the airline custom-
ers and MRO facilities around the world
to efectively market their products for
them often better than they could do on
their own. We also assume the inventory
and credit risk for the OEM, something
that has always been somewhat of a
barrier to success for OEMs in the after-
market. This type of relationship works
especially well for us, with manufacturers
such as Ametek Aerospace, which is an
important partner of ours in the Com-
mercial channel, and Honeywell, who we
are very strong with on the military side
of our business.
Where we dont have an aftermarket
distribution relationship with an impor-
tant OEM, we still make every efort to
work with and support it when we can. For
example, when we have surplus material
receptive to the concept of used, recondi-
tioned and PMA parts, due to concerns
over asset values. However this view
appears too be subsiding as new les-
sors enter the market with a more open
mind regarding their use. But on the
other hand, the OEMs are gradually
taking control of the market through
increased aftermarket agreements at
point of order, which in turn is leading
to parts specialists having to join forces
with the OEMs in much the same way as
the MROs. There is no question that the
big OEMs, whether they are airframers,
engine companies or systems providers,
have woken up and are trying to protect
their very protable new parts stream
into the aftermarket, says Zalupski. In
some cases, we join forces with them by
using our ongoing access to the global
customer base to sell and distribute their
new products into the aftermarket. The
of options to choose from to suit their
clients, from new original equipment
manufacturers parts through to PMA,
approved repairs and reconditioned used
parts. The great number of options open
to airlines has had an efect on the mar-
ket Zalupski of Kellstrom Industries is
on the front line in the parts market and
he is seeing the movements in the global
market rst-hand. On the commercial
aviation side of the business, we are see-
ing continued price pressure on both
surplus airframe and engine parts. This
is really a direct result of the number of
older aircraft that have been removed
from service and disassembled over the
past few years. Generally, it has been the
older Boeing and Airbus models along
with the associated engine types. Pricing
on newer generation equipment, if you
can nd it, continues to be quite strong.
The leasing sector is generally less
THE PARTS MARKET
that needs to be repaired or overhauled,
we will make a concerted efort to send it
to the OEM, assuming it is competitive in
price and turn time. This in turn helps us
sell the products to our customers, most
of whom are as quality-conscious as we
are, says Zalupski.
Parts demand, both from a quantity as
well as platform type, changes on a daily
basis. Longer-term trends in demand
follow the eets. Today, almost any part
from the new-generation airframes and
associated engine types, such as the
newer versions of the A320 along with
platforms such as the 737NG, 777 and
A330, always have more demand than
supply. As these eets continue to grow
and the OEMs continue to raise prices
for new parts, that demand is set to
become even greater.
The industry has changed greatly
over the past decade and as it contin-
ues to evolve, so too will companies
such as Kellstrom. The lifecycle of an
aircraft is getting shorter, from 2530
years to something more in the 20-year
range. Based on the number of new air-
craft Boeing, Airbus and the others are
projecting to build over the next two
decades, it seems there will be a race to
see if the industry can grow fast enough
on a global basis to absorb all of the new
and used aircraft. If the global economic
situation were to cause a Japan-style
decade-long recession, then we could be
faced with massive aircraft retirements,
which will be parted out.
The future focus of the industry will
be on Asia in general, and China in par-
ticular, which is clearly a growth market.
A combination of routes is driving
growth long haul between continents,
long haul within Asia and short haul
within the regions and/or within China.
When you combine this with the young,
vibrant and growing population, as well
as lower wage scales, it is little wonder
Asia and China have quickly become a
force in the global MRO business. Back
in the mid-2000s, we anticipated this
would happen and opened our Asian
regional ofce in Singapore, says Zal-
upski. Today, in addition to the ofce in
Singapore, we have an operation in Aus-
tralia, as well as a network of exclusive
agents who help us service the region.
This is clearly our fastest growing region
on the commercial side.
THE PARTS MARKET
Kellstrom Industries
Kellstrom Commercial Aerospace
is one of the largest and most reli-
able suppliers of aircraft parts and is
a full-service provider of logistics and
material management solutions. Kell-
strom has established itself as a global
supplier of inventory solutions with
specic focus on:
Large new-generalion invenlory
A slrong, cuslomer-focused
management team
Slale-of-lhe-arl IT caabiIilies
and solutions
COMMITMENT TO THE HIGHEST LEVEL
OF QUALITY STANDARDS
Kellstrom Commercial Aerospace has
achieved success through the establish-
ment of various value-added material
management and distribution pro-
grammes and has existing agreements
in place with companies such as:
Norlhro Grumman
MarshaII Aerosace
Qanlas Defence Services
Amelek Aerosace & Defense
HoneyweII
Pacic Scienlic
Arrowhead Producls
It currently ofers supply chain man-
agement, inventory pool programmes,
exchange programmes and surplus
management.
Dennis Zalupski of Kellstrom
Industries was recently interviewed
by MRO Global and was asked: What
have the past 12 months been like for
his company and has he had noticed a
slowdown of late?
He said: The past 12 months have
been strong from a business standpoint
for Kellstrom. With its defence and
commercial parts and logistics busi-
nesses, along with its FAA145 repair
business, Kellstrom nds itself pretty
well diversied. All three segments
have performed well. Kellstrom has
seen some softening in Europe, espe-
cially in the military MRO business,
which it believes is a direct result of
the pressures on EU budgets due to
the decit issues there. Fortunately,
between Kellstroms order backlog of
previously won business as well as a
new contract recently won supporting
the US Air Force, it has been able to
continue to grow the business.
Currently, Kellstrom is able to
fund all of its business needs through
its existing credit lines and cash
generation. The company doesn t
anticipate needing additional fund-
ing in the near future, but is condent
that if it did, it could raise a reason-
able amount of funds relative to its
size and protability.
One area that any exporter needs
to consider is currency uctuations,
but generally Kellstrom nds it has
been helped by the weaker US dollar.
We are a US-headquartered company
that does more than 50% of our busi-
ness outside of the US, and the global
aviation industry is still primarily dol-
lar based, says Zalupski. Because of
this, most of our costs are in US dollars
and when we sell outside of the US, the
weaker dollar allows us to ofer more
competitive products and services
to our customers. On the negative
side, the weaker dollar has driven up
our cost structure and salaries in the
other markets where we have a pres-
ence, primarily Europe, Singapore
and Australia.
The focus at Kellstrom over the past
few years has been to continuously
improve performance in every facet of
day-to-day business. Todays Kellstrom
is a company with a great infrastruc-
ture, whether it is facilities, IT systems,
quality systems or its most important
asset its people. Our goal is to lever-
age these strengths into every segment
of the business we compete in, not nec-
essarily to be the biggest, but to be as
efcient a business as possible and to
deliver high-quality products and ser-
vices to our customers at the lowest
possible cost, says Zalupski.
At this time, we are looking for
better ways to compete every day in a
market that gets tougher all the time.
At the same time, we keep looking for
opportunities to take our strengths
and use them to grow into associated
businesses. For example, we are using
a combination of Kellstroms heritage
in providing surplus engine parts to the
aviation market along with our exper-
tise in new parts distribution to build a
new business for ourselves focusing on
ground-based power. While still small,
we believe this business can grow into a
very protable niche for us soon.
Kellstoms growth today is primarily
focused on three areas. The rst is the
new OEM parts distribution into the
global commercial and defence avia-
tion aftermarkets. Another strong area
of growth has been the defence parts
and logistics business, which provides
support to aviation MRO companies
around the world, such as Northrop
Grumman in the US, Marshall Aero-
sace in lhe UK and Qanlas Defence
Services in Australia, all of whom ser-
vice US military platforms such as the
C130, P3, F16 and B707. Lastly, Kell-
strom continues to see strong growth
in the traditional commercial aviation
surplus parts business, including the
power segment.
We are very proud of a very large
logistics support contract we recently
won supporting Northrop Grumman
and the operational eet of the US Air
Force AWACS airplanes. The contract,
which is for ve years, is currently tran-
sitioning over to Kellstrom and will be
100% under our control by November
1, says Zalupski. We are fortunate to
be in a great industry at an exciting
time. Kellstrom might be a relatively
small player in a huge global industry,
but we like where we are positioned in
the space we concentrate on and we are
bullish on the future of the company.
You can contact Kellstom at:
Kellstrom Industries
3701 Flamingo Road
Miramar, FL 33027
Tel: (954) 538-2000
Fax: (954) 538-6626
AMERICAS
M
id-term growth in
North America will
be slow, with limited
eet growth expected
for North Ameri-
can operators. The narrowbody eet is
expected to grow in the next ve years
while the widebody and regional jet eet
contracts over the same period. Team
SAI estimates a negative 0.3% com-
pound annual growth rate from (CAGR)
2011 to 2016 overall followed by a posi-
tive 1.4% CAGR from 20162021. The
current environment means operators
are unlikely to bring back most parked
aircraft into service, greatly reducing the
number of MD and 757 eets ying.
During 2010 and the rst half of 2011
economic recovery gave airlines con-
dence to make longer term plans, which
in turn led to the supply of hangar and
engine slots tightening. During the sec-
ond half of calendar 2011 the positive
impact of capacity discipline has been
more than ofset by economic woes, caus-
ing a fresh slowing of passenger demand
that might yet lead to additional parked
aircraft in the near term during winter
2011/12.
Aircraft age ranges and the efect on
the North American maintenance market
over the next ve to 10 years will be pro-
lic. In the US especially there are many
MD and 757 aircraft still ying once
these are removed from the market and
the new aircraft begin service the MROs
will lose business.
MRO Global asked Chris Doan, chair
and chief executive of Team SAI, what he
thinks is in store for the US market over
the next ve to 10 years. We denitely
see the phenomenon of new aircraft
taking less maintenance requirement,
he says. We see a very black market for
the Americas for the next 10 years, with
very low growth. And no growth in the
eet; maybe a small loss in the eet size
as consolidation continues in the US air-
AMERICAS
the way airplanes are managed.
Delta TechOps seem to be weather-
ing the storm well. Tim Bolt, marketing
manager of Delta TechOps told MRO
Global: This has been a solid year for our
MRO business. Weve experienced strong
current-year and long-term growth. Ear-
lier this year, we announced two unique
partnerships. In February, Delta TechOps
announced it was entering into an exclu-
sive MRO partnership with GOL. As part
of the ve-year deal, Delta TechOps will
provide engine overhauls for a minimum
of 50% of GOLs CFM56-7 engines and
maintenance services for various parts
and components on GOLs eet of Boe-
ing 737NG aircraft. In addition, Delta
TechOps is providing consulting services
related to maintenance workow plan-
ning, materials and facility optimisation,
and tooling support, and will assist GOL
with its eforts to secure FAA Part 145
Repair Station Certication. In August,
we announced we are forming a main-
tenance joint venture with Aeromxico,
which will help us expand our global
footprint into the Mexican and Latin
American markets. It will enable us to
provide our customers in these regions
with a maintenance facility that is near
by, provide cost savings to Delta, and at
that same time allow us to explore fur-
ther leveraging the high-quality airframe
maintenance work that Aeromxico
provides Delta today. Both of these part-
nerships are great examples of how we are
looking at creative opportunities to grow
our MRO business going forward. We can
no longer rely solely on organic growth.
This partnership with Aeromexico will
help us to grow our global presence in
Latin America and Mexico while also
forging ahead toward our goal to achieve
$1 billion in annual sales.
When asked if the past few calendar
months of 2011 have seen a downturn
in business, Bolt stated that many air-
lines are reducing capacity and parking
aircraft. This ultimately means reduced
maintenance demand and greater com-
petition for the remaining opportunities.
We are monitoring demand very closely,
however; at this time we have not seen
a downturn. Maybe this is the calm
before the storm for Delta Tech Ops; the
picture will become more clear over the
next few months. What is certain is that
Delta TechOps has had a successful 2011,
over the past if we roll the clock back
2030 years many of the major carri-
ers did their own maintenance and also
customised their MRO programmemes
signicantly. Now, when the predomi-
nance is towards outsourcing, the
diferences actually create a problem. The
lessors feel this more acutely because they
deal with multiple carriers and even more
now that airplanes are being moved more
often between carriers. One of the bene-
ts of the dominance in the lessor market
is going to be a drive back to standardisa-
tion. That is a win-win for everybody and
it should even help bring maintenance
costs down and create more efciency in
line industry. When you look at the order
books and what the US carriers have
ordered, there is not a very clear picture
at the moment. Most of the new engine
aftermarket business is being captured
by the original equipment manufacturers
(OEMs) by design, so that is not an easy
play for an independent engine shop. The
newer engines, unlike the airframes, are
going to cost a little more to maintain and
the components are also being captured
by the OEMs.
When asked about aircraft lessors
afect in the US MRO market, Doan says:
One of the things the industry is hav-
ing difculty with today is the fact that
AMERICAS MRO
AMERICAS
airlines is directly leading to an expan-
sion in maintenance facilities across the
US. Following the United/Continental
merger announcement in May 2010, the
two carriers established an integration
management department that quickly
realised there were substantial differ-
ences in terms of their capabilities specic
to maintenance and engineering. Conti-
nental had always maintained a deeper
infrastructure to support line mainte-
nance and airframe overhaul at Houston
and Orlando, whereas United had a very
large maintenance and engineering infra-
structure for component and engine
overhaul. That maintenance infrastruc-
ture is now being strengthened through
40 line support stations for the merged
company. There are now calls for new han-
gar space by 2013 at Uniteds Washington
Dulles hub, and at Continentals Newark-
Liberty International Airport hub. Both
will perform widebody aircraft mainte-
nance checks. The combined company is
also set to make signicant investments
at the San Francisco, Chicago OHare and
Denver facilities. Along with new han-
gars, the airlines information technology
infrastructure for maintenance and engi-
neering will be merged, but with the idea
that the groundwork will be laid for a new,
state-of-the-art system to be procured
from the commercial market. That process
is currently being planned on a two-phase
basis, which will take a few years to com-
plete. At the moment United is using the
Amis (aircraft maintenance information
system) platform while Continental is
using Sceptre. It is the plan of the merged
airline to migrate all maintenance and
engineering information to Sceptre during
phase one, building in some of the Amis
capabilities. The second phase will involve
going to market to upgrade the system for
the future, which will no doubt lead to the
door of Swiss Aviation Software and its
Amos system or indeed Trax.
The other more obvious fallout from
the merger is that the maintenance and
engineering divisions have been working
at out on re-spraying aircraft and ret-
ting the interiors to match the new livery
and layout for a common image. In 2012,
the Continental eet will be retrotted
with an Economy Plus section, while
Uniteds 14 Boeing 767-300s will undergo
interior modications for international
ights. Those interiors will be similar to
maintenance mainly in-house while the
AirTran fleet has outsourced mainte-
nance. In the future, AirTran plans to
perform more comprehensive, interme-
diate type checks on the 717s at AirTrans
Atlanta facility, which now handles light,
routine overnight (RON) maintenance
with an aim to Atlanta becoming a cen-
tre of excellence for the 717, to include
engineering and planning functions to
support its maintenance requirements.
The merged airlines will continue to use
AirTrans Orlando hangar for RON with
a view to extending this site to be a 737
C-check station. Southwest is moving
all maintenance-related IT into a single
enterprise networking system and has
awarded TRAX the contract to merge the
data sets of the two airlines, due mainly to
the fact TRAX is currently the data pro-
vider for AirTran. Under a three-phase
programme, Southwest will move all
maintenance-related data from Wizard
to TRAX starting in the rst quarter of
2012. The rst phase will cover the 737-
800, while the second phase, scheduled
for the third quarter of 2012, will cover
the 717 and the 737-700. The 737 Classics
will be covered under the TRAX system
by the third quarter of 2013.
United/Continental is a different
matter. The merger of these two huge
bringing into play a signicant foothold
in Central and South America that will in
the event of a downturn pay dividends as
Delta will be able to be at the very fore-
front of competitiveness.
The US airline merger rounds over the
past two years have not had a huge impact
on the MRO sector as yet as there have
been few route cuts. The most dramatic
of the mergers in terms of eet diferences
has to be the Southwest-AirTran merger.
Southwest, running an all-737 eet, has
to absorb AirTrans 88 717-200s. South-
west therefore has to acquire the tooling,
and expand technician training, to pro-
vide the required level of support for the
717 eet throughout the entire combined
airline network. This means developing
a broader intermediate level program-
meme for 717 maintenance, which will
include more mechanical type work such
as elective modications and component
changes dictated by time requirements.
Southwests total maintenance network
will expand from 16 to 23 locations,
which includes seven AirTran facilities
where overnight checks are performed.
Southwests 16 locations include four
that perform major inspections. A big
diference between the two airlines main-
tenance organisations concerns heavy
airframe inspections. Southwest handles
CHRIS DOAN, TEAM SAI
those on Continentals international eet.
The market is unpredictable at this
time and preparation for 2012 is difcult
for a third party MRO, with many not
wishing to comment on how they plan to
confront what 2012 might have to ofer.
Delta TechOps, however, is condent it
has the global reach to weather any mar-
ket contraction. Our plan is to continue
to expand on our partnerships in China,
Latin America and South America, and
continue to look for creative ways to
grow our MRO to achieve long-term
sales goals, says Bolt. We expect capac-
ity cuts will ultimately lead to increased
market pressure. We are well positioned
to provide maintenance solutions to our
airline customers that are looking for
maintenance CASM optimisation and
a more holistic maintenance approach.
For example, through our Complete
Fleet Services (CFS) oferings, we are
able to provide truly nose-to-tail support
for our customers, leveraging our econo-
mies of scale and operational excellence.
Complete Fleet Services helps clients to
consolidate maintenance as well as plan
for future maintenance expenses and
reduce maintenance CASM spend.
Of course, as airlines come under
increasing pressure, they will try to delay
maintenance checks by parking aircraft
due for D-checks and replacing them
with new equipment. Delta is seeing evi-
dence of this, and when asked about the
phenomenon Bolt stated: This has been
going on over the past few years. Many
assets are at a point where the mainte-
nance has to be completed or the aircraft
have to be parked. This is both a chal-
lenge and opportunity. So, bearing this
in mind, are some airlines parking air-
craft that are due a D-check and simply
using new deliveries to cover for them?
Bolt says: Yes, as an airline MRO we are
very familiar with this strategy. Delta, for
example, recently announced it will be
acquiring Boeing 737-900s to replace our
older, narrowbody eet (DC9s).
The options for airlines in the US are
numerous they can simply park aircraft
before a D-check and lease an aircraft or
have one delivered new. This is a worrying
trend for the MROs, and one that should
be watched in 2012. There is likely to be
a marked increase in this type of action
by airlines as they move to cut costs on
maintenance and fuel.
AMERICAS
0
2,000
4,000
6,000
8,000
10,000
12,000
2011 2016 2021
North America
Latin America and Caribbean
Total
7,130
7,028
1,378
8,508
1,562
8,590
7,529
2,003
9,532
AMERICAS FLEET FORECASTS
0
5
10
15
20
25
2011 2016 2021
North America
Latin America and Caribbean
Total
$15.0
$2.1
$17.2
$15.5
$2.7
$18.2
$16.7
$3.7
$20.3
AMERICAS MRO FORECASTS (US$MILLION)
COMPOUND ANNUAL GROWTH RATES
Fleet NA LA&C Total
2011 0.3% 2.5% 0.2%
2016 1.4% 5.1% 2.1%
2021 0.5% 3.8% 1.1%
Total MRO NA LA&C Total
2011 0.6% 5.0% 1.2%
2016 1.5% 6.3% 2.3%
2021 1.0% 5.7% 1.7%
AAR is a leading provider of products,
services and innovative solutions for
commercial passenger airlines, cargo car-
riers, tier-two suppliers and aircraft and
engine OEMs. AAR leverages its diverse
MRO, engineering, logistics and fabri-
cation capabilities to ofer customised,
integrated solutions that lower costs,
increase asset availability and ensure
high levels of quality, safety and service.
Services are performed by highly expe-
rienced, customer-focused engineers,
technicians and experts that leverage
world-class training, technologies and
techniques. AAR products are designed
to meet customers exacting specica-
tions and ofer lasting performance.
MAINTENANCE, REPAIR AND OVERHAUL
AAR provides aircraft overhaul and modi-
cations, landing gear services, wheel and
brake services and component repair for
the worlds major, regional and cargo
airlines, as well as for aircraft leasing com-
panies and government/defence agencies.
With facilities located throughout the US,
AAR is the second largest independent
MRO provider in North America and
ranks among the top 10 in the world.
AAR ofers a full array of component
repair, overhaul, exchange and replace-
ment options tailored to meet individual
customer requirements and designed
to improve efciency and reduce over-
all costs. AARs expert technicians test,
diagnose, repair, overhaul and perform
scheduled maintenance on avionics,
instruments, pneumatics, hydraulics,
electronics, fuel controls and electrical
accessories.
AAR ofers high-value engineering
support services to supplement custom-
ers internal capabilities. Experienced
Designated Engineering Representatives
(DERs) and Designated Airworthi-
ness Representatives (DARs) plan and
execute a wide range of projects, from
engineering new solutions to designing
and executing modications and attain-
ing airworthiness approvals.
LOGISTICS AND PARTS SUPPLY
AAR provides high-value parts-related
services that include supply chain and
inventory management, on-site ware-
house management, consignment and
lease-back programmes, repair manage-
ment, repairs and exchanges, as well as
PMA parts development, parts provi-
sioning and parts trading. Additionally,
AAR maintains one of the industrys
largest and most complete inventories
of airframe parts, stocking new and ser-
viceable components for virtually every
commercial aircraft type.
AAR is the leading independent
supplier of engine components and
inventory management services, supply-
ing parts for virtually every commercial
power plant including General Electric,
IAE, Pratt & Whitney and Rolls-Royce.
AAR provides aircraft engines for sale or
lease to lower customers operating costs
and keep aircraft in service during engine
maintenance cycles.
AAR sells and leases aircraft and has
an experienced team of professionals
that provide start-to-finish guidance
in aircraft sourcing, purchasing and
remarketing. AAR also ofers techni-
cal advisory services and innovative
nancing solutions to assist customers
with adjusting their eet composition to
meet changing economic models, route
systems and passenger preferences.
AEROSTRUCTURES & MANUFACTURING
SERVICES
AAR designs and manufactures cargo
systems used on commercial cargo and
military transport aircraft around the
world. AAR holds 95 Supplemental Type
Certicates (STCs) with the FAA for the
A300, A310, A330, B747, B767 and MD-11
commercial aircraft with systems for the
B737, B757 and A320 in development.
AAR is a single-source provider of
composites engineering and manufactur-
ing services to defence, commercial and
business aircraft markets. AAR designs
and fabricates advanced interior and
exterior composite structures as well as
specialised molded components.
AAR performs precision machining,
fabrication, welding and engineering for
a wide range of high-end sub-systems
and components for aircraft and indus-
trial applications. AAR manufactures
hundreds of structural components for
business jets including aircraft wing t-
tings, crank assemblies, upper rails and
engine mounts.
AMERICAS
AAR
Delta TechOps has a unique competi-
tive advantage as an airline MRO to
provide something most other MROs
cant operational improvement con-
sultation based upon Deltas 80-plus
years experience as an operator. Delta
TechOps currently operates and main-
tains a eet of nearly 800 airplanes for
Delta Air Lines and supports the air-
craft and engines of over 150 customers
worldwide. This has allowed the MRO
to develop unparalleled operational
and process knowledge and intellectual
property on a real-world basis.
It takes unsurpassed technical know-
how, a global network of experts and an
unwavering commitment to excellence to
maintain the worlds largest airline. And
thats just what Delta TechOps delivers
to airline operators all over the world.
With more than 8,500 technical oper-
ations employees system-wide, Delta
TechOps provides full-service mainte-
nance to the more than 750 aircraft that
make up the Delta Air Lines eet. Backed
by the prociency and attention to detail
found in Six Sigma and Lean processes,
Delta TechOps delivers industry-lead-
ing operational efciency, quality and
responsiveness to more than 150 other
operators around the globe.
Delta TechOps Complete Fleet
Services include engine/APU, compo-
nent, airframe and line maintenance,
full Airbus services, and extended engine
capabilities that include the CFM56-5
and CF34-8C. Delta TechOps also pro-
vides outside operators with technical
training, engineering support and inven-
tory management.
Delta TechOps instructors keep their
expertise on the cutting edge by pursu-
ing continued education, training and
advanced computer knowledge. The aver-
age length of service for a Delta TechOps
aviation maintenance technician (AMT)
with an Airframe and Power Plant (A&P)
certicate is 14 years.
To ensure prompt service and ex-
ibility, including technical dispatch
reliability greater than 97% eet-wide,
Delta TechOps operates maintenance
facilities in multiple locations. Each of
these facilities ofers light maintenance
for both narrowbody and widebody air-
craft. Should emergency maintenance be
needed Delta TechOps quick-response
Disabled Aircraft Recovery Team (Dart)
can be dispatched from the Atlanta
Technical Operations Centre, the 2.7 mil-
lion square foot (about 250,830 square
meters or the size of 47 football elds)
base of operation.
CERTIFIED PERFORMANCE
Delta TechOps is a certied repair station
in the US (FAA) and the European Union
(EASA), as well as in several countries in
South America and Asia.
USA: IAA - 121 Cerlicaled Air
Carrier No. DALA026A
USA: IAA - 121 Cerlied Reair
Station No. DALR026A
USA: IAA - 14 Cerlied Reair
Station No. DALR026A
EU: EASA - 14 Cerlied Reair
Station No. EASA.145.4380
ISO uu1: DeIla TechOs
Component Maintenance,
No. CERT-0025376
SERVICES
Delta TechOps is the largest airline MRO
in North America and the third largest
worldwide. Delta TechOps serves more
than 150 aviation and airline customers
from around the world, specialising in
high-skill work such as engines, compo-
nents, airframe and line maintenance.
Additional Delta TechOps services
include compliance and quality assur-
ance, engineering, NDT, on-wing, AOG,
test cell, engine leasing, MBK, training,
inventory and exchange services.
AMERICAS
Delta TechOps
Delta TechOps is the largest airline MRO
in North America and the third largest
worldwide. Delta TechOps serves more
than 150 aviation and airline customers
from around the world, specialising in
high-skill work such as engines, compo-
nents, airframe and line maintenance.
Additional Delta TechOps services
include compliance and quality assur-
ance, engineering, NDT, on-wing, AOG,
test cell, engine leasing, MBK, training,
inventory and exchange services.
AIRFRAMES SERVICED
Airbus: A318 A319, A320, A321, A330
Boeing: B737 (Classic, NG), B747, B757,
B767, B777, MD-11, MD-80,
MD-90
ENGINES SERVICED
Turbofan: CF34-3A/B, CF34-8C, CF6-80A/
A2, CF6-80C2, CFM56-3, CFM56-5 CFM56-
7, JT8D-219, PW2000, PW4000-94
APUS SERVICED
GTCP 131-9B, GTCP 331-200
CERTIFYING AGENCIES
FAA, EASA, Argentina, Bermuda, Brazil,
Canada, China , Chile, Indonesia, Korea,
Trinidad & Tobago
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EVA Airs Engineering and Main-
tenance Division was spun of as an
independent corporation in Septem-
ber 1998 to become Evergreen Aviation
Technologies Corporation (EGAT)
with General Electric Company (GE)
as an equity partner. EGAT was tasked
to uphold aircraft maintenance qual-
ity and promote technical ight safety
while creating adequate business value.
EGAT has since evolved into a
specialty, high business-value MRO,
undertaking mega-scale modications
such as the Dreamlifter in partnership
with Boeing, as well as engaging in
complete Section 41 skin replacements,
Horizontal Stabiliser skin replace-
ments, and executing AOG recovery
repairs on any portion of the airframe
structure.
EGATs robust management sys-
tems and processes the Oracle-based
MRO System for engine overhauls,
corporate-wide Six Sigma deploy-
ment, human resource management,
job qualication, balanced scorecard,
product safety, knowledge manage-
ment and e-commerce.
Commercial airlines, aircraft leasing
companies, and leading government
agencies entrust heavy maintenance
work to Evergreen Maintenance
Centre (EMC). Located in Marana,
Arizona, the EMC is one of the largest
full-service commercial maintenance,
repair and overhaul (MRO) facilities
in the US.
Consisting of three maintenance
hangars and a large maintenance ight
line, the EMC also operates the Pinal
Air Park and its 6,850-foot runway
rated for Boeing 747-400 through 747-8
aircraft. With 20 million square feet of
ramp and storage area able to accom-
modate up to 400 aircraft, the EMC is
the largest commercial aircraft storage
facility with heavy maintenance ser-
vices in the world.
AIRCRAFT MAINTENANCE:
A318, A319, A320, A321
A, B, C, D checks
CPCP and ISIP
SSID inseclions
ADs and SBs
Inlerior eeconguralion
Comosile reair
Aging aircrafl inseclion
Avionic modicalions
Aircrafl ainling
SlrucluraI mods
FLIGHT LINE:
Providing customer support for all
types of commercial aircraft:
Engine changes
Bridging changes
A and B checks
IIighl conlroI rigging
Aircrafl modicalions
AOG DROP-IN AND TDY SERVICES
TEAM
STORAGE:
24-hour roving securily
Aclive and assive video and micro-
wave perimeter surveillance
Aclive mainlenance rogrammes
for stored aircraft and engines
Dry, non-corrosive environmenl]
climate: aircraft are held at a facil-
ity in the dry southwest, the ideal
climate for maintenance and stor-
age. They are sheltered from natural
threats found in the rest of the US,
such as earthquakes, hurricanes and
tornado activity.
COMPONENTS:
Aclualor cyIinders and Iinks
Avionic equimenl]accessories
Gear boxes
WheeIs and brakes
Engine cowIings
IIighl conlroIs
Slruclures
Comosiles
HydrauIics
Pneumalics
Engine accessories
PAINTING
ENGINE SERVICES
All models boroscope inspection,
engine removal and reinstallation;LRU
replacements.
AMERICAS
Evergreen
Aveos has been carrying out heavy main-
tenance for more than seven decades. The
company, now acting as an independent,
is fast emerging as one of the leading
MROs in the Americas. With the addi-
tion of Aeroman to the stable, the rm is
able to cover all the Americas.
In addition to airframe, engine, and
component solutions, Aveos ofers value-
added maintenance solutions such as
aircraft maintenance training and supply
chain management as part of an inte-
grated ofering, in turn ensuring efcient
demand, process and vendor manage-
ment. Aveos eet management experts
allow customers to focus on their core
competencies by providing tailored ser-
vices that optimise carriers maintenance
programmes and operational reliability.
VALUE-ADDED SERVICES:
Inventory management:
Planning levels and allotments
Forecasting consumption and service
levels
Inventory ownership and nancing
Procurement:
Sourcing, contracting and purchasing
Supplier management
Warranty management
Logistics:
Warehousing
Transportation and customs manage-
ment
Airline operational support:
24-hour emergency support for AOG
Expediting support
MAINLINE SERVICES:
Supply chain management (inventory
management, procurement, logistics,
business support and airline operational
support)
Fleet management
Engineering services
Regulatory compliance and audits
Technical publications services
Technical records management
Aircraft maintenance training
Training solutions
Aveos/
Aeroman
TIMCO Aviation Services is one of the
worlds largest independent aircraft
MRO providers. TIMCO provides air-
frame MRO and modication services
from three multi-hangar locations in the
US: Greensboro, North Carolina, Macon,
Georgia and Lake City, Florida.
TIMCOs services cover light and
heavy scheduled maintenance checks,
exterior and interior modifications
installations, upgrades and conversions
for commercial, government and private
aircraft. The airframe MRO operation
employs over 1,000 mechanics many of
whom are certicated and uses nearly
1.5 million square feet of hangar and
ofce space at its three locations.
TIMCO LineCare ofers a range of line
maintenance and non-technical support
services under FAA Operations Speci-
cation D107 certication at a growing
number of airports.
TIMCO LineCare performs a range of
services across its growing network.
TIMCOs Engine Centre provides
full engine disassembly (tear down),
inspection, repair, parts overhaul and
reassembly (build up) services. The
engine team at the Oscoda, Michigan
facility provides complete non-destruc-
tive testing (NDT), engine AD
compliance, fuel nozzle overhaul, bleed
valve overhaul, gearbox overhaul and
HPC disk overhaul. In addition, AOG
teams can be sent on eld service calls
to perform engine on-wing support and
recovery services.
The TIMCO Engine Center is an FAA
certied repair station (T48R384Y) with
focus on complete support for the JT8D
series of engines, as well as disassem-
bly and parts inspection services for the
CFM56-3.
AMERICAS
www.airlineeconomics.co Airline Economics: MRO Global 61
TIMCO
PEMCO
Pemco specialises in airframe heavy
maintenance, as well as interior recon-
guration, avionic and IFE upgrades,
and structural and cargo modications.
A leading aircraft MRO services pro-
vider for a wide variety of aircraft types,
Pemco has maintenance bases in Tampa,
Florida, Dothan, Alabama and Cincin-
nati, Ohio, as well as partner operations
in Southeast Asia. Pemco is also one of
the worlds leading aircraft cargo con-
version providers with over 300 cargo
conversions across 26 models of cargo
aircraft. Its new 757 Combi and Freighter
programmes are the latest additions to
Pemcos cargo platform, where Pemco
presently has four 757 cargo modica-
tions in work, with more projects in the
making.
PEMCO FACILITIES
Dothan, Alabama
Aircraft supported include: 737NG, 757,
767, A320, A310 and A330, as well as vet-
eran models like the 737 Classics, DC-9,
MD-80, B727, DC-10, MD-11, and A300.
Going forward, Dothan operations will be
more focused on military xed and rotor
wing aircraft.
Tampa, Florida
The modern ve-bay facility, located on-
line for most air carriers at the Tampa
International Airport, employs 700 people
and can easily accommodate 12 narrow-
body or six widebody aircraft lines in the
hangars, plus an equivalent number on
the ramp. The facility ofers a full range of
onsite backshops to support metal fabri-
cation, seats, galleys, lavs, aerostructures
including standard composite repairs,
basic avionics, and limited paint.
Cincinnati, Ohio
To continue serving ExelTechs existing
clientele and improve availability for
Pemcos newest location, in Cincinnati,
Ohio, PemCo offers MRO service for
regional jets.
At the three US sites, PEMCO ofers the
following services:
DeveIomenl and manufaclure of
aircraft cargo systems
Cargo modicalions
Aircrafl arls and suorl
ScheduIed and unscheduIed mainle-
nance
Engineering services
Reairs
Precision comonenls
Avionics
Inlerior modicalions
AIRCRAFT TYPES SERVICED INCLUDE:
ATR 42],2 Series
Beech 1uuD
Boeing ,3,, ,4,, ,,, ,6,, ,,, Series
Airbus A32u ] A31
Bombardier Dash 8 Series 1uu, 2uu &
300
Bombardier CRJ 2uu ] ,uu
Embraer ERJ 13]14 & E-Jel
170/190 Series
Iokker I 1uu
McDonneII DougIas MD-8u]u
Series
Saab 34u
AMERICAS
MRO Directory: Americas
HEAVY MAINTENANCE DIRECTORY - AMERICAS
COMPANY CONTACT DETAILS AIRCRAFT CHECKS FACILITIES SPEC. CAPABILITIES
AAR Aircraft Services
Hot Springs
Chris Jessup
VP commercial MRO sales & mktg
PO Box 52-2602
Miami, FL 33152
5300 NW 36th Street - Building 850
Miami, FL 33122
Tel: 786-265-4288
Fax: 305-871-5388
CRJ100, 200, 700
Dash 6
EMB120 series
BE1900 series
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
2 hangars
55,726sq ft
Welding, NDT, complete backshop,
machine shop, airframe comp.
repair, composites, int. refurbs,
Engineering services, Aircraft mods,
Interior refurbs
Indianapolis
Chris Jessup
PO Box 52-2602
Miami, FL 33152
Miami, FL 33122
Tel: 786-265-4288
Fax: 305-871-5388
757/767
737 Classic & NG
Airbus 319/320/321
727
MD-80
DC9-10/50
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
10 bays
1.2 million sq ft
repair,
composites, int. refurbs, Engineering
services, Aircraft mods, Exterior/
interior refurbs, Paint
Miami
Chris Jessup
PO Box 52-2602
Miami, FL 33152
Miami, FL 33122
Tel: 786-265-4288
Fax: 305-871-5388
717
727
737 Classic & NG
747
757
767
MD-90
MD-80 series
DC-8
DC-9
A300
A320 Family
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
A & B Checks Only
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG4
All MPD/MSG2/MSG5
All MPD/MSG2/MSG6
All MPD/MSG2/MSG7
3 hangars - 9 A/C slots
226,000sq ft
repair, composites, int. refurbs,
Engineering services, Aircraft mods,
Exterior/interior refurbs, Paint
Oklahoma
Rick Townsend
VP sales, mktg & cust. Support
6611 S. Meridien
Oklahoma City
OK 73159 USA
Tel: 405 218 3033
Fax: 405 218 3614
737NG
707-300
727 series
737-200/-300/-400/-500
CRJ200/700/900
DC-9 series
Dornier 328P/J
MD-90
MD-80 series
SF340 A/B/B+
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
7 hangars
300,000sq ft
FBO services, Dowty/Hartzell/
McCauley, prop repair capabil-
ity, brakes, airframe comp. rep,
composites, welding/NDT, Exterior/
interior refurbs, Aircraft & avionics,
Aircraft mods
Aeroframe Services
Headquarters located in:
Lake Charles, LA
Airepairs
Subsidiary located in:
EOs, Memphis, TN
Bruce Campbell
Director of sales & marketing
1945 Merganser Street
Chennault Airpark (KCWF)
Lake Charles, LA 70615
Tel: 337 312 2672
Fax: 337 312 2699
E-mail: bcampbell@aeroframe.com
www.aeroframe.com
www.airepairs.com
A300
A310
A318/A319/A320/A321
A330
A340
DC-10/KC-10
MD-10/MD-11
Airepairs capabilites
include all of the above
plus:
Lear 35/36, CRJ-100,
757, 767, 777, DC-9
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
5 hangars able to induct a/c
as large as A340/747
2 bays fully equip for strip/paint
12 w/b bays will accommodate
up to 16 n/b aircraft with a total
area of 650,000sq ft
100 acres of ramp space.
120,000sq ft of shop, and
support 30,000sq ft of climate-
controlled 10,700 ft-long
runway
Letter checks, hvy maint. repairs,
overhauls,
strip & paint, sheet metal, preserva-
tion/storage,
A/C parking, teardown,
mods/completions, Aeroframe
electrical, hydraulics, CPCP,
SSI, STCs, SBs, ADs,
EAs, ageing , engineering,
L/G replacement, struct. 717,
727, 737, 747, warehouse
Facilities repairs, IFE,
avionics, feld support, backshops,
CRJ-200 composites, machining,
manufacturing, welding, NDT,
borescope, calibration, batteries,
frebottles, FAA/EASA 145, ISO9100
AA-MRO
(American Airlines)
John Marshall
Director, maint. mktg
3900 N Mingo Rd
Kansas City, MD 284
Tulsa
OK 74116 USA
Tel: 816-891-4049
Cell: 816-729-1369
Fax: 816-891-1817
email: john.marshall@aa.com
www.mro-aa.com
A300
737
757
767
777
MD-80
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
8 w/b, 13 n/b Tulsa
6 w/b Alliance Fort Worth
2 - 4 w/b, 10 n/b
Aircraft mods, Landing gear, APUs,
Engine repairs & overhauls, Field
& line maintenance, Landing gear,
Avionics, APUs, Wheels & brakes,
Component repair & overhaul, Floor
boards, Composites, Calibration lab
Leasing - engines
Associated Air Center Gene Carter
Director of maintenance sales
8321 Lemmon Ave
Dallas TX 75209
Tel: 972 559 7040
Fax: 214 351 2375
707
727
737
747
757
767
DC-8
DC-9
MD-87
A319
A320
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
3 hangars for w/b & n/b aircraft Interior modifcations, Avionics
upgrades, New avionics systems,
In-fight entertainment, STCs, CPCP,
Structural repairs, NDT
AMERICAS
Aveos Gaetan Roberge
Director, sales
PO Box 6000
Station Airport
Dorval, Quebec
H4Y 1J9 Canada
Tel: 514/856-6754
Cell: 514/928-7501
E-mail: gaetan.roberge@aveos.com
A310
A319/320/321
A330/A340
767
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
Montreal - 4 lines
Toronto - 1 line (paint)
Winnipeg - 5 lines
Vancouver - 4 lines
El Salvador - 4 lines
Modifcations & cabin, Conversions,
avionics, Upgrades, landing gear,
Composite repairs, CPCP, Hushkit-
ting, Interiors, Inventory manage-
ment, NDT. Strip/paint, SATCOM/IFE
ATS AviationServices
Technical Services
3100 112th St SW
Everett
WA 98204 USA
Tel: 425 423 3604
Fax: 425 423 3508
737/BBJ
747
757
767
777
A320/Airbus CJ
DC-9
DC-10
MD-80
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
All Phase Checks
8 widebody bays
1,000,000sq ft of hangar,
backshop & ofce space
Paint/Strip (n/b & w/b), CPCP,
Avionics upgrades, VIP Mods, Post
Delivery Mods, Engineering Ser-
vices, Technical Publications, Cargo
Conversions, Component Repair &
Overhaul, Composites Winglets STCs
Cascade Aerospace Ramsey Sarkis
Director planning
1337 Townline Rd
Abbotsford
British Columbia
V2T 6E1 Canada
Tel: 604 850 7372
Fax: 604 557 2655
737
DHC-8
C-130
A,B,C,D
A,B,C,D
All
n/b & commuter spaces Major modifcations, Avionics
upgrades, IFE, STCs & Engineering,
Structural repairs, Component
overhaul, Cargo conversions
Certifed Aviation Services Jim Anderson
Director business development
Installation & Modifcation Group
105 S. Leland Norton Way,
Ste. 1 Bldg. S795
San Bernardino, CA 92408
Tel: 909-382-3487
Fax: 09-382-2409
www.certifedaviation.com
737
767
A320
C-130
DC-8
DC-9
L-1011
MD-11
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
54,0002 hangar
10,000ft runway
ILS approach
No curfews
Full paint facility
Custom modifcations, Seating
reconfguration, Passenger/cargo
conversion, Engine and landing gear
conv. Conversion of civilian aircraft
to, Optionally piloted vehicles
(OPV), In-fight entertainment (IFE),
installation.
Commercial Jet David M. Sandri
President
Miami International Airport
Hangars 896
PO Box 668500
Miami, FL 33166
Tel: 305 341 5150
Fax: 305 871 0076
E-mail: sales@commercialjet.com
707
727
737
757
MD-80
DC-8
DC-9
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
2 hangars
68,000sq ft
Interiors, Strip/paint, CPCP SSID,
Composites, Modifcations, Avionics
upgrades, 727/737 cargo conver-
sions, Sheet metal, NDT, Graphic
design, VIP confg. TAWS/HF/GPS/
TCAS, ER fuel tanks
Coopesa Rodolfo Solis
Director, sales & marketing
300 Mts Oeste
Aeropuerto Intl Juan Santamaria
San Jose
Costa Rica
Tel: (+506) 2437 2830 / 2828
Fax: (+506) 2437 2829 / 437 28 01
E-mail: marketing@coopesa.co.cr
A320
727
737CL
737NG
757
DC-9
MD-80
C,D
C,D,MSG-3
C,D,MSG-3
C,MSG-3
C,D
C,D,MSG-3
C,D,MSG-3
6 n/b
86,000sq ft
Ageing mods/struct. Rep, CPCP/
SSID, 727 cargo conversions, CPCP,
Flight controls/ composites, GPS,
TAWS, DFDR, AFIRS, Hushkitting,
Interiors refurbish & paint, NDT,
strip/paint, TCAS, w/shear,ELTt
Delta TechOps Jack Turnbill
VP technical sales and marketing
Dept 460, 1775 Aviation Boulevard
Atlanta
GA 30354 USA
Tel: 404 714 4949
Fax: 404 714 3281
E-mail: jack.turnbill@delta.com
737
757
767
777
MD-80/-90/-11
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
16 bays - Atlanta
1 bay - Salt Lake City
1 bay - Cincinnati
1 bay - Boston
Full support repair facility, Comp.
& inventory support, Engine/APU
repair & overhaul, Eng. condition
monitoring, Strip/paint, Tech. train-
ing & eng supp, Disabled aircraft
recovery, Structural repairs
Empire Aero Center David ONeill or Rob Tilson
Director sales and marketing
394 Hangar Road
Rome
NY 13441
Tel: 604 512 4550 or 514 755 7676
Fax: 315 838 1515
707
727
737
747
757
DC-8
A319, A320, A321, A330
MD-80
DC-10
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
w/b and n/b
12 bays
500,000sq ft
hangar area
225,000sq ft
ramp space
Interiors, Seat Overhaul, Ageing a/c
mods, CPCP, Avionics & upgrades,
Painting, Winglet Modifcation, IFE
Modifcation
Evergreen Maintenance
Center
Steve Cofaro
VP sales & marketing
Pinal Air Park,
MARANA, AZ 85653-9501 USA
Tel: 520 682 4181 Ext 5061
Fax: 520 616 5065
E-mail: scofaro@evergreenmc.com
727
737-200/-300/-400/-500
737NG
757/767
747-Series
777
DC-9/MD-80,MD-90
DC-10/MD-11
A320
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
All MPD/MSG2/MSG3
5 Bays-110,000sq ft CPCP & SSID, component, overhaul,
NDT, strip/paint, training, storage/
parking, teardowns, letter checks,
avionics upgrades, structure repairs,
composite repairs, interiors, struc-
tural repairs, VIP Corp Mx Services
AMERICAS
ExelTech Aerospace Donald Kamenz
VP marketing & sales
1200 Pitfeld Rd
St.Laurent, Quebec
H4S 1A0, Canada
Tel: 514 631 8999 x 5114
Fax: 514 631 7437
dkamenz@exeltech-aerospace.com
www.exeltech-aerospace.com
ATR 42
ATR 72
CRJ 100/200
CRJ 700/900
DHC-8-100/200
DHC-8-300
DHC-8-400
SF340 A/B/B+
EMB 145 series
737 series
E170/175
E190/195
CL-215
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
3 hangars - 16 line of HVY Maint
& one 40,000sq ft line maint
facility
290,000sq ft hvy maint
(26,955sq m)
240,000 sq ft Exterior
storage/parking
Avionics, composites, CPCP, feld
& line maintenance, Interiors
refurbishment, Inventory manage-
ment, Land gear remov. & replace,
Modifcations, Sheet metal, STCs,
Component painting, Structural
repairs, NDT
First Air Maintenance
Services
Rashwan Domloge
VP maintenance and engineering
20 Cope Drive
Kanata, Ontario
K2M 2V8
Canada
Tel: 613 254 6282
Fax: 613 254 6398
727
737
HS748
C-130/L-100
ATR 42-300
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
17 commuter; 8 n/b
2 hangars
total area: 18,000m2
Interiors, Modifcations, STCs, Avion-
ics, CPCP
Hamilton Aerospace
Technologies
Gordon Hamilton
CEO
6901 S Park Avenue
PO Box 11746
Tucson
AZ 85734-1746 USA
Tel: 520 294 3481
Fax: 520 741 1430
727
737
DC-9
MD-80
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
3 n/b
4,800m2
new east coast ofce
Cargo conversions, Strip/paint/
refnish, Interiors, CPCP, SSI, Avionics
upgrades, Hushkitting
Mexicana MRO
Services
Hector Cobo
Third party maintenance director
Av 602, #161 A
Col. San Juan de Aragon
Del. Venustiano Carranza
Mexico City, 15620
Mexico
Tel: (+5255) 57 86 65 34
Fax: (+5255) 57 62 15 42
Email: hector.cobo@mexicana.com.mx
A318
A319
A320
A321
A330
727
737
757
767
F100
DC-9
MD-80
Bombardier CRJ200
A,C,D,E
A,C,D,E
A,C,D,E
A,C,D,E
A,B,C,D
A,B,C,D
A,C
A,C,D,E
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
Mexico City Maintenance Base
with: Heavy maintenance
Main hangar with 97,951ft2 for
1 w/b & 3 n/b or 4 n/b.
Painting hangar with 45,208ft2.
Exterior platform with
1,568,237ft2 for more than
40 A/C.
Apare parts with 22,605ft2
werehouse.
Guadalajara City Maintenance
Base with: Main hangar with
53,206ft2 for two n/b Exterior
platform with 1,002,647.5ft2
Modifcations, AD, SBs, SLs
Aging, SSI & CPCP, Major comp. re-
placement, NDT, Line maintenance
in more than 40 locations, Painting,
Avionics and electrical, ATEC 5000 &
6000, Communications Sheet metal
Instruments, Hydraulic, fuel, oil,
pneumatic & accesories shops, Com-
posite repairs Interiors Emergency
equipment, Cargo conversion,
Hushkitting Engineering services,
A/C Parking Training
Panama Aerospace
Engineering (PAE)
Stephen Lim
SVP marketing, Americas
Building 241, Bryant Avenue
Howard, Panama
Tel : 210 854 9169
Fax : 210 293 2638
E-mail: stephenlim@stengg.com
737
A320
E190
A,B,C,D
A,B,C,D
A,B,C,D
Four hangars, 12 n/b aircraft
hangared simultaneously,
260,000sq ft
Letter checks, CPCP Eos/SBs, modi-
fcation Avionics, mod & upgrades
NDT, Fabrication Composite, Shop
Strip/paint, IFE/Interiors Completion
PEMCO
World Air Services
Kevin Casey
President
Dothan, AL
100 PEMCO Drive
Dothan
AL 36303
USA
Tel: 334 983 7000
Fax: 334 983 7022
E-mail: MarketingDept@pemcoair.com
737
747
757
767
DC-8
DC-9
MD-80
DC-10
MD-11
A300
A320
A,B,C,D
A,B
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
7 w/b & 10 n/b
543,000m2
2-3 w/b or 5-6 n/b
150,000sq ft Tampa, FL
737-300/400 Freighter, Quick
Change & Combi, Conversions, CPCP,
Aging Aircraft, Paint/Strip, Avionics
Upgrades, Interior Reconfguration,
Seats/Gallys/Lavs, NDT, Composite
Repair Engineering
Premier Aviation
Overhaul Center
Dennis De Gonzague/David Hinchclife
Director of sales
3750 Airport Road
Trois-Rivieres, Quebec
Canada, G9A 5E1
Tel: 819 377 4500
Fax: 819 377 7717
E-mail: info@premieraviation.ca
www.premieraviation.ca
727
737
757
A310
A320, A319, A321
CL-215
CRJ 100/200
ERJ 170/190
DHC-8 100/300
Lockheed C-130
MD80, MD90
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
130,0002ft facility
9,000ft runway
No Curfew
Full paint
Storage & Parking
Avionics, Composites, CPCP,
Structural repairs, Int. refurbs, Land.
gear removal/replace, Modifcations,
Sheet metal, Welding, STCs, Strip
and paint, aircraft and components,
On site aircraft/records, inspection
San Antonio
Aerospace (SAA)
(a subsidiary of
Singapore
Technologies
Aerospace)
Stephen Lim
9800, John Saunders Road
San Antonio
Texas 78216
USA
Tel : 210 854 9169
Fax : 210 293 2638
727
737
747
757
767
777
A300, A310, A320
DC-9, DC-10
MD-11, MD-80
ERJ-135/145
CRJ-200/700
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C
A,B,C
6 hangars
560,000sq ft
6 w/b and 7 n/b aircraft
hangared simultaneously
Letter checks, CPCP, EOs/SBs modi-
fcation, Avionics mod & upgrades,
NDT, Fabrication, Composite shop,
Strip/paint, Interior refurbishment,
IFE/Interiors Completion, VIP/Corp.
Jets/Head of State
AMERICAS
Seman-Peru Carlos Rodriguez
General manager
Avenida Coronel
EP Edmundo Aguilar
Pastor S/N
Lima 4
Peru
Tel: (+511) 477 5570
Fax: (+511) 4 770877
DC-8
DC-10
L-382
727
737
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
4 hangars
smallest has 1,250m2
largest has 4,900m2
(accommodates 2 DC-8s)
Avionics upgrades, Standardisa-
tions etc, Composite repairs, CPCP
- aging mods, Structural repair, NDI:
X-ray, ultrasonic, Eddy current, LP,
MP Inspection, RVSM, TAWS, Paint-
stripping, Machining
Stambaugh
Aviation
M. R. Stambaugh Jr.
Accountable manager
1000 Jetport Road
Brunswick
GA 31525 USA
Tel: 912-265-7244
Fax: 912-262-0225
All n/b a/c
747
DC-10
A,B,C,D
A,B,C
A,B
2 n/b
8+ commuter
over 23,250m2
727 & 737 cargo, Door conversion,
Interiors, Paint/strip, CPCP-Aging
Mods, Avionics upgrades etc, Pro-
totype work, NDI & Eng. Borescope,
Engine Management, VIP
ST Mobile Aerospace
Engineering (MAE)
(a subsidiary of
Singapore
Technologies
Aerospace)
Stephen Lim
2100 9th Street
Brookley Complex
Mobile
AL 36615 USA
Tel : 210 854 9169
Fax : 210 293 2638
727
737
747
757
767
777
A300
A310
A320
A330
DC-9, DC-10
MD-11, MD-80
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
8 hangars
671,000sq ft
8 w/b, 10 n/b aircraft
hangared simultaneously
Letter checks, CPCP, EOs / SBs modi-
fcation, Avionics mod & upgrades,
NDT, Fabrication, Composite shop,
Strip/paint, Interior refurbishment,
IFE/Interiors Completion, Pax-To-
Freighter Conversion, Inventory
management, Line maintenance
services, Power-By-Hour Support
TAP Maintenance and
Engineering Brazil
Ricardo Vituzzo
GM sales
Lstrada das Can-rlas, l862
21941-480
Rio de Janeiro / RJ
Brazil
Tel: (+55-21) 3383 2140
Fax: (+55-21) 3383 2300
E-mail: ricardo.vituzzo@tapme.com.br
www.tapme.com.br
727-100200
737-200/300/400 /500
737-700/800/900
747-200/300
757-200
767-200/300
777-200
DC-10
MD-11
A300
A300-600
A310
EMB120
ERJ145
F-50
A, B, C, D
A, B, C, D
A, C
A, C, D
A, C
A, C
A, C
A, C
A, C
A, C
C
C
A, C
A, C
12 years
Rio de Janeiro
Hangars: 1
Hangar capacity: 4w/b
Hangar Area: 14,500m2
Total Area: 250,000m2
Porto Alegre
Hangars: 5
Hangar capacity: 1w/b, 5n/b
Hangar Area: 12,500 m2
Total Area: 140,000 m
Heavy Maintenance, Components
Overhaul, Landing Gears, Engines &
APUs, Avionics, Hydraulics, Mechani-
cal Accessories, Pneumatics, Wheels
and Brakes, Plating Shop, NDT, Paint-
ing, Interiors, Calibration
TIMCO
Greensboro, NC
John Eichten
SVP sales
623 Radar Rd
Greensboro
NC 27410 USA
Tel: 336 668 4410 ext 3019
Fax: 336 665 9011
E-mail: john.eichten@timco.aero
727, 737, 757, 767, 777
A300 / A310
A320 series
DC-8, DC-9 / MD80
DC-10 / KC-10 / MD-11
CRJ200/700/900
C130
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
7 w/b
14 n/b
704,000sq ft covered
Avionics upgrades
Winglets
Structural, Composites, Avionics,
Modifcations (int/ext), Maintenance
programme, Planning, Avionics kit
fabrication, Interiors, CPCP
TIMCO
Lake City, FL
John Eichten, SVP sales
PO Box 1909
5530 East Highway
90 Lake City Airport
Lake City
FL 32025 USA
Tel: 336 668 4410 ext 3019
Fax: 336 665 9011
707 / KC-135
727
737
757
A320 series
C130 / C141 / P3
DC-9 / MD80
DC-8
DC-10 / KC-10 / MD-11
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
11 bays maintenance
2 bays dedicated paint
seven hangars
632,000sq ft covered
Structural, Composites, Avionics,
Modifcations (int/ext), Cargo con-
versions, Interiors, Winglets
TIMCO
Macon, GA
John Eichten, SVP sales
Middle Georgia Regional Airport
150 First Drive, PO Box 10136
Macon, GA
31297 USA
Tel: 336 668 4410 ext 3019
Fax: 336 665 9011
737
757
A320 series
DC-8
DC-9 / MD80
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
3 bays n/b up to 757
two hangars
116,000sq ft
NDT
Structural modifcations
(int/ext), Avionics repairs
United Airlines
(United Services division)
Center - SFOUS
Paul Lochab
MD sales, marketing & services
United Services Maintenance
San Francisco
CA 94128 USA
Tel: 650 634 4269
Fax: 650 634 5926
paul.lochab@united.com
737
747
757
767
777
A319
A320
A,B,C
A,B,C
A,B,C
A,B,C
A,B,C
A,B,C
A,B,C
4 w/b bays
10 n/b bays
90+ line stations w/ line
network
a 2.9-million sq ft
facility in San Francisco
FAA 121 operator, FAA 145 repair
station, Avionics, Engine overhauls,
Landing gear, Components, APUs,
ISO 9000:2001 compliant, Engine
test cell, Lease sale exchange, Global
emergency/AOG maint, Modifca-
tions IFE/interiors, Line maintenance
services
Victorville Aerospace Julius Smith
Director sales & marketing
18200 Phantom West
Victorville
CA 92394
Tel: 760 530 1767
Fax: 760 246 5159
E-mail: sales@vaero.net
www.victorvilleaerospace.com
717
727
737
747
757
767
777
DC9, MD80
DC-10, MD-11
A320, A330
L-1011
A,B,C
A,B,C
A,B,C
A,B,C
A,B,C
A,B,C
A,B,C
A,B,C
A,B,C
A,B,C
A,B,C
2 w/b, 1 n/b
250,000sq ft
Back Shops
Heavy Maintenance, Line Mainte-
nance, Modifcations
MAINTENANCE
T
he A320 family can be cred-
ited for Airbus success as
an aircraft manufacturer,
particularly as it now enjoys
one of the widest customer
bases in aviation history.
Air France took delivery of the first
A320 in 1988 and since then the A320
family which includes the A318, A319,
A320 and A321 has amassed over 7,000
orders with more than 4,600 aircraft
delivered to almost 330 customers and
operators worldwide. This impres-
sive sales record makes it the worlds
best-selling commercial aircraft and
therefore a maintenance cash cow.
The introduction of the A320neo will
have little effect on the aircraft types
popularity as it has over 95% airframe
commonality with the existing models
making it an easy fit into existing fleets.
The global A320 fleet continues to grow
at a rate in excess of 10% and this will
increase as from Q4 2012 to 42 aircraft
per month from the current 36. Pro-
duction rates will steadily rise to 38 in
August 2011 and to 40 in the first quarter
of 2012.
Inspecting the A320
The A320s maintenance check intervals
have been raised several times since
its launch. And Revision 28, which was
added to its Maintenance Planning Doc-
ument (MPD) in November 2004, stated
that although daily and weekly checks
were still required every 36 hours and
eight days, the tasks were split among
three different sub-groups -- flight
hours, flight cycles or calendar time.
This gave the airline a great deal more
flexibility because the check intervals
could be defined by the most appropri-
ate usage parameter for that carrier.
Maintenance glitches such as prob-
lems with the air conditioning and
brakes have been ironed out and fly-by-
wire technology is fully accepted. Airbus
is aware that airlines are constantly
looking to reduce maintenance costs
and MPD Revision 28 allowed opera-
tors to extend the intervals between
maintenance checks. A checks could be
conducted every 600 hours (previously
500 hours), C checks every 20 months
(previously 15 months) and heavy
checks after six years and 12 years (pre-
viously five and 10 years). Equalised
checks that focus on optimised usage of
each part have also been introduced.
CSA Czech Airlines is an example of
a carrier that has adopted the intervals
offered by MPD Revision 28 and so far it
is working well for them. At the time the
revision was introduced, the response
was very favourable from airlines. Stu-
art Mann, Airbus director of product
marketing of the A320 family at that time
said: Airlines love the extra flexibility
that MPD 28 gives them and, naturally,
they get the maximum time out of all the
components between overhauls.
A popular maintenance option on
the A320 is the Airbus AIRMAN system,
which allows the aircraft to transmit
faults to the ground during flight. This
software tool enables the necessary
resources and maintenance personnel
to be in place when the aircraft touches
down and thus reduces the time the air-
craft spend not in revenue service.
Although unbundling the checks and
specifying three different usage param-
eters for the individual tasks meant
more flexibility for airlines, it also posed
more challenges. Airbus acknowledged
this by introducing standard mainte-
nance packages representing three
common types of aircraft yearly utili-
sation ranging from 1,800 flight hours
annually to more than 3,500. Airlines
were then able to choose the ready-
made solution that corresponded most
closely to their yearly utilisation. Tak-
ing the process further, some operators
have almost eliminated conventional C
checks by following an equalised main-
tenance programme. This programme
distributes traditional A- and C-check
tasks among equal maintenance
packages. Having applied it while main-
taining the easyJet A320 fleet through
several years of growth, SR Technics
(SRT) says the equalised maintenance
or E check concept reduces aircraft
downtime by a total of 17 days during a
six-year period.
The E checks are sequenced into 36
labour packages, each requiring eight
hours of ground time, which can be per-
formed during a night stop. No C-checks
are required, and the six-year/24,000
flight hour intermediate layover (IL)
check is due around the time of the 36th
E check.
A320-FAMILY MAINTENANCE:
Airline Economics surveys the best maintenance providers for A320-family aircraft
MAINTENANCE
problem analysis tools to optimise per-
formance of its A318, A319 and A320
aircraft. Lateral trim solutions devel-
oped by Airbus can decrease possible
drag, reduce fuel consumption and
optimise flight paths for its A318, A319
and A320s.
The project made swift progress
using the data from Airbus Production
Aircraft Test System (PATS) used to
verify aircraft during pre-delivery pro-
cesses along with problem analysis
tools from consultant company Shai-
nin.
As technicians we expected a tech-
nical solution, however Shainin are
statisticians, said Eric Papy of Airbus
Mise au Point (MAP) design office repre-
sentative team in Hamburg, Germany.
They wanted very specific information
from PATS, from measuring aircraft on
the final assembly line and the wings at
Broughton. It was statistical analyses
that found the answer.
Shainin devised a mathematical for-
mula for predicting roll values for each
aircraft ahead of its first flight, allowing
the MAP team to make any necessary
adjustments during assembly virtu-
ally eliminating the need for re-flights.
The service package offered by SRT
consists of fleet technical management,
component and parts management,
E-check maintenance management
and line maintenance management.
The maintenance can be conducted at
an SR Technics facility or subcontracted
to the operators selected provider. SRT
says it has cut the average turnaround
time for the IL check, including strip-
ping and repainting of the fuselage and
vertical tail, from 21 to 14 days. We
started together with Airbus to ramp up
the maintenance activity on the A320,
says a source at SR Technics. [This
included] the complete reshaping and
reorganising of the maintenance pro-
gram out of the traditional maintenance
program and into an aquiline mainte-
nance program. After six years we are
doing the E check in Malta but we have
started to do it in Zurich.
Landing gear overhaul
Landing gear overhaul for the A320 fam-
ily is required every 10 years or 20,000
flight cycles, but the fatigue threshold
was increased from 20,000 to 24,000
flight cycles. The zonal check interval
has grown from five years to six, and the
requirement for structural inspections
has been relaxed from every 10 years
(originally eight) to every 12 years. The
result of that change, according to Air-
bus, was that each operator was able to
optimise the checks intervals according
to its own aircraft utilisation.
The number of landing gear over-
hauls required each year equates to
the number of 10-year-old aircraft in
the fleet. But A320 deliveries are still
accelerating. They climbed dramati-
cally from 168 in 1998 to 222 in 1999, then
stayed in the mid-200s before starting to
climb rapidly again in 2005 to reach 387
in 2008. Although the requirement over
the next five years is relatively stable,
the growth of the overall landing gear
overhaul market has resulted in several
overhaulers of A320 gears such as AFI
KLM E&M, Finnair, Lufthansa Technik
and Turkish Technic to enter the mar-
ket.
Upgrades - Airbus-developed lateral
trim solutions
Airbus is using data from its Produc-
tion Aircraft Test System and additional
MAINTENANCE
2011 TOP TEN MRO FIRMS
1 Lufthansa Technik 16.43%
2 ST Aerospace 13.01%
3 SR Technics / ADAT 13.00%
4 TAP M&E / TAP M&E Brazil 11.12%
5 TIMCO 6.40%
6 Pemco 6.08%
7 HAECO 4.18%
8 Aveos / Aeroman 3.84%
9 AFI-KLM Engineering & Maintenance 3.44%
10 Evergreen 3.08%
A320 Family
maintenance:
SURVEY RESULTS
Airline Economics asked a selection of
A320 family operators from each region
(airlines and lessors) who they thought
were the best performing maintenance
shops. Although the results, to an
extent, reflect the size of some opera-
tions there are a few surprises. And
when smaller market players enter the
top ten, it is clear that they are doing
something right. These results also
reflect the fact that some of the smaller
Vote split by region
Africa: 1%
Middle East: 2%
Americas: 32%
Asia-Pacific: 22%
Europe: 43%
Europe, Middle East & Africa (EMEA):
SURVEY RESULTS
2011 TOP TEN EMEA MRO FIRMS
1 SR Technics / ADAT 31%
2 Lufthansa Technik 29%
3 TAP Maintenance & Engineering 14%
4 AFI-KLM Engineering & Maintenance 8%
5 Iberia Engineering & Maintenance 5%
6 OGMA 4%
7 JorAMCo 3%
8 Turkish Technics 3%
9 Monarch Aircraft Engineering 2%
10 Finnair Technical Services 1%
MRO operations, whether airline-affil-
iated, independent or OEM-operated,
have responded to an increasingly
competitive environment by developing
MRO players are able to offer services
that are highly tailored to an individual
clients needs. However, for the major-
ity, where airlines choose to have their
maintenance performed is dependent
on location, location, location.
Maintenance cost per hour
Some of the most detailed studies of aircraft main-
tenance costs have been carried out on behalf of
Eurocontrols Performance Review Commission,
which has been working for some years to estab-
lish the marginal costs associated with air traffic
delays. Researchers from Westminster University,
Imperial College, London, and Lufthansa Systems
found that unit maintenance costs, including an
allowance for overheads such as administration
and facilities, equated to approximately 15% of
block hour direct operating costs (DOC).
For the A320, the researchers concluded, mainte-
nance cost per block hour in 2008 ranged between
EUR570 and EUR770 for high and low cost sce-
narios, with a base figure of EUR620. The figures
for the A319 ranged from EUR580-800, with a
base of EUR630, while the A321 base costs were
estimated at EUR720 with a low of EUR660 and a
high of EUR910. For comparison, the equivalent
figures for the Boeing 737-800 were estimated to
range from EUR500 to EUR670, with a base figure
of EUR670.
Global A320 fleet by operator region
Africa: 1%
Middle East: 5%
Americas: 29%
Asia-Pacific: 26%
Europe: 36%
Methodology
Over 5,000 industry professionals globally were
asked: Which maintenance provider offers the best
service for the A320 Family taking into account
costs, turnaround times, reliability and conve-
nience?
These results were then filtered by Airline Eco-
nomics so that only airline senior management,
re-marketers and lessors who have owned and/
or operated A320 Family aircraft, appraisers and
investors remained.
The 2011 A320 Family Maintenance survey is
therefore an accurate reflection of industry think-
ing at the very highest levels from decision makers
who are involved in the decision making process
during the course of an aircrafts life.
more inclusive services to make fuller
use of their capabilities and resources
while helping their customers contain
costs.
MAINTENANCE MAINTENANCE
regulations associated with the lease
agreement and to an extent this has
slowed and amended their progress
as time has passed. Even so SRT has
been able to slash turnaround times
by shifting and amending the layout of
its various workshops, it has put tech-
nicians together with managers and
client account managers, amended
layout in all areas to make the process
seamless and linier and adopted an in
house program for staff and graduates
to develop new practices to help reduce
turnaround times.
Turkish Technic too has been build-
ing up its capabilities in Istanbul;
targeting operators in Europe, the
Middle East, CIS and northern Africa
as well as Turkey itself. The Turkish
Airlines subsidiary is building a new
narrowbody MRO base, the HABOM
Aviation MRO Centre at Sabiha Gken
International Airport. The estimated
total investment requirement for the
airframe and component maintenance
centres on the whole is around $500
million. By the year 2020, HABOM is
estimated to generate a $1 billion share
from airframe and component main-
tenance segments. Turkish Technic
will be the permanent shareholder of
the HABOM Project. Turkish Technic
is also aiming to establish these new
investments as an international joint
venture with the participation of a lead-
ing global company or companies. With
this new investment, Istanbul will be the
maintenance hub of the region within a
short time period if all goes to plan. The
airframe maintenance centre facilities
at Sabiha Gken International Airport
will have a total 372,000m2 area. There
will approximately 3,500 employees
within all the maintenance, repair and
overhaul centres which will be estab-
lished within the HABOM Project.
Turkey hopes this impressive base
will become a global MRO hub, but it is
prudent to wonder about the future for
the maintenance market in general. The
current scenario is one of aircraft flying
to bases; having checks performed and
collecting the aircraft all via non-rev-
enue flights. However, with oil prices
above $110 a barrel and Goldman Sachs
urging investors to poor into oil with a
benchmark of $200 by 2015, it is unlikely
that airlines will want to fly aircraft to
distant maintenance centres and will
opt for doorstep services. Such a trend
will play into the hands of Lufthansa and
especially SR Technics as they expand
to become global, independent MROs
through the future slated purchase of
a US MRO supplier, possibly TIMCO.
Given this scenario, it is difficult to see
how the future of very large MRO bases
like the one being developed at HABOM
can be assured. In the case of HABOM,
this will not be possible without a very
large route hub being created out of
Sabiha Gken International Airport,
which is not likely. But taking into the
account the size of the Middle East fleet
on order, the managers of the HABOM
project are hoping that they will be
well placed to cater to this ever-grow-
ing market. But it is SRT, with its Abu
Dhabi Aircraft Technologies subsidiary,
which seems best positioned to benefit,
and further expansion of this site could
prove highly popular with the airlines of
the Middle East.
This train of thought is backed by
Lufthansa Techniks Walter Heerdt,
senior vice president marketing & sales.
When asked by Airline Economics why
he thought the LHT network gives them
an edge he said: Lufthansa Techniks
Group network is definitely a big
advantage. The size, geographi-
cal location and capability mix of our
Lufthansa Techniks comprehensive
suite of total support offerings covers
landing gear, engines, components and
material, while overall Total Technical
Support can be combined with Techni-
cal Operations Management and the
management Technical Operations
Websuite. And at a time when cost
control is more crucial than ever, the
company says its Total Component Sup-
port (TCS) service provides what are
normally mutually exclusive benefits:
low costs, yet with the greater aircraft
availability that normally demands
heavy investment in a big stock of
spares.
LHT says membership of its com-
ponents pool -- the equivalent of being
part of a Boeing and Airbus fleet nearly
400 strong -- reduces operating costs
to a level normally achievable only by
operators of much larger fleets. The
service can be extended to include
everything from writing the specifica-
tions, initial provisioning studies and
home base allocation to repair and
overhaul, troubleshooting, documen-
tation and engineering services. And
it is tailored to the operators specific
requirements.
Dublin Aerospace was awarded
EASA Part 145 approval in October 2009
for its new maintenance and overhaul
operation in the former SR Technics
Hangar 5 at Dublin Airport. Already
offering heavy maintenance on the
A318, A319 and A320 and overhaul, and
major refurbishment of the Honeywell
131-9[A] APU, the company achieved
A320 landing gear capability in 2010. The
company also offers on-wing repair ser-
vices, including seal changes and gear
replacement, at any location.
The Aer Lingus A320s that SRT used
to maintain at Dublin are now handled
by Sabena Technics.
SR Technics, the A320 maintenance
leader through their various agree-
ments which include Easyjet and
AirBerlin, has been trying everything it
can to cut turnaround times and costs.
The operation in Zurich has been a
particular headache for the manage-
ment. The buildings and hangers at
the SRT base in Zurich are not owned
but rented. This means that when SRT
came to streamlining its processes,
it had to factor in various building
MAINTENANCE
C2s and C3s and will be moving into
heavier [checks] later this year. Those
aircraft are here for five to seven days,
its a very, very high burn rate, which is
essential for not having any late fines
from an inspection standpoint. Not hav-
ing the right materials on hand could
slow down the turnaround time, so we
have to plan routine and non-routine
materials because there is no time for
recovery while the airplane is on base
so it is a high-velocity maintenance
concept that we apply in Tampa. We get
it done well and we literally have had
perfect airplanes in our Tampa base as
measured by our clients scorecards.
We include liability, quality, time and
value. It doesnt mean that we always
get everything right, but by and large
the A320 fleet is one we do as well as
anything else we do.
PEMCOs Casey is very well aware of
the fact the US fleet is due to be replaced
with newer and more fuel efficient air-
craft that will require less maintenance,
but he is prepared for this. In fact, he
sees it in a very positive light.
Newer airplanes require shallower
maintenance checks as you would imag-
ine, he says. But many maintenance
providers are able to run extremely
high burns and compress the mainte-
nance schedule into fewer days so the
airline gets higher yields. They have got
sufficient scale to keep their lines from
gapping, which keeps the whole pro-
gram efficient from a cost and quality
standpoint so it is good for everybody.
Even though newer airframes take
fewer total man hours for maintenance,
it is clear that many MROs are going
to be able to do more airplanes in the
same footprint with the same number
this trend: We have grown about 50%
overall throughout our three bases. We
used to have one location Alabama
and about two years ago we expanded to
Tampa and last year we doubled Tampa
and also opened our Cincinnati mainte-
nance base. But the point is, although we
have grown 50% in size we have essen-
tially sold out already. We are trying not
to do a whole lot of growing right now
because it is challenging and requires
a lot of resources and it is critical we
are making sure we are adhering to the
process that helped us deliver the per-
formance that led to the growth. Actually
our year-to-date growth rate is 73% but
we are making a decision to reduce this
rate. The point is we have been pretty
well sold out over the past year and a
half but we will have the capacity in the
fall in two of our locations. We expect to
pursue A320 maintenance from North
American carriers to date we havent
had many customers ferrying airplanes
across the Atlantic to our shop.
He adds: We have been doing C1s,
eight overhaul facilities in Europe and
Asia secure that most of the NB and
WB aircraft can be serviced close to
the customers home base. The size of
the network guarantees slot flexibility
and capacity, which enable LHT to offer
base maintenance services to all sizes
of fleets.
He adds: We want to be perceived
by our customers as a reliable next-
door supplier which provides them with
exactly those services they individually
need in the expected quality. I think
MAINTENANCE
Americas: SURVEY RESULTS
2011 TOP TEN AMERICAS MRO FIRMS
1 ST Aerospace (SAA and ST Mobile) 22%
2 TIMCO 20%
3 PEMCO 19%
4 TAP M&E BRAZIL 16%
5 AEROMAN / Aveos 12%
6 Mexicana MRO 4%
7 AAR 3%
8 Evergreen 2%
9 United Services 1%
10 Aeroframe Services LLP 1%
In the Americas one such well-placed
MRO base is PEMCO, which is based
in Tampa, Florida. PEMCO has made
great inroads into the A320-family
maintenance market and, as shown in
the following survey results, it is doing
a good job. President Kevin Casey
explains: Customers are drawn to the
location. They fly their last airplane in
last thing at night full of passengers and
we can taxi their aircraft to our hanger
from there and then deliver them the
aircraft we have just wrapped up. So at
6am they can light the fires and kick the
tyres and head on out with passengers.
So there is no non-revenue ferry flight.
We have two big beautiful hangars with
substantial capabilities, which I think
is really resonating with the A320 com-
munity.
This philosophy is the future for
many MROs. As customers demand
faster turnaround times at lower cost,
it is important to factor in flight and fuel
time/costs into the equation and delete
the same where possible. Casey backs
that the mixture of our broad service
portfolio, our world-wide network, the
high quality and the motivation of our
employees are guarantees for our suc-
cess.
Lufthansa Technik is continuously
investing in its facilities. Lean manage-
ment, often in joint workshops with the
customer, help to keep costs low or even
drive it down due to smart interface
solutions. The exchange of best prac-
tises within the LHT Base Maintenance
network constantly helps to drive down
ground times, for example just recently
an A319 D-check was completed in 16
days. The Lufthansa Technik produc-
tion processes have been standardized
throughout the facilities by analysing
and optimizing of all production steps
to secure higher efficiency in MRO
services. Customers also value the
tight cooperation on base maintenance
procedures as well as on optimizing
of individual maintenance schedules
which lead to MRO cost savings for the
airlines.
MAINTENANCE
airlines as well as the service providers
as there will be a much larger fleet.
Each of the airplanes will require
far fewer man hours per year, but most
MROs are going to be able to continue
with approximately similar mainte-
nance facilities because they are getting
the burn rate up much higher than they
would have otherwise in the absence of
heavy structures requirements, which
they will not have for a very long time
to come.
airplanes require lots of maintenance
man hours but they are not nearly as effi-
cient and therefore in a world of mostly
fixed-price maintenance services they
are more challenging for the more typi-
cal MRO to be profitable. Airlines that
are operating newer aircraft than are
maintained by fixed-price providers;
they will be able to have budget control
and confidence in when that aircraft is
going to be completed and returned.
This is an excellent future for the US
MAINTENANCE
of mechanics, where previously they
were doing fewer airplanes each of
which required much more man hours
for heavy checks.
He adds: It is widely thought that
the new airplanes are so much more
sophisticated in how they tell you
whats wrong, help you diagnose whats
wrong, and help you go about fixing it,
that they offer far fewer maintenance
surprises both in operation and in the
maintenance hanger. The bigger, older
pany grouping of MROs who work with
the manufacturer across a range of ser-
vices.
Kortas says; I believe [consolida-
tion] is a trend that may accelerate in the
near term. It is a global phenomenon,
but as the Asia-Pacific is so dynamic it
could be the forerunner of such a move-
ment. It has been a constant trend.
Because Asia is now a driver for avia-
tion growth, the fundamentals are there
for it to continue growing stronger in
MRO demand and development of MRO
capacity.
A380 maintenance is currently being
conducted in-house, at Singapore Air-
lines and Qantas Airways and now
Korean but there is potential even on
this type for components outsourcing.
Many A380 operators have asked Airbus
for Flight Hour Service (FHS) mainte-
nance programs for example.
The Asia Pacific market is pointing
towards India for strong MRO growth
and there is no reason to assume that
South East Asia will not be the largest
MRO market in the world by 2050.
Asia Pacific: SURVEY RESULTS
2011 TOP TEN ASIA PACIFIC MRO FIRMS
1 ST Aerospace 27%
2 HAECO 19%
3 Lufthansa Technik Philippines 18%
4 Evergreen 14%
5 TAECO 11%
6 SIA Engineering Company 4%
7 GAMECO 3%
8 MAS Engineering 2%
9 Air New Zealand Engineering Services 1%
10 China Airlines International 1%
Both Airbus and Boeing are bullish
about MRO trends in the APAC region;
their eyes are fixed firmly on China and
India and a need for the manufacturers
to provide full package solutions to air-
lines.
Of course newer aircraft equals a
reduction in demand for parts and ser-
vices, but it also means an increase in
demand for more MRO solutions to
increase efficiency in airline operations
and maintenance.
Airbus senior director, maintenance
and customer service, Wolfgang Kortas,
said aviations current global downturn
should accelerate the consolidation
of some MROs, including a number in
Asia-Pacific. He said consolidation was
beginning to happen among members
of the Airbus MRO Network, a 15-com-
THE TOP TEN A320 MRO COMPANIES PROFILED
1. Lufthansa Technik
Lufthansa Technik is one of the
leading manufacturer-independent
providers of maintenance, repair,
overhaul and modification services in
the civil aviation industry. With tailored
maintenance programs and state-of-
the-art repair methods, LHT ensures
the unbroken reliability and availability
of its customers fleets.
Walter Heerdt, LHTs senior vice
president for marketing & sales, says:
Lufthansa Technik has survived
the last economic and financial crisis
relatively well through increases in
efficiency, high utilisation of flexible
working hours and process innovations.
2010 saw a slight increase in revenue,
but as expected we were not quite able
to match the record earnings of the
year before. Operatively, the smooth
introduction of Lufthansas new Airbus
A380 flagship was a particular high
point for Lufthansa Technik in 2010.
The Lufthansa Technik Group
comprises more than 30 subsidiaries
and joint ventures in Europe, Asia,
North America and Australia. It has
two joint ventures with OEMs: N3
engine overhaul services (with Rolls-
Royce, based in Arnstadt / Germany)
is a maintenance and repair facility for
large Rolls-Royce turbofan jet engines;
and Airfoil Services Sdn. Bhd. ((ASSB),
MAINTENANCE
MRO services for the B748, B787,
EMB190 and A380.
Heerdt says: As Lufthansa is one of
the first customers for the new Airbus
A320 neo series Lufthansa Technik will
definitely extend its MRO capabilities
also to this type of aircraft in the coming
years.
From base maintenance side,
Lufthansa Technik has recently
launched a new T-product (Total-
products, offered by LHT for every kind
of MRO service), called TBS Total
Base Maintenance Support. The TBS
is especially designed to make Base
Maintenance easier for fleet operators
and offers a broad range of included
and optional sub-products as well as
different financing models, to better
suit each operators financial situation
or preferences.
surplus parts enables the operators to
save costs. In the end it is an individual
strategic and economic decision of the
specific operator if and to which range
he will go this way.
But he also admits further
consolidation is expected: Despite
new entries, we see an ongoing
consolidation process in the MRO
industry. The introduction of new
aircraft generations and engines types
is combined with high investments in
infrastructure, tools and employee
training and complex questions about
intellectual property. These challenges
can only be handled successfully by
MRO providers operating globally and
at a certain scale, having the ability to
tailor packages to individual needs.
LHT is looking to further grow its
market share via the launch of new
With over three decades of experience
in providing quality engine services
and managing over 500 engines for a
diverse customer base comprising over
80 operators worldwide, ST Aerospace
consistently invests in new capabilities
and expands technical resources to bet-
ter deliver innovative and integrated
solutions.
Its extensive experience serving
major airlines, air freight operators and
low cost carriers embodies the company
to customise solutions to suit unique
requirements, meeting outsourcing
needs and operational demands.
ST Aerospace provides:
Aircraft Maintenance
Bcheduled Light & Heavy
Maintenance Transit/Turnaround
Bervicing & Checks Aircraft
Bervicing, Inspections & Repairs BB/
AD Compliance and Modifications
Non Destructive Inspections Aircraft
Painting
Aircraft Modifications
Iassenger-To-Ireighter ITI)
Conversions Ileet Btandardisations
Cabin Interiors Upgrades In-Ilight
ntertainment II) Avionics
Upgrades & Installations Other
2. ST Aerospace
Because SR Technics and Abu Dhabi
aircraft Technologies are now essen-
tially a group under the ownership of
the Mubadala Development Company
(Mubadala), their votes have been
grouped together.
Mubadala is a catalyst for the eco-
nomic diversification of Abu Dhabi.
Established and owned by the Gov-
ernment of Abu Dhabi, the companys
strategy is built on the management of
3. SR Technics
Modifications including Winglet
Installation
Off-Site/Aircraft-On-Ground (AOG)
Recovery Services
AOC Bupport Aircraft Recovery &
Repairs
Engineering Design & Development
Design Organisation Approval -
ABA-21 and BAR-21 Bupplemental
Type Certificate (STC) Development &
Certification Liaison ngineering
Engines
ST Aerospace offers customized
integrated solutions for your fleet of
engines, helping clients achieve the
longest on-wing time at the lowest
lifecycle costs for an airlines engine
operations. Its full service spectrum
includes:
Technical management On-wing
maintenance Off-wing maintenance
Asset management
Management
ngine condition monitoring
Ierformance trending & diagnostics
Maintenance planning Workscoping
Lease return planning
Iailure analysis Configuration
management
Reliability improvement programme
Warranty & insurance management
On-Wing maintenance
ngine defect/damage assessment
& rectification Borescope inspection
In-situ airfoil blending Top case
removal Modular repairs ngine
troubleshooting ngine/LRU removal
& installation ngine wash
Asset Management
Bpare engine support ngine leasing
& pool access Inventory management
Logistics Iinancing e.g. sale and
lease back
Off-Wing maintenance
ngine maintenance, repair &
overhaul Iarts & accessories repair/
overhaul AD/BB compliance
Modifications & upgrades Iost-lease
certification
with MTU Aero Engines) which is
specialized in repairing high pressure
compressor blades and vanes as well
as low pressure turbine blades.
Heerdt says: LHT has developed
a very comprehensive monitoring and
supplier management to avoid delays
in parts delivery. We are following a
pro-active and transparent information
exchange with our suppliers regarding
volume and usage of parts for on-time
delivery. Additionally, together with
our subsidiary Lufthansa Technik
Logistik we have created an effective
supply chain for a global provision with
spare parts.
Heerdt is bullish on future growth
for the MRO market: We think that the
MRO market will further increase in
the next years including the business
with surplus parts, as the use of
MAINTENANCE
MRO states that it is its independence
[that] ensures every customer receives
the same high-quality service and treat-
ment under one SR Technics service
umbrella.
The MRO firm offers total solution
packages to airlines, where it takes
over the technical management and
technical operation of the entire fleet,
and provides many types of services
tailored to each customers individual
requirements including elements
such as aircraft checks, engine over-
haul or component management and
repair.
SRTs proprietary IT system sets
it apart from its competitors. Via this
system, the company is able to manage
aircraft and component data online and
real-time wherever the airline or air-
craft is located.
ADAT in Abu Dhabi provides com-
prehensive line and light maintenance
services including A checks, aircraft
casualty and AOG response, engine and
major component replacement, trouble-
shooting and defect rectification.
ADAT services
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TAP Maintenance & Engineering (TAP
M&E) is the MRO (Maintenance, Repair
and Overhaul) organization of TAP Por-
tugal, the Lisbon based operator, that
provides maintenance and engineering
services in aircraft, engines and com-
ponents. TAP M&E is duly certified by
several aviation authorities amongst
which is the FAA and EASA.
Since the foundation of TAP, in 1945,
TAP M&E has been responsible for the
maintenance of its entire fleet, presently
with more than 50 Airbus aircraft. In the
70s started providing services to third
party customers this now accounts for
more than half total revenue.
The long-term involvement with a
commercial operator, made TAP M&E
aware of the importance of on time
delivery of products (aircraft, engines
and components) and services. TAP
M&E is therefore committed to offer its
customers cost efficient maintenance
with short turn-around times and high
quality and reliability standards.
4. TAP M&E / TAP
M&E Brazil
TAP M&E Brazil has the most up-
to-date MRO technologies - including
the only Inertial Navigation System in
Latin America, one of the five Griffon
GTW-U3 cylindrical milling machines
in existence in the world, and a horizon-
tal Gemini GE-1600S lathe, which can
machine very long parts for the landing
gears repair services.
The company is certified to maintain
the entire Boeing line 727, 737Classics,
737NG, 747, 757, 767, 777, BBJ, MD11
and DC10, Embraer EMB120 (Bras-
lia), ERJ 135, ERJ 145, EMBRAER 170,
EMBRAER 175 and EMBRAER 190,
EMBRAER 195 and Legacy 600 and
Lineage, Airbus A300, A300-600, A310,
A320, A330 and A340.
Services offered include:
Daily and overnight Checks Compo-
nents Overhaul ngineering Iro|ects
with Technical Bupport Interiors Iro|-
ects and Overhaul Avionics Bystems
and Installations Iro|ects Airframe
Repair, Iro|ects and Improvement A,
B, C and D Checks
partnerships and long-term, capital-in-
tensive investments that deliver strong
financial returns and tangible social
benefits for the Emirate of Abu Dhabi,
and contribute to the growth and diver-
sification of its economy.
SR Technics provides technical
solutions for airlines on a global basis.
Services are provided either directly to
the airline or through other parties such
as aircraft leasing companies, OEMs
(Original Equipment Manufacturers)
or component trading companies.
With headquarters at Zurich Airport,
SR Technics (SRT) offers an extensive
network of maintenance facilities,
logistic centres, line stations and sales
offices across the globe.
SRT has been providing mainte-
nance services to customers since the
early 1960s as the former maintenance
division of Swissair and a founding
member of the largest European main-
tenance consortium.
SRT offers services for most Airbus
and Boeing aircraft and their associ-
ated engines and components, and is
one of the largest independent provid-
ers of these services in the world. The
5. TIMCO
TIMCO Aviation Services is one of the
worlds largest independent aircraft
MRO providers. TIMCO provides air-
frame MRO and modification services
from three multi-hangar locations in
the United States: Greensboro, North
Carolina, Macon, Georgia and Lake
City, Florida.
TIMCOs services cover light and
heavy scheduled maintenance checks,
exterior and interior modifications
installations, upgrades and conversions
for commercial, government and private
aircraft. The airframe MRO operation
employs over 1,000 mechanics--many of
whom are certificated--and uses nearly
1.5 million square feet of hangar and
office space at its three locations.
TIMCO LineCare offers a range of
line maintenance and non-technical
support services under FAA Opera-
tions Specification D107 certification at
a growing number of airports.
TIMCO LineCare performs a range
of services across its growing network,
grouped into two broad categories as
follows:
MAINTENANCE
TIMCOs Engine Center provides
full engine disassembly (teardown),
inspection, repair, parts overhaul
and reassembly (build up) services.
The engine team at the Oscoda,
Michigan facility provides complete
non-destructive testing (NDT), engine
AD compliance, fuel nozzle overhaul,
bleed valve overhaul, gearbox overhaul
and HPC disk overhaul. In addition,
AOG teams can be sent on field service
calls to perform engine on-wing support
and recovery services.
The TIMCO Engine Center is an FAA
certified repair station (T48R384Y) with
focus on complete support for the JT8D
series of engines, as well as disassem-
bly and parts inspection services for the
CFM56-3.
Pemco specializes in airframe heavy
maintenance, as well as interior recon-
figuration, avionic & IFE upgrades,
and structural and cargo modifica-
tions. A leading aircraft MRO services
provider for a wide variety of aircraft
types, Pemco has maintenance bases
in Tampa, Florida, Dothan, Alabama
and Cincinnati, Ohio, as well as partner
operations in Southeast Asia. Pemco is
also the worlds leading aircraft cargo
conversion providers with over 300
cargo conversions across 26 models of
cargo aircraft. Its new 757 Combi and
Freighter programs are the latest addi-
tions to Pemcos cargo platform, where
Pemco presently has four 757 cargo
modifications in work, with more proj-
ects in the making.
At the three US sites, PEMCO
offers:
Development and manufacture of
aircraft cargo systems Cargo modi-
fications Aircraft parts and support
Bcheduled and unscheduled mainte-
nance ngineering services Repairs
Irecision components Avionics
Interior modifications
Aircraft types serviced include:
ATR 42/72 Beries Beech 1900D
Boeing 787, 747, 757, 707, 777 Beries
Airbus A820 / A819 Bombardier Dash
8 Beries 100, 200 & 800 Bombardier
CRJ 200 / 700 mbraer RJ 185/145
6. PEMCO
& -Jet 170/190 Beries Iokker I 100
McDonnell Douglas MD-80/90 Beries
Baab 840
Airline Economics: What makes
PEMCO a good destination for A320
maintenance?
Kevin Casey, president of Pemco:
The fundamental requirement our cus-
tomers want is for us to provide them
with reliable aircraft, on schedule and
without budget surprises. The opera-
tion team does a good job on the A320
fleet. We routinely get aircraft back on
time and early. We have periods of time
strung together that are literally perfect
ten score cards for one customer. Princi-
pally, A320 customers have historically
been Northwest, Delta and JetBlue but
we have also done leasing customers for
RBS and ILFC. Our customers want to
have aircraft to fly well after they leave
us and our in service reliability is man-
aged by our quality department. Every
day they track the aircraft we have seen
out at least for a month or so and our
in service reliability has in that 21 day
period is very high.
Our schedule is very easy to mea-
sure. We only have a couple of days to
turn around the airplanes and we get the
airplanes out early. On the Northwest
fleet, which is a slightly older fleet than
the JetBlue fleet, so it is a more involved
check and that work was split between
ourselves and another provider, we rou-
tinely produce the airplanes two and a
half days early. Our average on time
performance was two and a half days
early. That kind of extra utilisation is
huge to an airline.
In Tampa we have a different com-
plex. The JetBlue fleet is younger, we
have been doing C1s, C2s and C3s and
will be moving into heavier later this
year. Those aircraft are here for five to
seven days, its a very, very high burn
rate, which is essential for not having
any late fines from an inspection stand-
point, not having the right materials
on hand that could slow down the turn-
around time.
AE: Are your good turn times
advertised as a competitive advan-
tage?
Casey: It is clearly an advantage to
have an aircraft returned early from a
maintenance check because they can
get so much extra revenue out of the
airplane. But not every airline is agile
enough to take on aircraft out of service
unexpectedly and replace with another
quickly. The A320s that we routinely get
out early, with one or two exceptions,
they went a long way to ratchet down
our turn times.
There is another reason that is more
esoteric and objective that some cus-
tomers are drawn to the location. They
fly their last airplane in last thing at
night full of passengers and we can taxi
their aircraft to our hanger from there
and then deliver them the aircraft we
have just wrapped up so at 6am they
can light the fires and kick the tyres and
head on our with passengers. So there
is no non revenue ferry flight.
We have two big beautiful hangars
with substantial capabilities, which I
think is really resonating with the A320
community.
AE: Are you seeing any price sen-
sitivity because of the overcapacity in
the market?
Casey: We are not seeing too much
overcapacity. In North America over the
past 10 months we have been affected
by a lack of capacity, not physical hangar
space, but competence mechanic capac-
ity. There has been an interesting shift
over the past few years where mechanic
wage rates have gone up significantly
through a combination of retirement,
diminishing the talent pool and airlines
re-hiring mechanics Delta for exam-
ple has hired a lot of mechanics recently
and there has also been an increase in
overall maintenance and modification
rates as a result of the rebound in the
economy and the desire of the mainline
carriers to capitalise on the restoration
of business travel demand so lots of
first class modifications on widebod-
ies and even on their narrow body and
regional feeder aircraft. A lot of that has
consumed the capacity over the past
year and a half in the United States and
in Canada.
We havent experienced a great deal
of overcapacity that has affected rates,
however, having said that, our costs
have increased faster than our pricing.
Once we join forces with a customer, we
have a very active and lean team so we
MAINTENANCE
from the MRO world who thinks they
can bring their expertise to Boeing and
leverage that to provide MRO services
that no one else can match. But the truth
is airlines like a buffet, they dont order
off the limited menu. They are going to
pick their engine services from the best
provider many times that is the OEM
but many times it is not. They are going
to pick their airframe services from the
best providers in house light check or
outsource the heavier checks. I agree
with the trend that the OEMs are going
to have a heavy impact on high intel-
lectual property items engines and
components and particularly those
items where the invoice is highlighted
by the cost of parts, which they con-
trol, but it wont be the case in airframe
maintenance, full stop.
very rarely increase prices. Last year,
all three of our major legacy programs
we did not increase the price at all. But
at the same time our labour costs and
retirement costs have all increased.
The only was we can afford that is to
increase efficiency, and so far we have
been able to do that.
AE: Does the rise of OEM after-
market agreements worry you?
Casey: Sure! The only way the OEM
has a real advantage and has real
potential value is where the invoices
have a high cost component and where
technical data is effectively controlled
by the OEM this is either the engine
manufacturers or in the high-value
components such as black box record-
ers.
An engine bill is 75% parts; an air-
frame bill is 75% labour. We all know
OEM labour costs more. But they
havent cornered the market on skill.
In fact we have hired OEM mechanics.
These guys are used to dealing with
clean airplanes, shallow dive, not dif-
ficult and lighter, checks. They dont
get into heavy stuffs or modification.
These are the things that more experi-
ence mechanics, hopefully with some
grey hair, are much better at. So when
your invoice is 75% labour and the
skills of the mechanics arent just about
reading a manual or putting an engine
back together as per the tolerances in
the manual, they really have to think
on their feet and be more of a crafts-
man than just assembly. Thats where
independent airframe MROs have the
advantage over OEMs, and where they
will always have an advantage over the
OEMs. In the eight years I have been
at Pemco, the US level of outsourced
heavy maintenance has gone up from
about 35% to about 68%. That trend is
continuing. And they are not going to
Boeing.
Every decade or decade and a half,
the OEMs have gone into this mode
where they want to extract some more
vertical integration and over their
services in a Goldshare programs or
whatever their term-du-jour is, and it
always fails. Sometimes it is motivated
by offshore requirements such as China
or India, and sometimes it is motivated
by somebody that came to the OEM
Hong Kong Aircraft Engineering Com-
pany Limited - better known as HAECO
- has provided comprehensive aero-
nautical engineering and maintenance
services to airlines and operators since
1950.
When HAECO signed a 20-year fran-
chise agreement with Hong Kongs
Airport Authority, it became the only full
service provider at the new Hong Kong
International Airport at Chek Lap Kok
offering comprehensive line to heavy
maintenance packages including air-
craft component overhaul support and
AOG/aircraft recovery service.
HAECO has, over the years, expanded
beyond the boundaries of Hong Kong
SAR into other cities in China with
Taikoo (Xiamen) Aircraft Engineering
Co. Ltd. (TAECO) at Xiamen, Fujian,
and Taikoo (Shandong) Aircraft Engi-
neering Co. Ltd. (STAECO) at Jinan,
Shandong.
Recently, a joint venture, Taikoo
SIchuan Aircraft Engineering Ser-
vices Co, has been formed in Sichuan.
It also operates maintenance facilities
in Singapore - Singapore (HAECO)
(SHAECO), and Bahrain. In addition,
HAECO has established joint ventures
with key major Original Equipment
Manufacturers (OEMs) in pursuit of
providing Total Care services to its
customers.
7. HAECO
Aveos, in its various guises has been car-
rying out heavy maintenance for more
than seven decades. The company, now
acting as an independent is fast emerg-
ing as one of the leading MROs in the
Americas. With the addition of Aeroman
to the stable the firm is able to cover all
the Americas as a modern local pro-
vider of services.
Supply chain, fleet and logistics man-
agement
In addition to airframe, engine, and
component solutions Aveos offers val-
ue-added maintenance solutions such
as aircraft maintenance training and
supply chain management as part of
an integrated service offering, in turn
ensuring efficient demand, process
and vendor management. Aveos fleet
management experts allow customers
to focus on their core competencies by
providing tailored services that opti-
mize carriers maintenance programs
and operational reliability.
Mainline Services
Bupply chain management inventory
management, procurement, logistics,
business support and airline opera-
tional support) Ileet management
ngineering services Regulatory
compliance and audits Technical pub-
lications services Technical records
management Aircraft maintenance
training Training Bolutions 24-hour
engineering support (AOG)
Facilities and Locations
Montreal - 7 lines 290,000 sg. ft.
Winnipeg - 0 lines 220,000 sg. ft.
Vancouver - 2 lines 820,000 sg. ft.
Ban Balvador - 0 lines 580,000 sg. ft.
Aveos has signed a five year contract
with ABC Aerolneas, S.A. de C.V., oth-
erwise known as Interjet, of Mexico, to
repair and overhaul all components on
its growing fleet of 24 Airbus A320 air-
craft. The agreement includes access
to an inventory pool for Interjet as well
as the placement of main base stock in
Toluca, Mexico. Aveos will also support
the development of Interjets in-house
component and repair capability. Aveos
is an MRO to keep an eye on.
8. Aveos/AEROMAN
MAINTENANCE
AFI KLM E&M provides MRO ser-
vices while also guaranteeing a whole
raft of requirements ranging from
safeguarding air safety, properly man-
aging aircraft operation, and minimizing
costs. The firm has a 75-year-plus track
record,during which it has achieved
a level of undisputed excellence in
managing large aircraft fleets. The
operating units responsible for produc-
tion place their skills in the service of
Air France-KLMs fleet as well as those
of its customers.
AFI KLM E&M has set up a com-
bined organization responsible for
strategy, marketing, business develop-
ment, sales force (present throughout
the world) and external communica-
tion.
Its airline-MRO position also guaran-
tees its independence when it comes to
choosing the most effective options for
customers engines. AFI KLM E&M is
able to get the best from its strong part-
nership with OEMs as well as to develop
alternative solutions that increase cus-
tomers benefits.
AFI KLM E&M provides:
guaranteed TAT
engineering xpertise to optimize
both costs and Mean Time Between
Removal (MTBR)
slot flexibility through its engine MRO
network
workmanship guality based on a high
skilled and experienced labour force
contract flexibility ranging from T&M
to Fixed Prices, or different kinds of
Flight Hours programs.
Engines
Measurements carried out on engines
provide daily data, allowing the AFI
KLM E&M engineering team to monitor
performance (fuel consumption, EGT
margin, oil consumption, etc.) and rec-
ommend on-wing maintenance actions.
This approach leads to increased engine
on-wing lifespan; incident prevention;
reduced engine operational and main-
tenance costs.
Drawing on its extensive operational
expertise, AFI KLM E&M can recom-
mend customized engine performance
9. AFI-KLM E&M
10. EVERGREEN
EVA Airs Engineering and Mainte-
nance Division was spun-off as an
independent corporation in September
1998 to become Evergreen Aviation
Technologies Corporation (EGAT) with
General Electric Company (GE) as an
equity partner. EGAT was tasked to
uphold aircraft maintenance quality and
promote technical flight safety while
creating adequate business value.
EGAT has since evolved into a
specialty, high business-value MRO,
undertaking mega-scale modifications
such as the Dreamlifter in partnership
with Boeing, as well as engaging in
complete Section 41 skin replacements,
Horizontal Stabilizer skin replace-
ments, and executing AOG recovery
repairs on any portion of the airframe
structure.
EGATs robust management sys-
tems and processes the Oracle-based
MRO System for engine overhauls,
corporate-wide Six Sigma deployment,
Human Resource Management, Job
Qualification, Balanced Scorecard,
Product Safety, Knowledge Manage-
ment and E-Commerce.
Commercial airlines, aircraft leasing
companies, and leading government
agencies entrust heavy maintenance
work to Evergreen Maintenance Cen-
ter (EMC). Located in Marana, Arizona,
the EMC is one of the largest full-service
commercial maintenance, repair and
overhaul (MRO) facilities in the United
States. Relativity Capital has recently
acquired EMC.
Consisting of three maintenance
hangars and a large maintenance flight
line, the Evergreen Maintenance Cen-
ter also operates the Pinal Air Park and
its 6,850-foot runway rated for Boeing
747-400 through 747-8 aircraft.
With 20 million square feet of ramp
and storage area able to accommodate
up to 400 aircraft, the EMC also holds
the distinction as the largest commer-
cial aircraft storage facility with heavy
maintenance services in the world.
Aircraft maintenance
A818, A819, A820, A821 A, B, C, D
Checks CICI and IBII BBID
Inspections AD `s and BB`s Interior
Reconfiguration Composite Repair
Aging aircraft Inspection Avionic
Modifications Aircraft Iainting
Structural Mods
Flight Line
Providing customer support for all
types of commercial aircraft:
ngine Changes Bridging Changes
A & B Checks Ilight Control Rigging
Aircraft modifications AOC Drop In
and TDY Services Team
Storage
24-hour roving security Active and
passive video and microwave perim-
eter surveillance Active maintenance
programs for stored aircraft & engines
Dry, non-corrosive environment/cli-
mate
Components
Actuator cylinders and links Avionic
eguipment / Accessories Cear Boxes
Wheels and Brakes ngine Cowl-
ings Ilight Controls Btructures
Composites Hydraulics Ineumat-
ics ngine accessories Iainting
Engine services
All Models - Boroscope Inspection,
Engine Removal & Reinstallation; LRU
Replacements.
Location:
Evergreen Maintenance Centre is
famed as the site where aircraft are
stored. The Marana, Arizona location
provides the ideal dry southwest USA
climate for aircraft maintenance and
storage.
Painting:
Whether your flight path takes your
fleet around North America or around
the world, Evergreen Maintenance
Center is your source for aircraft paint-
ing. The firms worldwide customer
base, combined with 30 years of experi-
ence in aircraft exterior painting equals
distinctive results. Contact EMC to
discuss how Evergreen Maintenance
Center can provide the finest aviation
services in the industry.
monitoring parameters.
warranties on all parts that have not
come fully up to expectations.
EUROPE
E
uropean airlines spend
$12.2 billion on mainte-
nance, which equates to
24% of the global mainte-
nance, repair and overhaul
expenditure. Eastern European and
Commonwealth of Independent States
carriers account for only $2.1 billion
of this gure, but David Stewart, vice-
president, ICF, at SH&E, predicts their
portion of this expenditure will grow
faster than the global average of 3.4%, at
a 4.7% compound average growth rate.
Meanwhile, Team SAI also foresees Euro-
pean MRO growth will stay solid, with
rms in eastern Europe leading the way.
It expects overall European growth of 4%
over the next ve to 10 years, with western
Europe, as a mature region, experiencing
3% growth. Year-to-date eet growth has
remained slightly stronger than expected,
with western Europe returning to eet
growth after recent years of decline. East-
ern Europe, meanwhile, is among the
fastest growing regions worldwide and is
forecast to gain 89% of the overall Euro-
pean market share by 2021.
European MROs are global players
in the main, and so the subject of cur-
rent market performance should be
approached with an eye on global events.
This year has brought much by way of
political uncertainty to the North Afri-
can region, which has had an efect on
MRO companies across Europe as ights
have been grounded and/or cut back. The
Egypt political crisis was a heavy blow,
with tourism to the county still nowhere
near pre-political crisis levels.
The most powerful MRO company
in Europe remains Lufthansa Technik
(LHT), and the company could be seen as
a barometer for the industry. Lufthansa
Technik chief executive August Henning-
sen spoke to MRO Global about the events
of the past 12 months: Although global
demand for maintenance, repair and over-
haul services in the rst six months in 2011
has been growing once more in a number
of regions, it has been recovering at a
slower rate than the passenger and cargo
business. The Middle East, North Africa
and Japan are all important markets for
Lufthansa Technik, and the consequences
of the political unrest and natural disasters
there are prompting revenue to shrink and
are delaying contract negotiations. Cost
pressure on airlines and growing MRO
capacities around the world mean margin
pressure in the MRO business has risen
further. The volume and structure of our
growth reect this trend. Despite the chal-
lenges posed by the market, Lufthansa
Technik grew its revenue vis--vis 2010 in
the rst half of the year.
The second half of calendar 2011 has
been a very diferent story from the rst
half. Political unrest in North Africa and
the Middle East has continued but global
economic confidence has fallen away
sharply as austerity measures take efect
across Europe and beyond. In Europe dur-
ing 2010, MROs enjoyed a strong return
to growth on the back of aircraft premium
seating upgrades, but that business has
fallen away in 2011. Despite the challenges
posed by the market and the competition,
Lufthansa Technik grew its revenue in
the rst half of 2011 compared with 2010
gures. However, it was unable to match
the previous years operating result mainly
due to provisions and revenue losses asso-
ciated with clients from the crisis-hit parts
of North Africa. Against this backdrop,
Lufthansa Technik is working on a num-
ber of projects to further improve its cost
base and its competitive position. P
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EUROPE MRO
As one would expect, the MRO busi-
ness is dependent on the fortune of the
airline business. And the aviation indus-
try is sensitive to regional or international
economical, ecological and political cri-
ses, resulting in cyclical ups and downs.
Additionally, airlines are facing strong
cost pressures due to increasing oil and
spare part prices, and rising fees and
taxes. All of this has a direct impact on
MRO businesses. The challenge is to
have a good nancial, organisational and
technical foundation in place to weather
these pressures. Henningsen sums it up:
There is a clear trend in regard to the
customisation of the MRO business. Air-
lines expect tailored service packages that
are optimised to their specic needs. Best
possible turn-around times, high quality
and minimised cost are the terms to be
fullled by the Lufthansa Technik Group.
The large, global MRO companies
based in Europe are still very much
focused on the regions that have a strong
growth in aviation, namely Asia-Pacic,
the Middle East and Africa. Western
European MROs have for some time
suffered from stiff competition from
lower-cost regions when it comes to wide-
body aircraft, which lend themselves to
undergoing heavy airframe maintenance
in far-ung locations with low labour
rates. This has led to a focus among the
European maintenance bases to service
the huge domestic narrowbody eets of
local carriers and those of North Africa.
The introduction of the European
Emissions Trading Scheme (ETS) in
2012 will both help and hinder MROs
based within the European Union.
LHTs Henningsen is sure the ETS will
have a marked impact on his business.
For our customers it will be even more
important to reduce fuel consumption
and minimise emissions than it has been
in the past. We are already working on
several research and development proj-
ects to help our customers achieve these
goals. Currently, our engine-wash system
Cyclean already helps several airlines
to run aircraft engines at lower tempera-
tures, use less fuel, and therefore emit less
CO2 and other greenhouse gases.
This is just one aspect of the story
though. The key for MROs within Europe
and the rest of the world will to become a
local maintenance provider and a global
player that is able to provide services
wherever an aircraft might be. Companies
such as LHT will be in a good position to
benet, although it also means all MROs,
including giants such as LHT, will have to
increase joint ventures with other MROs
to ensure they retain a good local presence.
One MRO that can claim to be both
the bespoke local provider and a global
player is Monarch Aircraft Engineering
(MAEL). It is perhaps a perfect tem-
plate for the MRO industry to follow
when adjusting to uncertain times. Over
a year ago MAEL was in the middle of
a resizing exercise, where some roles
were made redundant. At that time,
there were enormous pressures on the
industry, such as consolidation among
airlines. Two of MAELs key customers
consolidated, meaning that MAEL now
counts among its customers airlines
that have their own MRO shops. Mick
Adams, managing and technical director
at Monarch Aircraft Engineering, com-
ments: We faced signicant pressures
but the good news is that since that time
we have secured new business and we
have resized the business and, thanks
to our people who are absolutely dedi-
cated and loyal to our brand and values,
we have emerged stronger. Another high
is the long-term investment despite
those pressures, we have continued to
invest in systems, people and the airline
we are attached to an airline and we
understand an airline. We can absolutely
punch above our weight and back that up
with our values, our service and our qual-
ity. We are very exible. A lot of the work
we have done recently was all around
having exible working initiatives we
have a SMART team of engineers that
are ready to go in two hours anywhere in
the world. They have done 60-70 sorties
in the past year to diferent parts of the
world, rescuing aircraft etc. That scheme
is indicative of the way Monarch Engi-
neering delivers a service.
SMART is the Special Monarch Air-
craft Response Team, which can be
contracted or maybe ad hoc: Typically
it is an ad hoc service where a customer
has called in to our integrated operations
centre, says Adams. We have surprised
customers with how quick we have
responded. We have had overseas repairs,
major skin repairs, engine replacements,
engine recoveries, you name it. Origi-
nally SMART was set up for the Monarch
Airline operation but it very quickly
showed so much value and we got such a
huge amount of interest that we actively
promoted it to the marketplace. Says
Adams: We have customers that make
signicant use of it, even ones who have
their own engineering arm too. We have
also picked up a considerable amount of
maintenance work of the back of it.
MAEL has also successfully reduced
turnaround times: A-checks on nar-
rowbodies, two or three years ago had a
turnaround time averaging 2324 hours,
says Adams. Today they take eight hours
on an overnight check. The MRO under-
stands the pressures and requirements of
an airline. It knows it needs the aircraft
back in service as quickly as possible. The
responsibility of the MRO is to say to the
operator that we can do that, provided we
maintain the service, the quality, and the
standards when we deliver that aircraft.
There is a point where an MRO can do no
more, and at that point the quality of an
MROs customers comes into play.
WHERE WILL THE INDEPENDENT MRO BE
IN 10 YEARS?
The key to the future of MRO is to be
global, bespoke and part of a global net-
work through joint ventures with the
OEMs, there can be no doubt about this.
EUROPE
Fleet WE EE Total
2011 2.7% 9.9% 4.1%
2016 3.2% 6.9% 4.1%
2021 2.9% 8.4% 4.1%
Total MRO WE EE Total
2011 3.2% 9.3% 4.3%
2016 3.2% 7.5% 4.1%
2021 3.2% 8.4% 4.2%
EUROPE
Moreover, the key is to be quick to move
with the market, much like the airlines in
the US who are now able to trim capac-
ity and adjust prices at will. MROs need
to be able to meet the needs of clients in
a manner that ensures the airline or les-
sor can hold their margins. The MAEL
management team is clear. I absolutely
believe we will still be punching above
our weight, says Adams. We are small
but very bespoke, and we are not going to
take on the big guys because we are too
busy. We are not going to be distracted
from our clients by trying to compete in
all areas. In terms of market and custom-
ers, we have Boeing Gold Care and the
787 on the horizon with Thomson. We
have done in excess of 80 inputs for easy-
Jet last year. We have also completed a
maintenance contract with Cyprus Air-
ways, done by our Manchester MRO.
We are pleased about this, as previously
it had its narrowbody and widebody
contracts with diferent maintenance
providers. The way it operates and its
requirements are quite diferent to other
operators but of course no one opera-
tor is the same we are quite adaptive.
We arent so big that we dont understand
what it is they need. We want to grow
and go beyond our current territories.
The SMART team is a good example of
that marketing strategy. If you look at
the rates in Middle East shops three or
four years ago, it would have been worth
ying an aircraft down there for main-
tenance work. But the fuel costs today,
and in the near future the emissions
costs, dont make this viable. For lessors
this might be diferent as aircraft avail-
ability is absolutely key, so having slots
open to be able to do the work makes this
strategy attractive. Operators look very
favourably on MRO shops that can turn
around an aircraft in three days. Depend-
ing where the operator is located, ying
an aircraft to the Middle East could mean
losing a few days as well as fuel. So being
based in the UK, we are in a very strong
position and are backing that up with the
service delivery, quality and values.
The ETS will have an efect on all facil-
ities that require additional ights. One
facility in the ring line is Mubadala,
with its dedicated narrowbody airframe
overhaul centre in Malta. Mubadala has
halted a planned expansion of the cen-
tre in Malta for the time being because
it has been unable to attract customers
in addition to existing customer easy-
Jet. This operation was launched from a
leased two-bay hangar in October 2010,
and the intention was to build a four-bay
facility by early 2012, but this was post-
poned in January this year. And this is
while airlines were still growing.
The European MROs, like most
others, are adapting to a world where
maintenance events are becoming more
individualised and less predictable.
Overhaul events, where the aircraft is in
a hangar for up to a month, are becoming
increasingly rare, as operators try to phase
traditional D-check tasks over multiple
C-checks on modern aircraft. These usu-
ally take eight to 10 days for a narrowbody,
and involve less labour and material than
a full overhaul. This does mean the tradi-
tional model for an MRO is being ripped
apart and teams of technicians have to be
broken up to work on more aircraft. This
trend is important for airlines to note
because, as the MROs move away from
aircraft spending long hours in a hanger
with large teams, when an older aircraft
requires a structural repair the costs will
be higher as the business model of the
MRO will make this project an exception
to the norm, with the additional costs that
entails. This could especially be a prob-
lem for operators of older narrowbody
aircraft, as issues such as wing corrosion
become a regular nd at the C-check stage
and will lead to additional hanger time.
European MROs are acutely aware that
striking the right balance between team
size and skills and facility capacity are
becoming more important. As new-gen-
eration aircraft enter eets across Europe,
there is a long-term shift in the workforce
from traditional airframe maintenance
jobs such as structural technicians and
painting staf to more licensed mechan-
ics and avionics experts. SR Technics
has been at the forefront of adapting its
practices to suit clients, and its current
E-check, named due to its bespoke nature
for client easyJet, is proving to be a big hit
with UK low-cost carriers.
The elephant in the room for all MROs,
including those in Europe, is OEM mar-
ket incursion. Third-party maintenance
providers face a fundamental challenge
in the growing aftermarket inuence of
the original equipment manufacturers.
Access to construction and maintenance
documentation has become increasingly
restricted, as OEMs look to capture the
aftermarket and operate in competition
with third-party MROs and MRO data
providers alike. The OEMs have reached
a critical mass on a global scale in both
clients and support facilities, made
possible by partnerships with MRO
facilities. The move from tradition-
ally separate onboard systems towards
software-controlled components on the
787 and A380, whereby the equipment
is linked up to work as an integrated
server network, has contributed to
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Western Europe
Eastern Europe
Total
4,246
5,136
890
4,841
6,266
1,425
5,668
7,657
1,989
2011 2016 2021
EUROPES FLEET FORECASTS
EUROPE
further OEM control. It was most likely
designed to do so. The OEMs hold all
the cards to control the aftermarket
in the future. MROs, like airlines, will
become detached from what is going on
with their client eets as new aircraft
come online. Airline-affiliated MRO
providers, such as LHT or AFI-KLM
Engineering & Maintenance, still retain
a great deal of leverage at the point of
aircraft purchase and this could give
them the in-house eet knowledge on
the 787 and A380 to carry over to retain
third-party maintenance business.
The MROs will have to be a part of the
various OEM aftermarket networks, as
increasingly large, non-maintenance-
afliated aftermarket orders continue
to be captured by the OEMs.
The lessors also have to be considered
with care by the MROs. The leasing mar-
ket holds close to 40% of the global eet
and will be a strong partner for any MRO.
Lufthansa Techniks Henningsen thinks
the requirements of both, lease compa-
nies and airlines, must be met or exceeded
accordingly. Despite the fact a leased air-
craft has to have the same basic servicing
as a regular owned aircraft, there are sev-
eral circumstances that call for a specic
approach to aircraft management, he
says. These include limited ownership
(generally lease contracts can vary from
a few weeks to ve years) and the asso-
ciated short-term MRO and especially
documentation services, as well as the
occasionally incalculable state of an air-
craft used by an airline for several years.
For this reason Lufthansa Technik has
started ofering its Aircraft Leasing and
Trading Support (ALTS) service. ALTS is
an all-embracing product that recognises
and supports the dynamic behaviour of
the owners and operators of leased com-
mercial aircraft. Following an aircraft
transition, the requirements for this
aircraft are likely to change, and transfer-
ring it from one operator to another often
means far more than just changing the
cabin interior or the paint scheme on the
fuselage. Depending on aircraft age and
use, comprehensive maintenance might
have to be carried out to comply with
re-delivery conditions and certain air-
worthiness requirements in the countries
of future aircraft operators. This product
looks set to gain momentum over the
coming years.
REGULATORY CONCERNS WITHIN THE
EUROPEAN MARKET
There is growing concern that airline
outsourcing of maintenance is leading
to a lack of direct oversight and there-
fore control of maintenance activities
carried out on commercial passenger
aircraft. Engineers are on the front line
of this problem. Their job is to ensure
operational aircraft are safe and t to
y. To ensure safety is monitored objec-
tively, licensed engineers are examined
independently from their employers. On
achieving a successful examination result,
a maintenance licence is then issued. This
should provide the engineer with an ele-
ment of independence from the airline,
with the licensed engineer remaining the
only person authorised to certify an air-
craft is ready to enter commercial service
following maintenance. Although cur-
rent aviation regulations contain clear
and specic references to the respon-
sibilities of these engineers, regulators
including the European Aviation Safety
Agency (EASA) have failed to enforce
the requirement that an engineer have
the final say independently of their
employer. The result is that airlines have
been able to severely reduce the inu-
ence of licensed engineers. At this time
the non-reporting of aircraft defects and
abuse of the minimum equipment list
(MEL) is fast becoming common prac-
tice, which some commercial airlines are
supporting. This involves the reporting
of aircraft technical defects not when
they occur but rather when they become
convenient to rectify. There appears to be
no real will from regulators to deal with
this issue across the globe, even large
NAAs have allowed their oversight of
airlines to become compromised.
But the European Commission has
acted. With an increase in safety-related
ndings uncovered within European air-
lines by the Safety Assessment of Foreign
Aircraft (SAFA) programme, the Euro-
pean Union could no longer ignore the
situation. In April, the EU went public
and published German-related safety
issues in Europes airline operator black-
list. Since then, however, the Commission
has moved very slowly on the issue of nes
and penalties for breaches of aviation
safety regulations.
In the US, the FAA has been ning air-
line operators for many years now and to
great success. Large nes and the inevi-
table negative publicity act as a strong
incentive for airlines to ensure safety
is truly paramount. Airlines in the US
are named and shamed by such actions
and this can only be in the best interests
of both the passenger and safety. So the
ongoing EU consultation into introduc-
ing a similar system in Europe is welcome,
but there are concerns the process has lost
momentum, and many engineers remain
sceptical the 2008 EU whistleblower pro-
tection legislation will save them if they
turn on their employers.
0
5
10
15
20
25
Western Europe
Eastern Europe
Total
$11.6
$13.7
$2.2
$13.6
$16.9
$15.9
$20.7
$3.4
$4.8
2011 2016 2021
EUROPES MRO FORECASTS (US$MILLION)
EUROPE
Based in the UK and at several inter-
national locations, Monarch Aircraft
Engineering (MAEL) is an award-win-
ning MRO ideally placed to provide
value-adding aircraft maintenance and
engineering solutions to include heavy
maintenance, line maintenance, design
services, engineering and consultancy.
The MRO can also ofer full component
support, and Part 147 technical training
for Airbus and Boeing aircraft types.
Monarch Aircraft Engineering has
had a highly successful 2011, having
secured a number of large long-term con-
tracts for MRO services, including a deal
with Thomas Cook Scandinavia for heavy
maintenance support of the Airbus A321
C-checks, which also included embodi-
ment of Rear Spar Corrosion Service
Bulletins. Jens Elm Nielsen, technical
director for Thomas Cook Scandinavia,
said: We are delighted that Monarch
Aircraft Engineering has demonstrated
it is able to provide us with a high-quality
maintenance service at excellent value.
Despite a buoyant year, Monarch Air-
craft Engineering saw its ambitions of a
home eet of 787s end in 2011 when sis-
ter airline Monarch Airlines cancelled
its long-delayed order in the third quar-
ter. The business does not have much
to worry about, however, as the MRO
has been an approved Boeing GoldCare
maintenance provider since 2009, and
this success places the business in a strong
position for the future. Monarch Aircraft
Engineering was selected by Boeing as
the airframe MRO supplier for GoldCare
launch customer TUI Travel with its 13
787s, and is the only Boeing GoldCare-
approved supplier in the UK.
UK-based Thomson Airways is one of
four TUI group airlines due to operate
the 787. Thomson was created follow-
ing the merger of Thomsony and First
Choice, which in 2007 became the rst
787 customer to publicly state it intended
to sign up for the GoldCare package. The
other TUI subsidiaries now scheduled
to receive 787s, plus the full GoldCare
maintenance, engineering and material
management package, are Sweden-based
Tuiy Nordic, Belgium-based Jetairy
and Dutch carrier Arkey.
Boeing says the TUI group is to begin
taking delivery of 787s in 2012. Imple-
mentation of the GoldCare service will
begin about 12 months prior to delivery.
For each of its 787s, TUI has committed
to GoldCare for 12 years, which is when
the rst heavy check for the 787 will be
required. As Boeing continues to roll out
GoldCare across the aircraft range, Mon-
arch Aircraft Engineering will continue
to work on building capability for the
additional GoldCare types.
HEAVY MAINTENANCE
Heavy maintenance, from A checks up
to heavy C and D checks on Boeing and
Airbus family aircraft, are carried out at
Monarch Aircraft Engineerings hangar
facilities at London Luton and Manches-
ter International airports.
With a highly experienced and
motivated team, the MRO is ideally
positioned to meet all heavy mainte-
nance requirements. Since the business
was established in 1967, MAEL has
conducted many thousands of heavy
maintenance checks, major modica-
tion campaigns and complex structural
repairs for clients around the globe. More
recently, Monarch Aircraft Engineering
has formed a team of specialist engineers
who have completed more than 100 Rear
Spar repairs for its customers.
LINE MAINTENANCE
Line maintenance is carried out across
the globe, with permanent stations
established at London Gatwick, London
Luton, Birmingham International, Man-
chester International, Malaga, Alicante,
Canary Islands, Kiev, Goa and the Mal-
dives, where line maintenance technical
handling is carried out on Boeing 737CG,
B737NG, B757, B767, B777, Airbus
A300-600, A300B4, A310, A320 family
and A330 aircraft.
Monarch Aircraft Engineerings base
at Male in the Maldives has had a great
Q3 2011, having been selected for a line
maintenance technical handling agree-
ment with XL Airways France. The
agreement sees the business continue to
provide support for the French airlines
eet of Airbus A330 aircraft from its line
station at Male International airport in
the Maldives. This technical handling
agreement will take place throughout the
winter season, when XL Airways France
will operate ights to Male from Charles
De Gaulle. Patrick De Mare, line mainte-
nance manager for XL Airways France,
said: Our extension of this agreement is
testament to Monarchs professionalism
and the rst-class service it provides. We
look forward to its continued support in
the Maldives this winter. In September
the same line station also signed a tech-
nical handling agreement with Alitalia
to provide full maintenance support for
the Italian based airlines Airbus A330
aircraft operating out of Male in the
Maldives. Agrimi Alessandro, manager
of line maintenance, sales and procure-
ment for Alitalia said: Monarch Aircraft
Engineering has provided us with a cost-
efective maintenance solution, which
suits our business needs.
In September, Monarch Aircraft
Engineering secured a line maintenance
technical handling agreement with Turk-
ish Airlines. The agreement sees the
MRO provide support to the Turkish
operators twice-weekly ights into Gat-
wick for its Airbus A310 freighter eet.
Osman Ozdilek, line maintenance out-
station manager for Turkish Airlines said:
This agreement reects Turkish Air-
lines decision to strengthen our working
relationship with Monarch and we look
forward to its continued support.
Monarch Aircraft Engineering
EUROPE
Monarch Aircraft Engineering has
also this year extended its line mainte-
nance technical handling agreement
with Aer Lingus. The agreement sees
the business continue to provide support
to the Irish ag carriers eet of Airbus
A320s at its line stations in Gatwick.
Dominic Ryan, director of maintenance
and engineering for Aer Lingus said: We
are delighted to be continuing our ongo-
ing working relationship and extending
this line maintenance agreement.
DOWN ROUTE AOG SUPPORT
AND RESCUES
With a large number of line maintenance
clients and its sister Airline Monarch,
Monarch Aircraft Engineering is acutely
aware of the signicant impact to air-
line operations and revenues when AOG
events are not responded to immediately.
The business has created a Specialised
Monarch AOG Response Team (SMART)
comprising highly qualied engineers
who are available 24/7 and are armed
with the necessary tools and equipment
to carry any AOG or specialist support
requirements. This service is available on
demand and is managed through Mon-
archs Integrated Operations Centre.
Since introduced, SMART has been dis-
patched on more than 60 occasions to 17
diferent countries, and the rescues have
ranged from a routine test or basic com-
ponent change, to engine changes and
major structural repairs, in some of the
toughest locations.
COMPONENT SUPPORT
Monarch Aircraft Engineering has a
team of experts who can advise clients
about the benets of contracting for full
component and material support across
both Airbus and Boeing aircraft types.
With an extensive component inventory
with both EASA and FAA certication
it is able to provide power-by-the hour
programmes or single unit loans and
exchanges. Through its consulting divi-
sion, it can also provide expert advice on
initial provisioning strategies.
COMPONENT MAINTENANCE CENTRE
Situated at its London Luton and Man-
chester facilities, Monarch Aircraft
Engineering has established a mod-
ern Component Maintenance Centre.
The facility has a full range of special-
ist tooling and test equipment and can
provide services for mechanical, avion-
ics, safety equipment and engines. The
Composite capability is MRO leading
and a key area of growth for the future
as new technology aircraft enter into
service. The Component Maintenance
Centre turn times lead many other sup-
pliers, thus assisting with the supreme
on-time performance Monarch Aircraft
Engineering continues to deliver to its
customers. Whether an individual com-
ponent repair or a long-term contract to
support operations, MAELs highly moti-
vated and exible workforce can provide
a cost-efective maintenance solution.
ENGINEERING SERVICES
Monarch Aircraft Engineering, with its
highly skilled workforce, can assist air-
line operators with a multitude of eet
support solutions, including planning,
technical records, technical service sup-
port, reliability management, engine
trend monitoring, and warranty and
consultancy service, to name but a
few. As an approved Part 21J Design
organisation it has built up an enviable
reputation for modication design on
many diferent aircraft types. The design
capability coupled with the extensive
Part M engineering knowledge and
capability lends itself to a full turnkey
solution for operators who have to ex
and change the eet congurations and
sizes to meet todays very demanding
and changeable market.
TECHNICAL TRAINING
Monarch Aircraft Engineerings tech-
nical training facility has gained a
worldwide reputation for its continu-
ing high standards providing full EASA
Part 147 B1 and B2 courses and Part
66 category A basic training. Its highly
skilled and professional instructors
are approved under Part 147 by the UK
Civil Aviation Authority and are able to
complete the training in Monarchs own
facilities if preferred, at the clients own
facilities worldwide.
To ensure instructors remain at the
forefront of aviation technology and to
support the companys status as a Boeing
GoldCare provider, they have attended
and completed the rst EU-based EASA-
approved Boeing 787 training courses,
and will now begin to develop this train-
ing capability in-house.
Next year will be equally busy for
Monarch Aircraft Engineering as it seeks
to develop other revenue opportunities
in support of the growing customer
base. When asked how the company can
help clients get through these worry-
ing times, sales and marketing director
Ian Bartholomew commented: We are
committed to seeing our customer oper-
ations succeed and working closely with
them, we challenge non-value-adding
processes and nd innovative ways of
working together. We are now seeking
out opportunities with potential cus-
tomers in two of the largest emerging
markets, developing new and increasing
revenue streams from training, technical
consultancy, spares trading and engi-
neering services management.
HOW CAN POTENTIAL CUSTOMERS
BENEFIT FROM AN AGREEMENT WITH
MAEL OVER COMPETITORS?
Bartholomew says: Monarch Aircraft
Engineering is an airline MRO and as such
we are acutely aware of the needs of an air-
line operator, and we really know what an
AOG or return-to-service delay means in
terms of cost and passenger impact. We
are located at major airports in the UK
and overseas, and we can ofer a fully net-
worked total MRO management solution.
We are also sized to meet the demands
of large customers and not too big to be
unable to adapt to smaller operators. We
are nimble, dynamic and innovative and
can ex our services to suit.
In exceptionally tough times for our
industry, Monarch Aircraft Engineering
has demonstrated it can provide cost-
efective and innovative solutions for its
customers and is determined to develop
and grow the business as it enters into
the next phase of its long-standing
history.
"Nonarch A|rcraII Eng|naar|ng
|s an a|r||na N and as such
Wa ara acuIa|y aWara oI Iha
naads oI an a|r||na oparaIor,
and Wa raa||y |noW WhaI an
A or raIurn-Io-sarv|ca da|ay
maans |n Iarms oI cosI and
passangar |mpacI."
EUROPE
Lufthansa Technik is one of the leading
manufacturer-independent providers of
maintenance, repair, overhaul and modi-
cation services in the civil aviation industry.
With tailored maintenance programmes
and state-of-the-art repair methods, LHT
ensures the unbroken reliability and avail-
ability of its customers eets.
Walter Heerdt, LHTs senior vice-
president for marketing and sales, says:
Lufthansa Technik has survived the last
economic and nancial crisis relatively
well through increases in efciency, high
use of exible working hours and pro-
cess innovations. The Lufthansa Technik
Group comprises more than 30 subsid-
iaries and joint ventures in Europe, Asia,
North America and Australia. It has two
joint ventures with OEMs: N3engine over-
haul services (with Rolls-Royce, based in
Arnstadt, Germany) is a maintenance and
repair facility for large Rolls-Royce turbo-
fan jet engines; and Airfoil Services Sdn
Bhd ((ASSB), with MTU Aero Engines),
which is specialised in repairing high-
pressure compressor blades and vanes as
well as low-pressure turbine blades.
Heerdt says: LHT has developed a
very comprehensive monitoring and sup-
plier management to avoid delays in parts
delivery. We are following a proactive and
transparent information exchange with
our suppliers regarding volume and use of
parts for on-time delivery. Additionally,
together with our subsidiary Lufthansa
Technik Logistik we have created an efec-
tivesupply chainfor aglobal provision with
spare parts. Heerdt is bullish on future
growth for the MRO market. We thinkthe
MRO market will further increase in the
next years including the business withsur-
plus parts, as the use of surplus parts
enables the operators to save costs. In the
end it is an individual strategic and eco-
nomic decision of the specic operator if
and how muchit will go this way, he says.
But he also admits further consolida-
tion is expected. Despite new entries,
we see an ongoing consolidation process
in the MRO industry. The introduction
of new aircraft generations and engine
types is combined with high investments
in infrastructure, tools and employee
training and complex questions about
intellectual property. These challenges
can only be handled successfully by MRO
providers operating globally and at a
certain scale, having the ability to tailor
packages to individual needs.
LHT is looking to further grow its
market share through the launch of
new MRO services for the B748, B787,
EMB190 and A380.
As Lufthansa is one of the rst cus-
tomers for the new Airbus A320neo
series, Lufthansa Technik will defi-
nitely extend its MRO capabilities to
this type of aircraft in the coming years,
Heerdt says. From the base maintenance
side, Lufthansa Technik has recently
launched a new T-product (T for total
the product is ofered by LHT for every
kind of MRO service) called TBS Total
Base Maintenance Support. The TBS is
especially designed to make base mainte-
nance easier for eet operators, and ofers
a broad range of included and optional
sub-products as well as diferent nanc-
ing models to better suit each operators
nancial situation or preferences.
Lufthansa Technik
COMPANY FACILITY LOCATIONS
Lufthansa Technik AERO Alzey GmbH,
Alzey, Germany
Lufthansa Technik AG, Hamburg,
Germany
Lufthansa Technik Airmotive Ireland,
County Dublin, Ireland
Lufthansa Technik Brussels,
Steenokkerzeel-Melsbroek, Belgium
Lufthansa Technik Budapest , Budapest,
Hungary
Lufthansa Technik Intercoat GmbH,
Kaltenkirchen, Germany
Lufthansa Technik Maintenance
International,
Frankfurt Airport, Germany
Lufthansa Technik Malta,
Luqa, Malta
Lufthansa Technik Milan,
Somma Lombardo (VA), Italy
Lufthansa Technik Philippines,
Pasay City, Philippines
Lufthansa Technik Sofa, Sofa, Bulgaria
Lufthansa Technik Switzerland
Basel, Switzerland
AIRFRAMES SERVICED:
- A300, -600
- A3l0
- A3l8, A3l9, A320, A32l
(including Airbus
Corporate Jetliner)
- A330
- A340
- A380
- 737CL, NG (lncludlng
Boeing Business Jet)
- 747
- 757
- 767
- 777
- 787
- MD-ll
- MD-80
- Avro P1/8Ae l46
- Lmbraer Legacy
- Lmbraer l35/l45
- Gulfstream
- 8ombardler Challenger,
Learjet, Global Express
- Dassault Palcon 1et
- Cessna Cltatlon
- Lockheed 1etstar
- Paytheon Hawker
- |A| westwlnd
- Sabrellner
- Saab 2000
APUS SERVICED:
- APS 2000
- APS 3200
- Pw90lA
- GTCP85
ENGINES SERVICED:
- CP6-80C2, CP6-80Ll
- CP34-3/-8/-l0
- CPM56-2C/-3/-5A/-58/-
5C/-78
- Trent 500/700/900
- P82ll-535L4
- Spey/Tay
- 1T9D-7/-7A/-7P/-71/-7Q,
1T9D-59A/-70A
- Pw4000
- Pwl50
- Pwl00
- |ALv2500-A5/-D5
- ALP507/LP502
EUROPE
MTU Maintenance provides custom-
ers with service packages and one-stop
solutions for all current engine types of
practically all thrust categories. Its line
of service includes the maintenance of
commercial engines and component
repair. Its portfolio is rounded out by
comprehensive additional services, such
as engine leasing through its e.pool ser-
vices. The MTU maintenance segment
operates afliates in Germany, Canada,
China and Malaysia.
Because of its near 80 years of experi-
ence on the Iberia eet and for third
parties, Iberia Maintenance increas-
ingly is exploring ways to help customers,
keeping not just costs but also eforts to
a minimum on airframe heavy main-
tenance, engine overhaul, component
maintenance and field maintenance.
Moreover, Iberia Maintenance provides
essential, sector-specic services custom-
ised to t client needs and budget.
With almost 4,000 experienced techni-
cians and engineers, Iberia Maintenance
provides a wide array of MRO solutions,
from relatively simple options to the more
complex ones.
In every Iberia Maintenance service
there are hundreds of hours dedicated
to improve process, reduce turnaround
times, increase force efectiveness and cut
down on logistics and engineering man-
agement expenses.
With the new aviation environment
and the expanding globalisation of the
MRO industry, Iberia Maintenance has
updated its management and technical
services, gearing them towards developing
concrete solutions to help clients dene
maintenance plans and ensure efciency.
The installation of the SAP system
for complete management has been very
successful.
STATS AT A GLANCE:
t36. miIIion lhird-arly lurnover
2uu,uuu sq m MRO faciIilies
More lhan 8u years` exerience
AImosl 1uu inlernalionaI lhird-arly
customers
Around 4,uuu emIoyees
Seven hangars, lwo dedicaled for
painting
Engine lesl ceII caacily: 1uu,uuu Ibs.
More lhan u,uuu comonenls
repaired a year
CaabiIily Iisl incIudes more lhan
3,000 components with 14,000 P/N.
2u,uuu arls numbers in slock
AIRFRAME MAINTENANCE SERVICES
Almost 150,000 m2 gives Iberia Main-
tenance space to perform a wide range
of airframe maintenance. The facilities
include the necessary back-up shops such
as safety equipment, structural repair,
wheels and brakes, galleys, interiors,
painting, marking and labelling provid-
ing services in material processing for
wide- and narrowbodies.
Iberia Maintenance offers seven
complete production lines for heavy
maintenance checks and two dedicated
hangars for painting, marking and label-
ling works.
It handles a wide range of temporary
and permanent hole and dent repairs on
wing and in shop from diferent com-
posite and metallic parts in fuselage
and ight controls. It also ofers refur-
bishment, ageing aircraft and corrosion
prevention programmes.
Portable and xed oxygen cylinders, re
MTU Maintenance
Iberia Maintenance
ENGINES SERVICED
CF6-50, CF6-80C2, CFM56-7, V2500,
Pw2000, Pw6000, CP34-3/-8/-l0L, PT6A,
Pw200, Pw300, Pw500, |ndustrlal Gas
Turbines LM 2500, LM5000, LM6000, CF6-
50, CPM56-3, v2500-A5, CPM56-3/-58/-7.
ADDITIONAL AIRCRAFT SERVICES
MAJOR TOPICS:
Minor checks: A
A310
A3l9/A320/A32l
A330
A340-300/-600
B707
B757
B767
MD80s
Major checks: C, overhaul and struc-
tural
A3l9/A320/A32l
A330
A340-300/-600
B707
B757
MD80s
Gulfstream
Palcon 20/Palcon 900
Hercules C-130
P3 Orion
Emergency equipment (available in
stock)
Slide ramps
Fire extinguisher cylinders
Slide raft and door cylinders
Oxygen cylinders
wheel and brakes (avallable ln stock)
Painting, marking and labelling

(temperature and humidity computer
controlled hangar)
Major modifcation of avionics and

interiors
Composites
Cabin interiors
MTU MAINTENANCE HANOVER,
LANGENHAGEN, GERMANY
The Langenhagen facility is the cen-
trepiece of the MTU Maintenance group.
It is responsible for the maintenance
of medium- and large-size commer-
cial engines. These include the General
Electric CF6-50 and CF6-80C2, Pratt &
Whitney PW2000, International Aero
Engines V2500 and CFMI CFM56-7.
Comprehensive service oferings comple-
ment the companys line, such as engine
leasing, 24-hour AOG service, training
and Total Engine Care. The location is
MTUs centre of excellence for high-tech
repairs, which is busy developing novel
repair techniques.
EUROPE
extinguishers, slide raft and door cylinders
can be recharged immediately.
Furthermore, its seven day/24-hour
AOG service provides the most efec-
tive and exible support on emergency
service.
LINE MAINTENANCE
Iberia Maintenance knows every minute
that an aircraft is on ground represents a
loss of potential airline revenue and how a
skilled workforce is absolutely necessary in
reducing downtime for line maintenance.
It provides line maintenance services
at Barajas Airport (Madrid-Spain) and
in strategically located centres around
the world.
Precision repairs and testing is per-
formed by highly skilled technicians.
Furthermore, it ofers to dispatch emer-
gency teams of expert mechanics to any
location around the world, another ex-
ible and very afordable alternative.
Iberia Maintenance technicians are
very aware of the aircrafts needs and are
very proud when a customer is satised.
FULL LINE MAINTENANCE COVERAGE
Pre-ight
Transit
Daily
Service
Weekly
A-checks
On-call requirement/support
On-wing support
Full member of Line Maintenance
Organisations
IATP
International Airlines Technical Pool
ELMO
European Line Maintenance
Organisation
POWER PLANT MAINTENANCE SERVICES
The engine repair centre assist custom-
ers in the design of customised services to
suit any specic requirements. The repair
centre is integrated in Iberia Mainte-
nance global maintenance network.
Occupying an area of 52,560 m2, Ibe-
ria Maintenance provides MRO services
for the RB211-535E4, RB211-535C37
CFM56-5A1/-5B/-5C4/-7x, CF34-3A1/-
3B1, JT8D-217/-219 engines and a full
range of engine accessories, in accordance
with its capability list.
ENGINE FULL OVERHAUL:
RR RB211-535E4
RB RB211-535C37
RR PEGASUS MK 150/-152/-157
CFMI CFM56-5A/-5B/-5C
CFMI CFM56-7B
GE CF34-3A1/-3B1
PW JT8D-217/-219
Iberia Maintenance is one of Europes
maintenance providers that is still grow-
ing. Recently, it added CF34-3A1/-3B1 to
its maintenance portfolio (which already
includes CFM56-5x /-7x, RB211-535E4
and JT8D-217/-219).
Each operator has its own unique
engine maintenance requirements. Expe-
rienced and highly trained technicians
and engineers are committed to giving
customers the highest quality service and
spare parts support in the industry.
The focus is on parts repair wherever
possible to avoid costly replacements.
By employing an efcient workforce
and developing the most productive
maintenance workscopes, Iberia works
to improve on-wing durability and reduce
non-scheduled events or requirements.
To ensure a competitive service the
company has committed to reduce unfore-
seen turnaround time.
Iberia Maintenance provides MRO
and engineering services for engine,
APUs, power-generation systems and
associated accessories and thrust reverses.
Iberia Maintenance has a 100,000 lbs
test cell capacity.
APU FULL OVERHAUL
GTCP85-98DHF (MD80)
GTCP36-300 (A320)
131-9A (A320)
MAJOR TOPICS:
Full overhaul including parts repair
Engine lease pool
LRU pool
On-wing support
Engine trend monitoring
Work scope preparation
Full range of engine services
Round-the-clock spare parts service
Test cell capacity: 100,000 lbs.
EUROPE
TAP Maintenance & Engineering (TAP
M&E) is the MRO organisation of TAP
Portugal, the Lisbon-based operator,
which provides maintenance and engi-
neering services in aircraft, engines and
components. TAP M&E is duly certied
by several aviation authorities among
which are the FAA and EASA.
Since the foundation of TAP, in 1945,
TAP M&E has been responsible for the
maintenance of its entire fleet, pres-
ently with more than 50 Airbus aircraft.
In the 70s TAP started providing ser-
vices to third-party customers this now
accounts for more than half total revenue.
The long-term involvement with a
commercial operator made TAP M&E
aware of the importance of on-time deliv-
COMPANY FACILITY LOCATIONS
Brussels
Paris
Dinard
Bordeaux
Nlmes
Merseille
Moscow
Monastir
Koweit
Singapore
Papeete
Noumea
Phoenix
Miami
Louisville
Martinique
AIRCRAFT SERVICED
Airbus A300 B2-B4, A300-600, A310,
A319CJ, A320 family, A330, A340, C-160
Transall, 8oelng 8707 TCA, 8737 CG/NG,
8747/8747-700, 8757, 8767, DC-8, DC-9,
DC-10, KDC-10, MD-11, MD-80, MD-90,
ATP 42, ATP 72, 8Ae l46, 8Ae P1 85/l00,
Bombardier Canadair CL-415, Dash 8,
CP1 l00/200, CP1 700, Twln Otter, Das-
sault Falcon 20, Embraer ERJ 135, ERJ
145, Xingu, Fokker F70, F100, Grum-
man Tracker, Lockheed Martin C-130
Hercules
TAP M&E
Sabena Technics
LINE MAINTENANCE
Important platforms providing services
24 hours a day, seven days a week include
Brussels and Paris Charles de Gaulle, as
well as numerous outstations adaptable
to customers needs.
LIGHT MAINTENANCE
Modern hangars and expert technicians
across numerous sites provide quality
and proximity services with, if necessary,
the assistance of the infrastructure the
rms heavy maintenance activities ofer.
HEAVY MAINTENANCE
Sabena Technics benets from a pool of
expertise specialising in regional, Airbus
and Boeing aircraft heavy maintenance
services. Sabena Technics service ofer-
ing and centralised slot management
system enable it to ofer unrivalled ex-
ibility and adaptability tailored to the
customers needs.
MODIFICATIONS AND UPGRADES
Sabena Technics benefits from the
experience of a strong engineering
department, an EASA Part 21J design
ofce and an EASA Part 21G product
ofce, providing an array of la carte
modication and upgrade services.
Recent projects include rst and busi-
ness class cabin modications and IFE
upgrades, VIP cabin modications and
implementations of ATC/TCAS.
ery of products (aircraft, engines and
components) and services. TAP M&E is
therefore committed to ofer its custom-
ers cost-efcient maintenance with short
turn-around times and high quality and
reliability standards.
TAP M&E Brazil has the most up-to-
date MRO technologies including the
only Inertial Navigation System in Latin
America, one of the ve Grifon GTW-U3
cylindrical milling machines in existence
in the world, and a horizontal Gemini
GE-1600S lathe, which can machine very
long parts for the landing gears repair
services.
The company is certied to maintain
the entire Boeing line 727, 737Classics,
737NG, 747, 757, 767, 777, BBJ, MD11
and DC10, Embraer EMB120 (Bras-
lia), ERJ 135, ERJ 145, EMBRAER 170,
EMBRAER 175 and EMBRAER 190,
EMBRAER 195 and Legacy 600 and
Lineage, Airbus A300, A300-600, A310,
A320, A330 and A340.
SERVICES OFFERED INCLUDE:
Daily and overnight checks
Components overhaul
Engineering projects with technical
support
Interiors projects and overhaul
Avionics systems and installations
projects
Airframe repair, projects and
improvement
A, B, C and D checks
EUROPE
AFI KLM E&M provides MRO services
while also guaranteeing a whole raft of
requirements ranging from safeguard-
ing air safety, properly managing aircraft
operation, and minimising costs. The
rm has a 75-year-plus track record,
during which it has achieved a level of
undisputed excellence in managing
large aircraft eets. The operating units
responsible for production place their
skills in the service of Air France-KLMs
eet as well as those of its customers.
AFI KLM E&M has set up a combined
organisation responsible for strategy,
marketing, business development, sales
force (present throughout the world)
and external communication.
Its airline-MRO position also
guarantees its independence when
it comes to choosing the most effec-
tive options for customers engines.
AFI KLM E&M is able to get the best
from its strong partnership with OEMs
as well as to develop alternative solu-
tions that increase customers benets.
AFI KLM E&M PROVIDES:
guaranleed TAT;
engineering exerlise lo olimise
both costs and Mean Time Between
Removal (MTBR);
sIol exibiIily lhrough ils engine MRO
network;
workmanshi quaIily based on a highIy
skilled and experienced labour force;
conlracl exibiIily ranging from T&M
to xed prices, or diferent kinds of
ight hours programmes.
ENGINES:
Measurements carried out on engines
provide daily data, allowing the AFI
KLM E&M engineering team to monitor
performance (such as, fuel consumption,
EGT margin, oil consumption) and rec-
ommend on-wing maintenance actions.
This approach leads to increased engine
on-wing lifespan; incident prevention;
and reduced engine operational and
maintenance costs.
Drawing on its extensive operational
expertise, AFI KLM E&M can recom-
mend customised engine performance
monitoring parameters.
AFI-KLM E&M
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EUROPE
Turkish Technic is the provider of main-
tenance, repair and overhaul operations
primarily to the Turkish Airlines eet in
its existing facilities at Istanbul Ataturk
International Airport. It also provides
services to various customer airlines from
Turkey and surrounding countries.
The years of experience earned within
the existing technical facilities, combined
with the developed and well-qualied
labour force, the strategic location and the
increasing market demand has pushed
Turkish Technic to setup a new MRO
facility. The new facility will be located at
the Sabiha Gken International Airport,
an area reserved for the set-up of an inter-
national MRO centre, which is around
70 kms away from the existing facilities
located at Istanbul Atatrk International
Airport, Yesilky. The geostrategic loca-
tion of the new facility will enable the new
maintenance centre to reach to Euro-
pean, Asian, North African and Middle
Eastern MRO markets, as well as the
Turkish market.
The new international maintenance,
repair and overhaul centre project and all
the investments by Turkish Technic within
Sabiha Gken International Airport, are
named as the Habom Project (Havaclk
Bakm Onarm ve Modikasyon Merkezi
in English the Aviation Maintenance,
Repair and Overhaul Centre).
THE HABOM PROJECT
During the establishment of the business
plan for the Habom Project investment,
the Turkish Technic project team has
worked together with world-renowned
consulting firms and established a
feasibility study to assess the various
opportunities, market demand and
required investments to meet those
demand for the establishment of this new
international MRO centre. As a result
of these studies, the new international
maintenance centre is designed to be a
full service provider for both narrowbody
and widebody aircraft, by doing heavy
maintenance, engine and components
maintenance. The maintenance centre
will be established as a centre-of-excel-
lence, having full capacity for specic
types of aircraft for which the projections
indicate quick eet growth and increas-
ing outsourcing rates.
The estimated total investment
requirement for the airframe and com-
ponent maintenance centres on the
whole is around US$500 million. By the
year 2020, Habom is estimated to gen-
erate a $1 billion share of the airframe
and component maintenance segments.
Turkish Technic will be the permanent
shareholder of the Habom Project.
Besides that, Turkish Technic is aiming
to establish these new investments as an
international joint venture with the par-
ticipation of a leading global company or
companies. With this new investment,
Istanbul will be the maintenance hub of
the region within a short time period.
Airframe maintenance centre facilities
at Sabiha Gken International Airport
will have a total 372,000 m2 area. There
will be approximately 3,500 employ-
ees within the maintenance, repair and
overhaul centres established within the
Habom Project.
All the facilities that will be constructed
within the scope of the Habom Project
are environmentally friendly designs that
will provide maximum energy savings.
FOREIGN PARTNERSHIPS
Turkish Technic aims to establish inter-
national joint ventures with potential
partners that are leaders and global play-
ers in their segment and that will bring
with them the desired technology and
know-how. As a result, a joint-venture
Turkish Technic
agreement was signed with Pratt & Whit-
ney on January 8, 2008. Pratt & Whitney
is one of the most important OEMs in the
engine segment and a strong player in the
engine aftermarket.
The company also signed a memoran-
dum of understanding with Goodrich
Aerostructures on November 8, 2007 to
establish a joint-venture company on the
nacelle and thrust reverser maintenance,
repair and overhaul segment. Goodrich
Aerostructures is the leading OEM in this
area. Negotiations on the joint-venture
agreement with Goodrich Aerostruc-
tures are ongoing.
Considering the growth trend in the
Turkish aviation industry, and the quickly
growing eets of the other airlines, the
total aircraft number within Turkey is
estimated to be over 300 within a short
time period. Adding the highly increas-
ing aircraft numbers of the surrounding
region leads up to the idea of establishing
a completely new maintenance centre at
the heart of these emerging markets.
Habom Project, as a newly established
and a totally customer-oriented mainte-
nance centre, will aim to serve the aircraft
belonging to various surrounding coun-
tries. One unique feature of the Habom
Project area is that a circle drawn with
a radius of three-hours ight distance
centred at Istanbul includes 55 coun-
tries. This ensures many opportunities
for doing MRO business at the Habom
Project area with the establishment of a
greeneld facility.
EUROPE
HEAVY MAINTENANCE DIRECTORY - EUROPE
COMPAN CONTACT DLTA|LS AIRCRAFT CHECKS FACILITIES SPEC. CAPABILITIES
Aeroplex of
Central Europe
|mre Nemcsok
Business development director
PO Box 186
Budapest
Ferihegy International Airport
H-1675
Hungary
Tel: +36 1296 7214
Fax: +36 1296 7218
E-mail: marketing@aeroplex.com
737
767
A320-family
P70/l00
A-D
A-C
A-C
A-C
2 w/b
6 n/b
7,253 m2
CPCP, Agelng a/c mods, |nterlors,
Refurbishments, Composite repairs,
Sheet metal work, Phase-ln/-out (lncl.
lease returns), Engineering services,
Loglstlcs support, NDT
airberlin technik
(Part of the
Air Berlin Group)
Steven wllllams
Head of Technical Sales
Flughafen, Halle 8
40474 Dsseldorf
Germany
Tel: +49 178 94 18 444
Fax: +49 211 94 18 5847
www.airberlin-technik.com
737
757
767
A319
A320
A321
A330
A340
A-C
A-C
A-C
A-C
A-C
A-C
A-C
A
Dsseldorf, Munich
Base Maintenance facilities
3 Hangars approx. 45,000m2
Component support, Engineer-
ing mgmt, Design & modifcation,
Technlcal tralnlng, NDT, Sheet metal
work, Modifcations, Structural re-
pairs
Airbus Freighter
Conversion GmbH
Lars Becker, CEO
Grenzstr. 1a
01109 Dresden
Germany
Tel: +49 351 8839 1400
Fax: +49 351 8839 1499
E-mail: info@afc.aero www.afc.aero
A320
A321
6 n/b A320P2F and A321P2F passenger-to-freighter conversion
with integrated maintenance checks
Air France Industries -
KLM Engineering
& Maintenance
Rob Pruim
VP sales international
PO 8ox 7700 (SPL/TQ)
1117 ZL Amsterdam Airport Schiphol
The Netherlands
Tel: +31 6 51535504
Fax: +31 20 6488044
Email: rm.pruim@klm.com
737 (incl. BBJ)
747
767
777
A320-family
ACJ
A330
A340
A380
BAE146
CRJ 100-700
LP1 l35/ l45
L-l70/ l90
P70/l00
MD-11
A-D
A-D
A-C
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-C
77 bays
7 industrial sites
Exteriors, Cabin modifcations, Con-
fguration changes, Post-delivery
programmes, Phase-ln/-out (lncl.
lease returns), Engineering services,
Avionics upgrades, Technical train-
ing, Logistics support, Global
operational & maint. Support
Alitalia Compagnia
Aerea Italiana
Fleet Maintenance
Services
Fabio Schinelli
Marketing, sales
& contracts management
Leonardo da Vinci Airport
00054 Fiumicino
Italy
Tel: +39 066543 3050
Fax: +39 066543 2117
E-mail: mro.sales@alitalia.it
767
777
A320-family
A330
DC-10
MD-11
MD-80
A-S8C
A-C
12-yr
Light Maint.
A-D
A-D
Light Maint.
700,000m2
4 hangars wlth 5 w/b and
l2 n/b
40 workshops
Engine test cells
Training centre
Avionics upgrade, Composite re-
palrs, NDT, Landlng Gears, Structural
repairs, Cabin interiors refurb. and
rework, Plating processes
ATC Lasham Nlgel 8ruce
Sales manager
ATC Lasham Ltd
Lasham
Southend Hampshire
England
727
737 (incl. BBJ)
757
A320-family
AR ops sub part GU34
5SP
A-D
A-D
A-D
A-C
160,000ft2 (Lasham)
4 n/b
140,000ft2 (Southend)
4 n/b
Avionics upgrades, Corrosion con-
trol, JAR 147 eng. Training, Lasham
& Major airframe & component
manufacture & overhaul, Major
modifcations, M tech manage-
ment NDT
Austrian Airlines Technik Pobert wanek
MD ATM (marketing & sales)
Airport base
A-1300 Vienna Airport
Austria
Tel: +43 5 1766 63838
Fax: +43 5 1766 65115
E-mail: technik@austrian.com
webslte: www.austrlantechnlk.at
737
767
777
A3l9/320/32l
A330
A340
CP1l00/200
P70/Pl00
Global Express & Chal-
lenger
A-C
A-C
A-C
A-C
A-C
A-C
A-C
A-C
A-C
v|L: 3 hangars (w/b)
24,000m2
workshops
Training Center
8TS: l hangar (n/b)
workshops
Avlonlcs upgrades, NDT, Sheet
metal, Comp. maintenance,
Classroom & pract. training (Part
147), Design engineering (Part 21),
Executive Jet Maint.
Cargolux Airlines
International
Tony Arcone
Mgr, maint. sales & cust. svcs
L-2990 Luxembourg Airport
Luxembourg
Tel: +352 4211 3290
Fax: +352 4211 3441
E-mail:tony.arcone@cargolux.com
737
747
757
767
A-C
A-C
A
A
New double bay 747 hangar
full back shop supp. Capabs
Avionics upgrades, Composite
repairs, Struct. repairs & CPCP, Modi-
catlons, world. AOG support
Cimber Air
Maintenance
Centre
Tony Baubof
VP maintenance
Lufthavnsvej 2
DK-6400 Snderborg
Denmark
Tel: +45 7412 2366
Fax: +45 7443 2458
E-mail: gar@cimber.dk
737NG (8lllund faclllty)
ATP 42/72
CRJ200
A
A-D
A-D
7 bays
6600m2 hangar
ATP42/72 cargo conv, |nterlors, Avl-
onics upgrades, VIP upgrades, CPCP
MRO Directory: Europe
EUROPE
CSA Czech Airlines Ondrej Konyvka
Director aircraft heavy maintenance
Hangar F, Praha Ruzyne
International Airport
160 08 Praha 6
Czech Republic
Tel: +420 2 2011 4118
Fax: +420 2 3309 6766
E-mail: ondrej.konyvka@csa.cz
737
A310
A320
ATP 42/72
A-D
A-C
A-D
A-D
l w/b
6 n/b
12,400m2
Avionics upgrades, Composite re-
pair, Struct. repairs & CPCP, Interiors,
Sheet metal work, Landlng gr o/
haul (737), 737-800 winglet mod.,
Modifcations
European Fred Hilgeman
Director
Hamersveldse weg 84A
3833 GT Leusden
The Netherlands
Tel: +31 33 434 3040
Fax: +31 33 494 8101
E-mail: fgh@steltenberg.nl
737
757
767
A320-family
A330
A340
A-C
A
A
A-C
A-C
A-C
Amsterdam - Paris
Chateauroux - Lisbon
Madrid
On-wing eng. support Maintenance,
Eco engine wash Solutions, Disman-
tling of aircraft, Painting
Finnair Technical
Services
Mikko Koskentalo
Manager, Sales & Marketing
Finnair Technical Services
Helsinki-Vantaa Airport
01053 Finnair
Finland
Tel: +358 9 818 6233
Fax: +358 9 818 67
E-mail: mikko.koskentalo@fnnair.f
757
A320-Family
A340
ATP 42/72
L-l70/l90
MD-11
A-D
A-D
A
A-D
A-C
A-D
2 w/b
3 n/b
Strlp/palnt/labelllng/marklng, Sheet
metal shop MU/83, Composlte rep.
shop, Platlng processes, NDT, Cabln
lnt. refurb/mods, Structural reps/
mods, DOA engineering Technical
training, Logistics support AOG Desk
24H, Avionics shop Engine, APU &
LDG shop & testlng. wheels & brakes
Fokker Services Stephen Hands
VP marketing and sales
PO Box 3
Aviolandalaan 31
4630 AA Hoogerheide
Netherlands
Tel: +31 164 618 642
Fax: +31 164 618 666
E-mail: stephen.hands@stork.com
737
A320-family
ATP 42/72
CRJ
ERJ 145
F27
F28
P50/60
P70/l00
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
l2 med. slze a/c
B.V. Hangar
Avionics upgrades, Structural
repair, Component repair, Logistics
programmes
Hapag Lloyd
Fluggesellschaft mbH
Uwe Kopelke
Manager Sales & Contracts
Flughafenstrasse 10
30855 Langenhagen
Germany
Tel: +49 (0)511 97 27 275
Fax: +49 (0)511 97 27 611
E-Mail: Uwe.Kopelke@tuify.com
737-300
737-400/500
737NG
A320-family
A
A-D
A-D
A
2 hangars
Two base maint. bays
Four line maint. bays
NDT Approval, Component
workshops, Cabin interior, Sheet
metal workshop, Major system and
structure modifcation, Part-21
approval
Iberia Maintenance Ignacio Diez
Commercial director
Madrid Barajas Airport, La Munoza
Edifcio Motores 1a planta
28042 Madrid
Spain
tel: +34 915 875 132
Fax: +34 915 874 991
E-mail: maintenance@iberia.es
www.iberiamaintenance.com
707
757
A310
A3l9/320/32l
A330, A340
MD-80
Falcon 20
Falcon 900
Gulfstream
C130 Hercules
P3 Orion
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
7 hangars
ll w/b
9 n/b
2 general workshops
1 painting hangar
Cargo conversion, Composite repairs
& surface treatment, CPCP, Logistic
support, Strlp/palnt, labelllng/
marking, Sheet metal work, Insula-
tlon blankets, NDT test, Upgrades,
Cabin & interior mod., Post delivery
progrms, Engineering services, Tech-
nical training, Global operational &
maint. Support, Avionic upgrades,
EASA design organization, Inventory
mgmt
Icelandair rn Ingibergsson
Customer services
Maintenance Centre
235 Kefavik Airport
Iceland
Tel: +354 4250 142
Fax: +354 4250 188
E-mail: orning@icelandair.is
737 Classic
737NG
757
767
A-D
Line maintenance
A-C
A-C
1 hangar
2 bays 12.500m2 (incl back-
shops)
repairs, CPCP, Sheet metal work
Jat Tehnika d.o.o
(Jat Technics Ltd.)
Radoslav Ilic
Director, mktg, sales & contracts
Alrport Nlkola Tesla 59
11180 Belgrade
Serbia
Tel: +381 11 2280 115
Cel: +381 63 8199 412
Email: radoslav.ilic@jat-tech.rs
727
737
ATP 42/72
DC-9
A-D
A-D
I
A-D
3 hangars
5 bays n/b , 3 bays w/b
35.000m2
(incl backshops)
Modifcations, Aircraft ageing
programs, Corrosion prevention &
protection, Interior repairs, Struct.
lnspect. & repalrs, Strlp/palnt, Avlon-
ics upgrades Engine maintenance
Component maint.
Jet Aviation AG Michael Sattler
SVP & accountable Mgr for
Basel & Geneva bases
PO Box 214
CH-4030 Basel-EuroAirport
Switzerland
E-mail: jbsl@jetaviation.ch
707/720
727, 737 (incl. BBJ)
747, 757, 767
A310
A320-family (incl. ACJ)
A330, A340
Challenger
Global Express
Learjet, Gulfstream
Dassault Falcon
Hawker
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
7 hangars
60,000m2 (incl backshops)
Avionics, Composite repairs, CPCP,
Strlp/palnt, |nterlors, v|P comple-
tions, Sheet metal work
EUROPE
Lufthansa
Technik AG
Robert Gaag
Dir. Central Europe
weg belm 1aeger l93
22335 Hamburg
Germany
Tel: +49 40 5070 2590
Fax: +49 40 5070 8866
E-mail: marketing.sales@lht.dlh.de
737 (incl. BBJ)
747
757
767
777
A300/300-600, A3l0
A3l9/320/32l/AC1
A3l9/320/32l/AC1
A340
Avro RJ
CRJ
LP1-l35/l45
MD-11
MD-80
Saab 2000
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-C
A-D
l6 n/b, 6 w/b, 3 P1,
3 dedicated painting bays
Structural mod
Lufthansa Technik (HAM)
Agelng a/c mod/CPCP
Lufthansa Technik (SXF)
Shannon Aerospace (SNN)
Insulation blankets
LT Budapest (BUD)
LT Malta (MLA)
LT Sofa (SOF)
LT Switzerland (BSL)
LT Malntenance |nt/l (PPA)
Coop. w. Austrian Ailines (VIE)
Coop. w. Croatia Airlines (ZAG)
Avionics mod, Sheet metal work,
Design & modifcation, Freighter
conversions, Tanker conversions,
Thrust revr & nacelle overh., Cust.
eng servlces, NDT test, Strlp/palnt
Embraer, Interior completion,
Cabin refurb, VIP & corporate refurb,
|nternet-on-board lnstallns, |PL/
satcom Support structure, Airline
support teams, Technical training
Labelllng/marklng
Marshall Aerospace Michael Milne
Director of marketing & bus. dev.
Marshall Aerospace
The Airport
Cambridge
CB5 8RX
England
Tel: +44 1223 373737
Fax: +44 1223 373373
mick.milne@ marshallaerospace.com
747
767
777
A3l9/320/32l
DC-10
MD-11
L-1011
L-l00/C-l30
BAe 125-700
Cessna Cltatlon 550/650
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
6 w/b
l5 n/b
1.2m m2
Conversions, design svcs, Engineer-
ing services, Installation services,
|nt. mods & recongns, NDT, overhs,
paint remov., Project mgmnt, recov-
ery, Renovations, repairs, support,
Logistics, technical pubs, Training,
fying, Manufacture & assembly of
airframe & components Design &
manuf. of long-range fuel tanks
MNG Technlc Volkan Eser
Marketing manager
Ataturk Havalimani B Kapisi
Teknik Hangar Binasi
esllkoy-|stanbul 34l49
Turkey
Tel: +90 212 465 06 86
Fax: +90 212 465 06 99
E-mail: volkan.eser@mngtechnic.com
727
737
757
A300
A3l9/320/32l
DC-9
MD-80
A-D
A-D
A-D
A-D
A-D
A-D
A-D
2 w/b
4 n/b
5,000m2
Supply & loglstlcs Alrcraft, wheel
& break unit shop Maintenance,
Emergency equip. shop Ser-
vices, Compressed cylinder, valve &
regulator shop, Cabin interior, Paint
shop, Hydraullc Shop, NDT works
Structural works, Composite repair
Avionic works
Monarch Aircraft Derek Gibson
Engineering Commercial director
London Luton Airport
Luton
Beds. LU2 9LX
England
Tel: +44 1582 398 764
Fax: +44 1582 706 984
E-mail: enquire@maelbox.com
737
757
767
A300-600/A30084
A3l9/320/32l
A330
line
A-D
A-D
A-D
A-D
A
5 w/b
8 n/b
repalrs, CPCP, |nterlors, Strlp/palnt,
Sheet metal work, Line mainte-
nance, EASA 145 Part J, (Design)
EASA Part M
OGMA Mario Lobato Faria
Aviation Services VP
2615-173 Alverca
Portugal
Tel: +35l 2l 958 l000/957 9000
Pax: +35l 2l 958 040l/l288
E-mail: geral@ogma.pt
web: www.ogma.pt
A320-family
ERJ-145-family
L-l70/l75/l90
C212 Aviocar
C-l30/L-l00
Legacy 600
Lineage 1000
P-3
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
139,000m2 Fleet management, Avionics modi-
fcations, Calibration, Components,
Engineering services, Hydrostatic
testing, Aerostructures manufactur-
ing, Airframe assembly Composite
manufacturlng & reps, Machlnlng/
platlng NDT, Strlp/palnt, Sheet metal
Saab Aerotech Johan Claeson
Sales mgr, aircraft maintenance
SE-581 88 Linkping, Sweden
Tel: +46 13 18 3102
Fax: +46 13 18 5115
johan.claeson @sat.saabgroup.com
Saab 340
Saab 2000
A-D
A-D
6 n/b Aircraft inspections, Composite
repairs, Modifcations, Painting,
Refurbishments
Sabena Technics
TAT Group
Damien Erceau
SVP Sales & Marketing
Tour Maine-Montparnasse BP 47
33 Avenue du Maine
75755 Paris Cedex 15
France
Tel : + 33 1 56 54 42 30
Fax : + 33 1 43 21 70 91
737
757
767
A300
A310
A320-family
A330
A340
A-D
A-C
A-C
A-C
A-D
A-D
A-C
A-C
Hangars for 23 aircraft
across Europe
Landlng gears, wheels & brakes, Dry
strlpplng/palntlng, Components
shops, Test nacelle equipment, Lo-
gistics centre, Cabin refurbishment,
Cockpit upgrade
SAS Tech Birgitta Hogman
SE-19587 Stockholm
Sweden
E-mail: birgitta.hogman@sas.se
www.sastech.net
737
A320
A330
A340
MD-80, MD-90
A-D
A-D
A-D
A-D
A-D
2 n/b Avionics upgrades
Shannon Aerospace Paul Murray
Head of Marketing and Sales
Shannon Airport
Shannon, County Clare
Ireland
Tel: +353 613 70006
Fax: +353 613 61020
E-mail: paul.murray@sal.ie
737
757
767
A3l9/A320/32l
DC-9
MD-80
A-D
A-D
A-D
A-D
A-D
A-D
5 maintenance bays
plus 1 paint bay
32,000m2
CPCP, Strlp/palnt, LASA & PAA
145 repair stn Interiors, Avionics
upgrades, Cargo conversion, Com-
posite repairs, Lease end transitions,
Technical & engineering services,
Line maintenance, EASA 147 train-
ing school, 767 BS955 mods & reps,
A320 rib 5 modifcation
SR Technics Peter Kamenz
Executive VP Sales & Marketing
PO.Box
CH-8058, Zurich Airport
Switzerland
Tel: +41 43 812 11 88
Fax: +41 44 810 97 98
E-mail: peter.kamenz@srtechnics.com
737
747, 757
767
777
A300-600, A310
A320-famlly/A330, A340
F100
MD-11
A-D
A
A-D
A
A
A-D
A
A-C
6 w/b
7 n/b
2 n/b A-check bays
4 n/b casualty bays
Composite repairs, Int. refurbish-
ment, Comp. repr & overh., Modifca-
tions, Repairs, Sheet metal work,
NDT, CPCP, Avlonlcs upgrade, thrust,
|PL/sltcom, Deslgn organls. appr.,
Pleet & lnventory mgt, Strlp/palnt re-
verser and nacelle overhaul, Engine
overhaul/test cell
EUROPE
TAP Maintenance
& Engineering
Carlos Ruivo
VP marketing and sales
P.O. Box 50194
1704-801 Lisboa
Portugal
Tel: +351 21 841 59 75
Fax: + 351 21 841 59 13
E-mail: marketing.me@tap.pt
727,737,747,767,777
A300-600
A310
A320-family
A330, A340
DC-10
MD-11
Embraer 120
Embraer 145
Legacy
F50, F100
L-1011
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
A-D
8 w/b
l0 n/b
53,380m2
Composite repairs, CPCP, Interiors,
v|P, Strlp/palnt, Sheet metal work
TAROM Lorin Dumitrescu
Deputy Technical Director
8ucharest |nt/l Alrport Henrl Coanda
Calea Bucurestilor nr. 224F
Otopeni Town, County of Ilfov
Romania
Tel: +40 21 201 4549
E-mail: l.dumitrescu@tarom.ro
737
A320-family
ATP 42/72
A-nC
A-C
A-nC
l w/b
3 n/b
Strlp/palnt, Sheet metal work, Ma[or
structural mods, Major avionics
mods
Turkish Airlines Technic Dr._smail Demir
General Director
Maintenance Center (Bakim Merkezi)
Ataturk Airport (B Kapisi)
esllkoy-|stanbul 34l49
Turkey
Tel:+90 212 465 25 74-75
Fax:+90 212 465 25 57
E-mail: isdemir@thy.com
737
A300
A310
A320-family
A330
A340
Avro P1l00/70
Gulfstream GIV
A-D
A-D
A-D
A-D
A-D
A-D
K-D
A-D
2 hangars
Hangar No.l: 25,000 m2
Hangar No.2: 60,000 m2
Avionics upgrades, Comp. mainte-
nance, Test/rep./ovh./callb., Com-
posite repairs, CPCP, SSIP, Engine
& APU, overhaul/test cell, |nterlors,
Modifcations technical training,
Landing gear overhaul Painting,
HMU repair
737NG MAINTENANCE
W
he n Bo e i ng
l aunched t he
7 37 NG pr o -
gramme, one of its
design targets was
a 15% reduction in maintenance costs.
With that in mind, the new models
designers worked to reduce part counts,
and increase commonality among
models, improve the corrosion detec-
tion, enhance fault identication and
improve accessibility. Boeing also used
state-of-the-art 3D computer mod-
els with maintenance access solids to
reserve space for parts access, removal
and installation.
The main landing gear assembly
was simplied and brake change time
reduced by 30%, engine removal and
installation time was cut by more than
50% and the auxiliary power unit was
redesigned for improved access and
maintainability. The electronics and
equipment bays were also redesigned,
and built-in test equipment (Bite) inter-
faces were made more consistent and
user-friendly. Increased seals between
critical parts and protective finishes
were added to prevent corrosion. A
digital cabin pressure control system
used fewer mechanical parts than the
analogue system it replaced, while
improved Bite capability increased mean
times between unscheduled remov-
als (MTBUR) by around 75%. Mean
time between failures of ight deck sys-
tems was improved by more than 60%
through a combination of reliability,
redundancy and Bite.
The wing of the 737NG has 30% fewer
parts than its 737 Classic predecessor,
with leading-edge panels designed to
make access easier.
Other changes that helped reduce
the scheduled maintenance workload
included the trailing edge ap-drive sys-
tem. This now uses grease lubrication
instead of an oil reservoir: in conjunction
with the application of corrosion-resis-
tant steel in place of the original chrome
plating, the new design enables the
High tech, low maintenance
Boeing designed the new generation 737 with a reduced scheduled maintenance
workload in mind. MRO Global takes a look at the various features of the new design and
the cost- and time-saving benefits they provide
scheduled maintenance interval to be
extended from 20,000 to 75,000 ight
cycles, in line with the wishes of airlines.
Redesigned air conditioning packs that
use air instead of ball bearings, similarly,
dispense with the need for oil servicing.
At the same time, the maintenance
steering group MSG-3 Rev 2 process uses
737 Classic maintenance and reliability
data to optimise maintenance intervals
for each task and allow operators to
group them in suitable packages rather
than specifying the content of each let-
ter check. There are new fault reporting
and fault isolation manuals, along with
an enhanced structural repair manual.
Documents are available digitally on
CD-ROM, via the portable maintenance
aid software tool and on the MyBoeing-
Fleet website. New training courses have
been developed to help mechanics make
better use of these information sources.
Boeing states that early in-service
experience confirmed the new series
is delivering substantial maintenance
savings. In its second and third years of
service (1999 and 2000), aggregated air-
frame maintenance costs for the 162-seat
737-800 compiled from US Department
of Transportation data were nearly 10%
lower than those for the 147-seat -400
in total, and 18% lower per seat. IATA
data indicates overall costs for the 737-
700 are almost 14% lower than those for
the -300. A joint review by Boeing and
a European operator identied an 18%
reduction in actual maintenance costs
for the year to June 1999.
A study carried out in the mid-2000s
by the University of Westminster for
Eurocontrol attempted to quantify
maintenance costs in order to estab-
lish the costs resulting from aircraft
sufering technical delays at the gate.
It suggested that by the end of the last
decade the maintenance cost per block
hour for a 737-800 was in the range of
$500670, compared with $690900
for the -300, $710930 for the -400 and
$570770 for the -500.
The now large and still growing
737NG eet has led Lufthansa Technik
to extend its 737NG support capabilities
gradually in line with eet increases. It
now carries out heavy maintenance at
Shannon Aerospace in Ireland, Ameco
in Beijing, Budapest in Hungary and
Soa in Bulgaria, as well as C-checks at
Berlin-Schoenefeld and other locations.
The engine on the 737NG is the CFM56-
7. This is overhauled at Hamburg, at
Lufthansa Technik Qantas Engineering
in Melbourne, and at Lufthansa Technik
Airmotive Ireland. Landing gear over-
haul is provided by subsidiary Hawker
Pacic in Los Angeles and London, in
addition to the Hamburg and Beijing
shops and others. There is also mainte-
nance and overhaul of airframe-related
components such as engine cowlings,
and the company deploys airline sup-
port teams for quick aircraft on ground
(AOG) support and on-wing trouble-
shooting.
The 737NG will continue to increase in
number over the next two decades, with
the greatest growth being experienced
by low-cost airlines in the Asia-Pacic
region. The regions biggest MRO, Sin-
gapore Technologies Aerospace, ofers
integrated MRO services for the 737NG
that range from airframe maintenance
and modication, to component and
engine repair, and overhaul including
engineering and technical services. ST
Aerospaces airframe maintenance and
modication capabilities include heavy
maintenance (C and D) checks, corrosion
prevention and control programmes,
and ageing aircraft inspections and
modications. Close co-operation with
the original equipment manufacturers
enables the company to ofer 737NG cus-
tomers maintenance solutions based on
actual OEM data. ST Aerospace already
has a materials services agreement and
an engine overhaul support agreement
with engine manufacturer CFM. Its
CFM56-7B capabilities include on-wing
and spare engine support, engine lease
programmes, engine sale and lease-back
programmes, and engineering support.
The company also ofers maintenance,
repair and overhaul of a wide range of
737NG components, including landing
gears, along with component exchange
services on demand from an extensive
component and rotables inventory for
aircraft on-ground situations.
As part of an integrated service ST
Aerospace can ofer customised solu-
tions to t the operational requirements
of a wide range of customers with very
diverse needs: Fixed fee per ight hour
schemes, integrated services and cus-
tomised solutions are ofered with ST
Aerospaces maintenance-by-the-hour
(MBH) programmes for the 737NG
engines and components all of which
have been popular over recent years.
Customers who have signed up for MBH
programmes for 737NG include AirAsia,
China United Airlines, Jeju Air, Primera
Air, SAS and Xiamen Airlines.
Having 737NG facilities located in
the key aviation hubs across the globe
means operators are assured of con-
sistent service standards, whether in
Asia-Pacic, Europe or the Americas. ST
Aerospace and Lufthansa Technik were
once among the only MROs to have full
global networks, but with the advent and
expansion of the Boeing GoldCare net-
work for the 737NG with joint ventures
with MROs across the globe, airlines are
able to obtain complete global cover-
age for their aircraft maintenance needs
more readily and at less cost. Boeing
ofers a growing range of support options
for the 737NG, ranging from parts sup-
ply to support for electronic logbooks
hosted on electronic ight bags (EFBs).
As well as maintaining what it claims
is the industrys most comprehensive
spare parts sales and distribution net-
work, Boeing ofers repair, overhaul and
exchange services covering avionic and
hardware components. Its global airline
inventory network programme manages
the supply chain for expendable airframe
parts, and materials management solu-
tions are ofered under the integrated
materials management (IMM) pro-
gramme. IMM is intended to relieve
airlines of the burden of purchasing,
inventory management and logistics of
expendable aircraft parts: Boeing and
its suppliers, which include Hamilton
Sundstrand and Honeywell, own the
parts, which are stored near an airlines
base and paid for only as they are used.
737NG MAINTENANCE
"8oa|ng sIaIas IhaI aar|y
|n-sarv|ca axpar|anca
conI|rmad Iha naW sar|as
|s da||var|ng subsIanI|a|
ma|nIananca sav|ngs. IATA
daIa |nd|caIas ovara|| cosIs Ior
Iha 737-700 ara a|mosI 14%
|oWar Ihan Ihosa Ior Iha -300."
737NG MAINTENANCE
In 2006 Boeing spent $2 billion on the
acquisition of Aviall, until then one of the
biggest independent providers of parts
and aftermarket service, to enhance and
accelerate the IMM programme.
Boeing and KLM Engineering &
Maintenance (KLM E&M) established
the 737NG component services pro-
gramme (CSP) in 2005, following the
formation of a similar programme for
the 777 with Air France Industries in
2003. KLM E&M already provided
base maintenance for the 737NG, and
overhauled 737 landing gears and the
CFM56-7. The CSP, located alongside the
partners joint spares distribution centre
near Amsterdam Schipol, makes a pool
of high-value components available to
members, reducing their inventory and
repair costs by as much as 30%. By 2009
the 737NG CSP was supporting a global
pool of around 200 aircraft. Airframer
and MRO have equal shares in the inven-
tory: Boeing manages the repair of its
own proprietary parts, and KLM E&M
handles the rest.
Boeing has also been developing a
component repair and leasing services
network, which covers 737NG com-
ponents such as nacelles and landing
gear. Both Spirit AeroSystems and the
Goodrich Aerostructures service cen-
tres in Singapore and Scotland provide
nacelle component repair and overhaul
services.
In 2008 Boeing extended the landing
gear overhaul and exchange programme
initially established for the MD-11 in
1997 to include the 737NG, among other
models, with Messier Services Asia,
SR Technics and Guangzhou Aircraft
Maintenance Engineering (Gameco) as
737NG MAINTENANCE
service providers. Fiji-based Air Pacic
became the rst 737NG operator to sign
up the programme in April 2007.
Beyond material management and
component exchange, Boeing has also
embarked on many MRO joint ventures.
Boeing Shanghai Aviation Services, in
which the airframer has a 60% stake, is
one such venture that has been awarded
FAA repair station certication.
Having introduced digital manuals
and other maintenance aids with the
737NG series, Boeing has broadened
the scope of its electronic-enabled port-
folio to include a variety of additional
services. The maintenance performance
toolbox, for example, consists of a suite
of web-based tools available through
MyBoeingFleet that help manage tech-
nical documentation and records. The
rst six modules cover authoring, library,
structures, systems, tasks and training.
The rst three of those provide access
to updated maintenance data such as
manuals and catalogues, give users the
ability to customise the information
and support the development, approval
and management of task cards. Airlines
and MROs, including Ryanair, South-
west Airlines and Turkish Technic have
all been signed up for some time now.
Enhancements over recent years include
the ability to integrate with parts provi-
sioning systems, on-demand training
and additional engineering tools that
will enable operators to evaluate alter-
native courses of action.
Also available via MyBoeingFleet is
the now-vital Airplane Health Man-
agement (AHM) maintenance decision
support capability, which collects, moni-
tors and analyses real-time data such as
maintenance messages and ight deck
efect faults from the aircraft condition
monitoring system (ACMS) to determine
current and predicted serviceability.
Automatic notication of issues identi-
ed in this way is sent to operators. On
the 787 this facility is key, and the sign-
up by Boeing at point of order to AHM
has been impressive. AHM also collects
data from EFB-equipped aircraft, which
has a growing number of 737NG users
for the Class 3 (built-in) EFB more com-
monly found on the ight deck of the
777, but in March 2009 Boeing revealed
it had reached an agreement with Ester-
line CMC Electronics to provide Class 2
(that is, installed but removable) EFB
hardware, initially on the 737NG and
subsequently on other models for both
production and retrot. As well as the
CMC PilotView hardware, Boeing is
offering end-to-end integration with
commonality across EFB classes. Many
Class 2 providers ofer no integration,
leaving it to be done by the airline. This
can add unanticipated cost, and increase
technical and schedule risk, but the Boe-
ing EFB solution is fully integrated, with
Boeing support throughout the lifecycle
of the product.
Where the original EFB was an elec-
tronic repository of the information
normally carried in paper form, its func-
tionality has been expanded to include
an electronic logbook (ELB) applica-
tion. The ELB is rapidly replacing paper
logs and in the process is also enhancing
operators ability to plan unscheduled
maintenance ahead an aircrafts arrival,
co-ordinate logbook data with aircraft-
generated maintenance messages, and
extend AHM capabilities beyond the
ACMS function to encompass other
types of faults.
MIDDLE EAST MRO
A
strategic axis shift in
trade routes has fuelled
the growth of air trans-
portation in the Middle
East, particularly the
Gulf countries. The aggressive emergence
of the Middle East Airlines on the global
aviation industry has been a notable
development for many established play-
ers. Emirates, Qatar Airways and Etihad
Airways the Big Three Gulf carriers are
changing the dynamics of international avi-
ation and have quickly emerged as the new
global challengers. The regions airports are
being developed in tandem to handle the
exponential trafc growth that is forecast.
The development of the Middle East
region as an aviation hub has lead to a
major shift in the global air transport mar-
ket as the Middle East carriers, particularly
the Big Three, have altered the way trafc
ows have been routed. A paradigm shift
has materialized that has transplanted
European and Asian hubs to Gulf-based
hubs such as Dubai, Doha and Abu Dhabi.
These carriers are largely responsible for
this growth and have capitalized on their
geographical centricity by cannibalizing
the traditional trafc ows between other
hubs and by connecting secondary cities
as a result of exercising their sixth freedom
trafc rights using their hub and spoke
network. Approximately 4.5 billion people
reside within an eight-hour ight of the
Middle East, providing a huge potential to
connect that population to any city though
a single stop.
The Arab Air Carriers Organization
MIDDLE EAST MRO
"N|dd|a EasI carr|ars,
parI|cu|ar|y Iha b|g Ihraa, hava
a|Iarad Iha Way IraII|c I|oWs
hava baan rouIad"
ity on order that poses the major threat to
established European and Asian airlines.
The Big Three airlines have specic
long-term strategies guiding their success-
ful business models. They essentially are
network carriers that use a hub and spoke
mechanism to collect short haul trafc into
long haul operations through their respec-
tive mega hubs. They ofer one of the best
in-ight products as full service airlines to
attract the high-yield customers. They have
continuously stimulated demand through
continuous brand awareness campaigns.
And they have a much lower cost struc-
ture due to labour policies diferent than
the West and an abundance of labour from
South Asia and Arab countries outside the
Gulf.
The most signicant strategy of these
carriers has been capitalizing on their
MIDDLE EAST MRO
$0.0
$4.0
$6.0
$8.0
$10.0
$14.0
AP CH IN ME LA&C EE NA WE AF
C
o
m
m
e
r
c
i
a
l

J
e
t

A
i
r
c
r
a
f
t

R
e
t
i
r
e
d $12.0
$2.0
$16.0
2010 2011
APAC CHINA
MIDDLE
EAST
INDIA
$6.6 $2.4 $0.6 $2.4 $1.9 $1.8 $13.9
16% 6% 1% 6% 5% 4% 33%
5.3% 9.6% 9.4% 5.3% 6.6% 9.8% 1.6%
LATIN
AMERICA
EAST
EUROPE
NORTH
AMERICA
Global CAGR
4.4%
Market ($B)
Market Share
(2010)
CAGR
(2010-20)
NILE EA8T I8 A 8LI wTh EIh Ah I8 8hE 8Y 8NE F ThE 8ThE8T wTh EIh8
lists 25 airlines at its members covering the
entire Arab World. Yet it is the rise of Emir-
ates, Etihad Airways and Qatar Airways as
the fastest growing full service airlines that
is the most spectacular.
Emirates is the dominant carrier with
Qatar Airways and Etihad Airways com-
bined being 70% of its size. Together these
airlines currently operate a eet of 303 air-
craft (EK-155, QR-91, EY-57) and have a
further order book of 470 aircraft (EK-190,
QR-182, EY-98). These airlines are forecast
to increase their capacity by more than 15%
per year over the next ve years. The Big
Three have 57% more long-haul seat capac-
ity on order than the 35 member carriers
of the Association of European Airlines
(AEA) and 27% more than the 17 member
airlines of the Association of Asia Pacic
Airlines (AAPA). It is this increased capac-
strong hub and spoke network model in
a region with a geocentric potential of 4.5
billion people in an 8-hour ight radius.
Emirates started the unique insight that it
was theoretically possible to connect any
two signicant cities on the planet with
only one stop in Dubai. Emirates strategy
is to provide connecting long-haul services
via its hub in Dubai, connecting city pairs
worldwide with only one stop in Dubai.
Both Qatar Airways and Etihad Airways
also follow this model.
The competitive cost structure at these
airlines also helps. Fuel and labour cost are
the two most signicant operating costs
for any airline, but the Gulf carriers enjoy
advantageous positions in both. Fuel is
cheaper in the region due to its proximity to
oil production and rening facilities, which
reduces their supply chain costs compared
MIDDLE EAST MRO
ME
12%
AF
13%
EE
12%
Asia
63%
ME
12%
AF
10%
EE
14%
Asia
64%
2010
6,913
2011
8,995
5.4%
CAGR
Lh TEN FLEET wTh Lk8 8LI E8PE0IALLY F TAET EIh8
to European, American or Asian airlines.
Their young eet age also helps keep their
fuel costs as the latest generation aircraft
burn fuel much more efciently. Low labour
costs exist, as workers are sourced from the
cheap labour markets of India, Pakistan, Sri
Lanka, Bangladesh and Nepal. The man-
agement friendly labour laws, with trade
unions and strikes being banned, has also
helped keep the costs of skilled labour low.
This has been a huge advantage in running
a labour-intensive operation such as the
massive transit hubs at Dubai.
Each airline has succeeded in elevating
their brand to an international level to stim-
ulate customer demand in line with their
global aspirations. Emirates, Etihad and
Qatar Airways are all devoting a huge bud-
get to their brand awareness campaigns in
a bid to position themselves as full-service
carries and generate sales throughout the
world. Global advertising and sport spon-
sorships are being used extensively by these
carriers to carry their marketing message.
Emirates has in particular been very prolic
in the range of world sports that is sponsors
as a brand. In fact it would not be far from
the truth to say that it would like to become
the Coca Cola of the airline world.
It is not surprising that each of these air-
lines is part of a broader city master plan for
growth in the world and reects the New
New World order as well as the New Mari-
time Silk road. The airports in the cities of
Dubai, Doha and Abu Dhabi are playing
a signicant role as prominent stops in
international trade routes. And they are
stimulating this through the growth of their
airlines and respective hub airports.
The Arabian Gulf had the luxury of being
able to start with a blank piece of paper to
create the airline and the airport infra-
structure model. They formulated a plan to
prepare for the post-oil era by diversifying
their industrial base, and aviation was an
important sector. The development of the
mega-hub airport is inuencing the growth
of cities through industrial development,
relocation of corporate headquarters, light
manufacturing, international conferences,
trade shows, sporting events, increased
tourism and the growth of a logistics and
distribution hub. By integrating these
cities into global trade markets, their gov-
ernments have positively impacted their
economic prosperity. Dubai certainly was
the pioneer of this model as its oil supplies
dwindled and it raced to integrate itself into
1,000
1,500
2,000
2010 2015 2020
B
i
l
l
i
o
n
s
500
2,500
ME
AF
EE
Asia
ME
AF
EE
Asia
ME
AF
EE
Asia
A8N wTh
FLEET wTh FE0A8T AT 6.9% 0A T 12,219 Ih 10 YEA8 (46% F L8AL FLEET)
NE FLEET I8 0NPAA8LE Ih 8IZE T AF Ah EE 8T I8 EXPE0TE T hAVE NE TAFFI0
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global trade markets before the oil ran dry.
This is the reason why it currently enjoys a
lead over Doha and Abu Dhabi as an avia-
tion hub.
Another development has been the
rise of low-cost carriers that are capturing
the boom in point-to-point budget travel
with the region. The success of Air Arabia,
Fly Dubai, RAK Airways in UAE, Jazeera
Airways in Kuwait, Bahrain Air in Bahrain
MIDDLE EAST MRO
North America
Western Europe
Eastern Europe
South America
Africa
Asia Pacifc
Middle East st Ea ddle
and NAS Air in Saudi Arabia, have clearly
show that the market for air travel has
grown to unprecedented levels. The low
fares have stimulated many people to
y that previously would not have own
at all or as frequently. The rise of these
carriers has further given the region a
stamp of approval as one of the leading air
transportation markets in the world today.
Airlines in the Middle East have huge
eets and have a surge of new aircraft
deliveries coming in. This is keeping them
focused on their main business of air trans-
portation. And they are using cost saving
measures in other areas such as engineer-
ing to outsource work to external parties.
Thus they are outsourcing contacts of
maintenance work to established MROs
which creates more work potential in the
Middle East region.
The new trend is for these MROs to
provide a package of customized services
for airlines that addresses all their line and
base maintenance needs in order to win
their business.
TeamSAI is an aviation consulting rm
providing strategic and tactical solution in
MRO. During MRO Middle East exhibition
in 2011 the company presented research
that showed prots have been pretty elusive
for aftermarket companies in the region so
far but a lot of positive developments have
taken place in preparation for the coming
growth in maintenance work. In the next
ten years, the total aftermarket spend base
in the Middle East, including air transport,
military, business aviation and civil helicop-
ter, is expected to grow substantially. The
total will grow from $7 billion in 2010 to
$11.2 billion in 2019 showing a 5.3% annual
increase, according to gures presented by
Aerostrategy. MROs and airline mainte-
nance companies are therefore expanding
in preparation for such a high growth rate.
Currently Mubadala Aerospace in Abu
Dhabi is working in partnership, through
its subsidiary Abu Dhabi Aircraft Tech-
nologies, with GE and the Engine Alliance
on engine maintenance, and SR Technics
bringing the rst network overhaul pro-
vider approved by OEMs to the region.
Mubadala Aerospace is also creating a
military MRO in Al Ain called Ammroc
Advanced Military Maintenance Repair
and Overhaul Centre that is supported by
Sikorsky. The focus on companies in the
region continues to be eet performance of
aircraft in operation. However, the Middle
East can play a vital role as a hub for aircraft
maintenance for the region covering Africa,
Middle East and Australasia. As the fastest
growing aviation region, this presents an
enormous economic potential.
As the central location, Middle East
is ideally situated to capitalize on the
area growth
37% of the global MRO market sur-
rounds the ME
$15.4B in 2010
Regional CAGR is a very healthy 6.7%
(2010-2020)
Market is equivalent to that of Ameri-
cas, but in 10 years time will exceed the
share of the Americas by 14%
The efect of the European Emissions
Trading Scheme on Middle East MRO
companies should not be overlooked, it is
sure to give them an additional boost and
further enhance their cost savings to cus-
tomers over European Union based MRO
suppliers.
MIDDLE EAST MRO
Abu Dhabi Aircraft Technologies
Abu Dhabi Aircraft Technologies (ADAT)
services the Etihad eet, which, given the
age of the same leaves quite a bit of capacity
for third party work. ADAT is owned by the
Mubadala Development Company, which
is a strategic investment vehicle wholly
owned by the emirate of Abu Dhabi which
also owns SR Technics. ADAT is in a position
to challenge the very best in the market as it
now has base maintenance capabilities for
all major current and future aircraft mod-
els and has just built its A380 hanger which
will receive its rst A380 aircraft in 2012.
A recent deal with General Electric means
that the MRO is now a specialist centre for
GE90 AND GEnx engines. ADAT caused
a stir in 2010 when it launched Sanad,
which provides it with a leasing and man-
agement capability through the purchase
of an airlines component stock allowing
it to maintain the same on a contract basis
through ADAT and SR Technics.
IAI Bedek Aircraft Group
Thanks to its location, IAI Bedek Aircraft
Group sits alongside its Middle Eastern
peers. This MRO remains a very strong
conversion specialist but of late, in 2011 at
least, business has been quiet in the third-
party maintenance sector. This MRO
continues to perform well but there have
been few new contracts of late to shout
about and one cannot help but see this
MRO becoming more and more isolated as
the Gulf region continues to grow rapidly.
Will the Chinese and Indian airlines look
to Israel for their MRO needs? JorAMCo is
proof that the business is there to be won.
IAI Bedek Aircraft Group is certainly one
to watch through 2012 and as a specialist
converter the outlook in this market is far
from bleak. It will be interesting to see if this
MRO is able to make some gains in third-
party maintenance and if it will be able to
keep up the pace in the conversion market
with so many airlines opting for new air-
craft.
Moreover the European ETS will lead
to many more airlines/operators being
forced to opt for new cargo aircraft rather
than conversions, this will hit Bedek. That
said this MRO remains a prolic military
service provider and it will not be short of
business on that front. The roll list of ser-
The ones to watch are coming to the fore but what of Qatar?
vices remains impressive: Services include:
Heavy maintenance services, Total mainte-
nance services on Flight Hour Rate basis,
On-site maintenance services, Cargo con-
versions - B737, B747 and B767 Aircraft,
Customized interiors, Avionics modern-
ization and numerous military upgrade
programs, Life extension and aging air-
craft AD note compliance, Cabin/cockpit
standardization/modernization programs,
Communications and navigation systems
modernization programs, Re-engining
and/or hush kit installation. Bedek is able to
ofer services for: B707, B727, B737, B747,
B757, B767,DC-10, MD-80, MD-11, A320
and A340 Series among others.
Emirates Engineering
Emirates Engineering, which has a remit
to support the Emirates airline eet, has
conrmed that it has plans in place to seek
third-party maintenance work in the future.
At the same time however its eight hangers,
which together form the largest free-span
structure in the region, are reporting heavy
utilisation, something that is a surprise
given the age of the Emirates eet. This
does mean that Emirates is in no position
to move into third-party services in earnest
as there remains only very limited spare
capacity with no new capacity coming into
play in the near term and its own airline still
growing at a very fast pace. Emirates is cur-
rently in the process of developing in-house
practices and skills to move forward with
third party maintenance as a core business.
Gulf Technics
This MRO was formed through a joint-
venture between Bahrain state holding
company Mumtalakat and Singapores
SIA Engineering (SIAEC). The new MRO
will not only service the Gulf Air eet but
will actively seek third-party work with a
new facility that will become operational
in 2012. Gulf Technics (GT) is a subsid-
iary of Mumtalakat established to act as
the Technical Investment and Innovation
$10.0
$20.0
$25.0
2010 2015 2020
B
i
l
l
i
o
n
s
$5.0
$35.0
ME AF EE Asia
$30.0
$15.0
$15.4
$20.8
$29.6
NILE EA8T N ELATIVE T 8hIh EIh8
MIDDLE EAST MRO
is the best option to take. If there is spare
capacity for third party maintenance then
so be it.
The current crop of global MRO provid-
ers needs to have presence in the Middle
East if they are to be at the forefront of the
market in fteen- to twenty-years time. The
problem for many MRO companies is that
nancing is very hard to come by. Some pro-
viders will no doubt be looking to launch a
joint venture with Qatar in the near future.
This would be both a bold and rewarding
option.
to perform D-Checks on six B737NGs oper-
ated by the Indian Carrier; the conrmed
checks include landing gear and thrust
reverser removal and installation and paint.
The agreement is another building block
for a more tangible business for JorAMCo
in the Indian Market and a continuation
of JorAMCos strategy in that region as
JorAMCo continues to establish presence
there, with a noticeable increase in Indian
operators frequenting JorAMCos facili-
ties with their maintenance requirements.
JorAMCo has successfully positioned itself
as a serious alternative option for Indian
operators.
Qatar Airways
Qatar is the big question out there at the
moment - Will the airline move to create
an MRO arm in the near future? Qatars
eet is growing at a staggering rate and
more aircraft orders are being announced
at the 2011 Dubai Air Show. The airline, by
the time of the FIFA World Cup in Qatar in
2022, will have a huge eet with a massive
network and will need maintenance facili-
ties to match. The investment going into
the new Doha International Airport, open-
ing in 2012, gives Qatar Airways the option
to start bringing eet maintenance services
in-house. Any other airline in the US or the
EU would be mad to bring maintenance in-
house as high labour costs means it would
not be economically viable, but, as with so
many things in the Middle East, state own-
ership and relatively cheap labour costs
mean that bringing maintenance in house
arm of Mumtalakat. GTs role is to identify
and establish viable industrial and techni-
cal investments and to establish technical
research capabilities.
Currently the company can perform:
Import, export and logistics of aviation
parts, aviation components repair and
overhaul, aviation Maintenance, Repair
and Overhaul (MRO).
GT also has a research and development
centre. Planned for 2012 are: Line Mainte-
nance, modular engine repair and overhaul,
aviation components manufacturing, auto-
motive components manufacturing.
GT is actively establishing research
capabilities, both numerical and experi-
mental, in various elds including MRO,
NDT, reliability, aluminum and steel met-
allurgy, energy, aerodynamics, combustion,
and heat transfer.
JorAMCo
JorAMCo a Jordanian based Maintenance,
Repair and Overhaul (MRO) facility is a
dynamic aircraft maintenance center that
specializes in aircraft airframe services,
component repair and overhaul covering
Airbus, Embraer and Boeing products.
JorAMCo is an EASA- and FAA-approved
MRO supplier and performs all levels of
aircraft maintenance for a number of air-
lines in the Middle East, Europe and Asia.
2011 has been a success story for JorAMCo
and has seen it collect new business from
emerging markets. A highlight of 2011
came in September when Jet Airways
signed an agreement whereby JorAMCo is
Airline Financial Results
Intensifies the COST Focus
Profits have been elusive in many regions,
and the Middle East has had its troubles too
Surrounding regions like Asia have been
most profitable though
The quest for profitability drives business
behavior
Revenue focused innovation is evident
Cost improvements are needed at every
turn
For MRO value stream, this means
Motivation toward best value
Outsourcing will continue to grow
Supply chain innovation will be imperative
Preparing for a new generation of technol-
ogy
Consolidation will be important to value
creation
Value-oriented innovation will be rewarded
22-Jan-10
SIA Engineering and Gulf
Technics to set up and
operate MRO facility in
Bahrain.
15-Jul-10
Turkish Technic and
Goodrich complete
agreement for MRO JV.
21-Jan-10
Mubadala and Goodrich
sign JV agreement.
20-Aug-10
NAS Tech and Lufthansa
Technik sign strategic
cooperation agreement.
16-Dec-10
ADAT unveils timetable
for GE and Engine
Alliance Network Partner
Shop for the GEnx and
GP7200 Engines.
27-Jan-11
ADAT signs deal to
overhaul IAE jet engines.
Mubadala Aerospace launches
component and engine fnancing
company, Sanad Aero Solutions.
3-Feb-11
Mubadala and Honeywell form
strategic partnership.
20-Jul-10
Pratt & Whitney and Turkish
Technic strengthen partnership
with Advanced CFM56 and V2500
Center of Excellence.
1-Nov-10
Turkish Technic, Turkish Airlines,
and TAI launch cabin interiors
business.
29-Dec-10
1-Feb-10 1-Mar-10 1-Apr-10 1-May-10 1-Jun-10 1-Jul-10 1-Aug-10 1-Sep-10 1-Oct-10 1-Nov-10 1-Dec-10 1-Jan-11
MIDDLE EAST MRO
The Middle East may have a high por-
tion of growth but it is no diferent to any
other region in that the most successful
MROs will be those able to ofer a full array
of services across all aircraft types ofering
total maintenance through a long term
partnership. The advantage for MROs
independent from OEMs as independent
third party or in house providers is data
sharing. If you are able to service a mixed
eet at any time in any zone with one ser-
vice provider that is working with you and
will share data at all times over all types that
will also embrace the latest cost saving tech-
nologies be they PMA, DER or whatever is
needed then you have a exible and cost
efcient service that an operator will be at
pains to refuse. This is the blunt truth of
the MRO sector moving into 2012. And
for many it is a truth that will require either
expansion, acquisition or investment.
There is no middle ground and although an
MRO may inform you that they are secure
in their sphere of inuence, if they do not
meet the aforementioned criteria, then they
are operating on borrowed time as globali-
sation of the aviation sector speeds.
$0.0
$20
$30
$40
$50
$70
2001 2002 2003 2004 2005 2006 2010F
$60
$10
$80
$100
$90
$110
2007 2011F
-$13.0
-$11.3
-$7.5
-$5.6
-$4.1
-$0.1
-$16.0
-$9.9
$15.1
$12.9
$9.1
-$0.1
2008 2009
-$0.3 -$0.6
$0.7 $0.4
L8AL AILIhE8 V8 NILE EA8T AILIhE8
AhhAL hET PFIT (8ILLIh8 8) V8 AVEAE wL 0E IL (8 PE 88L)
A
frican maintenance, repair
and operations is currently
estimated to be worth some
$1.2 billion per annum but
this is forecast to grow by
over 40% to $1.9 billion by the end of the
decade. Ethiopian MRO expenditure in
Africa is expected to increase but forecasts
difer due to the continent developing
a north-south split with the Ethiopian
Airlines maintenance arm with Egyptair
Maintenance & Engineering looking to
dominate the north, while South African
Airways Technical (SAA Technical) con-
tinues to dominate the south. Ethiopian
and Egyptair are in the better position
due to geography being on the periph-
ery of Europe and the Middle East gives
an obvious edge.
Boeing projects that Africa will need
710 new airplanes between 2009 and
2029 with African airlines not just
replacing old aircraft, but actively grow-
ing their eets. African carriers account
for approximately 100 aircraft in Boe-
ings backlog for delivery over the next
ten years with a mix of 737s, 777s and
787s on order.
African MROs are no diferent from
any other. If African MRO is to grow
beyond servicing the local airlines of the
continent then they must position them-
selves to attract business from Europe
and the Middle East in the north and, in
the case of SAA Technical in the south,
it must expand to have teams across the
local regions. The African MROs will
need to prove a record for safety, turn-
around reliability, competitive pricing
and be full service providers. African
MROs must know their strengths and
weaknesses as well as look at outsourc-
ing areas of low competitiveness, such as
large engine overhauls and low-volume
components. SAA Technical outsources
large engine overhauls as its throughput
is not enough to make it competitive for
the rm to do the work alone. Yet African
MROs remain well positioned to provide
MRO services to African airlines, and at
reasonable prices.
As new technologies are introduced,
so African MROs need to source capital
to invest in the new tooling, equipment,
systems and training required to under-
take MRO on new generation aircraft
and engines. African airlines therefore
need to collaborate to grow. They need
to outsource work within Africa when-
ever possible, throughput needs to be
increased by pooling resources and
creating centres of excellence through
the sharing of expertise and mutual
assistance. African MROs best bet is to
partner with OEM (Original Equipment
Manufacturer) programs to increase
expertise, improve systems, develop
worldwide marketing coverage and gen-
erate reciprocal business.
AFRICA MRO
AFRICA
Established in 1945, Ethiopian Airlines
maintains modern and complete aircraft,
engine and component overhaul and
repair facilities. With an all-Ethiopian
workforce of over 750 technical person-
nel most of whom are trained by the
airlines Aviation Maintenance Techni-
cians School and are US Federal Aviation
Administration and Ethiopian Civil Avia-
tion Authority licensed Ethiopian has
gained a distinguished recognition for its
high standard and excellent safety record.
APPROVED CAPABILITIES
Airframe maintenance
The base provides complete package
maintenance on: Boeing Models B767,
B757, B737, B727; Bombardier DHC-6;
Fokker Model F-50.
Engines maintenance
ComIele reair, modicalion, and
overhaul
ModuIar mainlenance
Engine erformance lesling
A range of seciaI rocess shos for
parts, salvage work and modication
Component overhaul/testing
ComIele reair, overhauI and lesl-
ing of components tted on the above
mentioned eets
The avionics comonenl sho uliIises
a state-of-the-art Automatic Test
Equipment, ATEC 5000, for Avionics
components
Non-destructive testing (NDT) with spe-
cialised inspection: x-ray, radiography,
eddy current, ultrasonic, magnetic par-
ticles and dye penetrant.
General engineering support
Development of
Major reair]modicalion
Engineering orders
Mainlenance rograms
ComIele inseclion]check work
packages
Operational assistance through
Aircrafl erformance anaIysis
Engine condilion moniloring
HandIing of: lechnicaI records kee-
ing, technical planning functions,
reliability analysis
Facility evaluation, development plans
and recommendation
TechnicaI evaIualion]damage assess-
ment on aircraft at any location
Line station technical handling
In addition to our base at ADD, the MRO
ofers service at various international
stations such as NBO, FCO, BOM, CAI
and LOS.
Experienced mobile technical team
and crew available for a short- and long-
term assignment upon request.
Spare parts inventory
Exchange]Iending of arls for Boeing,
Fokker, ATR, De Havilland and Lock-
heed aircraft.
SaIe of surIus aircrafl arls.
Aulomaled slores and invenlory con-
trol services
AFRICA
Egyptair Maintenance & Engineering
(M&E) is a leading provider of aircraft
maintenance services in the Middle East
region with over 75 years experience.
Egyptair M&E has a base maintenance
facility at Cairo International Airport.
This base maintenance has been designed
to act for a variety of diferent aircraft
types, components and associated equip-
ment. Our team of highly qualied and
motivated engineers is ready to provide
all the professional services you require,
included in European Aviation Safety
Agency (EASA) 145 Scope of Approval.
Egyptair M&E provides the following
base maintenance services:
Heavy mainlenance
Ageing aircrafl rogramme
Inlerior renewaI and seal recongura-
tion
Corrosion revenlion and conlroI ro-
gramme
Engineering suorl
Hangar 8000 is fully equipped with
docking system to accommodate A320,
A321, A330, A340 A300-600, A300-B4,
B777 and EMBRAER 170. It obtained
the EASA approval Part 145 through the
certifying staff and hangars facilities
to perform scheduled checks on A319,
A321. A320, A330 and A340.
Hangar 7000 i s used to
perform scheduled checks on B737-
3uu]4uu]uu]6uu],uu]8uu and uu
and the B777.
Hangar 6000 is used to perform sched-
uled checks on the A300-600, A300-B4,
A321, A32u and lhe EMBRAER 1,u]1u.
TAKING BETTER CARE OF YOUR
AIRFRAMES AND ENGINES
Egyptair M&E has a well-established
operational background and extensive
knowledge of airframe and engine main-
tenance and airline operations.
Cuslomers can counl on comeli-
tive downtimes and guaranteed on-time
redelivery.
Aircrafl are redeIivered wilh zero
check-related discrepancies.
Exlensive engineering caabiIilies
make Egyptair M&E a specialist in
customised maintenance and modi-
fication programmes. Examples
include various successful cockpit,
structure and cabin modications.
Egylair M&E offers cerlified
solutions for many EASA and Fed-
eral Aviation Regulations-driven
mandatory modications. Smartly
combining regular maintenance
checks with modifications makes
it possible to minimise turnaround
times.
TOTAL AIRFRAME CARE
Total Airframe Care services includes
regular aircraft checks, monitoring and
scheduling of ADs.
Egyptair Maintenance & Engineering
Ethiopian airlines maintenance
HEAVY MAINTENANCE
SAA Technical has a reputation for high-
quality work at very competitive labour
rates, earned over decades of providing
heavy maintenance services to local and
international airlines.
Aircraft downtime is reduced by
world-class facilities and equipment
and through scheduling aircraft modi-
cations and repaints during C and D
checks.
SAA Technical has nearly 85,000
square metres of hangar space. This
includes the 36,000 square metre major
maintenance hangar, the largest in
Africa, capable of accommodating ve
B747 aircraft simultaneously. A mul-
tipurpose dock is capable of handling
A34u-2uu]3uu]6uu aircrafl, aII B,4,
aircraft and MD11 aircraft.
SAA Technical does all major main-
tenance for SAA. It also provides major
maintenance to a number of European,
African and Middle East airlines.
The high capability in modications
includes strut modications, FQIS (Fuel
Quantity Indication System) replace-
ment, ACARS-ARINC (Communication
and Reporting System) installation,
EGPWS (Enhanced Ground Proximity
Warning System) installation, Satellite
Communication installation, Traffic
Collision Avoidance System, enhanced
IFE system installation, GPS (Global
Positioning System), HUD (Head Up
Display) installation and yaw damper
modication and cabin reconguration.
SAA Technical has a dedicated paint
hangar, equipped to do all levels of
painting including complete repaints as
well as internal and external decals. SAA
Technical is a one-stop shop for all heavy
maintenance, including the capability to
test, repair and release components on
site.
Capabilities for C and D-checks
include:
B,4, Series
B,3, CIassic]NG
MD11
A31 Series
A32u Series
A34u Series
LINE MAINTENANCE
SAA Technical has more than 700 tech-
nical staf providing line maintenance
services to South African Airways and a
large number of international airlines.
These services are provided at Johan-
nesburg, Cape Town and Durban as well
as other centres.
Line maintenance includes A and B
checks, technical defect rectication and
aircraft exterior cleaning. SAA Techni-
cal is the only maintenance facility in the
world providing customers with the spe-
cialist service of hand-polished aircraft.
In addition to the normal mainte-
nance programme, a dedicated team
ensures that aircraft interiors are main-
tained to a high standard. When all
airlines have similar aircraft and techni-
cal facilities, the cabin appearance and
functionality is a key consideration in
customer satisfaction and loyalty.
SAA Technical is expanding its foot-
print into Africa. It has locally trained
technical staf placed in Lusaka, Lan-
seria, Mauritius, Dakar, Luanda and
Kigali. This not only assists SAA, but it
facilitates the development of aviation
services, especially technical mainte-
nance, on the African continent
SAA Technical provides an aircraft
recovery service through a specialist
team on a 24-hour standby basis. This
team is fully equipped to handle any type
of emergency in Africa and the Indian
Ocean Islands and these services are
jointly conducted with the International
Airlines Technical Pool.
Jetworx (see Jetworx.co.za) in South
Africa provides a wide spectrum of air-
craft maintenance functions. Anything
from minor maintenance, major main-
tenance, logistical support, engineering
and maintenance planning services are
provided. The company possesses the
approvals of various African countries
but also holds FAA, EASA and SACAA
approvals on various aircraft types such
as the B737, B727, MD80 and L382.
Jetworx support aircraft in various
theatres in Africa, the Middle East,
Europe and even as far as Arctic areas.
It typically complies to a 98% dispatch
reliability for its routine recurring cli-
ents. Major clients are listed as:
1lime airIine - 12 aircrafl - 2,2uu
monthly ight hours 1,500 sectors
per month
Safair Oeralions - 16 aircrafl -
1,000 monthly ight hours 400
sectors per month
Aergo CailaI - major mainlenance
Air Zambezi - fuII suorl
Easlern Skyjels - fuII suorl
The facility is geared to do around 50
major overhauls per annum.
Maintenance services can be pro-
vided for ad-hoc or AOG situations as
well as Comprehensive Maintenance
Agreements, also referred to as Power
by the Hour agreements.
Its comprehensive array of support
shops such as wheels and brakes, com-
posites, avionics, engine shop, structures
and painting makes it an ideal one-stop-
shop for major maintenance and AOG
support. Boroscope and NDT services
are also provided.
The logistical and support centres
provide various aerospace related ser-
vices with such approvals, engineering
services and comonenl]engine reIiabiI-
ity monitoring.
Jetworx was born out of the merger of
Safairs technical division and Aeronexus
Technical. Stafed with around 650 per-
sonnel from various disciplines it is well
poised to deliver a comprehensive and
customised solution for its customers.
AFRICA
SAA Technical
Jetworx
AFRICA
HEAVY MAINTENANCE DIRECTORY - AFRICA/MIDDLE EAST
Abu Dhabi Aircraft
Technologies
Kirubel Tegene
Manager, Commercial Sales
Abu Dhabi International Airport
PO Box 46450
Abu Dhabi
United Arab Emirates
el: +971 2 505 7530
fax: +971 2 575 7263
e-mail: kirubeltegene@gamco.ae
A300 (all)
A310
A320/321
A330/340
747-100/-200
747-300/-400
757-200/-300
L-1011
B767
B737 (NG)
Heavy
Heavy
Heavy
Heavy
A, B
A
Heavy
Heavy
Heavy
Heavy
12,268m2 area
3 w/b bays
1 w/b paint:
hangar 2 (4,100m2)
hangar 3 (2,700m2)
hangar 4 (10,000m2)
11,000m2 workshops
100,000lb
1 APU
avionics upgrades, composite
repairs, interiors Upgrade, full strip &
repaint, ageing a/c progs, materials
process, component o/haul engine
test cell engine overhaul, aircraft
cleaning, aircraft weighing Cockpit
layouts, Corrosion prevention/
control, Engineering svcs Fuel tank
report, Inventory mgmnt Line
maintenance, Logistics support
Machining/plating, NDT. Sheetmetal
Training VIP reftting/refurbishment
Air Zimbabwe G Gambiza
Technical mktg manager
PO Box AP.1
Harare Airport
Harare
Zimbabwe
tel: +263 (4) 575 111 ext. 2478
fax: +263 (4) 575 058
707
737
767
BAe 146
A,B,C,D
A,B,C,D
A,B,C
A,B, structural
1 w/b hangar
1 n/b hangar
20,000m2
250 engineers
strip & paint, NDT
Air Madagascar Claude Rakotoarivelo
VP Maintenance and Engineering
31 Ave de l Independence
Antananarivo 101
BP437
Madagascar
tel: 261 20 22 446 85
fax:261 20 22 446 74
claude.Rakotoarivelo@airmadagasgar.com
737
767-300
ATR42
DHC6-300
A,B,C,D
A
A,B,C,D
A,B,C,D
1 hangar
2 w/b; 1 n/b
modifcations
Alsalam Aircraft Fawaz Sharabi
Manager - business development -
Commercial
PO Box 8012
Riyadh 11482
Kingdom of Saudi Arabia
tel: +966 1 220 3966 extn 324
fax: +966 1 220 0199
mob: +966 553031611
fawaz_sharabi@alsalamaircraft.com.sa
www.alsalamaircraft.com.sa
A300
707
727
737
747
L-1011
MD-90
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
modifcations
3 w/b hangars
(each B747-400 size)
Total hangar space-
15, 900 m2
Composite repairs, Avionics
upgrades, CPCP, Ageing a/c inspect.,
IFES retroft, Full cabin refurb., VIP
interior design, 747 pylon mods, 747
section 41, Strip and paint
Arkia Israeli Airlines
Aircraft Maintenance
Nir Dagan
VP, operations & maintenance
Dov Airport
PO Box 39301
Tel Aviv 61392
Israel
tel: +972 3 690 2222
fax: +972 3 699 1390
email: nird@arkia.co.il
ATR 42/72
B-200
Citation XL
DHC 7
BD-700 (Global 5000)
A,B,C,D
A,B,C,D
1 w/d
6 n/b
3,000m2
refurbishment
Bedek Aviation Group
Israel Aircraft Industries (IAI)
Joseph Oren
General Manager, Mkt. & Busin.Dev.
Ben Gurion International Airport
Israel 70100
tel: +972 3 935 3979
fax: +972 3 935 4262
e-mail: jooren@iai.co.il
707, 727, 737
747, 757, 767
MD-11
MD-80
DC-8, DC-9, DC-10
A320/321/319
A,B,C,D
A,B,C,D
A,B,C
A,B,C,D
A,B,C,D
A,B,C,DN
4 w/b hangars (5 aircraft) strip
& paint
4 n/b hangars (10 aircraft)
cargo conv. inc. B747
135,000m2
avionics upgrade, 747 pylon mods,
747 section 41, composite repairs,
full cabin refurb., ageing a/c mods,
components incl: hydraulics, landing
gears, wheels & brakes CSD, IDG,
transmissions
Denel Aviation Martin Laubscher
Business Development
PO Box 11
Kempton Park
1620
tel: +27 11 927 4575
fax: +27 11 927 4411
C-130/L100 A,B,C,D 6 hangar bays Mods & upgrades, Strip & painting,
NDT, Component overhaul & repairs,
CPCP
EgyptAir Hassan Sakr
Marketing and sales director
Cairo International Airport
Cairo
Egypt
tel: +20 2 696 4842
fax: +20 2 696 4896
marketing_tech@egyptair.com.eg
A300B4
A300-600
A320/321
A330-431
A340-200
777-200
707-300
737-500
747-300
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C
A,B,C
A,B,C
A,B,C,D
A,B,C,D
A,B,C,D
4 w/b bays
3 n/b bays
20,000m2 hangar space
350 airframe engineers
modifcations, strip and paint,
structural and comp. repairs, engine
test cell, components shop, avionics
shop, powerplant shop
ELAL TECH/EL AL
Israel Airlines
Ran Ackerman
Senior Marketing and Sales Mgr
PO Box 41
Ben Gurion Airport, 70100
Israel
tel: +972 3 971 7278/7748
fax:+972 3 971 7849
e-mail: mro@elal.co.il
www.elaltech.com
747-200/400
767
757
737NG
777
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
Engine Shop
Hyd. Shop
Avionics Shop
Structure Shop
Components Shop
3 Bay, 20,000 m2
logistics support, engineer supp.
Mods, avionics, engine, build up,
composites, & hydraulics wkshops,
line maintenance, and tailor made
solns, FAR 145, EASA 145, CAAI,
ISO9001:2000
MRO Directory: Africa/Middle East
AFRICA
HEAVY MAINTENANCE DIRECTORY - AFRICA/MIDDLE EAST
Ethiopian Airlines Zemene Nega
Director technical sales & mktg
PO Box 1755
Addis Ababa
Ethiopia
tel: +251 1 615 272
fax: +251 1 611738/474
zemenen@ethiopianairlines.com
707
727
737
757
767
DHC-6
ATR 42
C-130
F50
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
2 bay w/b
2 bay t/prop hangar
750 licensed engineers
strip & paint, avionics upgrades,
composite repair, CPCP/ ageing a/c
mods, engine overhaul, full cabin
refurbs., component o/haul
Iran Aseman Airlines Mazia Darafsh
Mgr, production planning & control
Mehrabad Airport
Tehran
IR Iran
tel: +98 21 603 5310-14 ext 6330
fax: +98 21 600 1810
mobile: +98 911 258 0597
727
F28
F27
ATR 42
ATR 72
Falcon 20
Do228
A,B,C
A,B,C,D
A,B,C,D
A,B,C
A,B,C
major
major
5 hangars for w/b aircraft
20 bays
80 licensed engineers
structural repair
Jordan Aircraft
Maintenance Co
(JorAMCo)
Faris Haddadeen
Director, Marketing & Sales
Engineering & Maintenance Division
PO Box 39328
Queen Alia International Airport
Amman 11104
Jordan
Tel : + 962-6-445 1272
Fax : + 962-6-445 2996
Mobile : + 962-777-828811
fhaddadeen@joramco.com.jo
A310
A320,A321,A319
A340
707
727
L-1011
all lvls to 10Y
all lvls to 10Y
all lvls to 10Y
A,B,C,D
A,B,C,D
A,B,C,D
3 L-1011s sim.
12,162m2 of hangars
10,440m2 of eng. bldgs
1,600m2 of support shops
800m2 of paint shops
146 A & P lic. airframe & Engine
Engineers
SBs, ADs, modifcations, full strip
& paint
Kuwait Airways Ahmad Abdulla Al Zabin
dir. engineering afairs
PO Box 394
Safat 13004
Kuwait
tel: +965 431
fax: +965 474 7105
A300
A310
A320
A340
727
747
767
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
2 w/b; 2 n/b
13,246m2
strip & paint Dy modifcations
Oman Aviation Services Khalid Bin Al Abdesalaam
VP Maintenance
Seeb International Airport
PO Box 58
Seeb-Muscat
Oman
tel: +968 519 294
fax: +968 510 018
A310-300
F27
ATR 42-500
DHC-6
A
A,B,C
A,C
A,B,C,D
2 bays
1,020m2 foor space
strip & paint, modifcations,
paintshop
Royal Air Maroc Fouad Benbrahim
Technical sales & contracts mgr
Centre Industriel Aronautique
Aroport Mohammed V
Nouasser
Casablanca
Morocco
tel: +212 2 49 9007
fax: +212 2 53 9425
ciae@royalairmaroc.co.ma
727
737-200
737-300/400/500
737-700/800
757
ATR 42
B,C,D
B,C,D
B,C,D
B,C
B,C,D
B,C,D
1 n/b hangar (4 aircraft)
38,000m2 (hngr + b/shops)
1,000 licensed engineers
engine test cell
training centre
full cabin refurbs., eng. modular
maint., approvals: JAR145, FAR145,
Bureau Veritas, Moroccan DAC
South African
Airways Technical
Jorge Duarte
Executive mgr, tech sales & support
Room 309, Hangar 8
Private Bag X12
Johannesburg International Airport
1627
South Africa
tel: +27 11 978 9993
fax: +27 11 978 9994
737
747
A319
A320
A340
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
A,B,C,D
8 w/b
6 n/b
strip & paint, 747 pylon mods, com-
posite repairs, CPCP, interiors, MRO
of Components, Cabin refurbish,
Avionic Upgrades FDMP, FMS, etc,
747 Section 41
A340 MAINTENANCE
T
he A340 is now perceived
by many as a good aircraft
that was simply offered at
the wrong time. The intro-
duction of the Boeing 777
shortly after the launch of
the A340 effectively removed the need
for four engines and changed forever
the yield prospects of a 295-plus seat,
long-range, passenger aircraft in a world
of high fuel costs. If the A340 had been
launched 10 years earlier, sales figures
might have been very different.
Although two engines are better than
four where fuel burn is concerned, the
one area where four engines is a benefit
is compliance with the Extended-range
Twin-engine Operational Performance
Standards (ETOPS). ETOPS is an Inter-
national Civil Aviation Organization
A340S IN SCHEDULED SERVICE AS OF SEPT 1, 2011
Aircraft type Engine type Number
Airbus A340-210 CFMI CFM56-5C3/F 13
Airbus A340-210 CFMI CFM56-5C2 5
Airbus A340-310 CFMI CFM56-5C3G 5
Airbus A340-310 CFMI CFM56-5C4/P 19
Airbus A340-310 CFMI CFM56-5C3/F 12
Airbus A340-310 CFMI CFM56-5C2F 5
Airbus A340-540 RR Trent-553-61 10
Airbus A340-540 RR Trent-553A2-61 14
Airbus A340-640 RR Trent-556A2-61 41
Total: 333
All downhill from here?
A great aircraft, but the A340 simply could not gain pace against
the Boeing 777. Airline Economics examines the history of the A340, its
investment curve, maintenance options and future parts potential.
A340 MAINTENANCE
gained by their older siblings and the
large contribution that has been made to
their evolved maintenance programmes
and longer check intervals.
Because the A340 family did not
receive the orders the manufacturer
expected at the outset, the aircraft ended
up being grouped, through large orders
and subsequent follow-up orders of
variants, with a select band of initial oper-
ators of the early types. Operators that
in hindsight all admit it was a mistake to
order the A340 given the advent of the far
superior 777 family. These operators of
large A340 fleets are the same today as
they have always been, due to the cut-off
of orders after airlines saw the potential
of the 777. This left Lufthansa, Iberia,
Virgin Atlantic, South African Airlines
and Air France (now Air France-KLM) as
the major operators of the A340. This is
reflected in the maintenance providers
specialising in the A340 family and where
in the world expertise is located.
So the leading players in the A340
maintenance market come as no surprise:
AFI-KLM Engineering & Maintenance,
Lufthansa Technik/Lufthansa Technik
dual-aisle aircraft, enabling a more var-
ied flying experience and more flight
hours for the same duty time. This is an
attraction not to be underestimated in
a market where carriers are vying on a
global basis for quality pilots that are in
very short supply.
Some operators have complained in
recent years that the A340-600 aircraft
cannot cope with the added weight of
many modern first and business class
seating and technical arrangements,
which on this stretched version of the
type can make the nose of the aircraft
too heavy and affect performance.
Demand for larger aircraft and better
passenger yield over the past decade
has caused Airbus to stretch the A340
design to its limits, both in size and
weight. Its -600 variant at 75.3 meters
(one inch shy of 247 feet) was the lon-
gest aircraft in the world at one point,
while the ultra-long-range -500 is one
of the heaviest aircraft in service, with a
maximum take-off weight of 372 tonnes
(820,000 lbs). There is no question that
the -500 and -600 have both benefited
greatly from the in-service experience
(ICAO) Standard and Recommended
Practice (SARP) permitting twin-engined
commercial air transporters to fly routes
that, at some points, are farther than 60
minutes flying time from an emergency
or diversion airport. The A340-600s
four engines allow for operations under
ETOPS that mean airlines can fly more
direct routes over the poles, mountain
ranges or long distances over water, or
on segments far from airports, saving
travel time and cutting fuel consumption
a significant benefit for many operators
over many routes.
Twenty-one years after the first flight
of the A340, this family of aircraft is not
expected to receive any further orders.
The type has just four further A340-500s
to be delivered. After this, production is
expected to cease, and production of the
A330 line will increase until the first deliv-
eries of the A350.
For years, Airbuss widebody produc-
tion was all about the A330/A340 line.
But with the backlog of A340s down to
four units, now it is all about the A330.
The final nail in the coffin for the A340
was the rise in fuel prices starting in the
latter half of the past decade, which led
to Emirates cancelling its $4 billion order
for the type in 2006.
But the A340 still offers benefits to
operators of other Airbus types. True to
Airbuss well thought-out family concept,
the A340 offers an exceptional degree of
operational commonality with all of the
companys fly-by-wire aircraft, allow-
ing pilots to transition from one type to
another with minimum training time. All
four A340 aircraft can be flown with the
same type rating, while the cross-crew
qualification concept means pilots can
more rapidly qualify for another aircraft
type within the Airbus fly-by-wire product
line, leading to significant cost savings.
Adding to the advantages of com-
monality is mixed fleet flying, which
allows pilots to be current on more than
one type of Airbuss single-aisle and
"Trua Io A|rbus`s Wa|| IhoughI-
ouI Iam||y concapI, Iha A340
oIIars an axcapI|ona| dagraa oI
oparaI|ona| commona||Iy W|Ih
a|| oI Iha company`s
I|y-by-W|ra a|rcraII"
0
50
100
150
200
250
300
A340-200
A340-300
A340-500
A340-600
777-200
777-200ER
777-200LR
777-300
777-300ER
V
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$
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i
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l
i
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List 2007 2008 2009 2010 2011
777 FANILY E8IAL VALE8 VE8E8 ThE A340 FANILY
Aircraft List 2007 2008 2009 2010 2011
A340-200 127.5 41.65 40.25 30.5 24 18
A340-300 228 98 99.35 94.25 82.25 59.75
A340-500 261.8 112 113.25 103 101 78.45
A340-600 275.4 126.8 129.8 117 103 90.4
777-200 186.5 75.2 68.35 56.25 46.75 37.05
777-200ER 232.3 120.25 123.5 116.8 115.15 117.75
777-200LR 262.4 136.65 139.9 134.3 136 135
777-300 222 111.4 95.3 80.5 74.75 64
777-300ER 284.1 143.3 149.8 137 136.2 147
A340 MAINTENANCE
are going to be fighting over an ever-
decreasing slice of business for A340
maintenance over the next 10 years. The
secondary market for the A340 is also
looking limited. The story is a warning to
investors in aircraft that new technology
can diminish the prospects and the value
of an aircraft very quickly.
The performance of the aging A340
family as an investment over the five years
since the start of the credit crisis has seen
both the A340-200 and -300 perform bet-
ter than their original direct competitors,
the 777-200 and -300. The market lead
carved out by the 777 against the A340
can be seen in table 1.
Table 1 shows a direct comparison
between the investment potential of the
777 against the A340 based on a five-
year section of purchase values, average
annual dry lease incomes and residual
values at the end of the period for an
aircraft around five years old. This chart
does not consider the airline, the ease of
lease or fuel burn; rather, it is a straight
investment comparison. Note that a 777-
300ER approaches annual return rates of
between 1215% sought by investment
vehicles such as the Nimrod fund on its
A380s on lease for 10 years.
A340 MAINTENANCE CONSIDERATIONS
One of the features of early A340s (and
A320s) was their central on-board main-
tenance system. This was considered
a big step forward at the time because
predecessor aircraft such as the A300
and A310 had only basic test equip-
ment to monitor on-board functions and
no ground-desk connection to help line
maintenance. The A340 Central Mainte-
rapid decline over this decade as 787 and
A350 deliveries filter through to operators.
As a result, these maintenance providers
Philippines, Iberia Maintenance and SAA
Technical. The A340 global fleet is now
at a plateau and will eventually turn into
0
50
100
150
200
Europe Asia/Pacic
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a
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r
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r
a
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t
Africa Middle East Americas
L8AL L0ATIh F A340 0NNE0IAL FLEET
0
1
2
3
4
5
6
7
8
9
Europe
N
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a
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a
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Asia/Pacic Africa Middle East Americas
L8AL L0ATIh F PIVATE/NILITAY A340 FLEET
SHORT-TERM INVESTMENT POTENTIAL OF THE A340 VERSES THE 777
Type 2007 AV 2008 AV 2009 AV 2010 AV 2011 AV
777-300ER 15.24 15.60 14.88 15.00 15.48
777-200LR 12.96 13.20 12.24 12.48 12.60
777-200ER 12.36 12.72 11.64 12.00 12.00
A340-600 10.92 12.24 11.16 11.04 10.08
A340-500 11.88 11.76 10.08 9.60 9.12
A340-300 10.68 10.80 9.12 8.64 6.96
777-300 11.88 11.28 9.60 9.00 8.52
A340-200 5.76 5.52 4.92 4.08 3.84
777-200 7.80 7.80 6.36 5.64 5.16
A340 MAINTENANCE
nance System was the first step toward
proactive and preventative mainte-
nance. It meant line engineers could
test the aircraft systems from a single
point in the cockpit, while on-board data
links allowed in-flight maintenance mes-
sages and warnings to be transmitted to
the ground in real time and compared
against manuals and databases.
When the A340 entered service in
1993, A-check intervals were set at 400
flight hours with C-check intervals at
15 months. A-checks were increased
to 500 flight-hours in 1998 and subse-
quently increased to 600 flight-hours
in 2002, when C checks were moved
to 18-month intervals. Airbus could
technically justify that checks could be
increased to 700 flight-hours, but a 40%
increase was considered too great for
the maintenance board. However, in
April 2009 an agreement was reached to
extend the A-check interval to 800 flight
hours, while the heavy maintenance
check interval was extended from 10 to
12 years. The improvements have been
incorporated into Revision 11 of the
A330 and A340 Maintenance Review
Board Reports, which were approved
by the EASA, the US Federal Aviation
Administration (FAA) and Transport
Canada. The A330 Maintenance Plan-
ning Document (MPD) Revision 16
and A340 MPD Revision 17 were also
updated.
The A-check interval increase will
result in a reduction from seven to five
A-checks a year for a typical use of 4,400
flight hours per annum, increasing aircraft
availability. Meanwhile, the new 12-yearly
heavy-check interval will allow operators
to synchronise the six-yearly intermedi-
ate-check and 12-yearly heavy checks,
leading to a reduction of one heavy check
in the aircraft life a large cost saving.
The revised intervals can result in air-
frame maintenance cost savings of up to
6%. To ease the maintenance planning
burden, Airbus has created a special
appendix in the MPD whereby 100%
of the tasks are packaged into checks
according to the type of aircraft operation.
So has the A340 performed as its
design intended? The answer has to be
yes, because in-service experience has
led to interval escalations. If it hadnt
performed as it should, interval escala-
tions would not have been possible.
Now the A340 is reaching the high
watermark of its existence in the global
fleet, the next consideration is the sup-
ply of parts. With a limited A340 fleet
size, parts for the aircraft type will be
much harder to get hold of than for other
types of aircraft and will be expensive.
Parting out A340s could become a lucra-
tive business in future. However, this all
depends on oil prices and with oil being
a finite commodity there can be no doubt
prices will only go one way, even with the
odd blip here and there for speculation,
as is happening in todays current vola-
tile period. This means there will be few
airlines willing to take on an A340.
SURVEY RESULTS
In a customer satisfaction survey carried
out by Airline Economics A340 owners
and operators were asked to rate their
maintenance providers according to
their performance to date.
The results:
1. Lufthansa Technik/Lufthansa Technik
Philippines
2. Iberia Maintenance
3. AFI-KLM E&M
4. SR Technics
5. Direct Maintenance
Because the top five maintenance
providers on this list were all awarded top
marks by owners and operators, the split
was decided by the number of replies
received for each. This ranking is there-
"8o has Iha A340 parIormad
as |Is das|gn |nIandad? Tha
ansWar has Io ba yas, bacausa
|n-sarv|ca axpar|anca has |ad
Io |nIarva| asca|aI|ons."
Lufthansa Technik / Lufthansa
Technik Philippines (33%)
Iberia Maintenance (21%)
AFI-KLM E&M (21%)
Direct Maintenance (8%)
SR Technics (17%)
PE0EhTAE 8PLIT F TP FIVE Ih 8VEY
Potential yield Cost of aircraft at start Value of aircraft at end Potential proft margin
for investor
% return per
annum
76.20 143.30 147.00 79.90 11.15%
63.48 136.65 135.00 61.83 9.05%
60.72 120.25 117.75 58.22 9.68%
55.44 126.80 90.40 19.04 3.00%
52.44 112.00 78.45 18.89 3.37%
46.20 98.00 59.75 7.95 1.62%
50.28 111.40 64.00 2.88 0.52%
24.12 41.65 18.00 0.47 0.23%
32.76 75.20 37.05 5.39 1.43%
A340 MAINTENANCE
fore an indication that the maintenance
providers have the A340 market under
control and is an impressive reflection
on the work all five perform, be it heavy
maintenance or line maintenance. Cus-
tomers in all instances awarded five out
of five across the board.
1. LUFTHANSA TECHNIK/LUFTHANSA
TECHNIK PHILIPPINES
Experience:
Launch customer of the A340
Leadership in special specification
of aircraft system and maintenance
programme
First 4c/lL check on A340
Technical capabilities
Maintenance management ser-
vices/engineering
Support towards aviation authorities
Pamp, line, base and heavy mainte-
nance
Component, engine and airframe
overhaul
Structural repairs
Avionics, cabin and cargo system
modifications
Petrofit management
Trouble-shooting
Start-up support
Paintwork
Complete incident handling
AOG services
Comprehensive component pool
Part and tool inventories
Advanced logistic services
Approvals:
More than 30 maintenance organi-
sation approvals, including JAR 145
and FAR 145
Approved design and production
agency
Advantages:
Peliable operation from the first day
Tailor-made maintenance concept
with lowest downtimes
Minimum own pre-partation effort
Full, flexible support on any require-
ment, individual projects and daily
back-up
Lower investment in own spares
Accelerated experience develop-
ment
The Airbus A330/A340 customer
community was created by Lufthansa
Technik to facilitate communication
between operators and the aircraft
manufacturer. Under this initiative,
numerous A330/A340 operators regu-
larly meet Airbus with the goal of direct
information exchange, such as cre-
ating improvement processes more
efficiently. To achieve this, intensive
co-operation within the community is
necessary, facilitated by sharing tech-
nical and operational experience in
areas such as operational problems,
performance data/degradation, main-
tenance and overhaul performance
(tooling etc), the effects of modification
campaign/SB implementation and SB
evaluation/validation. The community
also shares information concerning
available capabilities and services such
as overhaul, repair, special task forces
and retrofit.
2. IBERIA MAINTENANCE
Iberia Maintenance is increasingly
exploring ways to help customers
keep not just costs but also efforts to
a minimum on airframe heavy mainte-
nance, engine overhaul, component
maintenance and field maintenance. It
provides essential, sector-specific ser-
vices customised to fit client needs and
budget. Some 4,000 experienced tech-
nicians and engineers provide a wide
array of MRO solutions.
In every Iberia Maintenance service,
hundreds of hours are dedicated to
improving processes, reducing TATs,
increasing force effectiveness, and cut-
ting down on logistics and engineering
management expenses.
In the new aviation environment and
with the expanding globalisation of the
MRO industry, Iberia Maintenance has
updated its management and techni-
cal services, gearing them towards
developing solutions to help customers
define maintenance plans and ensure
efficiency The installation of the SAP
system for complete management has
been a big success.
Iberia Maintenances 150,000m2
gives it space to perform a wide range
of airframe maintenance. The facilities
include the necessary back-up shops
such as safety equipment, structural
repair, wheels and brakes, galleys, inte-
riors, painting, marking and labelling,
providing services in material process-
ing for wide and narrow bodies.
Iberia Maintenance offers seven
complete production lines for heavy
maintenance checks and two dedicated
hangars for painting, marking and label-
ling works.
It handles a wide range of temporary
and permanent hole and dent repairs
on wing and in shop from different com-
posite and metallic parts in fuselage
and flight controls.
It also offers refurbishment, ageing
aircraft and corrosion prevention pro-
grammes.
3. AFI KLM E&M
Air France and KLM operate a com-
bined fleet of 19 A340s. For that reason
AFI KLM E&M is a worldwide leader in
A340 components support, providing
such services to more than 150 aircraft
around the world.
AFI KLM E&M maintains A340s at
three facilities. Heavy maintenance for
long-haul aircraft takes place at Orly,
and online as well as light maintenance
at Amsterdam, CDG and Orly.
The A330 and A340 families share
the same design. Based on its extensive
experience as an operator, AFI KLM E&M
has led the field in stretching the mainte-
nance intervals between checks, helping
its customers to lower maintenance
costs through full engineering support.
4. SR TECHNICS
SR Technics (SRT) provides technical
solutions for airlines on a global basis.
Services are provided either directly to
the airline or through other parties such
as aircraft leasing companies, original
equipment manufacturers or compo-
nent trading companies.
With headquarters at Zurich Airport,
SRT offers an extensive network of
maintenance facilities, logistic centres,
line stations and sales offices across the
globe.
SRT is well positioned to cater fully
for the growing demands of airlines in
relation to their technical needs, no mat-
ter where their networks take them.
SRT has been providing mainte-
nance services to customers since the
early 1960s as the former maintenance
division of Swissair and a founding
member of the largest European main-
tenance consortium.
SRT covers every aspect of operation
required by an airline and in line with
the legal requirements, from delivery of
A340 MAINTENANCE
5. DIRECT MAINTENANCE
Direct Maintenance was established
in January 2001 and is a certified line
maintenance service provider, holding
EASA Part 145 approval and FAA Repair
Station approval. In line with customer
requirements, aircraft line maintenance is
provided to operators of a wide range of
Airbus and Boeing aircraft types. It is the
only independent widebody line mainte-
nance provider of the Netherlands.
The addition of the Emirates A340-500,
powered by RR Trent engines, resulted in
Direct Maintenance being EASA Part 145
approved to perform line maintenance
on an impressive number of 40 aircraft-
engine combinations. The support for
Emirates is being provided at Addis
the aircraft, through to maintenance to
ensure safe, reliable and cost-effective
operation, to final decommissioning of
the aircraft from the fleet.
SR Technics offers:
Fleet technical management ser-
vices
Aircraft maintenance, including line
maintenance, base maintenance,
aircraft overhaul and additional
maintenance services
Aircraft AOG recovery and ad hoc
services
lntegrated Airline Solutions, which
delivers tailor-made solutions up to
and including complete technical out-
sourcing of all maintenance services
for aircraft engines and components.
Ababa, Ethiopia, as from January 1.
The main operational line station is at
Amsterdam Schiphol Airport in the Neth-
erlands. It has further opened line station
locations at airports where demand for its
services was needed. Its EASA Part-145
approval covers a total of 39 aircraft-
engine combinations, and is being
extended to include additional widebody
aircraft types and to provide services at
other European airports as well as addi-
tional locations worldwide.
Direct Maintenance is part of the Direct
Aviation Group, based in the Netherlands,
a market leader in service provisioning to
the aviation industry worldwide. It also
has offices in Ireland, Kenya, Tanzania,
Libya, Ethiopia, China, Japan and the US.
A340-200
Many A340-200s are used by VIPs or the mili-
tary, such as Royal Brunei Airlines, Qatar Amiri
Flight, the Egyptian government, Saudi Arabia
air force, the Hashemite Kingdom of Jordan, the
French air force and the German government.
Historically these aircraft were in service with
Cathay Pacific, Philippine Airlines and Air Bour-
bon. A340-200s were later given performance
improvement packages (PIPs), which helped
them achieve similar gains in capability as the
A340-8000, a one-off specially configured air-
craft for the Sultan of Brunei. These aircraft are
labelled A340-213X. The range for this version
is 8,000 nautical miles (15,000 km).
Due to its large wingspan, four engines, low
capacity and improvements to the A340-300, the
-200 proved heavy and unpopular with mainstream
airlines. Only 28 A340-200s were produced.
South African Airways is the largest operator, with
six aircraft. Other operators include Aerolneas
Argentinas (four), Royal Jordanian (five), Egypt Air
(three) and Conviasa (one).
A340-300
With a service range of more than 7,400 nautical
miles, Airbuss A340-300 is tailored to meet the
needs of the 300-seat long-range market offer-
ing direct point-to-point services and increased
flight frequencies at lower costs. The type thrives
in many market environments, and often forms
a key part of larger international operations with
major carriers, operating alongside other A330 or
A340 models. As a flagship with smaller airlines,
the A340-300 provides vital long-range links to
less populous cities, while it serves as the most
cost-effective 300-seat long-range complement
for operators of A320 family aircraft.
A340-500
The A340-500 offered highly efficient, ultra-
long-haul operations upon introduction. In a
typical three-class cabin arrangement, this ver-
sion seats a maximum of 313 passengers, and its
cabin flexibility enables seat pitch to be adapted
in units of one inch while galleys, lavatories
and stowage can be located in different numbers,
groupings and locations.
With a range of up to 9,000 nautical miles, the
A340-500 is operating on some of the worlds
longest non-stop routes, including direct Singa-
pore-Los Angeles flights of almost 19 hours.
This aircrafts optimised 222-inch fuselage
cross-section gives airlines the cabin versatility
to match market requirements, from high-comfort
premium seating to economy class layouts in
seven-, eight- and nine-abreast layouts. Below
the main deck, the A340-500s large cargo holds
accept a full range of freight, including industry-
standard LD3 containers in side-by-side loading.
The forward hold accommodates 18 LD3s or six
96-inch pallets, while the aft hold takes 12 LD3s
or four 96-inch pallets.
A340-600
The A340-600 is the longest-fuselage jetliner ever
built by Airbus, and the largest-capacity member
of the A340 family. With an overall length of 75.3
metres, it has a seating capacity for 360 passen-
gers in a three-class layout, or 419 in a two-class
configuration.
The A340-600 has a range of 7,900 nautical
miles. Power plants are Rolls-Royce Trent 500
engines. On this type they typically use only 56,000
lbs of their certified 60,000 lbs of thrust, which
should result in reduced engine wear. In addition,
Airbus claims the use of four engines, as opposed
to two larger power plants as with the 777, allows for
a 13% reduction in maintenance costs for operators.
However, as operators have found out, this does not
make-up for the losses on fuel costs when com-
pared with the 777 burn rates.
The latest version of the long range A340-600
was the last throw of the dice for Airbus on the A340
family. The new aircraft brought extended range,
greater passenger capacity and overall substantially
enhanced productivity for airlines.
Qatar Airways was the first customer to take deliv-
ery of this new, higher gross weight A340-600.
A340-200/300, JUNE 2011
Total orders 246
Total deliveries 246
In operation 239
A340-500, JUNE 2011
Total orders 36
Total deliveries 32
In operation 32
A340-600, JUNE 2011
Total orders 97
Total deliveries 97
In operation 96
A340 MAINTENANCE
ORDERS, DELIVERIES AND OPERATORS OF THE AIRBUS A340 AS OF JUNE 30
A340-200 A340-300 A340-500 A340-600 Total
Ord Del Opr Ord Del Opr Ord Del Opr Ord Del Opr Ord Del Opr
Airbus Executive and Private Aviation 6 6 9 1 1 3 7 5 5 2 2 2 16 14 19
Aerolneas Argentinas 4 3 7
Afriqiyah Airways 1 1
Air Canada 8 8 2 2 10 10
Air China 3 3 6 3 3 6
Air China Southwest Company 3 3 3 3
Air France 3 3 11 11 16 14 14 16
Air Mauritius 5 5 6 5 5 6
Air Namibia 2 2
Air Tahiti Nui 4 4 5 4 4 5
AirAsia X 2 2
Arik Air 2 2 2 2
Austrian Airlines 2 2 2 2 4 4
Cathay Pacifc 4 4 7 7 14 11 11 14
China Airlines 6 6 6 6 6 6
China Eastern Airlines 5 5 5 5 5 5 10 10 10
Conviasa 1 1
Egyptair 3 3 3 3 3 3
Emirates Airlines 8 10 10 10 10 10 18
Etihad Airways 4 4 4 7 7 7 11 11 11
Finnair 4 4 7 4 4 7
Flightlease 2 2 2 2
Gulf Air 6 6 4 6 6 4
Hainan Airlines 3 3
HiFly 3 2 5
Iberia 18 18 19 16 16 17 34 34 36
ILFC 16 16 13 13 29 29
Kingfsher Airlines 2 2
Kuwait Airways 4 4 4 4 4 4
LAN Airlines 4 4 5 4 4 5
Lufthansa 7 7 28 28 26 24 24 24 59 59 50
Olympic Airlines 4 4 4 4 4 4
Philippine Airlines 8 8 4 8 8 4
Qatar Airways 4 4 4 4 4 4
Royal Jordanian 4 4
Sabena 3 3 2 2 5 5
Scandinavian Airlines System 7 7 6 7 7 6
Singapore Airlines 17 17 5 5 5 22 22 5
South African Airways 6 6 6 8 6 6 9 12 12 23
SriLankan Airlines 3 3 6 3 3 6
Surinam Airways 1 1
Swiss International Air Lines 9 9 15 9 9 15
TAM Linhas Areas 2 2
TAP Portugal 4 4 4 4 4 4
Thai Airways International 4 4 4 6 6 6 10 10 10
Turkish Airlines 7 7 9 7 7 9
Union des Transports Ariens 7 7 7 7
Virgin Atlantic Airways 7 7 6 14 14 19 21 21 25
Undisclosed 4 4
A340-200 A340-300 A340-500 A340-600 Total
Ord Del Opr Ord Del Opr Ord Del Opr Ord Del Opr Ord Del Opr
Totals 28 28 27 218 218 212 36 32 32 97 97 96 379 375 367
Backlog 4 4
ASIA-PACIFIC
A
s a result of the stronger
economic outlook, Asias
fleet and MRO growth
outlook is positive. Asia-
Pacifics fleet and MRO
growth outstrips that of other regions as
a mad rush to be ready to service the huge
eets on order takes place. Chinas growth
over the next 10 years makes it formidable
in terms of eet size, but the MRO market
is still muted in the APAC region by the
newer aircraft that will enjoy a mainte-
nance honeymoon. This taken together
with the fact that most of the eets on
order are under OEM aftermarket con-
tracts means there is not at this time or
within the next ve years a great deal of
business to be had in the area outside of
OEM joint ventures or existing eet ser-
vice requirements. Also note that India
combined with China has a eet that
will match that of the rest of APAC put
together by 2021.
The APAC region presents a tale of
two sides when considering MRO. There
are the long-established MRO players
such as ST Aerospace, Ameco Beijing
and HAECO, which are very busy, and
then there is the substantial investment
going into India and China, mainly being
led by the OEMs. The former group also
includes successful outposts of European
and US MROs that are generally perform-
ing well. Monarch Aircraft Engineering
(MAEL) has outposts in the Maldives and
Goa. The Maldives facility is proving to
be a real winner for MAEL, with numer-
ous deals signed during 2011, including
a line maintenance technical handling
agreement with Alitalia to support A330
aircraft operating out of Male airport.
In the China/India, Southeast Asia
region, the eet on order is mainly newly
delivered next-generation aircraft. As
such, the money to be made in MRO is
in the engine game. Of all the MROs in
the APAC region, the most active in the
engine market expansion is ST Aerospace
(Singapore Technologies Aerospace). In
2011, ST Aerospace entered into a joint
venture with Xiamen Aviation Industry
(Xaico). The new company: ST Aero-
space Technologies Company (Statco)
has unveiled a new engine MRO facility
in Xiamen, China. The US$78 million
(about S$101 million) facility has a capac-
ity to support up to 300 engines annually.
It will initially provide MRO and total
support for the CFM56-7B and CFM5-
6-5B series of engines. Statco has received
the Part 145 certication from China Avi-
ation Administration of China (CAAC)
and has also received approvals from the
US Federal Aviation Administration and
Koreas Ministry of Land, Transport and
Maritime Afairs for the maintenance
of the CFM56-7B series of engines. The
Fleet AP CH IN Total
2011 4.7% 8.6% 9.0% 6.4%
2016 5.2% 7.2% 8.7% 6.3%
2021 5.0% 7.9% 8.8% 6.3%
Total MRO AP CH IN Total
2011 4.6% 9.7% 9.8% 6.3%
2016 4.3% 8.5% 9.3% 6.0%
2021 4.4% 9.1% 9.6% 6.2%
ASIA-PACIFIC
ASIA-PACIFIC MRO
ASIA-PACIFIC
programme for Tiger Airways. The pro-
grammes six cadet pilots are now under
the employment of Tiger Airways and
have received their MPL from the Civil
Aviation Authority of Singapore. On
capability development, ST Aerospaces
afliate, Vision Technologies Aerospace,
has entered into an agreement to acquire
100% of the shares of DRB Aviation Con-
sultants to enhance its aircraft interior
engineering design capabilities, while ST
Aerospace secured a cabin recongura-
tion project for Jet Airways Airbus A330.
Singapore has long enjoyed its posi-
tion as the APAC aviation hub, challenged
only by Hong Kong. The largest MRO
players in the region have their head-
quarters in these two locations. But
government investment agencies acting
for Malaysia and Thailand have been
encouraging inward investment. Thai-
land has over the past year been hindered
by political unrest and is now sufering
severe ooding but it has constructed the
worlds largest maintenance hangar for
three A380 aircraft and has world-class
infrastructure in place for repair service
investment. The country is currently
widely recognized as one of the foremost
aircraft maintenance centres in Asia. The
location is central, and Boeing and Airbus
will need to provide their services through
bases in the country. Beyond that the out-
look remains rmly focused on China
and India. MAS- GMR Aerospace Engi-
neering (MGAE), a 50/50 joint venture
between Malaysian Aerospace Engi-
neering (MAE) and GMR Hyderabad
International Airport is now launching.
MAE is a subsidiary of Malaysia Airlines
(MAS) while GMR Hyderabad Inter-
national is a subsidiary of India-based
GMR Infrastructure. This joint venture
is a third-party airframe MRO facil-
ity, the rst of its kind for its scale and is
located in the Special Economic Zone at
the Rajiv Gandhi International Airport
in Hyderabad. The MGAE facility has
one widebody hangar, one narrowbody
hangar with three bays, and another
painting/narrowbody hangar with asso-
ciated workshops. It has the capability to
provide base maintenance services, start-
ing with Airbus A320, ATR 42/72 and
Boeing 737NG, and subsequently A330
and Boeing 777 aircraft. MGAE currently
has close to 350 employees and the bulk
of the manpower is made up of a local
Finance. It is possible Team will cause a
round of rate decreases in the engine leas-
ing market, but the impact on the market
will not be clear until next year at least.
Of all the APAC MROs, it is ST Aero-
space that is the true global player in
the region. It is the aerospace arm of ST
Engineering, and operates a global MRO
network with facilities in the Americas,
Asia-Pacic and Europe. It is the worlds
largest aircraft MRO provider, employing
over 8,000 engineers, with a global cus-
tomer base that includes leading airlines,
airfreight and military operators. The key
for ST Aerospace is that it is in efect an
integrated service provider that ofers a
spectrum of maintenance and engineer-
ing services covering all areas, including
airframe, engine and component mainte-
nance, repair and overhaul; engineering
design and technical services; and avia-
tion materials and management services
such as Total Aviation Support.
ST Aerospace has had a bumper year,
with over S$1.033 billion worth of avia-
tion maintenance contracts signed so
far in 2011. ST Aerospace secured new
maintenance contracts worth a total
of S$453 million in the third quarter of
2011 alone. Besides airframe redeliver-
ies, ST Aerospace serviced 70 engines and
13,775 components for both commercial
and military customers during the third
quarter of 2011. In another develop-
ment, its commercial pilot training arm
successfully completed Singapores
first Multi-crew Pilot Licence (MPL)
newly completed facility is located on a
415,702 sq ft plot of land, near Xiamen
Gaoqi International Airport.
At the Paris Air Show 2011 it was
announced that ST Aerospace and Maru-
beni Corporation had entered into a joint
venture to form an engine leasing com-
pany in Singapore. The new JV company,
Total Engine Asset Management (Team),
will be equally owned and jointly man-
aged by ST Aerospace and Marubeni.
Teams initial engine leasing portfolio will
include the CFM56-3, CFM56-5B and
CFM56-7B engines, which mainly power
narrowbody aircraft such as the Airbus
A320 and Boeing 737. The JV plans to
invest approximately US$100 million in
new assets within the rst two years, with
equity injection of up to US$40 million.
The new JV will leverage ST Aerospaces
expertise in total engine support, includ-
ing engine technical management and
engine maintenance-by-the-hour, along-
side Marubenis extensive experience
in nancing and marketing knowledge.
Gentaro Toya, senior operating ofcer,
transportation machinery division, at
Marubeni Corporation, commented on
the deal: By entering into the aircraft
engine leasing business and strengthen-
ing our comprehensive range of services
to airlines around the world, Marubeni
intends to make a further material contri-
bution to the aviation industry. It is hard
to see as yet how this JV will afect the
engine leasing businesses of rms such as
Engine Lease Finance and Willis Lease
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000 Asia-Pacic
China
India
2011 2016 2021
Total
2,749
1,566
4,672
357
3,457
2,364
6,371
550
4,460
3,342
8,635
833
ASIA-PACIFIC FLEET FORECASTS
ASIA-PACIFIC
Indian skilled workforce, while retired
MAS engineers and technicians are also
employed at competitive remuneration
packages to kick-start operations. In
preparation for MGAEs operations in
Hyderabad this year, MAE has trained 72
Indian engineers hired by MGAE.
As mentioned previously, it is the
OEMs that are leading the incursion into
India and China. One of the most recent
announcements from Airbus was also one
of the most interesting: Pipavav Shipyard,
Indias biggest shipbuilder by market
value, has conrmed it is to form a joint
venture with EADS/Airbus and SKIL
Infrastructure to set up an aircraft main-
tenance facility. EADS will acquire a 26%
stake in the Indian venture. EADS retains
an option to further increase the holding
to 49%. Pipavav, based in Gujarat, will
hold a 51% stake in the venture that will
be used for both civilian and military
applications. In the rst phase, the facil-
ity and related infrastructure looks set to
cost the JV over US$100 million.
Airbus has openly said it is target-
ing the aftermarket to ofset peaks and
troughs in the manufacturing cycle, and
that it is seeking a takeover target that
already has the customer base and indus-
try experience to combine with Airbuss
technological knowledge. Airbus doesnt
want to get into the traditional MRO
market, and would rather focus on com-
ponent repair and traditional airframe
maintenance.
Meanwhile, Boeing has opened a
new service centre in Beijing to provide
enhanced product support to Chinas
commercial aviation industry. The facil-
ity comprises pilots and experts in ight
operations, spare parts and maintenance
engineering who are dedicated full-time
to serving airlines in China.
The main third-party maintenance
provider in China is Ameco Beijing. The
venture, set-up by Lufthansa and Air
China some years ago, has been quietly
building its portfolio during 2011 and, as
international trafc expands out of Bei-
jing, this MRO provider will benet. It is
not hard to see that Ameco will need to
further expand its Beijing facilities before
long to cope with the levels of work that are
sure to come over the next decade.
During 2011, Ameco Beijings Guang-
zhou station added Turkish Airlines as
a new line maintenance customer. The
Guangzhou station provides line main-
tenance and releasing for the carriers
Boeing 777. This was after a previous 2011
agreement with Turkish Airlines to pro-
vide line maintenance in Beijing and
Shanghai. In June, Ameco Beijing com-
pleted Air Chinas first A330 aircraft
IPTE project that involved the cabin and
entertainment system. As planned, Ameco
Beijing will perform IPTE for a total of 16
Air China A330 aircraft by the end of this
year. In recent years, Ameco Beijing has
been successful in market development in
North America, providing services includ-
ing airframe overhauls, cabin upgrade and
modications, engine overhauls and line
maintenance for a number of eets of
the major airlines in the region, with an
increasing number of customers. Ameco
Beijing has also been providing line
maintenance services including aircraft
releasing to Singapore Airlines in Beijing.
It is not all rosy and good in the APAC
region though. Generally the pressures
for the MRO companies in this region
are the same as for those in the US or
Europe. Indeed, Qantas has lost a third-
party maintenance contract. Jetstar will
now send eets ofshore for mainte-
nance after the ongoing Qantas conict
with the unions caused too much dis-
ruption. Qantas chief executive Alan
Joyce criticised unions represent-
ing its pilots, maintenance engineers
and ground handlers for holding the
company to ransom. He revealed that
New Caledonias international airline,
Aircalin, has cancelled its aircraft main-
tenance contract with Qantas, while
Qantass low-cost subsidiary, Jetstar,
has been forced to service some of its
aircraft overseas. In fact Aircalin can-
celled its contract for line maintenance
on A320s and A330s. It is unlikely that
Qantass MRO arm will see third-party
maintenance business for a while, after
this recent disruption.
The future remains fairly secure for
MROs in the Southeast Asian region,
but the rush to get a slice of the action by
just about every major MRO and OEM
could lead to overcapacity before the end
of this decade, especially with regard to
India. India represents a perfect target
for MROs, and they are building infra-
structure at pace. With MROs securing
sites at the initial planning stage for air-
eld expansion, it remains to be seen if
all of this investment will pay dividends.
0
5
10
15
20
25 Asia-Pacic
China
India
Total
$7.8
$3.0
$0.7
$11.5
$9.8
$4.7
$1.1
$15.7
$12.1
$7.1
$1.8
$21.0
2011 2016 2021
ASIA-PACIFIC MRO FORECASTS (US$MILLION)
"II |s Iha ENs IhaI ara
|aad|ng Iha |ncurs|on |nIo
Ind|a and 0h|na. For axamp|a,
P|pavav 8h|pyard, Ind|a`s
b|ggasI sh|pbu||dar by mar|aI
va|ua, has conI|rmad |I |s Io
Iorm a |o|nI vanIura W|Ih EA8/
A|rbus and 8kIL InIrasIrucIura
Io saI up an a|rcraII
ma|nIananca Iac|||Iy."
With more than three decades of experi-
ence providing quality engine services and
managing over 500 engines for a diverse
customer base comprising over 80 opera-
tors worldwide, ST Aerospace consistently
invests in new capabilities and expands
technical resources to better deliver inno-
vative and integrated solutions.
Aircraft maintenance
ScheduIed Iighl and heavy
maintenance
Transil]lurnaround servicing and
checks
Aircrafl servicing, inseclions, reairs
SB]AD comIiance and modicalions
Non-deslruclive inseclions
Aircrafl ainling
Aircraft modifications
Passenger-lo-freighler conversions
IIeel slandardisalions
Cabin inleriors ugrades
In-ighl enlerlainmenl
Avionics ugrades and inslaIIalions
Olher modicalions, incIuding
winglet installation
Off-site/aircraft-on-ground (AOG)
recovery services
AOG suorl
Aircrafl recovery and reairs
Engineering design and development
Design organisalion arovaI -
EASA-21 and SAR-21
SuIemenlaI lye cerlicale (STC)
development and certication
Liaison engineering
Engines
ST Aerospace ofers customised integrated
solutions for eets of engines, helping cli-
ents achieve the longest on-wing time at
the lowest lifecycle costs for operations.
The full-service spectrum includes:
TechnicaI managemenl
On-wing mainlenance
O-wing mainlenance
Assel managemenl
Technical management
Engine condilion moniloring
Performance lrending and diagnoslics
Mainlenance Ianning
Work scoping
Lease relurn Ianning
IaiIure anaIysis
Conguralion managemenl
ReIiabiIily imrovemenl rogramme
Warranly and insurance
management
On-wing maintenance
Engine defecl]damage assessmenl and
rectication
Borescoe inseclion
In-silu airfoiI bIending
To case removaI
ModuIar reairs
Engine lroubIeshooling
Engine]LRU removaI and
installation
Engine wash
Asset management
Sare engine suorl
Engine Ieasing and ooI access
Invenlory managemenl
Logislics
Iinancing, such as saIe and Iease-back
Off-wing maintenance
Engine mainlenance, reair, overhauI
Parls and accessories reair]overhauI
AD]SB comIiance
Modicalions and ugrades
Posl-Iease cerlicalion
ASIA-PACIFIC
ST Aerospace
AIRCRAFT SERVICED
- Alrbus A300, A3l0, A320, A330, A340
- 8oelng 727, 737, 747, 757, 767, 777
- McDonnell-Douglas MDl0, MDll,
MD80, MD90 and DC9, DCl0
- Lear[et 35, 45, 60
- Lmbraer LP1l35, LP1l45, Ll90
Ameco Beijing
Aircraft Maintenance and Engineering
Corporation (Ameco Beijing), located at
Beijing Capital International Airport, is
a joint venture between Air China and
Lufthansa. Ameco was established in
1989, with Air China holding 60% and
Lufthansa 40% of the registered capital.
The registered capital is US$187.53 mil-
lion and the joint-venture agreement was
signed for 40 years.
Ameco Beijing adjoins No. 2 terminal
of Beijing Capital International Airport in
the north and No. 3 terminal in the east,
covering an area of more than 600,000
sqm. The maintenance facilities include:
A four-bay hangar wilh 3,8uu-sqm
oor space, including a 35,000-sqm
maintenance hall and shop.
A fuIIy encIosed and lemeralure-
controlled painting hangar covers an
area of 10,000 sqm, which can meet
the requirements of stripping, washing
and painting of any types of aircraft.
The engine reair]overhauI worksho
and an engine test cell cover an area of
26,000 sqm.
Comonenl workshos cover an area
of 20,000 sqm including tempera-
ture-controlled avionics and electric
workshops, landing gear overhaul
shop, and mechanic, pneumatic and
hydraulic workshops.
An A38u hangar wilh a 41,uuu-sqm
maintenance hall that can accom-
modate six widebody and four
narrowbody aircraft at the same time,
including the A380 super-jumbo.
A new B,4, hangar wilh lhe funclion
of painting and heavy maintenance
can host either one Boeing 747 for
painting or one Boeing 747, 767 and
737 for heavy maintenance
Ameco Beijing is not only the rst
joint venture in the Chinese aviation
sector but also the most powerful main-
tenance, repair and overhaul provider
in China. Ameco Beijing has more than
5,000 employees and holds 14 certi-
cates issued by airworthiness authorities
including the FAA, EASA and CAAC.
In aircraft maintenance, the company
services almost all modern Boeing and
Airbus aircraft while Ameco provides
engine overhaul on Rolls Royce and Pratt
& Whitney products, and ofers repair and
overhaul services for almost 10,000 com-
ponents. Aircraft painting, engineering,
technical training and logistics services, as
well as equipment calibration and repair,
complete the product portfolio.
ASIA-PACIFIC
HEAVY MAINTENANCE DIRECTORY - ASIA PACIFIC REGION
COMPAN CONTACT DLTA|LS A|PCPAPT CHLCKS PAC|L|T|LS SPLC. CAPA8|L|T|LS
Alr Asla S.T.Chuang
vlce presldent Alrcraft Malntenance
Talnan Alreld
Talnan 702, Talwan
tel: +886 6 267 04l6
fax: +886 6 267 3424
stchuangQmall.alrasla.com.tw
707
727
737
DC-9, DC-l0
MD-80
Pokker -50
8l900
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
l w/b bay
2 n/b bay
2 commuter bays
lnterlor upgrade, strlp & palnt,
modlcatlons, structural repalr, com-
poslte repalrs
Alr |ndla 1 G Ghanekar
Dlrector, englneerlng
Lnglneerlng department
Old Alrport
Santa Cruz (L)
Mumbal
tel: +9l 22 6l5 7777
fax: +9l 22 6l5 7l72
A30084
A3l0-300
747-200
747-300 Combl
747-400
avlonlcs & |ndla 400 029
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
bays: 4 w/b
hangar & bay area:
24,784m2
l79 llcensed
alrframe englneers
strlp & palnt (not separate hangar),
modlcatlons, structural & compos-
lte repalrs, accessorles
Alr Maurltlus Poshan 8aguant
Senlor manager, malntenance plannlng
and control
Malntenance and englneerlng dept.
SSP |nt'l Alrport Plalne Magnlen
Maurltlus
tel: +230 603 3352
fax:+230 202 3262
emall: rbaguantQalrmaurltlus.com
A340
ATP42
767
Do228
A,8,C
A,8,C
A,8,C
A,8,C
2 hangars: 6,078m2
l w/b, 2 n/b, 6 commuter
A340 hangar
Alr New Zealand 1ohn 8yers
Marketlng manager
PO 8ox 53098
Auckland |nternatlonal Alrport
New Zealand
tel: +64 9 256 3824
fax: +64 9 256 3786
ATP 42/72
767
737
727
747
A320
C-l30/P3 Orlon
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
SDLM
4 w/b, 3 n/b (Auckland)
l w/b, 6 n/b (Chrlstchurch)
l,200 llcensed englneers
strlp & palnt Lnglneerlng, avlonlcs
upgrades Servlces, hushklttlng,
full cabln, refurblshment, SATCOM
lnstallatlons, 767/747 pylon mod
Alr Paclc
Lnglneerlng &
Malntenance
1lmmy Samson
General Manager, Lnglneerlng
Prlvate mall bag
Nadl Alrport
Pl[l |slands
tel: +679 720 777
fax: +679 720 5l0
e-mall: [lmmyQalrpaclc.com.[
737 (lnc. -NG)
747
767
Saab 2000
HS748
A
A
A
A,8,C
A,8,C
l hangar
3,384m2
6 avlonlcs englneers
30 A&P
strlp & palnt, full cabln refurb.
All Nlppon Alrways Ken[l Nagashlma
Technlcal sales & contracts
3-5-4
Haneda Alrport
Ota-ku l44-004l
Tokyo, 1apan
tel: +8l 3 5756 5390
fax: +8l 3 5756 5407
747-l00
747-300
747-400
777-200/-300
767-200
767-300
A320/32l
A,8,C, /ma[. mods
A,8,C, /ma[. Mods
A,8,C, /ma[. Mods
A,8,C, /ma[. mods
A,8,C, /ma[. mods
A,8,C, /ma[. mods
A,8,C, /ma[. mods
l0 w/b bays
3 n/b
l,560 llcensed englneers
747 pylon mods
Ameco 8el[lng (l) Zhu Xlao
Senlor dlrector, mktg & sales
(2) 1an 8utzmann
Senlor dlrector, mktg & sales
PO 8ox 563, Capltal Alrport
8el[lng l0062l, PP Chlna
tel: +86 l0 6456 ll22 ext. 4l00/4l0l
fax: +86 l0 6456 l823
emall: salesQameco.com.cn
747 (all)
767-200LP /-300
737 (all)
777
A,8,C,D
A,C, & full overhaul
A,8,C,D
C lncl. struct. checks
7 w/b
l4 n/b
dedlcated palntlng hangar
CPCP, strlp & palnt, avlonlcs up-
grades, hushklttlng, 747, 767 pylon
mods, 747 sectlon 4l, full cabln
refurb, v|P cabln mods, comprehen-
slve, component & englne shops
Chlna Alrllnes |nternatlonal L Lln
vP, englneerlng & malntenance dlv
CKS |nternatlonal Alrport
Taoyuan
Talwan 339
tel: +886 3 398 7250
fax: +886 3 398 7396
727-l00/-200
737-400
747 (all)
MD-ll
A300-600
A320/A32l
A340
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C
A,C
3 hangars
6 bays
l42,000m2
hangar capaclty:
5 w/b or l0 n/b
590 llcensed englneers
strlp & palnt, 747 pylon upgrade,
747 sectlon 4l, full cabln refurb.,
CPCP, PL| system lnstall
Lvergreen Avlatlon Technolo-
gles
(LvA Alrways Corporatlon)
Kln Chong
1unlor vlce presldent
8uslness coordlnatlon dlvlslon
Lvergreen Avlatlon Technologles
6 Harng-1ann South Poad
Tayuan, Taoyuan Hslen 338
Talwan, POC
tel: +886 3 35l 9469
fax: +886 3 393 l039
747-400
767-200/-300
MD-ll
DC-l0
MD-90
A330
A32l
A320
A3l9
A,8,C,D
A,8,C
A,8,C
A,8,C
A, 8, C
A,8,C
A,8,C
A,8,C
A,8,C
No l hangar:
3 w/b bays for 3 alrcraft
noorspace: l2,900m2
No 2 hangar:
l w/b bay
2 n/b bays
noorspace: ll,000m2
avlonlcs upgrades
Alrframe mods, 767/747 pylon
mods, full cabln refurbs., lnsulatlon
blanket, replacement, CPCP, strlp
& palnt
GMP AeroAsla
(Garuda |ndonesla Group)
8lmo Agus
Dlrector of 8ase Operatlon
& vP 8uslness Cooperatlon & Dev.
Marketlng bulldlng, Soekarno Hatta
Cengkareng l9l30, |ndonesla
Tel: +62 2l 5508609
Pax: +62 2l 5502489
blmoQgmf-aeroasla.co.ld
A3l0
A330
737
747-400
747-l00/-200/-300
P28
PO 8ox l303
MD-80/82
A,8,C,D
A,8,C
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
DC-l0
A,8,C,D
8 w/b
l6 n/b
hangar space:
(l) 2l,450m2,
(2) 22,500m2, and
(3) 22,500m2
A,8,C,D
747 sectlon 4l, 747 pylon mods,
Lnglneerlng svcs, Strlp & palnt, Pull
cabln refurbs., Cargo Convers., CPM
56-3 o/haul, PP Spey 555 o/haul,
APU o/haul, component o/haul, Llne
malntenance
MRO Directory: Asia Pacific
ASIA-PACIFIC
Guangzhou
Alrcraft Malntenance
Lnglneerlng Company
(GAMLCO)
1oey Lo
Dlrector, buslness development dept.
8alyun |nternatlonal
Guangzhou 5l0470
PP Chlna
Tel: +86 20 86l2 444l
Pax: +86 20 8664 l529
e-mall: [oeyloQgameco.com.cn
737
747-400P
757
767
777
A3l9/A320/A32l
LM8l45
A,8,C,D
A,8,C
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C
l Hangar
96,000m2
4 w/b bays
l dedlcated palntlng bay
avlonlcs upgrades, composlte
repalrs, CPCP, lnterlor refurbs., S8s,
ADs and mods, structural repalr
Hong Kong Alrcraft
Lnglneerlng Company
(HALCO)
Ashok Sathlanathan
Lxecutlve GM Commerclal
80 South Perlmeter Pd
Hong Kong |nternatlonal Alrport
Lantau
Hong Kong
tel: +852 2767 6383
fax: +852 2333 45l4
emall: sathlQhaeco.com
A300
A320
A330
A340
747
757
767
777
8Ae l46
A,8,C
A,8,C
A,8,C
A,8,C
A,8,C,D
A,8,C
A,8,C
A,8,C
A,8,C
l hangar
l7,500m2
3 w/b (fully ln)
2 w/b (tall out)
747 pylon mods, 747 sectlon 4l,
cargo converslons, composlte
repalrs, CPCP, strlp & palnt, avlonlcs
lnstallatlon, 737 wlnglet mod,
PTM/|TM
1apan Alr System asushl Asaka
General Manager, Lnglneerlng
3-5-l Hanedakuko Ota-ku
Tokyo
1apan
tel: +8l 3 5756 8220
fax: +8l 3 5756 8336
A300 (all)
MD-8l
MD-87
MD-90
777
A,C
A,C
A,C
A,C
A,C
5 w/b
9 n/b
modlcatlons, 75l llcensed alrframe,
englneers
1et Care Gary Poud,Lnglneerlng Manager
PO 8ox l526
Lagle Parm
75-79 Pandanus Ave
8rlsbane
Queensland 4009
Australla
tel: +6l 7 3860 4477
fax: +6l 7 3860 4470
LM8l20
DHC-6
SA 227
LM8-ll0
P50 & P27
8200
Pl00
737-300/-400
737-700/800
A,8,C,D
All
All Phases
A,8,C,D
A,8,C,
All Phases
A,8,C,D
A,8,C,D
All up to Heavy
3 commuter
2 narrowbody
(l hangar)
3,000m2
strlp & palnt, modlcatlons, lnterlors
Korean Alr
Malntenance & Lnglneerlng
oung Soo Lee
General manager,
Malntenance, Plannlng
& MPO 8uslness Team
l370, Gonghang-Dong
Gangseo-Gu
Seoul, Korea
tel: +82 2 2656 3705
fax:+82 2 2656 3l20
e-mall:mphQkoreanalr.co.kr
A300-600
A330-200/-300
747-200/-400
777-200/-300
737-800/-900
Pl00
MD-ll
MD-80
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
|ncheon:2w/b & l/n/b (l h)
Seoul:2 w/b and l n/b (l h)
Pusan: lw/b (l palnt h),
lw/b(l hangar),
2 w/b(l hangar)
strlp & palnt, composlte shop, com-
ponents, avlonlcs & access., HMv,
CPCP, NDT, mods structural repalr,
full cabln refurbs, englne o/haul,
APU o/haul, Approvals: Heavy and/
or llne malnt.- KCASA, LASA, PAA,
CAAS, THA|-DCA, MCAA, DGAC,DCA
Lufthansa Technlk
Phlllpplnes
Plchard Haas
vP, marketlng & sales
Lufthansa Technlk Phlllpplnes
vlllamor Alr 8ase
Manlla, Phlllpplnes
tel: +632 855 93l0
fax: +632 855 9309
e-mall: rlchard_haasQltp.com.ph
A330
A340
A3l9/A320/A32l
737-300/400
747-400
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C
A,8,C
4 w/b bays
l8, 000sq. mts
ded. docklng system, support shops,
modlcatlons, structural repalrs,
strlp & palnt/CPCP, cabln refurblsh-
ment, |PL, llne malntenance
MAS Lnglneerlng
and Malntenance
(Malaysla Alrllnes)
Tan wee Llam
Manager Admln and 8us. Analrs
MAS Lnglneerlng and Malntenance
4th Ploor, Hangar 3
MAS complex A-AAl204
Sultan Abdul Azlz Shah Alrport 47200
Malaysla
tel: +60 3 7840 4268
fax: +60 3 7846 3797
emall: tanwlQmas.com.my
A330
737 (all)
747 (all)
DHC6
8777
P50
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
5 hangars
8 wldebody bays
7 Narrowbody bays
8747 Pylon Mods, Cabln |ny. refurbs/
upgr., v|P Cabln refurbs, Charter
refurbs/mods, a/c '8outlque' Palnt-
lng, 8lended wlnglet, |nstallatlon,
8737 cargo convers, Monogram
Pepalr, Statlon: tollet assy 8737, Lap
1olnt Mod |PL, Avlonlcs Upgrade,
Component Pepalr and Overhaul,
P8H Malntenance
Paklstan |nternatlonal
Alrllnes
Dlrector, englneerlng & malntenance
P|A
Quald-e-Azam |nternatlonal Alrport
Karachl 75200
Paklstan
tel: +92 2l 457 95302
fax: +92 2l 457 0l27
emall: devenggQplac.com.pk
A30084
A3l0-300
737-300
747-200
747-300
P27-200/-400
DHC-6
A,8,C,D
A,8,D
A,8,C,D
A,C,D
A,8,C,D
A,8,C,D
48LMMA packages
2 w/b & 6 n/b cabln refurblshment, accessorles,
englne, avlonlcs lnstallatlon, modl-
catlons & o/haul & repalr, strlp/palnt
QANTAS Alrways |an wolfe
Manager, heavy malntenance
QANTAS 1et base., 203 Coward St
Mascot, NSw, 2020
Australla
tel: +6l 2 969l 7364
fax: +6l 2 969l 9754
737
747
767
A330
A,8,C,D
A,8,C,D
A,8,C,D
A,8
l0 w/b hangars (Sydney) wlth
dedlcated docklng Comm.
bus. 58, 896m2, 7 n/b hangars
(Melbourne) wlth dedlcated
docklng 29, 850m2, 3 w/b
hangars(Avalon vlctorla) wlth
dedlcated docklng 35,335 m2,
l w/b hangar(8rlsbane) wlth
dedlc. Docklng 38, l50 m2
767/8747 pylon mods, 747 sectlon
4l, full cabln refurbs.
Poyal 8runel Alrllnes Hassan Tengah
Dlrector, englneerlng
PO 8ox 737
8andar Serl 8egawan
8S867l
8runel Darussalam
tel: +673 2 330 737
fax: +673 2 330 845
e-mall: ebhasantQrba.com.bn
767-200/-300
757-200LP
A3l9/A320/A32l
A,8,C,D
A,8,C,D
A,8,C,D
2 grs wlth full docklng sys
l - 8737/8757/8767
l- 8757/8767/A3l9/A320
450 englneers,
ll6 llc. englneers
LASA Part l45
ma[. repalrs & mods, wheels &
brakes, structural repalrs, 757/767
pylon mod, avlonlcs upgrades, full
cabln refurbs., composlte repalrs,
NDT lnspectlon to lvl 3, strlp & palnt,
LASA Part l47, Tralnlng
ASIA-PACIFIC
Shanghal
Technologles
Aerospace
Llmlted
Chew Sln Chor
vlce Presldent / General Manager
Hongqlao |nternatlonal Alrport
Hong Qlao Poad 2550
Alrport Poad 3
Shanghal 200335, Chlna
tel: +86 2l 5ll8 8293
fax: +86 2l 5ll8 8266
emall: chewscQstengg.com
www.staero.aero
A300
A3l0
A3l9/A320/A32l
A340
MD-ll
MD-80
MD-90
A,C,D
A,C,D
A,C,D
A,C,D
A,C,D
A,C,D
A,C,D
2 w/b + 2 n/b
l8,900m2 hangar space
agelng alrcraft & struct. lnspec-
tlons, lnterlor retrot & Company,
reconguratlon (STAPCO), corroslon
preventlon, & control programme,
neet standardlsatlon, alrframe con-
verslons, avlonlcs systems, upgrades
& mods, N Testlng, on-slte fabrlc.
parts ext., strlp & palnt structural,
repalrs (lnclud. composltes)
Slngapore
Technologles
Aerospace Ltd
(ST Aerospace)
Chlang woon Seng
vlce Presldent, Marketlng
540 Alrport Poad
Paya Lebar
Slngapore 539938
tel: +65 6287 llll
fax: +65 6280 82l3
emall: mktg.aeroQstengg.com
www.staero.aero
A300, A3l0
A3l9/A320/A32l
A330, A340
737
747
767
777
DC-l0
MD-ll
MD-80
MD-90
Lear[et 35, Lear[et 45
Cessna
DHC-6
A4
C-l30
L-382
PA-28
AS-330/ AS-332
LC-l20, S-76
A,8,C,D
A,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,C,D
A,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
24 w/b + 33 n/b
3l0,788.03m2 hangar space
avlonlcs u/gs lnc., (lncludlng satcom,
GPS, TCAS & wlndshear systems),
747 eng. pylon mods, 747 sectlon
4l, cargo converslons, 757-200 PTP
STC, v|P a/c converslons, corroslon
preventlon & contrl programme,
NDT, lnsulatlon, blanket replace-
ment, cabln lnt. refurbs, upgr.,
three-to-two man, nlght deck
convers, 737 lap [olnt & statlon
bulkhd mods, stage 3 hushklt,
lnstallns & re-englne, englne nacelle
& strut, neet standardlsatlon, strlp &
palnt, alrframe struct mods, agelng
a/c mods, component mgmnt, Maln-
tenance-8y- the-Hour (M8HTM)
S|A Lnglneerlng
Company
Llm Lln Lng
vlce presldent, mktg & sales
06-M Alrllne House
3l Alrllne Pd
Slngapore 8l983l
tel: +65 654l 5390
fax: +65 6565 l257
emall: slaecQslngapore.com.sg
A300-600
A3l0
A330/A340
A3l9/A320/A32l
747-serles
777
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
5 hangars
(43, 200 sq m)
capaclty up to 8 w/b
Alrframe malnt & o/haul, Pleet
mgmnt progr, lncludlng lnventory,
tech. mgmnt, Component malnt
& overhaul, Lnglne and englne,
components repalr & overhaul, Llne
malntenance & Technlcal Handllng
servlces, Cabln lnterlor mods, 747-
400 frelghter converslon (2006)
SrlLankan Alrllnes |an Dunnlng
Senlor mgr, alrcraft malntenance
Lnglneerlng & malnt complex
8.|. Alrport Katunayke
Srl Lanka
tel: +94 l 9733 20l2
fax: +94 l 9733 5255
emall: landmamQsrllankan.aero
A320
A330
A340
A,8,C,D
A,8,C
A,8,C
2-bay hangar
l w/b & l n/b
strlp & palnt, avlonlcs upgrades
ST Aerospace
Lnglneerlng
Pte Ltd
wong Kong Lln
540 Alrport Poad
Paya Lebar
Slngapore 539938
tel: +65 6287 llll
fax: +65 6284 8575
emall: konglln_wongQstengg.com
www.staero.aero
A3l9/A320/A32l
737 CG/NG
A4
Lear[et 35
Lear[et 45
Cessna
PA-28, DHC-6
C-l30
L-382
AS-330, LC-l20
AS-332, S-76
A,C
A,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
l0 n/b
7l,7l9m2 hangar space
a/c mods & upgrades, llne & hvy
malnt., ma[or structural, repalrs
&upgrades, corroslon preventlon, &
control programme, NDT, complete,
strlp & palnt, composlte & alrcraft,
lnterlor malnt., avlonlcs mods &
lnstallatlons
ST Avlatlon
Servlces Co. Pte Ltd
Stephen Low
8 Changl North way
Slngapore 4996ll
tel: +65 6540 56l3
fax: +65 6545 6757
emall: stephenlQstengg.com
www.staero.aero
A300
A3l0
A330
A340
737
747
767
777
DC-l0
MD-ll
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
6 w/b + 2 n/b
92,2l0.40m2 hangar space
avlonlcs upgrades, (lncludlng
satcom, (SASCO), GPS, TCAS &
wlndshear systems), 747 eng.
pylon mods, 747 sectlon 4l, cargo
converslons, corroslon preventlon, &
control programme, NDT, lnsulatlon
blanket, replace. mod full cabln lnt.,
refurbs neet standardlsatlon, strlp &
palnt alrframe struct., mods agelng
a/c mods
Talkoo (Xlamen)
Lnglneerlng
Company Llmlted
P K Chan
Chalrman & CLO
20 Dalllao Pd Last
Gaoql |nternatlonal Alrport
Xlamen 36l006
P.P. Chlna
tel: +86 592 573 7888
fax: +86 592 573 02l5
737
747
757
A300-600
A3l0
A3l9
A320
A32l
A330
A340
767, 777
MD-ll
A,8,C,D
A,8,C,D
A,8,C,D
A
A
A
A
A
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
3 hangars
6 w/b bays + 3 n/b bays
2 more hangars worklng
ln progress
strlp & repalnt Alrcraft, cargo conv.
737-300, 747-200/300/400 (TALCO)
alrcraft and MD ll, 747 pylon mods,
747 sectlon 4l, a/c lnterlor cabln
refurbs, Avlonlc u/g and, system ln-
tegratlon cabln, recong. Tramc cntrl
and alarmlng, system & wlndshear
lnstallns agelng , a/c mods
Thal Alrways
|nternatlonal
Pakaslt Chanvlnl[
Technlcal mktg department mgr
Thal technlcal department
8angkok |nternatlonal Alrport
Donmuang
8angkok l02l0, Thalland
tel: +662 563 8l27
fax: +662 504 3392
moblle: +66l 802 6807
A300
A3l0
A330
ATP 72
737
747
777
MD-ll
DC-l0
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C,D
A,8,C
A,8,C
A,8,C
(8KK)
5 hangars
l70,000m2
500 llcensed englneers
6 w/b bays
(UTP - nr Pattaya 8each)
l hangar: 240,000m2
2 w/b, l n/b
strlp & palnt, 747 pylon mods, 747
sectlon 4l, full cabln refurbs., A300
frame 47, lnsp. & repalr, agelng a/c
progr., avlonlcs upgrade
STG Aerospace unveils the latest innovation
in photoluminescent (PL) oorpath marking;
a unique pattern-matching service.
SafTG|o |s the wor|d`s |ead|ng
photo|um|nescent emergency
foorpath mark|ng system and
has been at the forefront of a|| the
major |nnovat|ons |n P| for the
aerospace sector.
STG has now extended |ts
market-|ead|ng SafTG|o range w|th
a un|que pattern-match|ng offer.
SafTG|o PatternMatch |s
ta||or-made to match the actua|
pattern of even the most |ntr|cate
carpet des|gn. A trans|ucent
over|ay, spec|a||y pr|nted to
match the surround|ng carpet`s
co|or and des|gn, s|ts over the
P| str|p mean|ng the system |s
comp|ete|y d|screet when cab|n
||ght|ng |s on but just as effect|ve
as other SafTG|o var|ants |f the
||ghts go out.
PatternMatch has been
deve|oped |n response to demands
from customers for whom |nter|or
des|gn |s a key feature.
||ke a|| SafTG|o Oo|orMatch
systems the new des|gn |s a
comp|ete|y sea|ed system that |s both
hard-wear|ng and |ow ma|ntenance;
mak|ng |t the perfect, easy-to-ft |ow
cost a|ternat|ve to e|ectr|ca| foorpath
mark|ng systems.
W|th |ts |nherent ab|||ty to dr|ve
down the cost of operat|ng a|rcraft
SafTG|o |s the preferred cho|ce for
Boe|ng, Embraer and |s fy|ng h|gh |n
over 6000 a|rcraft wor|dw|de.
For more |nformat|on on how
your a|r||ne cou|d beneft from new
SafTG|o PatternMatch, v|s|t us on||ne
at: stgaerospace.com or come and
v|s|t us at booth 146.
(\UPX\L\S[YHZSPTWYVSLHUKHULHZ`JSPW[V[PUZ[HSSH[PVUTHRLZ
:HM[.SV[OLSLHKPUNJOVPJLPUWYLTP\TJHIPUKLZPNUZJOLTLZ
Make signicant savings with SafTGlo.
Return on |nvestment - poss|b|e pay-back
w|th|n 3 months
sed by hundreds of a|r||nes on thousands of
a|rcraft to dr|ve down cost base
Save up to 25% versus |nsta||at|on costs of
e|ectr|ca| systems
Many SafTG|o systems have notched up over
10 years of troub|e-free serv|ce
Huge sav|ngs |n through-||fe costs
Ma|ntenance free techno|ogy -
no cost|y serv|c|ng
SafTG|o |s the |ow-cost a|ternat|ve to e|ectr|ca|
emergency foorpath systems.
K +44(0}1760 723232 SA +1(305} 828 98 11 stgaerospace.com Emergency Floorpath Evacuation System
v|s|t us at booth 146
TeamSAI provi des consul ti ng and techni cal ser vi ces to avi ati on i ndustr y cl i ent s i ncl udi ng
ai rl i nes, MROs, corporate/ fracti onal operators, OEMs, ai rpor t authori ti es, and i nvestment
banks around the worl d wi th a focus on strategy, operati ons i mprovement, cost reducti on,
safet y, cer ti fi cati on, and suppl y chai n.
www.teamsai.com

MRO

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ISSUE ONE 2011

WE ASSESS AMOS AS A TOP LINE PRODUCT WHICH IS ENDEARED AND

IMPACTING OUR BUSINESS POSITIVELY IN TERMS

Painting, marking and labelling

Major modifcation of avionics and

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