June 2018 - www.avitrader.com

North America in focus

Industry interview Bombardier & Spairliners MRO News from around the world People on the Move latest appointments Editor‘s Page 2 More bang for your buck ollowing on from the MRO Americas con- markets like Asia Pacific, China and India shifts ference in April, in this edition we analyse MRO spend to those regions . Ironically, this may the MRO landscape in North America, an lead to eventual opportunities for MROs in North Fimportant market for aircraft maintenance America, if over the next decade these regions are and repairs in terms of scale and innovation . not able to keep up with MRO demand . Couple this with forecasted capacity constraints and rising The event is the one place where all levels of the labour costs, operators in these regions may need Published monthly by MRO industry gather for three days of learning, to look elsewhere for MRO support . education, networking, and an unparallelled and AviTrader Publications Corp. extensive exhibition floor offering a mix of new For airframe maintenance, the biggest challenge Suite 305, South Tower and innovative products, technologies, offerings continues to be hiring experienced AMTs . AAR 5811 Cooney Road and services . has been dealing with this challenge by partner- Richmond, British Columbia ing with community colleges and technical schools Our feature article dives into the key issues facing V6X 3M1 near its five MRO facilities in the U .S . to create and the MRO business specifically in the U .S . An inter- enhance aviation maintenance programmes and Canada esting area of discussion with the companies that build on-ramps to full-time employment . engaged with the topic was that of challenges the Email: [email protected] industry is facing . Our cover story looks at the issues in more detail . Tel: +1 (424) 644-6996 www.avitrader.com As Angela Garber from AJW said, North Ameri- Keith Mwanalushi can MRO market will experience important chal- Editor lenges as substantial fleet growth in emerging Editorial Keith Mwanalushi, Editor Email: [email protected] Mobile: +44 (0) 7871 769 151

Design Volker Dannenmann, Layout & Design Email: [email protected] Mobile: +49 (0) 711 46910151

Advertising inquiries Jenny Vogel Head of Sales & Marketing

Email: [email protected] MRO in North America will be worth some $124b over the next 5 years. Tel: +49 (0) 8761 346007 Photo: Delta

Registration Contents AviTrader MRO is a subscription-free MRO and Production News ...... 4 monthly publication. Finance News ...... 14 To receive a personal copy in your inbox every month, Other News ...... 16 please click here to subscribe. Information Technology ...... 18 Cover story: Regional review: North America ...... - 20 Opinion Industry Interview: Rob Dewar, VP, C Series Progr ., Bombardier Commercial Aircraft . . 24 Company profile: STS Component Solutions ...... 26 Please send your comments and queries to Industry Interview: Thies Moeller, Managing Director and CEO Spairliners . . . . . 28 [email protected] People on the Move ...... 30

AviTrader MRO - June 2018 SERVICE

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C40067.002_Embraer_Services_and_Support_Avitrader MRO_279x216_Jun18_v1.indd 1 14/05/2018 17:54 MRO and Production News 4

IKAR selects AerFin to support Em- braer E-Jet fleet

AerFin has signed a five-year contract to sup- port IKAR Airlines’ fleet of seven Embraer E- Jets via its “Beyond Pool” support program . BeyondPool™ offers a fixed-cost solution to support the component requirements of IKAR Airlines’ seven Embraer E190s and will be fully supported out of AerFin’s London Gat- wick facility, together with the provision of a significant inventory-holding located at the main operating base at Sheremetyevo Inter- national Airport in Moscow . IKAR becomes the latest customer to join AerFin’s BeyondPool™ support program, subsequent to BA CityFlyer joining the program in February 2018, where Mobile tooling platform, fourth A320 Family production line Airbus Hamburg they signed a seven-year partnership agree- Photo: Airbus ment with AerFin, that covers all component support requirements for its E-Jet fleet . IKAR Airbus inaugurates Hamburg’s fourth PW206 turboshafts . In the coming years, all Airlines is a Russian Far-Eastern carrier, based of the engines of the Swiss Air Force’s EC635 A320 Family production line at Krasnoyarsk Yemelyanovo Airport, operat- are to be maintained by RUAG Aviation in Airbus has inaugurated the fourth Hamburg, Stans . Experts from Pratt & Whitney, the en- ing as Pegas Fly . IKAR was rebranded as Pe- Germany A320 Family production line . Mak- gine’s manufacturer, provided the RUAG gas Fly in 2013 and now operates scheduled ing use of digital technologies and a more Aviation employees with an intensive 3-week passenger services from Krasnoyask, as well flexible industrial setup, the innovative state-of- training to prepare them for the PW206 as charter services on behalf of Pegas Tour- the-art line is a key enabler for ramping up the maintenance work . In the past, the EC635’s istik . The carrier is operated by IKAR Airlines single-aisle program to 60 aircraft per month engine had to be sent to Germany or Spain LLC and maintains IKAR Airlines as the car- by mid-2019 . “The inauguration of our latest, if major maintenance work had to be carried rier’s legal name . most modern A320 production line opens a out . Now, all maintenance and servicing tasks new chapter in efficient, digital aircraft manu- applicable to the PW206 engine can be ac- facturing,” said Guillaume Faury, President complished by RUAG Aviation in Stans . HT Aerotech completes CAMO approv- Airbus Commercial Aircraft . “With these new als with EASA National Authority technologies we are building our aircraft more efficiently, a key enabler for higher produc- Donaldson to develop inlet barrier HT Aerotech has been granted CAMO ap- tion rates . I would like to thank the teams who proval by the IAA for all Airbus narrow-body pushed this newest Airbus production standard filters for installation on Leonardo AW169 Helicopters Series aircraft, Airbus A330 aircraft, Boeing from concept to reality .” The A320 Family air- 737 Classic and 737 NG aircraft, as well as craft are manufactured globally, at Airbus sites Donaldson Aerospace & Defense, a divi- the Embraer aircraft series . This complements in Europe, China and the US . In addition to the sion of Donaldson Company, has signed an the Bermuda (BCAA) CAMO approvals for new production line, Airbus also inaugurated a agreement with Leonardo to develop two new the same aircraft types previously granted in larger and modernized Hamburg A320 Fam- Inlet Barrier Filters (IBF) for the AW169 heli- 2016 . The IAA approvals have already been ily delivery centre with more customer areas, copter . After development and testing, the dry utilized to help transition two B737NG aircraft more efficient delivery processes and increased and oiled media IBFs will be approved by the from China to India . HT Aerotech is the first hospitality services . European Aviation Safety Agency (EASA) as Chinese-based engineering services com- an addition to the Type Certificate . Once certi- pany to have been granted CAMO approval fied, the IBFs will be available as a factory op- by an EASA National authority . Ethan Guan RUAG accomplishes first overhaul of tion for new Leonardo helicopters as well as CEO of HT Aviation Group explains: “We PW206 engine retrofitted to in-service European AW169s as opened our Dublin office in 2017 to better a customer option . The IBFs will keep contam- serve the aircraft leasing community outside For the first time, RUAG Aviation has over- ination, including dirt, dust, salt, and foreign of China . Having EASA CAMO approvals is hauled a Pratt & Whitney Canada PW206 objects, from degrading the performance of an important step to help transition aircraft in engine . The maintenance of the engine that the AW169’s twin 1,000 shaft horsepower and out of the EU and in ensuring the high- is used in the Airbus H135 and H135M heli- Pratt & Whitney PW210A engines . “Providing est airworthiness standards are maintained in copters was carried out in the engine mainte- world-class engine protection to our custom- moving aircraft from other jurisdictions and nance shop in Stans . The fact that the PW206 ers is an ongoing priority for Leonardo Heli- also for long-term aircraft storage . This is just engines can now be maintained in-house at copters,” said Fabio Nannoni, SVP Engineer- the first step of growing the Dublin team at HT RUAG Aviation will help to increase the avail- ing of Leonardo Helicopters . “Donaldson is Aerotech . We also support the aircraft leas- ability of the Swiss Air Force’s helicopter fleet . the right choice to provide a superior filtration ing community with Part 21 Design and other The Swiss Air Force has more than 20 of these solution for our new generation family of heli- lease management activities .” HT Aerotech is helicopters, which are still listed under their copters .” Donaldson IBFs are already EASA a wholly owned subsidiary of Haotong Avia- former name “EC635” . Each of these heli- certified for installation on AW139 and, soon, tion, which is a listed company on the Beijing copters is provided with two Pratt & Whitney on AW189 helicopters . Stock Exchange (NEEQ) .

AviTrader MRO - June 2018 MRO and Production News 5

four destinations in China . This co-operation follows an expanded engineering services agreement between JAL and Spring Japan in December 2017 . Subsequently, HAECO Xia- men was selected as an exclusive partner to handle their line maintenance operations in China . To serve the Narita-based low-cost carrier in China, HAECO Xiamen has set up two new line stations — at Wuhan Tianhe In- ternational Airport (WUH) and Harbin Taiping International Airport (HRB) respectively, in ad- dition to Chongqing (CKG) and Tianjin (TSN) which are already covered in the Company’s existing line services network .

StandardAero signs new contracts with Mesa Airlines to support APUs

StandardAero has signed two new, five-year Signing ceremony of the cooperation agreement between Thai Airways and Rolls-Royce contracts with Mesa Airlines, to provide main- Photo: THAI tenance, repair and overhaul (MRO) services for the airline’s APS2300 and RE220 auxil- THAI Airways International to service RUAG achieves Bell 505 Jet Ranger X iary power units (APUs) . With these new con- Rolls-Royce engines helicopter MRO approvals tracts, StandardAero now supports 100% of Mesa Airlines’ APUs . Under the first contract, Thai Airways International (THAI) and Rolls- RUAG Aviation has earned OEM approvals StandardAero will provide MRO services for Royce have signed a cooperation agreement for MRO on the new Bell Helicopter 505 (JRX) . the APS2300 APUs, equipping a further 18 to collaborate and explore how the two com- RUAG also holds reassembly capabilities . Fully Embraer E175 regional aircraft operated by panies will work together to expand the Trent qualified during the first Bell 505 technical Mesa for United Airlines . This new contract CareNetwork, by building on THAI’s existing courses at the Bell Helicopter Training Acad- follows on from a previous 12-year APU sup- Maintenance, Repair and Overhaul (MRO) emy, the RUAG team provides these new ser- port agreement covering 30 Mesa E175s capabilities . Becoming an Authorized Main- vices at their helicopter support facility in Sion, signed in 2015 . The second contract covers tenance Center (AMC) for Rolls-Royce will Switzerland . A Bell Authorized Service Center, support of the RE220 APUs which equip Me- enable THAI to support its growing fleet of the RUAG Sion location is set to host the Bell sa’s fleet of 84 Bombardier CRJ700/CRJ900 Rolls-Royce engines, while also generating 505 during its European launch tour . “We are regional aircraft, operated for American Air- additional capacity and flexibility within the dedicated to providing complete, state-of-the- lines and United Airlines . StandardAero, an Rolls-Royce CareNetwork . THAI operates ap- art support on behalf of our customers and OEM-approved Authorized Repair Facility for proximately 80 wide-body aircraft, of which all the helicopters in their fleet . Attending the both the APS2300 and RE220, will provide more than 50 are powered by Rolls-Royce en- first available technical courses, like the re- Mesa with customized MRO programs offer- gines . Mrs . Usanee Sangsingkeo, THAI Act- cent instruction for the Bell 505, is essential ing maximum support and flexibility to meet ing President, said: “This agreement builds to this approach,” states Claudio Zeiter, Team the airline’s specific operational needs . Me- on THAI’s existing MRO facilities to be able Leader Commercial Helicopter Services, RUAG sa’s APUs will be serviced at StandardAero’s to repair new engine types that are used by Aviation . The completion of the Bell Helicopter Maryville, Tennessee facility . commercial airlines today . THAI has the ca- Training Academy course also allows RUAG to pability to expand its engine maintenance reassemble the new Bell helicopter . The impor- services for Rolls-Royce Trent 700 and Trent tance of reassembly services becomes evident 1000 engines, which will meet the needs of during the Bell 505 order process . Helicopters Spatial to manufacture B787 Door the regional market, making sufficient use are shipped partially dissembled . While Bell Trainer for WestJet of the maintenance facilities and further de- completely assembles and hands over the velop a joint business venture together . This helicopters at their North America facilities, the Spatial, a leading provider of cabin crew train- collaboration will also increase revenue helicopter is then separated into airframe, tail ing simulators, has been selected by WestJet earned from international customers .” This boom, main rotor blades and transmission for to manufacture a B787 Door Trainer . Spatial collaboration agreement is a continuation shipping to Europe . will design and build the Door Trainer at its of the agreement made between THAI and high-tech manufacturing facility in the UAE be- Rolls-Royce on Trent XWB Engine Develop- fore shipping and installing it at WestJet’s crew ment Testing this past February . As a result, training center in Calgary, Canada . The state- Rolls-Royce brought a Trent XWB engine, the Spring Japan selects HAECO Xiamen of-the-art Door Trainer will enable the airline’s newest engine type equipped on the Airbus as its line services provider in China cabin crew to be fully trained in the safe opera- A350 XWB, for experimental testing at THAI’s tion of the B787 Dreamliner door . Emergency Technical Maintenance Department at Don HAECO Xiamen has entered into an agree- scenarios include door and handle jams, pow- Mueang International Airport, Bangkok in or- ment with Japan Airlines Group (JAL) and er assist failures, door indicator malfunctions der to continually study and test the capabili- Spring Airlines Japan Spring Japan) to pro- and slide inflation failures . Spatial will also ties of the engine type . vide line services for Spring Japan at all of its provide a Virtual Slide Trainer with the device .

AviTrader MRO - June 2018

MRO and Production News 7

names of other local and overseas subsidiar- ies with the ST Engineering brand will be done progressively from June 1, 2018 onwards .

Air France Industries KLM Engineering & Maintenance signs components con- tract with Spring Airlines

Spring Airlines, China’s leading low-cost air- line, has signed a long-term contract with AFI KLM E&M for the exclusive support of many of the components in its A320 fleet . The contract on a power by the hour (PBH) basis covers many references, mainly in the avion- ST Engineering Aerospace sector opened a new MRO facility in Pensacola, Florida ics field . In order to optimize Spring Airlines’ Photo: ST Engineering Aerospace operations, which currently has 78 A320s in its fleet, repairs will be carried out in “closed ST Engineering’s Aerospace sector sion demonstrates that we are committed to loop” mode by the specialized subsidiary AFI expands MRO Network with new the long-haul in Connecticut .” Rose points to KLM E&M Components China in its Shanghai facility in the USA the simultaneous growth of the commercial workshop, close to Spring Airlines’ bases at and military defense industries and their need the two Shanghai’s airports . ST Engineering’s Aerospace sector officially for assembled gearboxes as a prime catalyst opened a new airframe Maintenance, Repair for increased production . Aero Gear makes & Overhaul (MRO) facility on June 8, in Pen- the power drive gear systems for fixed- and sacola, Florida, USA . The new facility, which rotary-wing aircraft . The mechanisms are as Magnetic MRO becomes mobile FAA can carry out heavy and line maintenance, as essential as the combustor that creates the station well as aircraft modification work, joins two thrust for the engine, – the “brain” behind the others that ST Engineering has in the USA, brawn, and thus, require the highest quality Magnetic MRO has strengthened its FAA repair located in San Antonio, Texas and Mobile, precision engineering and manufacturing . station capabilities by gaining IA (Inspection Alabama, increasing its capacity to serve the Authorization) rights . Following upon Magnetic North America region and its global clientele . MRO‘s strategic expansion into the aviation as- Located at the Pensacola International Air- set management area and global market ex- port, the new hangar has been developed at ST Engineering adopts masterbrand pansion to US and Asia, the company has con- a cost of US$46 million . At 173,500 ft ², it is for its subsidiaries fidently marched towards tactical investments to one of the largest hangars in ST Engineering’s solidify its planned growth . As an FAA IA holder, ST Engineering is undertaking a group-wide global network of airframe maintenance fa- the Magnetic MRO team is able to determine branding exercise to firstly adopt a single cilities . The facility has an annual capacity of airworthiness by inspecting repairs and altera- brand approach by harmonizing all its cor- 600,000 labor hours and can accommodate tions offsite, as well as approving for return-to- porate brands by using “ST Engineering” as two aircraft of the largest version of the 777 service concerning any “N” registered aircraft in a masterbrand, and secondly to align the widebody series, or six A321 narrow-body addition to corresponding parts and appliances nomenclature of its subsidiaries’ company le- aircraft at any one time . according to 14 CFR part 43 . gal names with that of “ST Engineering” . The brand harmonization and alignment of com- pany legal names will take effect from June Global Aerospace Manufacturer gears 1, 2018 in a phased approach . The brand Spairliners continues Integrated Com- up for Growth with 24,000 ft² expansion harmonization will help drive higher brand ponent Care services for 15 Embraer visibility and position the Group for greater E-Jets As the high demand for jet engines shows commercial impact and marketing presence no signs of slowing down, one Connecticut as it expands into new global markets and Spairliners GmbH and Kenya Airways have manufacturer is rising up to meet the chal- industry segments . The brand harmonization extended their existing Integrated Component lenge . For over three decades Aero Gear in will first cover ST Engineering subsidiaries in Care contract covering full component sup- Windsor has been a key player in complex Singapore and all its global subsidiaries in port for 15 E-Jet aircraft of the leading African gearbox assemblies for the global aerospace the Aerospace sector, followed by other over- airline . With this further long-term prolonga- market . Now the company continues to set a seas companies . The corporate brands of ST tion, effective from April 2018, the contracted course for success as it completes a 24,000 Aerospace, ST Electronics, ST Kinetics and ST services have been enhanced by an on-site ft² expansion of its facility . “In trying to meet Marine will be dropped as they take on the customer representative based in Nairobi and the increased orders from our customers, it masterbrand with sector descriptors of Aero- Line Maintenance Training for Kenya Airways’ became obvious that additional people and space, Electronics, Land Systems, and Marine aircraft mechanics . Kenya Airways’ E-Jet fleet machines were necessary, and the only way respectively . On the company legal name will be supplied from Spairliners’ compo- to accommodate this was through enlarg- change, the holding companies of these four nent pool and logistic centers located in Paris ing our physical space,” explained Doug business sectors will be the first to adopt “ST and Munich . Additionally, an optimized on- Rose, Founder of Aero Gear . “Although we Engineering” into their existing company legal site stock will be provided at Kenya Airways’ have clients around the world, the expan- names . The alignment of the company legal premises for their proprietary use .

AviTrader MRO - June 2018 MRO and Production News 8

TAG Aviation to create Maintenance Control Centre in Portugal

TAG Aviation is creating a Maintenance Con- trol Centre (MCC) at Lisbon/Cascais (LPCS) Aerodrome from June 2018 . This will en- hance TAG Aviation’s current Mobile Repair Team (MRT) operations, with maintenance services support now available from eight locations throughout Europe . The MCC will simplify the centralized handling of all AOGs and MRT requests, with one Customer Ser- vices contact number, available 24/7, to re- quest assistance from TAG’s highly-trained technicians . TAG’s dedicated maintenance services teams will be able to swiftly respond to clients’ requests, even at short notice, and can be dispatched from anyone of its loca- tions . “One central contact number empow- ers our maintenance services teams to be able to respond very speedily to our clients’ Jet Aviation gains authorization from Airbus for ACJ350 XWB completions in Basel needs across the full range of maintenance Photo: Jet Aviation service capabilities we operate, minimizing downtime, and further supporting our on- Jet Aviation gains authorization from and Manchester, have now been joined by going commitment to maximize the efficiency East Midlands Airport, further expanding the Airbus for ACJ350 XWB completions of our clients’ operations”, said Franck Ma- MRO’s portfolio to meet customer’s flight net- in Basel dignier, President Maintenance and FBO Ser- work . Jakob Straub, Head of Aircraft Services vices, TAG Aviation Europe . TAG Aviation has Jet Aviation’s Completions Center in Basel and Line Maintenance at SR Technics said: approved MRO maintenance centers right has received approval from Airbus Corpo- “The new station at East Midlands allows us to across Europe, including Geneva, Sion, Paris, rate Jets for the ACJ350 XWB . The Comple- grow and diversify our service offering, cou- Lisbon, Farnborough, Clermont Ferrand as tions Center has a long history of partnership pled with the addition of the very latest Airbus well as Lomé (Togo), Hong Kong in Asia and with Airbus Corporate Jets . Jet Aviation has models to continue to offer industry-leading recently opened line stations in Luanda in An- delivered 23 VIP Airbus cabins since 2000 . delivery levels and aligning our services to the gola and in Sheremetyevo in Moscow . TAG As the latest addition to Airbus’ family of VIP demands of our valued customers .” Maintenance services is approved by all main wide-body corporate jets, the ACJ350 XWB aircraft manufacturers and certified to under- approval reflects the history of technologi- take work on over sixty aircraft types . cal innovation at Jet Aviation’s Completions Center and is an important step enabling the Newbow Aerospace and Oakenhurst company to support owners and operators of Aircraft Services signs cooperation agreement the Airbus ACJ350 . The facility in Basel is one Monarch Aircraft Engineering and of the leading wide-body aircraft completions Newbow Aerospace, a leading design, Thomas Cook Airlines launch line centers . It has successfully delivered 23 VIP manufacturer and supplier of Ground Sup- maintenance partnership Airbus cabins since 2000, from the ACJ319 port Equipment to the aviation industry, has to the ACJ340-600 . In particular, the Center MRO-provider Monarch Aircraft Engineering signed a strategic cooperation agreement specializes in new-generation composite air- (MAEL) and Thomas Cook Aircraft Engineer- with Oakenhurst Aircraft Services to market craft such as the Airbus ACJ350 XWB . With ing have signed a landmark agreement where and distribute the SealVac® range of fuel the help of Airbus’ proprietary Easyfit concept, MAEL will handle elements of Thomas Cook bowser ground support equipment . Oaken- Jet Aviation’s Completion Center in Basel can Airlines’ line maintenance across the UK . hurst, an FAA, TCCA and EASA 145 & 21 integrate a cabin without the need for com- Thomas Cook Airlines’ line maintenance has approved MRO, are official distributors for plex and costly airframe modifications . been transferred to MAEL at five UK airports Spokane Industries SealVac System and un- – Gatwick, Birmingham, Glasgow, Newcastle der the terms of this agreement, Newbow and East Midlands . As part of this, line main- Aerospace will market and promote the tenance engineers working for Thomas Cook SR Technics expands its line main- range of Sealvac equipment into its existing Airlines at those locations have transferred customer portfolio spanning more than 250 tenance capabilities in the United across to MAEL . MAEL has a well-established global airlines, as well as new customer op- Kingdom line maintenance operation, with permanent portunities . The SealVac Vacuum Fuel Drain year-round stations at ten airports across the MRO service provider SR Technics has ex- Bowser safely reduces fuel draining and UK and mainland Europe, where it provides panded its line maintenance capabilities depuddling times from hours to minutes so line maintenance support including all levels at its line stations in the United Kingdom to aircraft maintenance can proceed without of maintenance on Airbus, Boeing, Embraer support the latest Airbus A330neo and Air- delay . The long-term benefits to both the and Bombardier aircraft types . bus A350 types . SR Technics line stations at airlines and maintenance service providers Belfast, Bristol, Edinburgh, Glasgow, London- are maximizing fuel handling safety by sig- Gatwick, London-Heathrow, London-Stansted nificantly reducing human contact with fuel .

AviTrader MRO - June 2018 MRO and Production News 9

TAG Aviation Geneva becomes Au- thorised Service Facility network for all Bombardier business aircraft

TAG Aviation Geneva’s current status as an Authorised Service Facility (ASF) for Bombar- dier Learjet and Challenger aircraft has been extended to also include Global business jets . The centre is now able to provide line main- tenance services for Global Express, Global Express XRS and Global 5000 aircraft, as well as Global 5000 and Global 6000 aircraft equipped with the Bombardier Vision flight deck . This new capability strengthens TAG Geneva’s service offering for the Bombardier product line and complements the wide range of high quality maintenance service facilities already available at TAG’s other maintenance bases in Le Bourget and at Farnborough Air- port, which have been Bombardier ASFs since 2013 and 2006, respectively . from left to right: Gulfstream Mark Burns and TAG Group Mansour Ojjeh Photo: TAG Farnborough Airport Jet Aviation signs Boeing 787 com- TAG Farnborough Airport selected as 220,000ft² (16,723-20,439 m²) . “We chose pletions contract location for new Gulfstream Aero- TAG Farnborough Airport because it is a Lon- space Corp. UK Service Centre don gateway airport dedicated exclusively to Jet Aviation has signed another Boeing 787 business aviation . Frequented by many of completions contract . In 2015, Jet Avia- European business aviation airport, TAG Farn- our operators, it offers amenities that com- tion was the first company to take delivery borough Airport, has been chosen as the loca- plement our brand, with the space required of a B787-9 for interior completions . Since tion for Gulfstream Aerospace Corporation’s for our current construction plans and future 2013, Jet Aviation has dedicated significant London Area Service Centre with a state-of- growth,” said Derek Zimmerman, President, research and development into carbon fiber the-art, purpose-built facility expected to be Gulfstream Product Support . “In the last six aircraft such as the B787 to ensure it can offer operational by the third quarter of 2020 . The months, we’ve announced several new MRO customers world-leading expertise and equip- new maintenance, repair and overhaul (MRO) facilities and expansions, including Van Nuys, ment specifically formulated for the demands facility will include office space, customer ar- California; Appleton, Wisconsin; Savannah, of a composite airframe . With innovative pro- eas, shop space and a hangar able to accom- Georgia, and now the United Kingdom . The prietary technology, Jet Aviation can integrate modate up to 13 large-cabin aircraft . Signifi- growth of the Gulfstream fleet and increased a cabin onto a B787 without modifying the fu- cant ramp space will also be included, along size of our aircraft are driving the need for selage, avoiding time-consuming and costly with a car parking area . The entire facility is continued growth and additional capacity in repairs . Jet Aviation has completed 28 Boeing projected to cover approximately 180,000- our service centre network .” aircraft since 1998 .

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AviTrader MRO - June 2018 MRO and Production News 10

tion at Airbus’ Toulouse facility this month . Acropolis is due to receive the first ACJ320 during the fourth quarter of 2019 . The air- craft is due to be delivered green by Air- bus to Acropolis’ chosen outfitter, AMAC Aerospace before year end . AMAC will be installing a new Alberto Pinto cabin at its Basel, Switzerland facilities . Acropolis, via AMAC Aerospace of Switzerland, has speci- fied Rockwell Collins as cabin management system provider for the ACJ320 . Acropolis is specifying Rockwell Collins’ high-defi- nition Venue cabin management and en- tertainment system - Stage on demand, the Airshow® Moving Map, and the com- pany’s innovative Viet LED interior lighting system . According to Acropolis CEO Jona- than Bousfield, the decision to remain loyal to Rockwell Collins builds on a successful Air Astana new hanger Photo: Air Astana relationship which first began with the in- troduction of Skybox IFE in 2015, through Air Astana opens new Aviation Tech- worldwide operating company with bases to the upgrade to Stage aboard G-NOAH nical Centre in Astana in Europe, Russia and the USA and has a earlier this year . mixed Airbus / Bombardier fleet . Lufthansa Kazakh flag carrier Air Astana has opened Technik offers the corresponding services a new Aviation Technical Centre at Astana’s especially for operators of VIP and business Nursultan Nazarbayev international airport jets via its product “Airside Assistance” . As Boeing and Turkish Technic an- on May 24 . The new Aviation Technical the core of “Airside Assistance”, Lufthansa nounce Global Fleet Care supplier Centre enables Air Astana to undertake Technik offers access to its pool of highly agreement all aircraft engineering and servicing re- qualified engineers and mechanics, and Boeing and Turkish Technic, the mainte- quirements up to heavy maintenance level . worldwide material supply through the nance, repair and overhaul (MRO) arm of The project was financed by the European company’s global logistics network . The Turkish Airlines, have announced a Global Bank for Reconstruction and Development services also include immediate support in Fleet Care supplier agreement . Turkish at a cost of US$19 million . The Aviation the event of a technical problem where the Technic is now a strategic Boeing supplier Technical Centre’s energy efficient, sin- aircraft has to stay on the ground (AOG) . for line maintenance, heavy maintenance gle span hangar offers 5,556 m² of floor Additional support services for the mainte- of airplanes, component service and repair . space and can accommodate widebody nance and operation of VIP aircraft com- Boeing and Turkish Technic will collaborate types like the Boeing 787 or Boeing 767, plement these basic services if required, in- together in the training and certification alongside a single aisle aircraft like the lat- cluding maintenance management, CAMO of technicians from different parts of the est Airbus A320neo Family simultaneously . (Continuing Airworthiness Management world . Last year, Boeing and the Turkish The Canadian designed structure is built Organization) support or airworthiness re- Government announced the Boeing Turkey to a very high specification and designed view, refurbishment and modernization of National Aerospace Initiative . This sup- to remain fully operational even under the cabin facilities, coordination with authori- ports the growth of the Turkish aerospace extremely low temperatures experienced in ties and maintenance of engines and com- industry . Its targets were set by Turkey’s Vi- Astana during winter months . In addition to ponents . “Lufthansa Technik’s global pres- sion 2023, designed to celebrate the 100th the hangar, the Aviation Technical Centre ence is of great importance to K5 Aviation anniversary of the Turkish Republic . The incorporates a spare parts warehouse and as our aircraft are deployed worldwide,” initiative aligns Boeing investment and pro- a complete range of workshops for the re- said Erik Scheidt, director of K5 Aviation . grams with the Turkish Government, Turkish pair and overhaul of aircraft components . “An international maintenance network is airlines, aerospace service companies and An auxiliary building provides space for the essential for the reliability and readiness of industry suppliers in the areas of research, existing Air Astana Engineering Centre to our fleet at all times . At Lufthansa Technik engineering and skills development . “Tur- significantly expand training of engineer- we can rely on the same high quality world- key is one of Boeing’s top strategic growth ing and maintenance staff to international wide as at our home base .” countries, and we see a strong potential standards . in aviation services and maintenance in Turkey,” said Marc Allen, President of Boe- Acropolis Aviation confirms IFE ing International . “Positioning Turkey as a K5 Aviation signs service contract partner on new ACJ320neo global player in aviation services is one of with Lufthansa Technik the key elements of the Boeing Turkey Na- At EBACE, Geneva, Acropolis Aviation, the tional Aerospace Initiative . With this agree- German-based VIP charter company K5 Farnborough Airport, UK-based VVIP char- ment, we are taking our successful collabo- Aviation has contracted Lufthansa Technik ter operator, confirmed its engagement ration with Turkish Technic one step further to provide worldwide technical support with Rockwell Collins on its brand-new in a manner that aligns to the growth of for its VIP long-haul fleet . K5 Aviation is a Airbus ACJ320 – which entered produc- Boeing and Turkey .”

AviTrader MRO - June 2018 ASSET MANAGEMENT

UNLEASH THE POWER OF YOUR ASSETS MRO and Production News 12

LHT signs first customer for innova- mier business aviation show, EBACE, in Ge- ness and executive jet interiors, finishing tive radome neva this month (May 29-31) to highlight its and assembling of interior components, new business jet MRO facility at its Dubai refurbishment of interiors, and product Lufthansa Technik AG has signed a contract South, DWC, Al Maktoum International Air- and customer support for the entire North with an undisclosed customer concerning port . Falcon Aviation’s new facility is built American market . The facility also houses development and delivery of its new TIOS+ on a total 24,000 m² plot size capable of a showroom and a veneer selection area radome (Three-In-One-Solution) . The cus- accommodating up to four Boeing BBJ / as part of its designation as F/LIST’s Ve- tomer, a renowned completion center for Airbus ACJ-sized narrow-bodied aircraft for neer Competence Centre for flame-retard- VIP aircraft, is the first buyer for the new base maintenance . It includes workshops, ant wood veneers, key components of its radome technology . The radome will be in- interior solutions, a wash bay and landside interior finishing business . In addition, F/ stalled on a Boeing 737 MAX 8 . TIOS+ is a office space, plus 13,000 m² of apron . LIST has announced a new sales partner- product of Original Equipment Innovation Falcon Aviation supports its own and man- ship with Lufthansa Technik: as of now, F/ (OEI), Lufthansa Technik’s product division aged fleet of business jets and helicopters LIST distributes Lufthansa Technik’s nice HD dedicated to the development and manu- at its Al Bateen Executive Abu Dhabi Airport system for the aftermarket business . Cur- facture for innovative products . The custom- facilities, though its new Dubai base has rently, the nice HD system is available for er will receive the first shipset of TIOS+ by been built primarily for third-party custom- the Bombardier Challenger, Bombardier the end of 2018 . TIOS+ is a triple Band (L, ers . Falcon Aviation is already talking with Global and Gulfstream G450/G550 plat- Ku, Ka) elegant and fuel-efficient tail mount existing and prospective customers to grow forms . solution for the 737 family . Nearly 20 years its MRO business . Falcon Aviation’s new fa- after the introduction of the popular TIOS cility, which has been in construction for 12 (Two-In-One-Solution) radome, Lufthan- months, is pivotal to its overall long-term th sa Technik has been able to advance the strategy to bring a ‘one-stop MRO shop’ to OGMA delivers 1500 Pilatus PC- system for use with Ka-band installations . the region . It has committed to building 12 shipset Within only six months, Lufthansa Technik the necessary infrastructure to support the OGMA – Indústria Aeronáutica de Portu- developed this product and established an region’s growing business aviation market gal, S .A . has delivered to Pilatus Aircraft in-house manufacturing setup in Hamburg . – with an FBO, Heliport (running under Fal- the 1500th Pilatus PC-12 shipset, an aircraft The future development aims at the adap- con’s AOC), Line Maintenance - and now structure manufactured and assembled at tion of TIOS+ to the Boeing 737 MAX 7 Base Maintenance and Technical services . Alverca facilities since 1994 . Thus, OGMA and 737 MAX 9 aircraft types . reinforces a relationship of almost 25-years with the Swiss OEM and consolidates its Jet Flight Service opens new main- commitment to the Aerostructures business . ST Aerospace secures first ACJ tenance service center in Riga OGMA is a Tier-1 supplier of Pilatus and maintenance contract at San Anto- has a qualified team of more than 230 em- nio facility With its headquarters in Moscow, Jet Flight ployees dedicated to the PC-12 program, Service has opened a new maintenance from different areas such as production, ST Aerospace’s VIP Completion arm, AER- service center in Riga which belongs to its quality, engineering, planning and com- IA Luxury Interiors (AERIA) secured its first strategic plan of developing its mainte- mercial areas . At Alverca plant, OGMA is Airbus Corporate Jet (ACJ) customer when nance and engineering services to interna- responsible for manufacturing composite it was awarded a 12-year maintenance tional clients . The new maintenance facility parts and assembly of the fuselage, wings, support contract for an A319 . Under the will provide Line Maintenance Services and cargo and passenger doors, flaps, ailerons, agreement, AERIA will carry out heavy Base Maintenance Services for Embraer rudder and harnesses . Each shipset goes by maintenance works that include interior aircraft (Legacy 450/500/600/650) and inland transport to the Pilatus Group facili- and auxiliary fuel tank removal/replace- Gulfstream aircraft (G350/450/550/650) . ties, in Switzerland . ment . While AERIA has built up a strong re- Jet Flight Service has appointed Frantisek cord since 2014 in servicing and perform- Budin to the position of Base Maintenance ing VIP modification and completion on Manager of its new maintenance facility in Boeing platforms, the A319 is the first ACJ Riga . Budin joins the company with imme- StandardAero to create Canadian that the company is supporting at its facil- diate effect; his extensive skills in aircraft Centers of Excellence (COEs) for ity located in San Antonio, Texas, USA . This maintenance and experience of working Helicopter Airframe/Components, milestone project allows AERIA to showcase with Embraer aircraft makes him a perfect Helicopter Engine and Turboprop its capability and knowledge base in Airbus match with Jet Flight Service . Engine MRO Services platforms to potential ACJ customers look- StandardAero has announced that, over ing for customized VIP interior solutions . the next 12-18 months, the company will F/LIST opens new Canadian-facility be restructuring its primary Canadian MRO and signs partnership agreement facilities to create three different Centers of Falcon Aviation plans opening of with Lufthansa Technik Excellence (COEs) specifically for support- new Dubai DWC Base Maintenance ing Helicopter Airframe/Component MRO Hangar facility This year’s EBACE takes place just two services, Helicopter Engine MRO services weeks after F/LIST officially opened F . LIST and Turboprop Engine MRO services at it Falcon Aviation, UAE’s business aviation CANADA CORP ., its new production facility facilities located in Langley, B .C ., Winni- services, charter, MRO and aircraft man- in the Montreal aerospace cluster . It pro- peg, M .B . and Summerside P .E .I ., respec- agement company, returns to Europe’s pre- vides high-quality wood veneers for busi- tively . Additionally, and as part of the re-

AviTrader MRO - June 2018 MRO and Production News 13 structuring, StandardAero intends to wind tems are qualified to Pilatus Specification consumables and expendables supply for down operations at its Richmond, B .C . fa- PMS0600-52-01 . The PPG coatings are the customer’s future Boeing 737 MAX 8 cility by June of 2019 . Helicopter engine qualified for application on the PC-24 Su- fleet . The services will commence in Janu- MRO services currently performed at Rich- per Versatile Jet, PC-12 NG turboprop air- ary 2019, when Comair, as part of its fleet mond will be relocated to StandardAero’s plane, PC-6 multirole aircraft, and PC-21, renewal program, will take delivery of the Winnipeg facility, including all Safran Arriel PC-9 M and PC-7 MkII military trainers . Ac- first two of eight 737 MAX 8 aircraft on or- 1&2, Rolls-Royce M250, GE T700 and Pratt cording to Thorsten Schleyer, PPG account der . As part of the TTS®, Lufthansa Technik & Whitney Canada (P&WC) PT6T helicopter manager for Pilatus, PPG formulated the supports Comair with a Technical Opera- engine MRO services . Winnipeg will serve coatings systems with the latest innovative tions Management (TOM), integrating all as the company’s COE for all Helicopter technology, enabling PPG to offer a coat- MRO activities contracted in the agreement Engine MRO services . Helicopter dynamic ings system that meets the application and into a comprehensive service package . components, currently located in Rich- performance needs of Pilatus . mond, will be relocated to the company’s Langley facility which will serve as the COE for Helicopter Airframes/Component MRO MTU Aero Engines steps up efforts in services moving forward . LHT and Comair sign comprehen- the field of additive manufacturing sive TTS® for Boeing 737 MAX 8 The breakthrough came with the borescope The South African airline Comair Limited boss for the geared turbofan engine pow- PPG aerospace coatings systems and Lufthansa Technik have signed a com- ering the A320neo; MTU Aero Engines is qualified by Pilatus aircraft prehensive long-term Total Technical Sup- stepping up its efforts in the field of addi- port (TTS®) contract . In the frame of the tive manufacturing . At the beginning of this PPG has announced that Pilatus Aircraft new agreement, Lufthansa Technik will year, a separate department, headed up by has qualified PPG exterior paint systems for provide engineering, planning, line main- Dr . Jürgen Kraus, was set up to push this all production aircraft . The PPG paint sys- tenance and component support including technology forward . “By pulling all activi-

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AviTrader MRO - June 2018 MRO and Production News 14 ties – from design to technology develop- ner,” explains Dr . Jörg Henne, Senior Vice cess-monitoring system and improve the ment and all the way to production – to- President, Engineering and Technology . surface finish . gether in one unit, we want to maintain and The additive manufacturing process used build our competitive edge,” comments at MTU is selective laser melting, or SLM MTU Chief Operating Officer Lars Wagner . for short . Production of borescope bosses At MTU’s headquarters in Munich, Dr . Jür- for the PurePower®PW1100G-JM geared C&L Aviation Group completes gen Kraus, Director, Additive Manufactur- turbofan engine powering the A320neo Hawker 800XP ADS-B Garmin ADS- ing, has assembled a team of around 30 started back in 2013 . MTU Aero Engines B installation professionals from various technical dis- has ambitious plans: “We are currently C&L Aviation Group has installed the first ciplines: design engineers, structural me- pressing on with additive manufacturing, Garmin ADS-B Out solution for a Honeywell chanics engineers, process specialists and giving its further development top priority Primus II-equipped Hawker 800XP . The instal- operations scheduling experts . They are in numerous technology projects and tech- lation was done in cooperation with Elliot Avi- looking into new conceptual designs of ap- nology funding programs,” explains Wag- ation at C&L’s Bangor, Maine, facility and it plications and constructions from a bionics’ ner . The aim is to explore new designs, new complies with the FAA 2020 ADS-B Mandate viewpoint, pushing the development of the components, and new materials . As part of and DO-260B standards . As a distributor for production technology forward, and indus- Clean Sky, the largest technology initiative Garmin International, C&L offers its custom- trializing the entire process chain . Their ever launched in Europe, MTU is currently ers the full line of Garmin products—includ- work is worth the effort: Experts estimate working on a seal carrier manufactured us- ing ADS-B upgrades, communications, navi- that by 2030, parts manufactured using ing additive processes . The inner ring with gation equipment and full-glass cockpits—to additive manufacturing techniques will ac- an integral honeycomb structure will be support corporate aircraft owners . C&L also count for at least 15 percent of the overall installed in the high-pressure compressor offers a wide range of other avionics equip- engine . “With the development of new ma- and will contribute to improving clearance ment to compliment ADS-B upgrades . chine types and improved on-line process control, and hence to increasing efficiency . control, it will be possible to produce an Additional components such as bearing increasing number of components by addi- housings, brackets and struts will follow . tive manufacturing in a cost-effective man- Other aims are to further enhance the pro-

Finance News

DAE signs agreements to sell aircraft valued at military and civilian security defense company, has issued its US$900 million consolidated financial statements for the three months ended March 31, 2018 . The Company’s sales in Q1 2018 amounted Dubai Aerospace Enterprise (DAE) has announced that its leas- to US$883 million compared with US$837 million in Q1 2017, ing division DAE Capital has signed three agreements to sell an increase of 5 .5% . Operating income in Q1 2018 amounted 16 aircraft with a total market value of approximately US$900 to US$34 million (3 .8% of sales) compared with US$44 million million . The aircraft covered by these agreements include the in Q1 2017 (5 .3% of sales) . This decrease can be explained by Boeing 737 and Airbus A320, A330, and A350 family aircraft, the increase in R&D expenses and in general and administrative have an average age of two years, and are currently on lease expenses compared with the corresponding quarter of last year . to 11 airlines in 11 countries . Firoz Tarapore, Chief Executive EBITDA in Q1 2018 amounted to US$75 million compared with Officer of DAE commented “This divestment activity will help US$72 million in Q1 2017 . Net financial expenses in Q1 2018 us optimize our portfolio composition and monetize some of amounted to approximately US$17 million compared with US$7 our recent larger-scale investments . This transaction does not million in Q1 2017 . The increase in net financial expenses com- impact our total number of customers . Proceeds will be used to pared to the corresponding quarter of last year is mainly a re- pay down debt and reinvested to support our ambitious growth sult of exchange rate valuation losses due to the erosion of NIS plans . Proactively managing our portfolio through active trad- asset balances and the ineffective portion of foreign exchange ing is a critical component of our long-term portfolio strategy hedges in view of the appreciation of the US$ exchange rate in and it is important for us to remain relevant in all segments of relation to the NIS by about 1 .4% in the first quarter of 2018 as the secondary market for aircraft sales .” These agreements are opposed to a depreciation of 5 .5% in the corresponding quar- expected to close in the second half of 2018 . ter of last year . Net income in Q1 2018 totaled US$11 million (1 .2% of sales) compared with net income of US$46 million in Q1 2017 (5 .5% of sales) . The decrease in net income mainly arises from the decrease in operating income and the increase IAI’s first-quarter net income down 76% from last in financial expenses and in tax expenses . The order backlog at year the end of Q1 2018 amounted to US$12 billion compared to US$11 .2 billion at the end of 2017 . 76% of the order backlog Israel Aerospace Industries (IAI), Israel’s largest national is held for sale to foreign customers with wide geographical

AviTrader MRO - June 2018 Finance News 15

dispersion . The order backlog is comprised of a wide variety of unsecured revolving credit facilities to US$1,125 – US$1,445 products and secures 3 .2 years of operation . million depending on the final committed amount of this facility . On a pro-forma basis as of December 2017, if this facility is fully drawn and if the proceeds are used to pay down secured indebtedness, DAE’s percentage of unsecured debt would in- DAE signs landmark unsecured revolving credit fa- crease from 26% to a range of 31%-34% .” cility

Dubai Aerospace Enterprise (DAE) has signed a landmark un- secured four-year revolving credit facility with an initial commit- Satair makes strategic investment to boost UK-op- ment of US$480 million and an accordion feature that allows erations the facility to be increased to up to US$800 million at any time after the initial closing . The facility includes both conventional Satair’s UK operation has benefited from a multi-million-pound and Islamic tranches and will support the future financing needs investment program, resulting in the opening of a brand-new of the business . Firoz Tarapore, Chief Executive Officer of DAE facility close to London’s Heathrow Airport . The facility, at Space said: “We are pleased to sign this landmark regional transac- Waye, North Feltham Trading Estate, became fully operational tion lead by Al Ahli Bank, First Abu Dhabi Bank and Noor Bank . on March 19 and has six-times the area and 11-times the cu- This transaction underlines both the regional liquidity available bic capacity of the previous Heston, Middlesex, facility which to top quality names and the strength of the DAE franchise . Satair had occupied for almost 30 years . Currently, Satair ser- This facility further diversifies our funding sources and adds to vices some 7,500 aircraft batteries a year making it one of the the unsecured component of our liquidity profile, increasing our world’s largest commercial aircraft battery servicing operations

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AviTrader MRO - June 2018 Finance News 16

with a top-ranking reputation for quick lead times, quality, safe- the scope of our offering to the market . Being a key part of the ty and the market confidence that comes from a strong heritage Operations Repair Group within Satair, we plan to offer electri- and pedigree of over 50 years . Some 180 customers, rang- cally-based product repairs, particularly for Airbus proprietary ing from international scheduled airlines, charter carriers, large parts . We are working very closely with our Satair and Airbus low-cost airlines and regional airlines, to MRO companies, heli- colleagues in determining a wide range of stocked parts, all of copter owners, business jets and private aircraft owners have which have significant UK demand, and we have a development their batteries serviced by Satair UK . The business is also one plan for this year and 2019 for both warehousing and repairs .” of the world’s largest aviation battery distributors, representing the top-five battery manufacturers – ACME, Concorde, Hawker Enersys, Marathon Norco Aerospace and Saft . The increased warehousing and workshop space at Space Waye provides op- portunities for expanded capabilities according to Jon Raven- hall, Managing Director Satair UK and Head of Operations Repair Europe (UK) . He said: “It is also our intention to widen

Other News

operational bases of the renowned Royal Flying Doctor Ser- vice (RFDS), who recently announced that Air BP had become a National Partner . Expansion plans are currently underway at Bundaberg for an aeromedical precint . Air BP has invested in two new 110,000 litre jet fuel tanks and a self-serve facility at Busselton airport . Following three months of planning, the new tanks were completed in February and tested ahead of the first fuelling on 13 March . Air BP’s investment will support the air- port’s expansion which includes a new terminal and extended runway . Located 220km south of Perth, Busselton serves the popular Margaret River wine region .

Air Partner, the global aviation services group, has opened a new office in Los Angeles, in line with its strategy to grow its geographical footprint . The office, which opened on June 4, Air BP refuels an operator’s aircraft in Australia Photo: Air BP 2018, will service southern California and the broader West Air BP, the international aviation fuel products and service sup- Coast markets, strengthening Air Partner’s existing US network, plier has strengthened its Australian network . Following the ad- which includes New York, Fort Lauderdale and Washington dition of Bundaberg airport (BDB/YBUD) in Queensland and D .C . The announcement of the L .A . office coincides with Air Busselton airport (BQB/YBLN) in Western Australia in March, Partner reporting strong trading in the U .S . as part of its full the company has now started supplying Jet A-1 fuel at Clon- year results, released on Monday 11 June, 2018 . The Group’s curry airport (CNJ/YCCY) in Queensland . The three locations U .S .-based Commercial Jets, Private Jets and Freight charter will serve both commercial and general aviation customers and divisions all performed well . Air Partner’s Private Jets busi- brings the number of Australian airports where Air BP offers ness reported an 80% rise in overall US customer numbers, refuelling services to 76 . Air BP’s commitment to delivering the driven by last year’s New York office expansion, the recruit- most comprehensive fuelling network in the country is under- ment of new management, and the Air Partner JetCard be- pinned by their extensive operational experience in Australia ing recognized as the most flexible US membership program and understanding of the need for safe, fit-for-purpose fuel- by independent aviation consultancy Conklin & de Decker for ling services at regional airports . On June 1, Air BP added the fourth consecutive year . Meanwhile, the Commercial Jets Jet A-1 to their supply of Avgas at Cloncurry airport following and Freight divisions were kept busy responding to customers’ demand from customers such as Virgin Australia and Qanta- needs in the face of hurricanes Irma and Maria, which hit the slink, who operate regular scheduled services from the airport . U .S . and the Caribbean in September . Air BP’s operations at Bundaberg airport started on March 26 . Located 400km from the state capital of Brisbane at the south- ern tip of the Great Barrier Reef, it serves a growing customer base including Qantas and Virgin Australia . It is one of the

AviTrader MRO - June 2018 WHEELS & BRAKES IT’S THAT SIMPLE

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IFS, the global enterprise applications company, has announced organizations in the aerospace and defense sector react to industry that the TEST-FUCHS Group, a leading manufacturer of test sys- changes by implementing IFS Applications . tems and components for the aerospace and defense (A&D) indus- try, is one of the first A&D customers to select the recently launched IFS Applications™ 10 as its global Enterprise Resource Planning (ERP) and Maintenance Repair & Overhaul (MRO) solution . Head- Pratt & Whitney Canada (P&WC) has achieved Supplemental quartered in Austria, TEST-FUCHS selected IFS because of its indus- Type Certification (STC) for its FAST™ prognostics solution on the try-specific capabilities, completeness of the solution, and its long- single-engine Pilatus PC-12 47E NG aircraft powered by the PT6A- term aerospace and defense industry experience . TEST-FUCHS will 67P . The FAST solution captures and analyzes full-flight engine and roll out IFS Applications 10 across Austria, Germany, Italy, France, aircraft data, enabling high visibility on a multitude of key operat- UK, USA, Singapore, and China to support its global mechanical ing parameters within 15 minutes of the pilot shutting down the engineering and maintenance operations, which serve some of the engine, which can be used to optimize maintenance planning and world’s major aircraft manufacturers, airlines, OEMs and MROs, operations and further increase aircraft availability . PlaneSense, a including Airbus, Boeing, Air France, British Airways, Emirates, Sin- leading fractional aircraft ownership program, will launch the FAST gapore Airlines, Sikorsky, and Embraer . IFS Applications 10 has solution on its fleet of PC-12 NG aircraft . In addition to the PC- been designed to help companies connect their business to a digital 12 NG, the FAST solution is certified on the Beechcraft King Air backbone and capitalize on disruptive technologies, processes, and 200/300 series, Textron Aviation’s Cessna Caravan 208/208B, as business models such as automation, connected devices, and ser- well as Air Tractor platforms . P&WC continues to invest in new FAST vitization . The implementation at TEST-FUCHS will cover preventive certifications, including in the development of an STC for the PC-12 maintenance, fleet & asset management, component MRO, manu- 45 and 47 series of aircraft to help meet the growing demand for facturing, human resources, financials, supply chain, CRM, service advanced digital engine health management among 7,000 PT6A management, document management, quality management, and operators . quality assurance . In addition to the new deployment, TEST-FUCHS will enter into a long-term strategic partnership with IFS to help

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AviTrader MRO - June 2018

Regional review: North America 20

Setting the trends

There is strong demand for narrow body aircraft components. Photo: Airbus

The North American MRO market chiefly the U .S is projected to represent $124 .8 billion over the five years but as industry analysts project, the region will experience very moderate growth over the next decade . Keith Mwanalushi reports .

orth America MRO spend is forecast to shrink from $19 .9 vate to participate, the MRO industry and whole supply-chain provid- billion in 2018 to $19 .4 billion by 2023, then rebound to ers like AJW are adapting to support their ever-increasing need to $23 .8 billion by 2028—overall, relatively flat growth with reduce costs and drive efficiencies . As a result, the term ‘value engi- N1 .8% CAGR according to experts at Oliver Wyman . neering’ is increasingly being used to describe MRO that goes beyond simple repairs to unlock financial gains and efficiencies for operators Dany Kleiman Group Vice President – Repair and Engineering at AAR across the supply chain,” states Garber . observes that in terms of airframe MRO, the most significant trend in the region is the shortage of qualified aircraft mechanics and the Another significant trend today in the North American market is the negative impact its having on labour rates . “A significant trend I’m consolidation of OEMs and MROs . Franck Becker VP Sales Americas seeing on the component side for AFI KLM E&M states that of the business is OEMs rais- over the past decade, there ing the prices of piece parts, has been a notable stra- which is driving up the cost of tegic growth of the MRO repairs .” market with an increased OEM/OAM competition . Angela Garber – VP Sales North America, AJW Group Ben Thomas, Vice President highlights the significant chal- Product Lines, Services and lenge posed to North Ameri- Aftermarket Sales at KLX can airlines and OEMs by Aerospace Solutions agrees an influx of new carriers and about consolidation in the providers, whose long-haul market . “All the players low-cost offering threatens throughout the MRO space to make legacy carriers non- are getting bigger, the air- competitive . “As established lines, the MROs, the repair North American OEMs and shops, and the numerous Angela Garber – VP Sales North America, airlines are obliged to inno- service providers up and Dany Kleiman, Group Vice President – Repair and AJW Group. Engineering, AAR.

AviTrader MRO - June 2018 Regional review: North America 21

AAR sees this as an opportunity to grow their portfolio of services. Photo: AAR down the value chain,” he says . From an engines perspective, MTU Maintenance is still seeing increas- ing leasing and MRO demand for mature engine types such as the “Well, as the consolidation of OEMs is accelerating with a vertical in- CF34-3, CFM56-3C1 and CF6-80C2 . “Only two years ago, these tegration, major MROs will not change while smaller ones may disap- were heading to their final resting place in the desert or destined for pear,” adds Becker . teardown” says Les Cronin, Senior Director of Marketing and Sales North America, MTU Maintenance . “But now they are returning to ac- Tom Covella, Group President of STS Component Solutions also agrees tive service – in some cases resulting into an immediate need for MRO that there is a large consolidation of MRO players in the market . He services, from smaller work scopes to heavy maintenance ”. says there is a great deal of mergers and acquisition activity occurring where niche MRO service providers are being acquired and integrated In the latter case, as Cronin explains, it means that work scopes are into larger MRO business platforms . being performed with a view to longer-term operations . He says lease engines with green-time are also currently in high demand . There also continues to be strong demand for narrow body aircraft components, indicates Shawn Kling, President at Universal Asset MTU is also witnessing a strengthening in demand on maturing engine Management(UAM)which has driven the prices higher than expected types such as the CF34-8E, CFM56-5B/-7B and V2500-A5 – both for on aircraft being acquired for disassembly and aircraft part sales . “The MRO and lease support services . market place for desirable narrow body aircraft has therefore become extremely competitive to the The major aircraft OEMs are point that the pricing is sim- changing their approaches ply too high to see any re- to the aftermarket and are turns for the typical aircraft pushing for more revenue parts distributor .” growth, clearly . “We feel that the industry will continue to In turn, Kling feels this is see a trend toward outsourc- forcing more MROs to try to ing MRO work to independ- acquire aircraft on their own ent providers as well as the to fulfil their parts demand . OEMs . In the past our com- “MROs that have not tradi- pany has developed partner- tionally done this before are ships with OEMs, on the en- finding out that it takes much gine side, for landing gear, as longer than they realised, well as components through and that acquiring aircraft joint ventures, which is more is far more difficult and ex- of a win-win than competing pensive than what they had directly,” states Mark Davis, previously envisioned .” Ben Thomas, KLX Aerospace Solutions, Vice Presi- Senior Vice President Com- Les Cronin, Senior Director of Marketing and dent Product Lines, Services & Aftermarket Sales mercial, HAECO Americas . Sales North America, MTU Maintenance.

AviTrader MRO - June 2018 Regional review: North America 22

Stephen Lim, President of Notwithstanding this, independent MRO’s are changing their strategy VT SAA, ST Aerospace’s to ensure they stay relevant . “Companies like ours that have an inter- facility in the US notices nal eco-system will be in a better position to excel in the new environ- how OEMs are becoming ment . OEM’s need our full breadth of external support and capabilities even more protective of to ensure the useful life of aircraft are extended, thereby increasing the their Intellectual Property residual values of their assets,” explains Lopez . (IP), and foresees possible acquisitions of independ- Lopez advises that it is also in the best interest of the airline operators ent providers by the OEMs . to ensure there is a solution outside of the OEM’s to maintain costs in “Having said that, we view check . “This could be a multiprong solution . Recently, we signed an the OEMs not just as com- agreement with Honeywell to provide OEM parts at competitive prices petitors, but also our part- that match those of PMA’s . This provides OEM quality while effectively ners and customers . As the decreasing operator’s unit cost .” OEMs’ core business still lies in the manufacturing North American operators have traditionally taken a longer view for of products and aftermar- their operations, as having the youngest fleet over their competitors is ket parts sales, established less of a competitive play compared to other regions of world, stresses Cronin from MTU . “For such fleets, MTU Maintenance can optimise Stephen Lim, President of VT SAA, ST Aerospace’s MRO players such as our- facility in the US. selves can offer both scale MRO across the entire lifecycle, resulting in significant cost reduction in facility network and over the operational timeframe and beyond, for instance through asset range in MRO capabilities in collaborations with the OEMs . Such a management services and teardown ”. collaboration helps lead to stronger focus on improving performance, North American operators also have a very strong focus on owned reliability and cost efficiency,” says Lim . assets across the lifetime and cost-minimisation, so in many cases ST Aerospace is seeing an uptick in the demand for MRO services due they are open to solutions from independent MRO providers, like MTU to the recovery of the air freight market, while airlines have also been Maintenance, that include alternative MRO and alternatives to OEM investing in upgrades and new interiors as they continue to enjoy be- MRO solutions, especially in the latter part of the lifecycle . ing profitable . “However, in the long term, the overall North American As mentioned elsewhere in MRO market may remain relatively flat due to new-generation aircraft this article the shortage of which have lower maintenance demands,” suggests Lim . qualified mechanics is affect- Kleiman of AAR says OEMs’ increased participation in the aftermarket ing the market . “There is a has substantially impacted the supply chain and led to greater con- shortage of qualified mainte- solidation among smaller service providers . “But that’s due largely to nance technicians in the U .S,” increased competition on legacy parts .” affirms Davis from HAECO . “Attracting qualified people AAR sees this as an opportunity to grow their portfolio of services, and retaining them is key to stand out and remain competitive, considering anticipated changes our long-term success .” to the supply change related to new products entering the market . Al- though next generation aircraft and advances in airframe manufactur- As the market continues to ing give OEMs the upper hand to control the aftermarket for new parts expand, the need for main- and aircraft, AAR sees opportunities for OEMs to partner with small tenance professionals will providers like AAR to focus on legacy aircraft . increase even further . “We partner with local technical Garber says MRO providers like AJW have long recognised that OEMs schools to provide a defined will not achieve significant revenue growth through incremental opera- track for education, training, Mark Davis, Senior Vice President Commercial, tional efficiencies, but by making step changes that have the power to onboarding and retention . HAECO Americas. transform their operations . “This is why aftermarket providers includ- Additionally, we are honoured ing AJW are now offering a holistic approach to supply chain manage- and actively engaged in recruiting men and women of the armed ser- ment, which looks at how the whole process of sourcing, maintaining vices who are returning from active duty and entering the civilian work- and managing aircraft spares can be streamlined .” force,” Davis tells .

An example of this holistic approach to MRO is AJW’s work for Bom- While the demand for aircraft maintenance technicians remains bardier Business Aircraft, where AJW uses a bespoke IT interface and strong, the supply of talent is decreasing . Covella says part of this predictive maintenance technology to manage the strategic sourcing has to do with the generational gap that exists between the dominant of repairs from OEMs and MROs, including AJW’s maintenance hub workforce demographic, those older than 45 years of age, and those for component repair and overhaul service, optimising performance, now entering the profession . and efficiency of the services while reducing operating and total life cycle costs for Bombardier . “While the ageing workforce steadily moves into retirement, there are not enough young technicians entering the field . This creates a fairly Pastor Lopez, President at GA Telesis MRO Services feels the most dis- unique challenge for staffing organisations . ruptive dynamic at the moment may be the OEM penetration of the aftermarket services . “They have made their intentions very clear,” he Covella believes it also provides a unique opportunity . “The chal- observes . “However, OEM’s will still require a support network around lenge comes from finding the qualified aircraft maintenance techni- the world to be able to provide timely solutions to operators .” cians needed to service the evolving fleets of many . However, an op-

AviTrader MRO - June 2018 Regional review: North America 23

North American MRO spend will shrink in the coming yeras. Photo: AAR portunity presents itself to companies who can successfully tap into the Looking at some of the challenges in the North American market, immense power of modern recruitment tools while teaming up with Becker from AFI KLM E&M says one of the key challenges facing the schools around the country to both solicit, and hire, new and emerg- MRO industry today is the material costs policy with OEMs . “Access to ing technicians . Staffing organisations that can successfully embrace spare parts is challenging as OEMs often implement new rules . We technology and create a strong, on-ground presence at these schools have to find alternative solutions and sign agreements to prevent those are no doubt be better equipped to handle the demographic shift the changes,” he stresses . industry is in,” he analyses . Kling observes that many Of course, the first fleets of next generation engines are now coming new inexperienced entrants into service such as those powering the 737 MAX and A320 neo family . into the industry are artifi- cially driving up prices of Supporting the industry’s next generation of engine platforms is very aircraft and their compo- strategically important for KLX Aerospace . “In addition to adding in nents . UAM / ARI is lever- house technical experts with experience working with these platforms, aging its considerable and we have expanded our product and services offering in order to pro- readily-available capital to vide all of the consumables and expendables necessary to perform safely and securely close on both line and heavy maintenance and repair on these new platforms,” a transaction, without any says Thomas . execution risk or delay that is common with its competitors On its engine division, GA Telesis Engine Services (GATES), celebrated and new entrants into the in- its five-year anniversary in May . “This business has transformed into dustry . a world-wide recognised brand under great lead- The North American MRO ership,” says Lopez . Cur- market will experience rently, GATES has several important challenges as Shawn Kling, President, UAM partnerships with OEM’s substantial fleet growth in to support their engines . emerging markets like Asia Pacific, China and India shifts MRO spend Moreover, in August of to those regions, Garber reckons . “Ironically, this may lead to eventual last year GA Telesis and opportunities for MROs in North America, if over the next decade these Tokyo Century Corpora- regions are not able to keep up with MRO demand . Couple this with tion launched a $1 Billion forecasted capacity constraints and rising labour costs, operators in new technology engine these regions may need to look elsewhere for MRO support .” leasing initiative . The tar- get portfolio will consist of At first glance, it would seem logical for an airline requiring MRO sup- the following engine mod- port in Chengdu to seek help in Singapore, as opposed to Montreal els: General Electric GEnx, where AJW Technique, the group’s component repair and overhaul Rolls-Royce Trent 1000 service, is based . “In reality however, the numbers seldom stack up,” and Trent XWB, Pratt & Garber concludes . Whitney GTF and CFM In- Franck Becker, VP Sales Americas for AFI KLM E&M. ternational LEAP engines .

AviTrader MRO - June 2018 Industry Interview 24 In the hot seat..... Rob Dewar, Vice President, C Series Programme, Bombardier Commercial Aircraft

AviTrader MRO: How is the C Series per- Centre (CRC), continues to work closely forming in service as of now? with our onsite teams at customer locations, around the clock to support our customers Dewar: The C Series continue to get strong and ensuring the C Series aircraft remains in momentum since its entry into service with Swiss service . For any needed repairs to C Series back in 2016 . We have just completed a suc- aircraft we established some new approaches cessful entry into service phase with Korean from the traditional aircraft due to the higher Airlines, our third C Series operator . With 34 content of composite materials . Our Mobile C Series aircraft in service, with three differ- Repair Team (MRT), together with our in-ser- ent operators, the C Series have demonstrated vice engineering team have developed spe- and continue to exceed in terms of in-service cific composite repair strategies to support performance . With its longer-range capabili- repairs in-service . With our global distribu- ties, exceptional fuel burn and reduced noise tion network with strategically located hubs in emissions, compared to other airliners in its Frankfurt and Chicago and depots worldwide segment, the CS300 aircraft has exceeded ex- ensure parts availability and minimise any pectations and the new Air Baltic order for 60 downtime waiting on parts and of course our additional aircraft, is testament of the cost sav- SmartParts programme minimises inventory ing and superior passenger experience this air- investments for our customers and guaran- craft offers our customers . Since its EIS in 2016, tees service levels . We continue to evaluate our customer have completed, over 40,000 all our support and service requirements and revenue flights with approximately five million continue to adjust accordingly to ensure our passengers flown over 150-plus routes . customer needs are met . Rob Dewar, VP, C Series Programme at Bombardier

AviTrader MRO: How prepared are you AviTrader MRO: Where will the Bombardier for the C Series aftermarket? C Series Authorised Service facilities be lo- start-up support, line and base maintenance, cated? and continuing airworthiness management Dewar: Since the beginning of the C Series (CAMO) . Since obtaining their C Series ASF aircraft’s entry into service with Swiss, our Dewar: SAMCO Aircraft Maintenance of authorisation, SAMCO’s team has been very customer services teams have been regularly Maastricht, in the Netherlands, is our first busy supporting Bombardier and our cus- reviewing daily operations with our opera- Authorized Service Facility (ASF) for C Se- tomers during the entry into service phase by tors . Customer services is closely working with ries . Under our ASF agreement, SAMCO is providing start-up technician support services our supplier partners to ensure they are sup- offering Bombardier C Series customers the to all our new C Series operators on Bom- porting as required . Our Customer Response full range of maintenance services, including bardier’s behalf . With the expansion in their

The CS 300 first entry into service with Swiss. Photo: Bombardier

AviTrader MRO - June 2018 Industry Interview 25

34 C Series aircraft are in service, with three different operators. Photo: Bombardier hangar facilities and resources levels, SAM- It provides our operators with MRO services, Dewar: We are committed to be the market CO is gearing up to support our C series op- access to strategically located spare parts ex- leader in terms of our services and support erators that require base (heavy) and other ad change pool, and an on-site inventory based and our investments will be line with main- hoc and maintenance services . With a diversi- at the airline’s main hub . By providing guar- taining this leadership position . fied customer base worldwide with 400 plus anteed part availability and cost predictability, orders, we continue to review ASF strategies SmartParts plays a valuable role in ensuring AviTrader MRO: How far along is the for other regions in which our operators plan our customers achieve a successful entry-into- Alabama final assembly site? to operate . service and supports the long-term operation of C Series aircraft . Over 85% of the current Dewar: We are going full steam ahead AviTrader MRO: What will the Airbus and C Series aircraft in service is supported by the with the Alabama final assembly line, which C Series partnership mean in terms of SmartParts programme (29 of 34 aircraft) . will manufacture C Series aircraft in the US, MRO services? by American workers . We expect to hit the AviTrader MRO: Clearly, the U.S market ground running after the closing of our part- Dewar: Today, the C Series offers several will be important for the C Series. What nership with Airbus . MRO services which will continue moving for- kind of investments are you making in ward . SAMCO in Netherlands offers complete support services in this market? MRO capabilities with C Series qualified me- chanics in their own facility or at the custom- er’s facilities . We also offer our leading com- ponent exchange and repair programmes called SmartParts, which provides operators reliable access to a pool of components at a predictable price for their operation . Moving forward, we are evaluating additional MRO capabilities, with the collaboration of Airbus to ensure our operators have complete MRO capabilities in their region .

AviTrader MRO: Can you tell us about the Aircraft Smart Parts Programme?

Dewar: Swiss, our launch customer for C Series, were also our launch customer for the SmartParts programme . Since the entry into service of our first C Series aircraft, our SmartParts programme has provided compo- Air Baltic ordered 60 additional aircraft. nent support for all our C Series operators . Photo: Keith Mwanalushi

AviTrader MRO - June 2018 Company profile: STS Component Solutions 26 STS – The component specialists

TS Component Solutions prides itself on providing global relationships, business intelligence, aircraft inventory solutions around the clock . On-time de- data analytics, repairs, engineering livery of certified aircraft parts lies at STS Component Solu- and support teams in place to realise Stions’ core . The organisation specialises in materials man- significant cost savings when com- agement, OEM distribution and supply chain solutions . We have pared to the traditional material pur- a proven track record for locating hard-to-find aircraft and engine chasing and repair processes . parts and stock a broad range of rotable and expendable inven- tory strategically located in geographic locations across the globe . Capitalising on technical expertise, experience, and volume, STS Com- ponent Solutions has an extensive network of repair vendors to ensure high-quality repairs, guaranteed Tom Covella, Group President of turn-times, extended warranties and STS Component Solutions. reduced cost of ownership . In addi- tion, our exchange pool of new generation rotable aircraft compo- nents is available to support critical AOG requirements .

Our in-house engineering and engine specialists also allow us to act as an extension of your repair and purchasing team to provide the most cost-effective solutions for your business . Our award-win- ning solutions are unparalleled in the aviation industry and have a proven track record of driving efficiencies throughout supply chain organisations .

STS Component Solutions is committed to providing the highest level of quality, documentation and logistic services to clients . Our unwavering dedication to excellence ensures that your aircraft and engine components will arrive on time, with the proper certifications and support documentation .

STS Component Solutions meets the requirements of the Aviation Suppliers Association (ASA) and the Federal Aviation Authority (FAA) Advisory Circular 00-56A . We continually evaluate our processes to ensure that we are always providing the highest level and current, quality assurance services to, and for, our customers .

In today’s fast-paced world of aviation, STS Component Solutions is the one global company that can provide the aircraft inventory and on-time delivery you need to keep flying!

STS offers global aircraft inventory solutions around the clock. All photos: STS

Our hybrid distribution model and long-term partnerships with in- dustry-wide OEM suppliers enables us to better serve the demands of the aviation aftermarket . STS Component Solutions is commit- ted to providing aircraft and engine components on-time with the proper supporting documentation .

Over the years STS Component Solutions has invested consider- able resources into the development of a technical database that enables us to forecast projected aircraft parts demand, so we can continue to stock and maintain global inventory based on custom- ers’ anticipated needs . We pride ourselves on the ability to utilise our extensive technical resources and conduct an in-depth search to locate the components you need, while also helping to eliminate the high-cost associated with material shortages .

Through STS Component Solutions’ programmes team, we provide airlines, leasing companies and MROs complete inventory man- agement solutions . Whether it be for a Return to Lease, VMI, BER Analysis or another project your team needs, we have the working Providing aircraft inventory and on-time is crucial

AviTrader MRO - June 2018 surplus remarketing

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[email protected] Industry Interview 28

Thies Moeller, Managing Director and CEO Spairliners

AviTrader MRO: A few months into the the whole MRO industry and component busi- job, how are you finding your time at ness is not an exception . Currently I don’t see Spairliners? particular technologies or types of compo- nents causing us more trouble than others . Moeller: Definitely exciting! Spairliners has a However, on-time availability versus inventory great company culture only smaller businesses cost is still key for both sides, the operator of can have . The mix of various cultural back- an aircraft and the supplier of the component . grounds in our team, the family atmosphere Building up on scale effects and sizing the in- and the talent of our people make it really a fun ventory just right is our core competence . Of place to work . Compared to large companies course, life cycle management is an integral Spairliners enjoys and offers a lot of freedom element of our business and along with the in its daily work . Of course, we have our chal- maturity of an aircraft type there are opportu- lenges too – but it’s in our hands and we can nities to optimise both, asset and repair cost . adapt quickly . AviTrader MRO: What kind of synergies AviTrader MRO: How do you rate the are you deriving from AFI KLM E&M and aircraft component business today and Lufthansa Technik? which types [components]are you seeing the most opportunities? Moeller: We are proud to be part of these independent and globally recognised com- Moeller: The commercial pressure on airlines panies . Their networks and longstanding en- has increased constantly over the last years . gineering expertise is of great value for our Consequently, this pressure is forwarded to customers by providing reliable and efficient Thies Moeller, Managing Director and CEO Spairliners

Airlines get unlimited pool access to the full scope of components. All photos: Spairliners

AviTrader MRO - June 2018 Industry Interview 29

Despite slow orders, the component business for the A380 brings opportunities. component repair . Also, their extensive sales with intelligent forecast technology tools for AviTrader MRO: What’s next in the pipe- networks help us to get in contact with mar- LRU pooling which guarantee the maximum line at Spairliners? kets and customers more easily than doing availability of components . This enables us to everything on your own . optimise turn-around-times (TAT) and invest- Moeller: Currently we are putting our foot ments, as well as display situations in real into the Americas by building up a component AviTrader MRO: Spairliners developed a time and home base stock monitoring . The pool location for E-Jets in Ft . Lauderdale, FL . popular A380 component support model airlines get unlimited pool access to the full Together with our network we will approach but with A380 orders drying up does this scope of components while their operation the biggest E-Jet market step by step mak- concern you? is smooth and cost-optimised . Our one-stop ing available our trusted services to Ameri- shop approach reduces administrative efforts can customers too . From single component exchanges or loans up to the one-stop-shop Moeller: Yes and No! We would love to see a for our customers significantly . growing A380 market with a broader opera- solution based on a power by the hour agree- tor base as this would increase the target fleet ment we will offer our wide variety of services . AviTrader MRO: The Embraer E2 is now for our business model . On the other hand, Especially our SPACE product is a beneficial coming into operation. What opportunities this niche market is offering potential for spe- planning tool for E-Jet operators owning their does this present for Spairliners’ Embraer cialists like us . Spairliners has been founded components . With SPACE we can easily op- component care? exactly because of this niche and we expect timise the customer’s inventory, considering that the component business for A380 will reliability data, individual consumption be- also bring opportunities . Sooner or later we Moeller: This is something to be looked into haviour and supply chain times . will face surplus material on the market and carefully as the commonality with the E1 is the need for cooperation and consolidation rather limited . Furthermore, we do not have will rather increase . There is a chance with a clear picture yet if there is a sizeable source every risk! fleet available in our home market Europe . Scale effects are crucial when entering the as- AviTrader MRO: How can airlines, es- set side of a new aircraft type and we need to pecially smaller carriers best manage be sure that the invest would pay off . Also, the component inventory cost effectively? plans of our two shareholders on their MRO capabilities need to be considered . With new Moeller: With smart and efficient solutions technologies it is key to understand them and like the one offered by Spairliners . We work to have access to the technical data .

AviTrader MRO - June 2018 People On The Move 30

GA Telesis Engine Services Oy will be responsible for continuing to drive GATES’ operational results (GATES) has appointed Carsten and overall productivity to enhance the company’s market positioning Holm as Chief Commercial Officer through use of lean practices and significant technological enhance- (CCO) . Holm, who previously served ments through capital investment . as GATES Chief Operations Officer (COO), is responsible for driving commercial solutions for GATES’ business, including the development Israel Aerospace Industries (IAI) has named Mr. Swami Iyer as CEO and implementation of supply chain of IAI North America, its US subsidiary . Mr . Iyer will be responsible for and inventory strategies, while fur- all IAI operations in North America, including its subsidiaries Stark and thering the internal repair business . ELTA North America .

Carsten Holm

Arnaud de Bussac has been appointed Vice President Strategy of Bernhard Dietrich will take over Safran Nacelles . He has joined the Executive Committee and reports as Head of Environmental Issues directly to Cédric Goubet, CEO of Safran Nacelles . De Bussac is re- of the Lufthansa Group from June sponsible for supervising strategic thinking and the related action plan, 2018 . In this function, he is respon- in order to enhance the company’s positioning in its core market . He sible for managing and develop- joined Safran Nacelles in 2010 as Vice President Procurement & Part- ing all Group-wide environmental nership and is a member of the Safran Nacelles Executive Committee . programs and the environmental In early 2016, de Bussac was appointed Vice President Purchasing . policy positions of the Lufthansa Group . This involves the continuous improvement of the environmental balance sheet and the representa- At the end of June, Dr. Alexander Toussaint will step down from his tion of the Group’s environmental position as CEO of RUAG Aerostructures at his own request in order Bernhard Dietrich policy interests, including environ- to pursue a new challenge outside the company . Dirk Prehn, Head of mentally relevant institutions and Programs & Sales and a member of the Executive Board of the RUAG bodies worldwide . Aerostructures division, will assume the management of the division on a temporary basis and will be responsible for its 1,250 employees and the production facilities in Oberpfaffenhofen (Germany), Emmen (Switzerland) and Eger (Hungary) . GA Telesis Engine Services Oy (GATES) has appointed Sergey Mo- ryakov as Vice President of Sales and Customer Service . Headquar- tered in Helsinki, Finland, Moryakov will manage the global sales team and network, and he will also be responsible for all marketing AeroVision International (Muskegon, campaigns . Mr . Moryakov has broad technical expertise and knowl- MI) has named Jim McHugh as edge pertaining to the sale of engine services, specifically in Russia Senior Director of Sales . McHugh is and the CIS regions . He joins GATES from GE Aviation, where he a sales veteran with over 20 years of served as Regional Sales Director for Engine Sales and MRO Services . business development experience in all functions of large account man- agement and operations . Prior to joining AeroVision International, he Airbus has appointed Eduardo Dominguez Puerta, Head of Urban served as National Business Devel- Air Mobility (UAM), a new Airbus unit, effective June 1, 2018 . In his opment Manager in the healthcare new function, he will report to Patrick de Castelbajac, Executive Vice industry, providing extensive busi- President Strategy and International . ness development, sales training, Jim McHugh strategic analysis and customer rela- tionship management for organiza- TRUEAERO has appointed Edward tions throughout the United States . Kokoszka VicePresident, Global Sales & Marketing for TRUEAERO Asset Management (TAAM) . Koko- Commercial jet engine MRO provider, GA Telesis Engine Services Oy szka comes to TAAM after a long (GATES) has announced the appointment of Jukka Laurila as Man- career in marketing, management, aging Director & Chief Operating Officer . Headquartered in Helsinki, leasing and aftermarket support with Finland, he will manage MRO service operations and act as the ac- engine manufacturer Pratt & Whitney countable manager for regulatory purposes . Laurila is a transport in- and its affiliated International Aero dustry professional with more than 20 years in the sector specializing Engines (IAE), starting in 1974 . His in airline, network and fleet management . He joins GATES from Jet most recent position at Pratt & Whit- Time A/S, a Danish airline operating a fleet of Boeing 737NG air- ney was General Manager, Sales, craft, where he served as Managing Director of Jet Time Oy in Fin- Edward Kokoszka Global Leasing, European Region, land . Laurila is assuming the responsibilities of Carsten Holm, who Middle East and Russia . Kokoszka has been appointed the GATES Chief Commercial Officer . Laurila assumed his new position on May 7 .

AviTrader MRO - June 2018