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April 2014 - www.avitrader.com TRAINING PARADIGM Assessing the challenges in emerging markets Human factors in hanger development Latest MRO News from around the world People on the Move latest appointments IBA Analysis Editor‘s Page 2 Marriage of convenience All roads led to Phoenix, Arizona for the MRO This leads to an even more interesting question: to valuation concerns.” Wencor Group however, Americas conference earlier in April where all How are the big MRO players responding to the just announced the acquisition of XTRA Aero- the big names (and smaller ones) where in full shortage in technical expertise in the ever grow- space in April, as an authorised Part 145 FAA and attendance. ing emerging markets in Asia, Middle East, Latin EASA repair station, so we expect some interest- America and Africa? Our cover story partly looks ing developments there. Of particular interest is a comment made by Tony at whether partnerships with MROs in emerging McAnly, President of First Wave Aerospace short- markets can provide the solution, “such partner- Overall, various MRO providers that attended ly after the show. He said: “In the fragmented ships can lead to a win-win situation for both MRO Americas reported a strong start to 2014, MRO market, potential mergers, acquisitions and parties if certain issues are taken into account,” saying that their first quarter metrics either met partnerships should answer the question, ‘Do says Jens Lange from Lufthansa Technical Train- or exceeded their targets for the year. Some they drive down costs to save airlines and MRO ing (LTT). See the full story in this issue. good news at last! centre’s money?’” An interesting point indeed. Elsewhere, there has been substantial specula- Happy reading! He added that companies that can achieve that tion about a potential acquisition of Wencor, goal will inevitably grow. First Wave, which is a the number two in the PMA market. According commercial aircraft parts distributor is capitalis- to industry analysts Canaccord Genuity, while Keith Mwanalushi ing on the trend to consolidate the fragmented the acquisition pipeline looks healthy, a deal for Editor MRO market. privately owned Wencor “appears unlikely due Published monthly by AviTrader Publications Corp. Suite 305, South Tower 5811 Cooney Road Richmond, British Columbia V6X 3M1 Canada Email: [email protected] Tel: +1 (424) 644-6996 www.avitrader.com Editorial Keith Mwanalushi, Editor Email: [email protected] Mobile: +44 (0) 7871 769 151 Design The deficit of qualified technical personnel is already a global issue Photo: LTT Volker Dannenmann, Layout & Design Email: [email protected] Mobile: +34 657 218706 Contents Advertising inquiries MRO and Production News . 4 Jenny Falk Head of Sales & Marketing Other News . 14 Email: [email protected] Cover Story: Training paradigm – Assessing the challenges in emerging markets ... 16 Tel: +49 (0) 8761 346007 Finance News . 20 Registration Information Technology . 21 AviTrader MRO is a subscription-free monthly Airframes: Human factors in hanger development ............................ 22 publication. To receive a copy in your inbox Industry Interview: In the hot seat... Amy Gowder, Vice President & General every month, please send an email with the subject “subscribe” to Manager, Lockheed Martin Commercial Engine Solutions . 24 oemmro@avitrader com IBA Analysis . 25 Opinion Hanger Development . 29 Please send your comments and queries to People on the Move . 31 [email protected] AviTrader MRO - April 2014 www.afiklmem.com mobile.afiklmem.com IN A CHANGING WORLD, TRUST THE ADAPTIVE ONE ADAPTIVENESS® is our response to the changing Maintenance Repair Overhaul business environment. ADAPTIVENESS® means listening to and understanding the key technical priorities of your operations, building unique solutions meeting your specific requirements, and staying at your side as a partner to support you through your daily challenges in a spirit of continuous improvement. If, like many other airlines around the world, you are looking for efficient MRO solutions which lead to longer on-wing times, optimized MTBRs, and overall performance, ask us about ADAPTIVENESS®. ADAPTIVENESS MRO and Production News 4 agreement, BAE Systems will provide proactive re- pairs that will improve the availability and reliabil- ity of Southwest’s fleet. BAE Systems will perform the services through FADEC International, its 50-50 joint venture with Sagem (Safran group). Through FADEC International, the two companies develop, manufacture, and support high-reliability aircraft electronics for harsh engine environments. The company serves airlines and aircraft maintenance and repair providers with a full range of aftermar- ket capabilities. Leveraging extensive knowledge of severe engine environments, FADEC design at- tributes, and repair history, BAE Systems has de- veloped a robust process that helps customers decrease costs, simplify maintenance, and enhance their services. Ameco provides line maintenance for Etihad at Chengdu outstation Photo: Ameco Beijing Boeing, Air France Industries KLM Engi- neering & Maintenance extend 777 com- Ameco Beijing provides line maintenance doors, nozzle and engine mounts, along with Air- ponent services program for Etihad Airways at Chengdu outstation celle’s Papillon (butterfly) two-door thrust reverser. Interjet is based in Mexico City and currently oper- Boeing and Air France Industries KLM Engineering Ameco is providing line maintenance and releasing ates six Superjet 100s, with a total of 20 on order & Maintenance have ratified a long-term renewal service for Etihad Airways at Chengdu outstation and options for 10 more. of their joint 777 Component Services Program from April 5th, 2014. The UAE carrier is the third cus- (CSP). The extension of the CSP was announced tomer after Qatar Airways and British Airways for on the opening day of the MRO Americas confer- line maintenance service at Ameco’s Chengdu out- ence in Phoenix. The Component Services Program station. Etihad Airways operates daily on Abu Dhabi NORDAM and GECAS unit partner to offer is a parts-provisioning program that significantly to Chengdu route, using Airbus A330 aircraft. Last flight control parts for airlines reduces the airline’s up-front investment in spare September, Ameco set up its seventh line mainte- parts and offers a quick and reliable supply of critical parts from a pool shared by participating 777 opera- nance outstation at Chengdu Shuangliu Internation- NORDAM and GE Capital Aviation Services’ (GECAS) tors. “Over the years, the Boeing 777 Component al Airport, with Qatar Airways as the first customer. Asset Management Services unit announced a new Services Program has demonstrated its economic In December of 2013, Ameco opened its eighth out- cooperative initiative to provide airline customers competitiveness, reliability and excellent techni- station at Hangzhou International Airport. Now, the with enhanced options for flight controls. The part- cal quality,” said Bernard Hensey, vice president of Beijing-based MRO provider has eight outstations nership combines GECAS’ inventory of flight con- Fleet Management, Commercial Aviation Services, located at Shanghai, Guangzhou, Qingdao, Chong- trol parts from aircraft teardowns with NORDAM’s Boeing Commercial Airplanes. “We’re delighted to qing, Chengdu, Tianjin, Nanjing and Hangzhou, serv- strengths in component repair to offer airlines a renew a program that is a significant part of Boeing’s ing some 20 customers from international market. faster and lower-cost solution than repair of the commitment to delivering a competitive advantage customer’s part. “We can repair almost anything,” to customers in today’s complex aviation industry.” said NORDAM vice president of global marketing Bailey J. Siegfried, who also is responsible for the Aircelle to provide engine nacelle support firm’s rotable assets. “But it can take time, depend- services for Interjet’s Sukhoi Superjet 100 ing on the part condition. With GECAS’ inventory of jetliners spare parts, we can offer a quicker – and in some GEnx MRO network takes shape as pro- cases, lower-cost – solution than repairing the cus- duction accelerates Aircelle (Safran) has signed a nacelle services con- tomer’s part.” The two companies will begin with tract with Interjet to provide support for the na- a focus on flight controls and plan to expand into The network of overhaul facilities for the GEnx en- celles and thrust reversers on this Mexican-based other components in the future. gine is expanding as production of the engine ac- airline’s fleet of Sukhoi Superjet 100 regional jetlin- celerates. In recent weeks, GE Aviation announced ers equipped with Powerjet SaM146 engines. Un- a GE-Branded Services Agreement (GBSA) with Air der terms of the four-year agreement, announced France-KLM for the maintenance, repair and over- at the MRO Americas 2014 conference in Phoenix, BAE Systems inks contract with Southwest haul of the GEnx-1B and a new joint venture with Arizona, Aircelle will provide access to large-sized Airlines to support world’s largest fleet of 737s Evergreen Aviation Technologies (EGAT) called GE nacelle components – including thrust reversers Evergreen Engine Services, which will provide MRO and engine cowls – for lease or exchange by Inter- Southwest Airlines has selected BAE Systems as services for both the GEnx-1B and -2B. Air France- jet. Aircelle has full design, production and integra- its exclusive provider of maintenance, repair, and KLM
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