Operational Readiness and Flying out of a Crisis

December 2020 www.avitrader.com

2021 Operational readiness and flying out of a crisis

Components Turboprops Singapore Component Engine support Solutions teams up as airlines resume services with Hutchinson

Bii.aero Solutions for bringing aircraft back into operation Beyond Components provides customers with airframe and engine component support solutions that exceed their expectation on value, without compromising on quality or delivery of service. Our highly experienced, and responsive airframe division is able to provide bespoke, premium solutions ranging from tailored, fixed-cost, flight-hour agreements through to crucial 24/7 AOG airframe support.

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Call us on +44 (0) 2920 109 890 or email [email protected] | [email protected] Editor‘s Page 3

The year ushered in a new way of travel. 2020: A year like no other, but Photo: Delta we will eventually recover

arlier this month, industry body IATA said since the start of the COVID-19 pandemic, governments around the world have helped airlines survive the crisis with approximately $173 billion in various forms E of financial support. IATA has reiterated the importance of further support to the aviation industry with further stimulus packages. Many of the support packages that were initially available to airlines and other aviation businesses are running out, but industry losses continue to mount. Airline losses are now forecast to top $118 billion this year and nearly $39 billion in 2021. The industry is expected to continue burning through cash at a rate of almost $7 billion per month in the first half of 2021 according to IATA. In our final issue of the year the theme is really all about the spirit of resilience in the market. We spoke to key players in the regional turboprop aftermarket to highlight some of the solutions and support services available to prepare regional aviation to take off again, considering it is likely the sector to recover first. Despite the challenges of the pandemic, turboprop OEMs, MROs and aftermarket service providers have maintained continuous service to operators from the Dash 8 to the ATRs. And speaking of ATR, the delivery of the very first purpose-built ATR freighter to FedEx in December puts confidence back in the market especially for the regional cargo sector. Clearly, next year will come with its own challenges. Airlines, MRO’s, and suppliers will look to conserve cash and rebuild businesses in the most efficient way possible. Industry forecasts indicate that the implications of COVID-19 will be profound and persistent and due to the demand crunch, the global commercial fleet will stagnate through 2022. The market will eventually start to recover, and preparedness is key. Be sure to read our 2021 outlook feature which gathers expert thoughts and predictions for the MRO industry as it begins to implement recovery strategies. It has also been a challenging year for the aviation publication industry, and we appreciate the support of advertisers that have continued to support us during this period, and we also look forward to welcoming others back soon. As we bid farewell to a turbulent year, we hope to turn a crisis into opportunities in 2021. On behalf of the entire team here at AviTrader Publications Corp we wish all our readers, advertisers and editorial contributors happy festivities, good health, and better prosperity in the new year..

Keith Mwanalushi Editor

AviTrader MRO - December 2020 Contents 4

17 The resilient turboprop

Cover image: American

Publisher

Peter Jorssen 3 Editor‘s Page [email protected]

Editor 5 5 Industry Briefs Keith Mwanalushi [email protected] 11 News Analysis VP Sales & Business Development SCS: Partnership for components (Advertising) Tamar Jorssen [email protected] 11 News Analysis Phone: +1 (778) 213 8543 14 Bii.aero: Stocking up for cabin interiors Graphic Designer Volker Dannenmann, [email protected] 17 Turboprop Engines 14 The resilient turboprop Sales & Marketing Manager Malte Tamm [email protected] 22 MRO Outlook 2021 Managing Editor A case for optimism and recovery Heike Tamm [email protected] 22 27 Company Spotlight Published monthly by CordobaQ AviTrader Publications Corp. Suite 305, South Tower 5811 Cooney Road Richmond, British Columbia 29 Industry Interview V6X 3M1 27 Jim Lickteig, Senior Director of Aftermarket Services, Canada Spirit AeroSystems Tel: +1 (424) 644-6996 www.avitrader.com 31 People on the Move 29 INDUSTRY BRIEFS 5

AAR partners with FTAI to create serviceable engine P&W and MTU Maintenance Zhuhai sign PW1100G-JM products network agreement Pratt & Whitney will expand its global network of providers that maintain the Pratt & AAR has signed an agreement with For- Whitney GTF™ engine to include MTU Maintenance Zhuhai, a joint venture between tress Transportation and Infrastructure In- MTU Aero Engines and China Southern Airlines. MTU Maintenance Zhuhai will pro- vestors (FTAI), to create serviceable engine vide engine maintenance for PW1100G-JM engines for the Airbus A320neo family of products, an exclusive seven-year CFM56 aircraft. The Zhuhai facility will be MTU’s third facility to serve engines with full disas- used serviceable material (USM) partner- sembly, assembly and test capability in the GTF MRO network. The expanding GTF ship. The partnership will build USM in- MRO network is comprised of the industry’s leading MRO companies. By the end of ventory for the global aviation aftermar- 2020, there will be nine active GTF MRO engine centers. The GTF MRO network is part ket and FTAI’s own consumption at The of Pratt & Whitney’s EngineWise™ service solutions, which provides engine operators Module Factory™, a dedicated commercial with a variety of aftermarket services resulting in long-term, sustainable value. maintenance center focused on modular repair and refurbishment of CFM56-7B and CFM56-5B engines. Through its worldwide network, AAR will manage the teardown, repair, marketing and sales of spare parts from FTAI’s CFM56 engine pool totaling over 200 engines and growing.

Leonardo secures €200 million financing from the European Investment Bank

Leonardo and the European Investment Bank (EIB) have signed a loan agreement of €200 million. The financing has the purpose of supporting the investment projects planned in the group’s industrial plan against the background of the impact of the COVID-19 pandemic. This further loan by the EIB brings the investment support of the loan signed on November 29, 2018 from €300 to €500 million. The investments pursued by Leon- ardo are very closely aligned with the EIB’s PW1100G testbed Photo: MTU principles aimed at supporting development of cyber security products and solutions and advanced manufacturing as well as in innovative technologies that enable the decrease Honeywell appoints EPCOR global licensed repair shop in emissions of pollutants through the prod- for 331-350 series APUs uct weight reduction and the improvement of fuel efficiency. This is the third operation Honeywell has appointed EPCOR (European Pneumatic Component Overhaul and Re- carried out between the EIB and Leonardo; pair) as the global and sole licensed repair shop for its 331-350 series Auxiliary Power the first of €500 million, in 2009, was aimed Units (APUs). EPCOR is a fully owned subsidiary of Air France Industries KLM Engineering at developing technologically innovative & Maintenance, part of the Air France KLM Group, responsible for repair and overhaul aeronautical components; the second one of activity for APU and mechanical components. EPCOR will be the global and sole Hon- €300 million in 2018, to which is added this eywell licensed repair shop for the 331-350 Series APUs, providing inspection, repair, new contract, aimed at supporting invest- overhaul, and upgrades. These APUs are installed on the Airbus 330 and Airbus 340 ment projects in four main areas: develop- fleets. The company will serve customers worldwide from its state-of-the-art facility in ment of highly innovative products in the Amsterdam. Honeywell’s appointment of EPCOR is an expansion of an existing relation- helicopter division, cyber security, advanced ship. The company is one of Honeywell’s oldest channel partners and has been its main manufacturing (Industry 4.0) and infrastruc- APU partner in Europe, Middle East, Africa and India region, having repair capabilities for ture projects needed to increase the produc- Honeywell’s 331 and 131 Series APUs. tion efficiency of the plants.

AviTrader MRO - December 2020 INDUSTRY BRIEFS 6

Aero Norway continues program of investment with addition of new plasma spraying machine

Aero Norway, the specialist CFM56 repair form, offers increased efficiency as well as lowed us greater physical flexibility within facility, has further expanded its capa- multiple thermal spray processes in one our internal repair equipment as it has a bilities with the addition of a new plasma system including plasma spray and HVOF reduced footprint and enables us to of- spraying machine. The Oerlikon Multi- (High Velocity Oxygen Fuel). “The intro- fer HVOF related repairs in addition to the Coat™ Pro advanced thermal spray plat- duction of the new machine has also al- plasma repairs,” says Neil Russell, Chief Operating Officer at Aero Norway. “This is a substantial investment that was initiated in 2019 / 2020 as part of our strategy to identify which parts needed to be brought in house and grow our repair back shop accordingly.” The advanced thermal spray system platform – MultiCoat™ Pro combines multiple thermal spray processes in one system which will allow Aero Norway’s customers to benefit from the unlimited versatility and unmatched process control. In addition to reduce turn-around times as a result of the introduction of this more efficient system, the new platform will allow the integration of multiple thermal spray processes, eliminate operating errors, and deliver the benefit of fast, flexible upgrades with minimal shop disruption Photo: Aero Norway invested in a new plasma spraying machine

Your exchanges partner

materials leasing transitions records remarketing www.TrueAero.com

AviTrader MRO - December 2020 INDUSTRY BRIEFS 7

FL Technics acquires Wright Israel Aerospace Industries and Gulf Air enter line International and takes foot- maintenance agreement hold in Canadian MRO market Israel Aerospace Industries’ (IAI) Aviation Group has entered a line maintenance FL Technics, a global provider of aircraft main- agreement with Bahrain’s airline Gulf Air. Under the contract, the Aviation Group tenance, repair and overhaul (MRO) services, will provide a comprehensive technical response to all of Gulf Air’s airplanes ex- has acquired Wright International, an inde- pected to land at the Ben Gurion International Airport, including post- and pre- pendent provider of line maintenance services flight services, daily maintenance, and support for any technical issues. IAI’s Avia- in Canada. For FL Technics as well as its parent tion Group provides line maintenance services to some 75% of the airlines that company Avia Solutions Group, this marks the arrive at the Ben Gurion Airport. entry into the North American aviation services market. Wright International provides aircraft line maintenance services up to ‘A’ level checks, AOG support and training for airlines at Canada’s major international airports, including Toronto Pearson, Vancouver, Calgary, Montreal-Mirabel and Ottawa. Founded in 1991 and headquartered at Toronto Pearson International Airport, Wright International is a Transport Canada- and EASA-approved Maintenance Organization (AMO) licensed to service most commercial aircraft types. The acquisition of Wright International grants FL Technics a foothold in the strategically important North American market and allows it to serve its airline clients across an even wider network of international locations. Together with its subsidiaries, FL Technics today offers line maintenance services at over 70 airports Gulf Air Photo: AirTeamImages and base maintenance services at five locations around the globe.

Recaro Aircraft Seating Liebherr to overhaul landing gears for Austrian Airlines to equip Avolon’s A320 and B737NG with BL3530 Liebherr-Aerospace has been selected by Austrian Airlines to overhaul the landing gears of the airline’s 17 Embraer E-Jet E195 aircraft. The first landing gear is SPRINT seats expected to arrive end of December 2020, at Liebherr-Aerospace Lindenberg GmbH Aircraft lessor Avolon and Recaro Aircraft in Lindenberg (Germany), where the overhaul activities will be performed. The com- Seating have signed an order for twenty plete landing gear system for the E-Jet E1 family (E170/E175/E190/E195) has been shipsets of the SPRINT seat, consisting of developed, manufactured and certified by OEM Liebherr-Aerospace Lindenberg fifteen shipsets for use on Avolon’s A320 GmbH, Liebherr’s center of competence for flight controls, landing gear systems, aircraft and five shipsets for the B737NG gears, gearboxes as well as electronics. aircraft; the seats will be delivered in the first half of 2021. To meet the needs of customers with tight aircraft transition schedules, Recaro rolled out the SPRINT program in 2019 as a customer service solution with only two months from order to delivery. The SPRINT program allows customers to select the e-leather cover color from five pre-defined and pre-certified colors for the BL3530 seat. SPRINT stand-

ard configurations are available for Airbus Liebherr Aerospace supplies landing gear systems for the E-Jet E1 family A319, A320, A321 and Boeing 737 aircraft. Photo: Austrian Airlines

AviTrader MRO - December 2020 INDUSTRY BRIEFS 8

APOC Aviation disassembles two CFM56-7B engines

APOC Aviation will be bringing two torn down CFM56-7B engines into stock mid-December. ESN874488 and ESN888169 have previously been operated and maintained by a leading North American carrier. Both engines are being disassembled in tandem at two of APOC’s chosen teardown facilities in the USA. APOC is considering selling part of the material in ‘As Removed Guaranteed Repairable’ condition providing engine MROs with the opportunity to overhaul the parts themselves. Other components will be repaired by APOC for stock and these will be available in the first quarter of 2021.

Photo: APOC Aviation disassembled two CFM56-7B-engines keeping you in the air ...

Rolls-Royce sets ball rolling for 2021 disposal of ITP Aero As the industry’s leading independent aero-engine MRO As part of its £2 billion disposal plan announced in August, Rolls- provider, StandardAero is trusted by airline, governmental and business aviation operators worldwide for responsive, Royce has announced that it intends to dispose of Industria de tailored support solutions. Turbo Propulsores (ITP Aero) which has seen a continued negative impact on trading owing to the challenging civil aerospace market. Our global Airlines & Fleets team provides OEM-authorized However, defense, which represents 25% of ITP Aero volumes, ben- support for your engine and APU needs: efited from the Eurofighter order from the German Airforce for 56 EJ200 engines. The sale of the Spanish aero engine manufacturing subsidiary of Rolls-Royce is expected to take place in the first half • AE 3007 • APS2300 • CF34-3/-8 of 2021. “The first half of next year we’ll see as engaging with the • CFM56-7B • GTCP36 • JT15D buyer universe around the ITP business,” chief finance officer Ste- • PT6A • PW100 • PW150 phen Daintith told reporters on December 11. Established in 1989 • RB211-535 • RE220 as a joint venture between Spain’s SENER and Rolls-Royce, and at one point had grown to become the ninth-largest aircraft engine and components manufacturer in the world in terms of revenue. ITP Aero is involved in the design, research and development, manufacturing and casting, assembly, and testing of aeronautical engines, while also providing MRO services for a wide range of engines for regional airlines, business aviation, helicopters, industrial and defense BIGGER. BETTER. BOLDER. applications. With a global network of production facilities in Spain, www.standardaero.com United Kingdom, Mexico, United States, Malta and India, ITP Aero’s headquarters are located in Zamudio, near Bilbao, in Spain and has over 3,500 employees..

AviTrader MRO - December 2020 INDUSTRY BRIEFS 9

Swiss-AS has signed a contract with DRF Luftrettung, one of Europe’s major air rescue Thales and Standard Aero have an- companies and based in Germany, regarding the license and implementation of AMOS. nounced the successful first flight test Over the last decades, DRF’s Part 145 scope of work, number of staff, and facilities have of a revolutionary compact autopilot constantly expanded. The company growth brought many challenges with it. To face system for the Airbus AS350 and H125 and tackle these, the company performed an extensive process-streamlining project in helicopter. This is a key milestone which which context also the maintenance software was reviewed. The legacy software was im- lays the groundwork for this critical plemented in the 1980s and with the company-wide review it became evident that new phase of the Supplemental Type Cer- maintenance software was inevitable. The AMOS MRO edition convinced the DRF with tification (STC) process and the launch its rich functionality. Considering DRF’s very varied fleet, having one common and highly of this unique autopilot solution to the integrated system will help the customer to have a clear and complete overview of their light helicopter market by the mid- fleet maintenance requirements and activities at any time. The project was kicked-off in dle of 2021. Flight testing will continue October. Swiss-AS will staff the project mainly with German-speaking employees for a throughout this winter at StandardA- smooth-running project communication. ero’s Langley, British Columbia, Canada facility, and WeatherTech, the well- known automotive accessories company, will be its launch customer. The Autopilot will initially be certified for in- stallation on both the Airbus AS350 and H125 helicopter platforms. The Thales/ StandardAero compact autopilot is an intuitive automatic flight control system on the AS350/H125 that increases safety by reducing pilot workload. It provides stability augmentation, attitude reten- tion and flight director modes such as DRF Luftrettung goes for AMOS Photo: Swiss-AS altitude or heading hold. “This state- of-the-art, four-axis autopilot system has been designed as a straightforward ePlane and b2b-aero have entered into a strategic partnership, offering ePlane’s inno- retrofit and provides pilots with simpli- vative AI-driven Trading and Insights platform with b2b-aero’s most widely used MRO- fied operation that will help reduce wear Tracker solution. With technology playing an increasingly critical role in every aspect of and tear on the helicopter while making a business, global companies are continually seeking to improve their manual day-to- flying in normal and adverse conditions day operations and data-exchange communications with flexible, innovative, and often much easier and safer for the crew and customized solutions. This new partnership will provide companies with more options passengers,” said Elvis Moniz, Vice Presi- to plan, report, and analyze, leveraging their business and trading opportunities. “This dent of Product Development for Stand- ardAero’s Helicopters business unit, partnership between the two industry-leading service providers – ePlane and b2b-aero adding: “Moreover, with the increase in – is a great opportunity and will drive the digital transformation process in the MRO EMS flying and recent CFIT related heli- industry,” said Michael Harms, b2b-aero CEO. “By making our services available to the copter accidents, anything that can help ePlane community and vice versa, we will bring significant, additional value to existing pilots navigate more safely is of para- ePlane and b2b-aero customers. We are looking forward to announcing new business mount interest.” process improvement solutions as soon as possible.”

BOC Aviation increases revolving credit facility with Bank of China to US$3.5 billion BOC Aviation has released that it has increased the amount of the committed, unsecured revolving credit facility (the RCF) from its largest shareholder, Bank of China and extended the maturity to 2026. The new terms of the facility now provide the Company with US$3.5 billion to support its future growth, an increase of US$1.5 billion. The final maturity of the RCF has also been extended from April 28, 2022 to December 31, 2026. Photo: eplane

AviTrader MRO - December 2020

Partnership for NEWS ANALYSIS11 components

Component repair and inspection work in Singapore. Photo: Patrick Delapierre

Singapore Component Solutions and Hutchinson Aerospace Services signed an MoU to develop their offering in the Asia-Pacific market.AviTrader MRO looks closer at the growing partnership.

uring November, Singapore Com- engine component repairs, cabin interior “Our multiple cooperation and partner- ponent Solutions (SCS), the joint and composite and structural repairs. ships with OEMs also allow us provide bet- venture between Sabena technics ter services, support and conditions to our Dand Air France Industries KLM Engineering “We are proud to bring our expertise to customers. Finally, the constant motiva- & Maintenance announced the signing of a major OEM such as Hutchinson, allow- tion from all our employees to create this a Memorandum of Understanding (MoU) ing both companies to develop jointly our company and the will to learn and improve with Hutchinson to work jointly on the de- repair network and capabilities in Asia. We has, without any doubt, made it possible,” velopment of their component repair of- look forward to a successful partnership”, Campion adds. fering in Asia-Pacific. said Thibaut Campion, CEO of Singapore Component Solutions. With the backing of Air France Industries The global aircraft component MRO mar- KLM Engineering & Maintenance and Sa- ket was worth an estimated $16.5b in 2019 Further, Campion tells AviTrader MRO that bena technics, SCS brings its comprehen- and the Asia-Pacific region is expected to over the past four years, SCS has constant- sive portfolio of customisable, mix and have the fastest recovery post-Covid in ly invested in its technical expe- the years to come, driven by high long- rience and has spent a consider- term growth potential of the region. Com- able investment in training and Until the market fully recovers, SCS is mercial aircraft activities are likely to gain knowledge transfer. “Thanks to momentum in the region quicker than investing in cross training versatility, the deep support of our par- elsewhere. “ lean production improvement and ent companies Sabena technics Both companies say they will combine and AFI KLM E&M, we have suc- capability development. their respective skills to offer the market a ceeded to transfer know-how Thibaut Campion, CEO, value-adding MRO service solution start- and made SCS align with the ” ing early 2021. Capabilities will include en- highest standard of repair qual- Singapore Component Solutions gine and APU vibration isolation systems, ity and reliability.

AviTrader MRO - December 2020 NEWS ANALYSIS 12 match solutions for A320, A330, ATR and Fokker 100 aircraft operators.

In respect to the projections for component support services in the region post Covid and how SCS is managing the challenges, Campion is fully aware that Covid has severely impacted all markets – “To- day the market is down by more than 50% and SCS has structured itself to be able to cope with the downturn without retrenchment. Until the market fully recovers, SCS is investing in training, cross training versatility, lean production improvement and capability development. Hutchinson capability development is a major project and will require dedicated resources to reach Hutchinson quality and performance. We are motivated and ready for this challenge and we will use this down time to further develop SCS for Hutchinson as well as other partnership still to come.”

Norbert Langlois, Executive Vice Presi- dent of Hutchinson Aerospace Services is pleased to team-up with SCS: “This partnership is aiming at increasing our business in Asia and most importantly to make our customers benefit from a joint repair network and overhaul capabilities in Asia. We remain greatly confident that this partnership will be a great success.” SCS has managed the downturn without retrenchment. Photo: Patrick Delapierre Hutchinson designs and produces customised materials and connected solutions to respond to the needs of its global custom- technics Asia workshop activity that was masks and cylinders, pilot and co-pilot ers, on land, in the air and at sea. Hutch- created in January 2016 and certified its seats, leading edge and heat exchanger inson reported revenues of €4.3 billion first equipment in September 2016. repairs. in 2019 and has 40,000 employees in 25 countries. Starting with mainly ATR capability, SCS “We aim to provide reliable and efficient repair and modification services on high has extended its capability to cover Air- Singapore Component Solu- removals or problematic components to bus family (A320, A330) and other aircraft tions was created in 2017 all Asian customers and of course to our when AFI KLM E&M took types with technologies such as electro- parent companies AFI KLM E&M and Sa- a 50% stake in Sabena mechanics, avionics, pneumatics, oxygen bena technics,” Campion ends.

Repair and inspections include A320 components. Photo: Avion Express AviTrader MRO - December 2020

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SEE OUR WEBSITE FOR CAREER OPPORTUNITIES On-Call Maintenance https://ascentmro.com/about/careers.html NEWS ANALYSIS 14 USM will be needed to keep galleys and toilets operational “as cost affectively as possible. Andrew Newell, Sales ” Director, Bii.aero

Stocking up for cabin interiors

Andrew Newell, Sales Director at Bii.aero

Bii.aero has continued to boost its aircraft parts and services business. Keith Mwanalushi talks to Andrew Newell, Sales Director at Bii.aero about their recent cabin interior component acquisitions.

ii.aero recently announced the addi- for interior reconfigurations during the next to be in demand as aircraft are brought tion of A320-A321 interior compo- 12 months. Bii is in the perfect position with back into service and in some cases un- nents and boosting its stock of A320 our experience to help supply the materials dergo major checks. USM will be needed to Bfamily galley inserts. Andrew Newell, Sales required to reconfigure aircraft interiors for keep galleys and toilets operational as cost Director explains that re-certified equip- new operating leases.” affectively as possible. Operators are likely ment is the perfect solution for operators to go for short term price benefits while The aviation industry could take 2-3 years bringing aircraft back into service quickly. they recover.” to recover from the current crisis, but it is He says Bii have the expertise and agree- the opinion of Bii.aero that core narrow During the announcement of the addi- ments in place to manage and support the bodied aircraft will be back flying within tional A320-A321 interior components, Bii. repair and sale of components to achieve the next 12 months. “Operators are going aero stated that the combined packages best market value for the airline realising to work the assets they already have rather comprising over 1,700 line items include the best possible financial return. than commit to capital expenditure. With a broad spectrum of sometimes - hard to oil price so low, the predicted returns do source - OEM interior components from AviTrader MRO While speaking to about the not stack up for new assets, nor do airlines Zodiac, Airbus, BE Aerospace, Adams-Rite, financial effects of COVID-19 and how it will have the cash,” Newell stresses. Holmco, Diehl, and Goodrich amongst impact the aircraft cabin interior compo- others. Components included are vacuum nents sector, Newell believes that this mar- Specifically, in relation to aircraft interiors, lavatories, smoke detectors, ovens, coffee ket will pick up quickly with airlines needing he says this means that core aircraft out of makers, crew handsets, chillers, faucets, fire to get fleets back into the skies and aircraft ‘purchase warranties’ will need to be ser- extinguishers, lights, and attendant seats. transitioning between operators. “Due to viced in the most economically viable way. operating fleet changes, and the B737MAX “This precludes for the most part new ma- “The market for these items is constant re-introduction, there will be a high demand terial from the OEMs. Quality USM is likely when aircraft are flying” explains Newell.

AviTrader MRO - December 2020 NEWS ANALYSIS 15

Airlines will quickly want to reinstate the sale of refreshments on board. Photo: JetBlue

“The most frequently removed items are Bii will utilise its carefully selected MRO possibilities. These items are available for normally water heaters, coffee makers and vendor base to recertify the interior cabin/ outright sale, and exchange or loan.” ovens, so we are building a pool of these galley material to ensure quality and avail- Newell then explains the key considerations fast-turning items. Some airlines are cur- ability on the shelf. “All parts received into for the recertification of the interior parts rently taking equipment from teardowns the facility get accepted into the Bii.aero and the selection criteria of MRO vendors. and parked aircraft, but these still need to system. Once registered, Bii’s knowledge- He says Bii is fortunate enough to have a be recertified. For many operators, a better able and experienced MRO team identi- team of very experienced MRO experts who solution is to buy recently certified material fies key parts to get certified and available know the market extremely well. One mem- instead of cannibalising parked aircraft and for immediate delivery to the marketplace ber of the team supervised over 1,200 re- storing up shortage problems.” from the shelf to achieve the best revenue pair orders per year and another managed a 220,000sq.ft. multi-ATA chapter MRO.

“We have agreements in place with an extensive list of approved vendors on both sides of the Atlantic. These are carefully audited, then selected and used for specific items that work to their strengths. For maximum efficiency, Bii needs to manage stock in different geographical locations.

“Our main consideration is to have stock immediately available and in the best condition to go to market. Some basic items might only require bench testing or repair, whereas vacuum lavatories and coffee makers will go through a complete overhaul.”

Newell says that although airlines are serving less food and hot drinks nowadays due to COVID-19, the sale of refreshments on board is an important revenue stream that they will want to reinstate as quickly as

Bii.aero aircraft interior parts. possible. And he adds, “vacuum lavatories Photo: Bii.aero will always be a priority.”

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ndustry experts have expressed optimism in the resilience of turboprop aircraft in the cur- The resilient Irent downturn period, but they say value and lease performance will be dependent on the secondary market supply for specific models. Turboprop Turboprop aircraft are utilised in a wide variety of roles, and the impact of the COVID-19 pandemic on operator requirements for engine Keith Mwanalushi services has varied widely depend- looks at support services ing on the end-market served. for turboprop engines and Engine services amid a pandemic the solutions available to ensure Kenny Graham, Director, Customer Service at StandardAero’s PEI facil- operational readiness as ity says demand for engine MRO airlines resume services. services from operators in the cargo, governmental, parapublic and military sectors has remained robust. The utility and business aviation segments have shown only a moderate reduction in demand, with the charter market fluctuating between strong months and weak- er months. “Regional airline operators have been hardest hit by the pandemic, with many operating in a ‘cash conservation’ mode, that is to say avoiding capital outlays such as engine overhaul events wherever possible, for example by making use of spare engine assets. We have continued to support these operators with field support services, for example engine preservation and return to service, FOD repairs and engine bores coping. As the industry gradually recovers over the coming years, with passenger confidence return- ing through the widespread introduction of vaccines, we expect to see increasing requests for heavy maintenance events as operators catch up with deferred maintenance,” Graham anticipates. Kelkar notes that traditional domestic and or, and vice versa. Because of its versatility, regional markets are generally less dis- we are confident that the Dash 8-400 in the Amod Kelkar, VP, Customer Ser- rupted by international border closures and secondary market will quickly find homes vices and Support, De Havilland restriction on movement. He says opera- and contribute to the economic recovery. Aircraft of Canada observes that tors also launch new routes with the Dash turboprops and the Dash 8-400 8-400 to provide essential supplies and air “We see the demand for support and servic- in particular are resilient through- transport to remote locations –“For exam- es for the Dash 8-400 fleet has been stead- out the current period precisely ple, reconfiguration of our Dash 8-400 into ily increasing over time as airlines resume because they have the efficiency Simplified Package Freighters provides op- air services or as aircraft are transitioned and versatility to add value to erators with flexibility to convert the pas- into new roles or with new operators. De- many different types of operations. senger cabin into a temporary cargo interi- spite the challenges of the pandemic, we

AviTrader MRO - DecemberPhoto: 2020 ATR TURBOPROP ENGINES 18

Regional airline operators have been hardest hit by “the pandemic. Kenny Graham,” Director, Customer, Demand for engine MRO services from some sectors has remained robust. Service, StandardAero Photo: StandardAero

have maintained continuous service to standard exchanges spot services for non- practices, upgrades, troubleshooting pro- our operators to ensure our Dash 8 fleet GMA customers, have been made possible cedures, training, and the like.” of aircraft can continue to fly safely and to limit cash out during this challenging efficiently,” Kelkar speaks. period,” he says. Caballe says these constant evolutions have helped ATR attract new customers, In the context of the COVID-19 pandemic, ATR have also shared several recommen- such as Finnair, who signed a long-term Laurent Caballe, Head of Products and dations regarding aircraft preservation GMA contract at the beginning of the year. Services at ATR says their teams have been tasks, so that they can be immediately op- proactive and continue to support the erational when the traffic resumes. Frédéric Lefebvre, Vice President, Market- fleet of operators and customers. “Natu- ing, Regional Aviation at Pratt & Whitney rally, the entire aviation industry has been “We offer complementary CAMO services, echoes similar industry views that regional significantly impacted by the pandemic, to increase fleet utilisation and optimise turboprop aviation will likely continue to and it was essential for us to offer flexible maintenance, in addition to engineering lead the return to service in commercial and customised solutions to match the services, designed to further improve the aviation. “It has also become apparent new reality of our operators’ fleet utilisa- aircraft reliability. These services rely on that COVID 19 has had an indelible im- tion,” he states. ATR’s engineering expertise and knowl- pact on the way in which airlines acquire edge of all aspects of the aircraft. We and manage their assets. Even before the Caballe stresses how critical it has been to have a dedicated team analysing all data pandemic occurred, there was a significant help operators adjust their maintenance provided by our shops and our customers shift towards leasing assets as opposed to costs to the baseline during the pandemic. through maintenance procedures, along the outright purchase of them. Obviously, “For instance, adapted invoicing schemes with the trends we observe. The objec- this shift from capital expense to operat- for GMA [Global Maintenance Agreement] tive is to develop a set of customised rec- ing expense provides bottom-line opera- customers, and discounted repair and ommendations in terms of maintenance tional benefits.”

AviTrader MRO - December 2020 TURBOPROP ENGINES 19

ATR have been proactive and continue to support the fleet of operators. Photo: ATR

To assist airlines further improve the eco- progress has been made in recent years customers to easily collaborate with ex- nomics of their regional turboprop fleets, through the introduction of what we call perts to help remotely reduce downtime P&W developed ‘Advisory Services’ which ‘digital engine services’ to our regional while improving the productivity of main- provides a comprehensive, tailored ap- turboprop airline customers. This engine proach to maximising flying assets. “The diagnostic and prognostic solution is an goal, of course, is to assist airlines in im- excellent case in point. It helps customers plementing fleet-management best prac- make informed decisions, reduce costs tices enabling them to maximise their and optimise their operations through profits. full-flight data intelligence delivered wirelessly within minutes of engine shut- “Likewise, several years ago we intro- down. It also supports improved avail- duced a suite of P&WCSMART solutions ability and dispatch reliability through designed especially for our PW100 family proactive maintenance, faster return to of engines. These solutions provide op- service and advanced prognostics.” erators with economical maintenance solutions for mature engines, allowing them Another example at P&W is the Oil Analy- to reduce maintenance costs while still fly- sis Technology which provides an innova- ing Pratt & Whitney-dependable engines,” tive way of monitoring the engine oil sys- Lefebvre continues. tem without intrusive inspection.

The vital role of preventative mainte- Pratt & Whitney offers two tools which nance can be used in the field to help diagnose The industry has seen a lot of progress engine issues and provide maintenance in this area for engine services as Lefeb- recommendations remotely. Onsight is an vre affirms; “There is no doubt that much interactive audio-visual link that allows Laurent Caballe, Head of Products and Services at ATR

AviTrader MRO - December 2020 TURBOPROP ENGINES 20

tenance staff. The second tool is known as reliability. This includes trend monitoring Spotlight® – a trouble-shooting solution and engineering advice on upgrades and that can isolate the cause of an engine is- maintenance practices, improved trouble- sue and determine next steps. shooting and insightful engineer analysis. At ATR, we believe that preventive main- Engine health monitoring (EHM) services tenance is essential to better operational can certainly help operators avoid un- efficiency.” scheduled events through the timely iden- tification of potential issues. StandardAe- As data acquisition and management are ro is a CAMP Systems Designated Analysis key for preventive maintenance, ATR has Centre (DAC) for the Pratt & Whitney Can- recently implemented new tools enabling ada engine family, and as CAMP itself more reactivity in data collection from the notes, EHM can identify small problems airlines, which in turn enable their teams before they become big problems and big to detect fleet reliability variations more problems before they become catastroph- efficiently and suggest corrective and pre- ic. Graham says: “We see customer inter- Amod Kelkar, VP Customer Services and Support, ventive actions in order to increase the De Havilland Aircraft Canada est in EHM covering the entire range of availability of the ATR fleet. operator segments, from owner-operators flying turboprop singles to airlines flying ATR is also working with some of its cus- fleets of narrowbodies, the appeal of the tomers benefitting from flight data moni- technology combining both the obvious toring services to improve the detection We see the demand for support safety aspect plus the cost avoidance and and process of exceedances (values of aircraft availability benefits.” and services for the Dash 8-400 specific parameters which go beyond “fleet has been steadily increasing Over at ATR they are continuously com- thresholds that are considered as normal), mitted to improving performance, en- the majority of which are engine param- over time as airlines resume suring better part availability and offer- eters exceedances (torque, Interstage air services. ing door-to-door service with ambitious turbine temperature, propeller speed) or timeline for operators. Caballe explains speed / acceleration exceedances. When Amod Kelkar, VP, Customer Services that engineering services are one of the such exceedances are detected, the air- ” and Support, De Havilland pillars of the GMA programme. “For ex- line’s technical staff must carry out several ample, we are currently operations to identify the adequate tests Aircraft of Canada building a close part- and inspections to perform. ATR has de- nership with Finnair to veloped a specific tool which gives its cus- improve their fleet tomers ready-to-use data, to make their performance and operations easier and quicker.

Demand for support and services for the Dash 8-400 fleet has been steadily increasing. Photo: De Havilland Aircraft

AviTrader MRO - December 2020

MRO OUTLOOK 2021 22 A case for optimism and recovery

The market will eventually start to recover, and preparedness is key. Photo: Patrick Delapierre

The global MRO sector has been drastically impacted by the unprecedented effects of the COVID pandemic. Keith Mwanalushi talks to industry experts about the likely landscape in 2021 and the key priorities for recovery.

new report by Cirium says almost businesses in the most efficient way pos- of business and be ready to spool up effec- 70% of the aircraft fleet was parked sible. “The key to success in 2021 is airline tively to meet the increased demand that during the early part of the year, customer confidence and increased airline will come back as a bow wave.” Aand the dynamics of aircraft manufactur- operations,” comments Fraser Currie, the ing and leasing, and operating aircraft CCO at Joramco in Jordan. He says Over the course of 2020, at SR Technics, to meet demand for travel have as a business, cash flow re- they have directed their focus towards the altered fundamentally, at mains key whilst support- core business, engine services and line least in the short term. ing operators’ revised maintenance, to rebuild the business as ef- However, the aviation operations. “The pri- ficiently as possible. industry has proved ority in our industry resilient to previous remains focused on As part of this restructuring, SR Technics downturns and ex- launched the ‘Quick Turn Line’ in Septem- ternal shocks, even providing a safe ber this year, which allows operators to though none have and compliant ser- come close to the vice, therefore our obtain faster unscheduled engine main- effects of the cur- commercial priority tenance while optimising fleet readiness. rent pandemic. is to ensure that we “Commercial passenger operators have profile our operations welcomed this service, as it enables them to In 2021, it is likely that to match the customer delay heavy shop visits and keep costs to a airlines, MRO’s, and sup- demand. Basically, we minimum through lighter, customised work pliers will look to con- have to be right sized for scopes,” Jean-Marc Lenz, Chief Executive Of- serve cash and rebuild Fraser Currie, CCO at Joramco both the current volume ficer at SR Technics tells AviTrader MRO.

AviTrader MRO - December 2020 MRO OUTLOOK 2021 23 We believe that simplicity, innovation and decisiveness will be “priorities in the coming year as we move forward. Jean-Marc Lenz, CEO,” SR Technics

SR Technics recently launched its Quick Turn Line services. Photo: SR Technics

“We believe that simplicity, innovation and tions, a service that had been in the pipe- “Absolutely key to us will be the hiring of decisiveness will be priorities in the com- line for some time. “Today, most of these new talent. Identifying the right people ing year as we move forward with a new inspections — close to one hundred per- for our growing team is critical to success,” focused strategy, a major simplification of cent, in fact — are performed remotely. So, Wooldrik stresses. the cost structure and financial discipline this was an opportunity for growth that we that will position us for success in what leveraged, and there are others, including At AAR Corp, Brian Sartain, SVP Repair is expected to be a challenging year,” he remote training services.” and Engineering reports that they had lit- adds. tle COVID-related work interruption but Lenz is confident that the market will even- as they rebuild the business preparing For some time now, SR Technics have been tually start to recover, and preparedness is for what will likely be a slow recovery of key. He says SR Technics is now using this working to develop digital solutions to MRO demand into 2022, AAR is focused time as an opportunity to further focus and minimise waiting times, eliminate bottle- on improving the efficiency of operations invest in becoming more digital, to offer necks and reduce travel costs. Shortly after through augmented reality, drone inspec- better and quicker services, as well as more the COVID-19 outbreak in March, the MRO tions, paperless MRO systems and focus- transparency to customers – “We believe provider introduced remote table inspec- ing only on critical tasks. “It’s critical both this will be crucial in the new market envi- ronment after COVID-19.”

In terms of priorities for the new year, at APOC Aviation, Max Lutje Wooldrik, CEO reckons it all depends on the speed of the market recovery, and if the pace is fast and sustained then the focus will be on component sales. He says APOC has been fortunate in 2020 to have the financial strength to acquire several airframes for part out and this has significantly boosted the in- ventory of A320 family and Boeing 737NG components – “ We have also invested in engines for sale, lease, and stock for our landing gear division. Alongside these pro- grammes we have been concentrating on improvements to our internal organisation and processes, so we have the efficient and transparent systems on-stream to place Jean-Marc Lenz CEO SR Technics and sell these assets quickly. Brian Sartain, SVP Repair and Engineering at AAR

AviTrader MRO - December 2020 MRO OUTLOOK 2021 24

Digital solutions will grow in importance in 2021. Photo: Lufthansa

to conserve cash right now but also to be reputation for deal closures has drawn in in various IT solutions, to digitalise our ready for the bow-wave of demand that will both sellers of engines and willing lessees work and processes.” occur as airlines that have taken a green- for the assets. We see our engine division time strategy through the downturn run going from strength to strength even as Another opportunity that the industry will out of time and require a quick re-start.” maintenance visits get back on track.” see is the expected upturn for USM due to the retirement of older aircraft. How- Trends, investments, and opportunities APOC’s core business model is to sell parts, ever, Lenz from SR Technics feels a rise is but Wooldrik is fully aware that in these cash not likely until we see real signs of market The primary trend impacting AAR has been constrained times many airlines are looking recovery, which will then motivate inves- the retirement and increased utilisation of to exchange high value components. “We tors to send engines for part-out and USM various aircraft types in the fleet of the future. are evaluating this shift and will always strive “While we still see ourselves as an MRO that to help our customers with a variety of solu- can maintain virtually any type of legacy air- tions. By redefining our efforts to deliver en- craft on the market, we have even done some hanced support for airline customers of all 747-freighter work during the downturn. We sizes increased revenues will follow.” are ensuring that we are capable and efficient in maintaining airframes like E-Jets and the Wooldrik cites another priority being the 737MAX which will be mainstays in the fleet expansion of APOC ‘s global footprint with going forward. In addition, we have been in- plans to establish spares hubs around the vesting in more commercial derivative MRO world. “We are on track to open the first in capabilities like the P8 and C40 to increase Singapore before the end of this year, the that portion of our business,” Sartain says. next will open in the United States in Q1, followed by Hong Kong shortly thereafter.” In 2020, APOC Aviation focused on developing the infrastructure and investment Jan Kotka, COO at Magnetic MRO says they partners to leverage their market profile evaluated business continuity and success and growing reputation. “We are now look- for the company’s various 17 business units ing at portfolios of airframes, engines, rath- in March-April and based on that also ad- er than one deal at a time,” notes Wooldrik. justed the business perspective. “We see “We have also been offering short-term businesses like engine stand lease, engine leases on various engine types as operators repair, type training and some others pick- seek to delay expensive overhaul shop vis- ing up well during the year and we have its due to the pandemic. Our flexibility and invested there. We have also invested more Jan Kotka, COO at Magnetic MRO

AviTrader MRO - December 2020 MRO OUTLOOK 2021 25

harvesting. “While pricing on the engines slower than anticipated and governments as an industry – Currie so that we will have SR Technics services is expected to decline, don’t align and implement clear and con- the most talented, most efficient workforce critical USM materials like high-pressure cise instructions on cross border travel.” in the industry – we are only as good as our turbine blades are likely to remain difficult people,” Sartain states. to find. This could drive prices even higher In a worst-case scenario, Kotka, at Magnet- due to increasing demand,” Lenz predicts. ic MRO says aircraft would remain ground- Importantly, Lenz points out that what is ed, airlines default and leasing companies critical to consider is that despite the enor- Back at Jormaco, Currie observes that the start defaulting. “This will mean a major mous impact the pandemic has had on the most obvious trends that they have wit- collapse for the whole aviation industry, aviation industry, aftermarket strategies are nessed are the sharp increase in parking and it would be a long and painful recov- one way to offset this impact – “The ques- and storage of aircraft and End of Lease ery. Regarding the MRO’s, it would mean tion of how MRO suppliers can proactively (EOL) projects. “For Joramco parking will be mainly parking-related works and re-deliv- support their customers before equipment an ongoing opportunity as the climate in eries by leasing companies. A lot of various goes out of service is thus becoming more Jordan lends itself perfectly to storage and ad hoc type of work with extremely limited relevant than ever.” the extensive capabilities of Joramco mean visibility to plan long term and limited work that we are well suited to offering such ser- related to the typical heavy maintenance, While cost has always been a factor in en- vices on a wide range of aircraft types. The as those would be regularly postponed by gine service requests and builds, Lenz says EOL projects have increased our focus on aircraft operators.” it may become an even more dominant fac- investing in a new paint hangar,” he says. tor as we move into the new year. “There As Sartain highlights, the key threat to the will be more module replacements, half-life Bracing for impact sector will be large interruptions in volume builds and hospital work. The development bought on by unexpected events. He says of MRO services to meet these and other 2021 will be a challenging year on all fronts. should the recovery of business travel be needs will be crucial to ensure that market Industry forecasts indicate that the impli- significantly delayed from current projec- requirements are met. In this respect, I be- cations of COVID-19 will be profound and tions, smaller players in the market may not lieve that SR Technics has a flexible and ro- persistent and due to the demand crunch, have the liquidity to survive causing a cri- bust structure that will enable the company the global commercial fleet will stagnate sis in available maintenance slots. In addi- to weather the storm. Experience teaches through 2022. tion, he reminds that prior to the pandemic us that new opportunities will eventually the industry was struggling to find enough arise and when they do, we will be solidly Currie knows the pandemic remains a chal- qualified aircraft maintenance technicians positioned to capitalise on them.” lenge and it will not respect year-ends, that to fulfil the requirements of the airlines. is why Joramco aims to continue to be flexible with the customer approach and be “A number of that workforce ready to react to the anticipated increase has retired early or found work in demand. “That said, the greatest threat in other sectors of the economy. As a business, cash flow remains must be that the vaccines’ are distributed This is an issue we have to tackle key whilst supporting operators’ “revised operations. Fraser Currie, CCO,” Joramco

The key to success in 2021 is airline customer confidence. Photo: Joramco AviTrader MRO - December 2020 ALL YOU NEED IS LESS

ANYTIME. ANYWHERE. IT’S THAT SIMPLE.

TPAEROSPACE.COM Company spotlight: CordobaQ 27

ordobaQ was founded by Jason Cordoba in August 2020 with the objective of helping aviation businesses unlock the Cpotential of their software and data. Harnessing the Despite entering the market at a turbulent time, CordobaQ has already seen a great response from the industry, which CEO Jason power of Cordoba attributes a lot to timing. “As we all know, the impact of data COVID-19 on the industry has been huge. More than ever busi- “Data intelligence is held in a database, be it transactional data, nesses need to streamline, save costs and ensure that employees maintenance data, customer and supplier data and so on. But you are being utilised in the most productive and effective ways. Of need to get the data out of the database and visualise it on a dash- course, this has always been true, but the global crisis has really board to be able to use it to make better business decisions and polarised this. Strategies for survival are high on the agenda at understand your competitive advantages” explains Cordoba. “One most executive level meetings these days.” of the reasons I started CordobaQ is that I was increasingly frus- Cordoba continues, “I could clearly see how I could support these trated to see how many companies get this wrong and I wanted to efforts from a software, automation and data perspective. Of help change that.” course, it felt risky to launch the business during such a time of Cordoba explains that the same issues come up time and time uncertainty and disruption, but I also knew it was the optimum time for businesses to maximise the benefits from harnessing their again. “Businesses overestimate and over complicate projects software capabilities.” because they don’t know exactly what they are trying to achieve and are often being led by an expensive third party company that With hands on experience of both vendor and client-side opera- doesn’t know the difference from a consumable to a rotable.” tions, Cordoba’s professional background puts him in a unique position to deliver technical advisory services to the industry. He “‘Data warehouse’ has been a buzzword in many industries for the started his aviation career in 2004 with software vendor Compo- past 5-7 years. If your company didn’t have a data warehouse, then nent Control, where he honed his technical software development you were made to feel that you were missing out. But missing out skills. A notable achievement during his ten years with the compa- on what exactly? To better understand the concept of a data ware- ny was his development of the aviation industry’s first mobile app house we can use the example of a Boeing jet.” for aircraft parts, StockMarket.aero. Then in 2014 he joined aircraft spare parts provider, AJW Group, with the objective of helping the “A Boeing jet generates 10 terabytes of information per engine for business derive the maximum benefits from their every 30 minutes of flight. To the human eye this huge volume of Quantum ERP software.

Describing himself as a “straight-talking aviation business architect”, Cordoba says he wants to “demystify data and cut through the jargon that is just there to confuse people and justify high price tags.”

Cordoba goes on to say that companies are coming to him for two key reasons, firstly to better understand the data they hold through business reporting and analysis, and secondly for process improvements through streamlining and automation of high intensity manual administration tasks.

CordobaQ was established in August 2020. All photos: CordobaQ AviTrader MRO - December 2020 Company spotlight: CordobaQ 28

and create great dashboards and re- But, as they expand, they outgrow these porting to better understand your old processes. Managing consignments in Strategies for survival are high business at a fraction of the price Excel for example, is no longer feasible and on the agenda says Cordoba. a data warehouse would cost. takes up a lot of time. But, due to a lack of And that’s just the tip of the knowledge and training on their software iceberg.” system, they don’t know it can easily be au- tomated.” “Another costly mistake is non-aviation people pull- “A few simple changes in automating ad- ing data. I’ve seen some ministration process flows can free up a beautiful, colourful dash- whole full time role, allowing employees to boards created by non- be redeployed in the business to positions aviation people, but when that bring more value to the company and you look at the data it is a more satisfying and rewarding job for the incorrect as the person employee. The feedback and appreciation working with the data I’ve had from end-users has been phenom- doesn’t know the differ- enal and hugely gratifying.” ence between an aircraft part number and a non- CordobaQ is a ‘Quantum-ERP Value Added aircraft part number. So, Partner’ which means that Cordoba is re- your most profitable part quired to keep up to date on all product according to the ‘data scien- development, best practices, and general tist’ turns out to be an ‘AOG training around Quantum-ERP. He is also data is in a format that is unreadable. But charge’ or, the fair market value very active in the broader aviation commu- a data warehouse solves that problem as it (FMV) analysis they make, includes unser- nity, serving as a board member on vari- digests and stores this colossal amount of viceable transactions in the calculations.” ous committees as well as contributing to data, transforming it into something mean- industry publications and speaking at avia- ingful. So how does this relate to an after- Cordoba’s hands-on experience also allows tion conferences. market aviation company whose 20-year-old him to recognise gaps in internal processes database is only about 20 gigabytes (just 0.02 and identify how software can streamline Looking to the future, Cordoba concludes terabytes)? The simple answer is it doesn’t, activities. “There is the saying ‘you don’t “I am passionate about helping businesses you just don’t need a tool as sophisticated know what you don’t know’ and this is the improve and work better, cheaper and fast- as this with such a vast capacity to under- case with many companies not understand- er. I want to establish a footprint with every stand your data. You can pull data directly ing the full breadth of their software’s ca- company I collaborate with, being their from your database onto an amazing dash- pabilities. In the early days businesses often voice to feedback to the data and software board tool like Microsoft PowerBI (standard develop process flows that are time con- industry, and their link to the latest new license fee is around $10 a month per user) suming but work ‘just fine’ on a small scale. technologies as they develop.”

Cordoba started his aviation career at Component Control.

AviTrader MRO - December 2020 Industry Interview 29

A In the hot seat.....

& Jim Lickteig Senior Director of Aftermarket Services, Spirit AeroSystems Q

What attracted you to this business? nal equipment repair shop. We have localised MRO capabilities I came to work here at this site in Wichita directly from college in around the world to help them reduce costs. We’ve doubled our 1987. I have never worked anywhere else. I am one of those peo- global footprint and capabilities to better serve customers with ple that looks up whenever I hear a plane fly over to see what it the recent purchase of certain Bombardier aerostructure and af- is! I do love aviation and have always been fascinated about the termarket assets. In addition, we are integrating our sites so they engineering marvel of making something so large and complex, have the same consistent proprietary tooling, expertise and ca- fly through the sky. Wichita has a long history of aviation excel- pabilities to innovate that customers can rely upon. lence, with many aircraft manufacturers located here (Cessna, Boe- We’re best known for critical repair work and maintaining the ing, Airbus, Beechcraft, Bombardier/Learjet, etc.), so it is natural to products we manufacture, such as on Boeing 737, 777, 787 na- want to work in the aviation industry if you live here. celles, cowlings, thrust reversers and flight control services, and we’re extending this expertise on Airbus A320 and What does a typical day’s work entail in A330 nacelles and cowlings. In addition, we pro- your job? vide maintenance services on 777 GE990/ A typical day at Spirit AeroSystems After- Trent 800 nacelles and 737 CFM56-7B market Services is almost always cen- thrust reversers and flight control sur- tered around supporting our custom- faces. We offer price-competitive ers and their needs. We look daily non-critical repairs and traditional at how our repair stations are doing MRO services, including on-wing and what components we are ship- repair services and fuselage com- ping back to customers, along with ponent repairs, for both compos- what new components are coming ite and metallic structures. Our in for repair. We have conversa- operational footprint includes our tions with our customers, suppliers global headquarters in Wichita, and partners as well as each of our Kansas, United States, as well as Spirit locations around the globe to facilities in Western Europe, North ensure all activities are aligned and Africa and East Asia. actions are taking place to support our customers’ requirements. The leaders of How has Covid-19 affected the Spirit Aftermarket meet daily to collaborate business in general? on any significant items that need to bead- Covid-19 has certainly created a big impact dressed and share the status of our ongoing pro- on the aviation industry. As you know, passenger jects to improve customer satisfaction and develop Jim Lickteig, Senior Director of numbers have been down in commercial aviation, Aftermarket Services, Spirit AeroSystems the strongest strategies to move forward. which has affected aftermarket as well. What we see in this uncertain time is an opportunity to Briefly, tell us about Sprit AeroSystems’ presence in the service our customers by helping them to bolster their fleets in aviation aftermarket? preparation for an industry bounce-back. We’re taking this op- Everything Spirit AeroSystems Aftermarket Solutions does is portunity to further strengthen the value we deliver to fleet op- focused on finding solutions that help fleet operators be more erators to help them remain competitive in the years to come. competitive. They can depend upon our quality, expertise and With increased capabilities at our facilities, the value proposition speed because Spirit is a Boeing and Airbus designated origi- of streamlining MRO services grows. Not only are we increasing

AviTrader MRO - December 2020 Industry Interview 30

Spirit has gained a valuable piece of business with the A220. Photo: Airbus

our local capabilities around the globe and aftermarket, so I am unable to speak to that is cross-training employees at each expanding our work sets, but we’re also Spirit’s broader position on the MAX 737 of our MRO sites to perform repairs on looking at new and innovative ways to programme. But, as the 737 MAX returns both Airbus and Boeing aircraft, which help operators troubleshoot their biggest to flight in 2021, Spirit AeroSystems Af- will allow us to increase the amount of challenges. We’re also entertaining strate- termarket Services is preparing to pro- work we can perform and service more gic planning and resourcing conversations vide our customers with the MRO services planes in more places for our customers. with airlines, partnering on putting the they require to introduce the aircraft back right solutions in place as the industry re- into their fleets. In your view, what is the market covers. Our goal is to help customers come prospect for the A220 programme out stronger on the other side. What is the next step with the going forward? Bombardier business? From an aftermarket perspective, we What is the status currently with Our first priority is to integrate the two are excited to have gained this valu- Spirit AeroSystems and the 737 MAX businesses to maintain consistency and able piece of business. Many expect that programme? service for our customers at each of our aircraft such as the A220 will be more My expertise is specifically within the facilities around the globe. A big part of important than ever as the aviation industry continues its recovery. Airlines will need reliable MRO services on these aircraft, and by diversifying our offerings to include this Airbus work, we are able to give them that.

What is your key challenge for 2021 and what are your prospects for the new year? We’re anticipating a slow recovery so there will certainly continue to be challenges from that perspective. Beyond that, our biggest challenges will be continuing to strengthen our global presence and capabilities and ensuring integration with the acquisition of Bombardier. What we look forward to the most in 2021 is looking toward the future and engaging with fleet operators on mapping out longer-term strategic plans to aid in the Sprit AeroSystems. aerospace recovery efforts.

AviTrader MRO - December 2020 31 PEOPLE »»»------► on the move

Contrail Aviation Support, a opment and expansion of its precision engineering businesses worldwide supplier of surplus in East Asia (including China and Japan) and Canada. Nasmyth and aftermarket commercial Group has appointed Patrick Carroll, an experienced business- jet engine components as well man working within the sectors of civil and defense aerospace, as asset leasing and acquisi- space, marine and subsea products and engineering quality ser- tions, has appointed com- vices. Carroll, located in Tokyo, Japan, is to head up the drive to mercial aircraft transaction reposition Nasmyth Group and to achieve further rapid expan- veteran, Michael Coviello, sion in this dynamic market. who has 42 years of industry experience, as Vice President Shawn Richard, Vice President of Transaction Management. Global Air Freight at SEKO Lo- In his new role, Coviello will gistics, has been elected to the manage and optimize all as- Board of Directors of the Air- pects of the deal flow transac- forwarders Association (AfA), Michael Coviello tion process, from contracts to the voice of the airforwarding third parties liaising to tech- industry in the United States. nical, in an effort to support the origination team and further He joins other newly elected drive transaction volume. Throughout Coviello’s distinguished BOD members for the upcom- career spanning four decades, he has held notable leadership ing 2021-2024 term of office positions, most recently, he served as Vice President Aircraft and will be officially sworn Trading of ACG in Newport Beach, CA. into office at the AfA’s virtual Board meeting on January 5, Incora, a leading provider of 2021. The new recruits will join comprehensive supply chain Shawn Richard eight existing AfA Directors in management services to the continuing the success of the global aerospace and other Association and guiding its future growth and development. industries, has announced the appointment of David Coleal King Thompson has been as group Chief Executive Of- named the Senior Sales and ficer. Coleal has more than two Customer Support Manager decades of senior leadership for maintenance, repair, and experience within the aero- overhaul (MRO) activity at the space and defense sectors, in- Middle River Aerostructure cluding serving as president of Systems (MRAS) business of ST Bombardier Aviation and ex- Engineering. In this new role, ecutive vice president at Spirit Thompson will lead and assist David Coleal AeroSystems. Effective Novem- sales campaigns for MRAS’ ber 30, 2020, the appointment expanding MRO business fo- comes at a significant time for the company as it embarks on cus on jet engine nacelles the next phase of its growth trajectory, driven by an unrelenting and engine components. He is focus to provide Incora’s customers with leading-edge solutions also responsible for managing for the global supply chain. Incora is dedicated to understanding King Thompson MRO service agreements and customer needs and providing innovative new products, services material, along with ensuring and customized solutions that deliver on its promise of reducing customer satisfaction. Thompson brings more than 20 years of complexity and increasing reliability for customers. MRO expertise in the airline industry, having held sales and customer service manager positions at United Airlines and Delta Air Nasmyth Group has extended its presence in Japan, China and Lines. Prior to joining MRAS, he was the MRO Sales & Customer Canada. With an established trading position in each of the Service Manager for United Airlines, based in San Francisco, three countries, Nasmyth is ideally placed to invest in the devel- California.

AviTrader MRO - December 2020