August 2017 - www.avitrader.com Wheel & Brake services Company profile Beach Aviation Group Industry interview Kellstrom Aerospace MRO News from around the world People on the Move latest appointments Editor‘s Page 2 Better capacity utilisation recent report by the Centre for Aviation but is the only one that is in service, then the fleet -CAPA- in respect to improving airline is not enjoying high overall capacity utilisation) . industry profitability highlights better ca- A In contrast with the broadly upward trend in load pacity utilisation as a fundamental reason for factor, daily aircraft utilisation and the percent- this upward trend . age of aircraft in use have both followed a cycli- The report says global average load fac- cal pattern over several decades . However, fol- tors have steadily climbed for decades, from lowing the global financial crisis, daily utilisation Published monthly by around 55% in 1970 to around 80% in 2016; and the percentage of the fleet in use have been AviTrader Publications Corp. meanwhile however airline profitability has not on a more clearly defined upward path since in 2009 . At the same time, load factor has also Suite 305, South Tower consistently followed a similar upward path continued to track upwards . 5811 Cooney Road throughout this period . Richmond, British Columbia A fuller view of capacity utilisation needs to in- The combination of these three measures of ca- V6X 3M1 clude how many hours per day aircraft are utilised pacity utilisation goes a long way towards ex- Canada (there’s no point in having a full aircraft that only plaining variations in the operating margin of flies a few hours a day) and the percentage of the the world airline industry . Email: [email protected] fleet that is actually flying and not parked or in Keith Mwanalushi Tel: +1 (424) 644-6996 storage (if that full aircraft is flying 24 hours a day, Editor www.avitrader.com Editorial Keith Mwanalushi, Editor Email: [email protected] Mobile: +44 (0) 7871 769 151 Design Volker Dannenmann, Layout & Design Email: [email protected] Mobile: +34 657 218706 Advertising inquiries Jenny Vogel Head of Sales & Marketing Email: [email protected] Wheels and brakes are components with significant maintenance requirements Tel: +49 (0) 8761 346007 Photo: Keith Mwanalushi Registration Contents AviTrader MRO is a subscription-free MRO and Production News . 4 monthly publication. Finance News . 11 To receive a personal copy in your inbox every month, Other News . 15 please click here to subscribe. Cover story: Wheels & Brakes . 16 Company profile: Beach Aviation Group . 19 Opinion Industry interview: Jeff Lund, President and CEO, Kellstrom Aerospace . 20 Please send your comments Industry opinion: Embracing Blockchain . 21 and queries to Information Technology . 23 [email protected] People on the Move . 23 AviTrader MRO - August 2017 FUNDAMENTAL STRENGTHS GA Telesis is a global company known for providing a wide range of funding solutions to the capital-intensive aviation industry. Backed by some of the world’s leading financial institutions, GA Telesis has the resources and experience to provide asset-focused funding solutions from an operating lease, a sale and leaseback or a variety of creative financial structures to provide liquidity. MRO and Production News 4 and pooling services of Line Replaceable Units, along with propellers’ availability and maintenance . The entire ATR fleet of Stobart Air is covered by this maintenance agree- ment: 2 ATR 42-300s, 2 ATR 72 500s and 13 ATR 72-600s . Flying in the United King- dom, Ireland and continental Europe, these aircraft are operated by Stobart Air under the Aer Lingus Regional and Flybe brands, on behalf of their respective owners . Stobart Air also operates charter flights and offers wet- leasing solutions . New Honeywell self-diagnosing sen- MAEL signs maintenance agreement with Evelop Airlines sors improve performance and safety Photo: Monarch of aircraft systems Monarch secures Evelop Airlines as Performance-Based Logistics One program . Honeywell has announced a new series of self- new customer AAR will provide total supply chain man- diagnosing sensors designed to improve the agement including purchasing, remanu- performance of aircraft systems and reduce Monarch Aircraft Engineering Limited (MAEL), facturing, distribution and inventory control maintenance costs associated with false read- the engineering division of Monarch, has to support all Air Force depot and field- ings . Honeywell is introducing Integral Health signed a base maintenance agreement with level, foreign military sales, other services, Monitoring (IHM) series proximity sensors that Evelop Airlines . The airline, based out of Pal- and contractor requisitions received for all can detect when a sensor has been damaged ma de Majorca, is a new customer for MAEL C-130, KC-135 and E-3 landing gear parts . or otherwise impacted . The patented proxim- who will carry out the first hangar mainte- Repair work will be done at AAR’s landing ity sensors can be designed into a range of nance check for Evelop’s Airbus A330 . All gear services facility in Miami and inventory aircraft systems such as thrust reverser actua- the maintenance work will be carried out at supply and management will be handled via tion systems, flight controls, aircraft doors, Monarch Aircraft Engineering’s state-of-the AAR offices and warehouses in Wood Dale, cargo loading systems, evacuation slide locks art facility at Birmingham Airport in the U .K . Illinois, and Ogden, Utah . and landing gear . “Aircraft operators who re- ceive a sensor reading often cannot be sure if they have a system issue that needs to be th addressed or if the sensor itself is malfunc- CTT Systems receives first Zonal Dry- Vector Aerospace delivers 100 tioning,” said Graham Robinson, president of ing order for Airbus A321Neo aircraft P&WC PW150A engine from Singa- Honeywell’s Sensing and Internet of Things pore facility business, which produces more than 50,000 CTT Systems, a leader in aircraft humidity sensing products for a range of industries control systems, has received an order for Vector Aerospace’s Singapore facility has suc- from aerospace to medical to oil and gas . the new A321Neo aircraft from Novair to be cessfully serviced and delivered back to the “Leveraging Honeywell’s technical expertise in retrofit installed in two of its newly delivered customer its 100th Pratt & Whitney Canada the aerospace industry, we innovated a circuit A321Neos . Peter Landquist, VP Sales & Mar- (P&WC) PW150A turboprop engine . Vector that can detect whether a sensor reading is keting, CTT Systems AB, comments: “We are Aerospace Asia, located in the Seletar Aero- correct or the result of damage or some other privileged to receive our first Zonal Drying space Park, Singapore, is a P&WC Designat- problem with the sensor itself .” The proximity order for the A321Neo aircraft . Novair has ed Overhaul Facility (DOF) for the PW150A sensors are configurable, non-contact devices proven the benefits from mastering the root- engine series, equipped with full overhaul designed to sense the presence or absence of cause of condensation when operating their and test capabilities . This state-of-the-art fa- a target in harsh-duty aircraft applications previous A321Ceo aircraft equipped with the cility, which is one of only two independent such as determining when a thrust reverser is Zonal Drying System . The systems will be ret- PW150A DOFs worldwide, provides owners not fully closed . The sensors can detect most ro-fitted in the aircraft to prevent weight gain and operators of PW150A engines powering internal failures and display a fault output to a from accumulated water/ice accretion (which the popular Bombardier Q400 regional tur- pilot or maintenance worker in order to help increases fuel and CO2 burn) and to reduce boprop with cost-effective, viable and easily reduce aircraft downtime and maintenance other moisture problems, such as electrical accessible engine MRO solutions . costs . Honeywell also introduced Linear Vari- failures .” able Differential Transformers (LVDT), which are used in engine mechanisms, pilot con- ATR and Stobart Air renew Global trols and nose-wheel steering applications, AAR begins work on 15-year Maintenance Agreement and which provide next-generation aircraft US$909m landing gear contract for with continuous position monitoring and are USAF After ten years of cooperation, turboprop designed for use in harsh environments . The manufacturer ATR and the Irish regional air- LVDT sensors are already being incorporated AAR has received notice to proceed on the line Stobart Air have extended their Global into Honeywell-manufactured aircraft systems US$909,394,297 fixed-price contract from Maintenance Agreement (GMA) . This new and can support other component and system the U .S . Air Force for the Landing Gear six-year contract covers the repair, overhaul manufacturers . AviTrader MRO - August 2017 MRO and Production News 5 cate (STC) for A321-200 conversions in 2019 . PAS began feasibility analysis for A321-200 conversions in late 2011 . Full-scale engineer- ing for STC development began in the third quarter of 2016 . The 321 Precision Conver- sions’ A321-200 freighter will provide a best- in-class solution, fulfilling both replacement and growth needs in the narrow-body freight- er market . It will deliver cube space that is commensurate to Boeing 757 freighters, and low operating costs comparable to smaller Boeing 737