June 2016 - www.avitrader.com Leasing and pooling Engine parts supply Company Profile AJW Aviation MRO News from around the world People on the Move latest appointments IBA Analysis Editor‘s Page 2 Its an increasingly crowded market rowth in the regional jet market has cre- Mitsubishi’s MRJ . With so many different airframe ated multiple opportunities for new air- OEMs chasing the regional market, each will need craft manufacturers from countries such to seek out its particular niche and target strategic Gas Russia, China and Japan . customers to ensure a build-up of orders and oper- ators . Meantime, for the operators, this represents Speaking to analysts from ICF International recent- a great variety of choice and plenty of opportunity ly, it was interesting to learn how these new OEMs to use competition to drive a good deal . will shape the aircraft manufacturing industry in the Published monthly by years to come . The main impact, particularly for Russia just rolled out its new MC-21 aircraft in a AviTrader Publications Corp. Russia’s Superjet and China’s ARJ21, will be in their glitzy Siberian ceremony attended by the Prime Suite 305, South Tower domestic markets where there will likely be more Minister, Dmitry Medvedev . Squeezed by western 5811 Cooney Road national and political encouragement for airlines to sanctions over its role in the Ukraine crisis, the Rus- buy “local” . As regional jets, these aircraft are not sian government is trying to rejuvenate domestic Richmond, British Columbia part of the much larger churn of fleet replacement industrial production to make the country less de- V6X 3M1 and growth that happens in the narrow body sec- pendent on foreign firms . Canada tor, so they will not be significant in terms of overall Finally,readers will notice that this edition of AvIta- global fleet renewal . Email: [email protected] der MRO comes with a new fresher design, and Tel: +1 (424) 644-6996 In the regional segment, the big driver of demand we hope that you will find it more appealing and has historically been North America . With Bom- easier to read . Any feedback is greatly appreciated . www.avitrader.com bardier and Embraer as the primary incumbent jet Happy reading! suppliers to this market, these three “non-Ameri- cas” OEMs will find it harder to establish scale Keith Mwanalushi Editorial here . The obvious current exception is the win by Editor 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 Falk Head of Sales & Marketing New arrivals. The MC- 21 Roll out. Email: [email protected] Photo: Irkut Tel: +49 (0) 8761 346007 Registration Contents MRO and Production News . 4 AviTrader MRO is a subscription-free Finance News . 14 monthly publication. To receive a personal copy in your Other News . 15 inbox every month, Information Technology . 17 please click here to subscribe. Cover story: Leasing and pooling: Engine parts supply . 19 Company profile: AJW Aviation . 21 Opinion Industry Interview: Co-President, Eric Mendelson, HEICO Aerospace Corporation . 22 Please send your comments and IBA Opinion: The cumulative impact of overlooked costs . 23 queries to [email protected] Event: 30 years of Avtrade – How time flies! . 25 People on the Move . 28 AviTrader MRO - June 2016 CONFIDENCE WHEN YOU NEED IT MOST WWW.GATELESIS.COM GA Telesis Engine Services (GATES) is a leading provider of commercial jet engine maintenance for GE, CFMI and Pratt & Whitney engines MRO and Production News 4 to increased production of commercial air- craft parts for The Boeing Company . Shinwa Industry, which is headquartered in Toyota City, Aichi Prefecture, is a group company of Kojima Industries Corporation, a busi- ness partner of Toyota Motor Corporation that produces interior and exterior automo- tive parts . Shinwa Industry handles the de- velopment, design, manufacture and logis- tics management of metallic and resin auto parts . Matsusaka APM has been capitalized in the amount of 100 million yen, with Shin- wa Industry and MHI holding equity stakes of 51% and 49%, respectively . The company’s head office and factory are located within the premises of the Matsusaka cluster . Takashi Garuda Indonesia and MTU Maintenance sign 5-year service agreement for CF34-8C5 engines Photo: MTU Maintenance Kojima of Shinwa Industries has been select- ed to serve as inaugural president . MTU Maintenance and Garuda In- Group with digital continuity to optimize its donesia sign exclusive CF34 mainte- conceptual designs by virtually validating nance agreement each phase of the additive manufacturing STS Component Solutions partners process . Leveraging Dassault Systèmes’ ap- with Aerospace Accessory Service MTU Maintenance, one of the leading provid- plications and its own leadership and engi- ers of main¬tenance services for commercial neering expertise in additive manufacturing, STS Component Solutions has been named aero engines, has won a new airline customer Airbus Group can explore greater design as an exclusive distributor for Aerospace in Asia: Garuda Indonesia will send its CF34- and manufacturing possibilities to meet en- Accessory Service, an Original Equipment 8C5 engines to MTU Maintenance for repair gineering and manufacturing requirements Manufacturer (OEM) of emergency medical according to an exclusive five-year agree- for the additive manufacturing of tools and equipment for the aerospace industry . Aero- ment . The contract covers 30 to 40 shop vis- parts . Additive manufacturing, also known space Accessory Service is a certified Federal its and services also include the provision of as 3-D printing, is an alternative to produc- Aviation Administration (FAA) Part 145 repair lease engines . The CF34-8C5 engines from tion processes such as milling, melting, cast- station that has been serving the commercial Garuda Indonesia’s fleet power 18 Bombar- ing and precision forging . Already adopted aviation industry for more than 30 years . The dier CRJ1000 aircraft . The MRO work will by the aerospace industry for creative prod- company is presently based out of Doral, be carried out at MTU Maintenance Berlin- uct design and prototyping, the use of addi- Florida . Aerospace Accessory Service’s Emer- Brandenburg . MTU Maintenance supports tive manufacturing is gradually extending to gency Medical Division was established in all current engine models of the CF34 family large-scale production . The “Co-Design to 2006 with the goal of providing the aviation (CF34-1/-3, -8C/E, -10E) and has about 13 Target” industry solution experience leverages industry with high-quality, low-cost emergen- years of experience in providing MRO services applications for additive manufacturing to of- cy medical equipment specifically designed to for this engine type . Garuda Indonesia, the fer high flexibility in part design, production meet customer specifications, while exceeding national flag carrier, and its low-cost arm and testing . This helps reduce waste and costs regulatory standards . Citilink currently operate a combined fleet of associated with the manufacturing of complex approximately 190 aircraft . The group serves aircraft parts, without sacrificing strength or more than 70 destinations worldwide, mak- performance . Ameco Beijing starts maintenance ing around 600 flights a day . on first Boeing 787-9 aircraft from Air China MHI and Shinwa Industry establish Dassault Systèmes and Airbus Group JV for surface treatment and paint- Ameco Beijing has started maintenance on extend collaboration to additive ing of commercial aircraft parts the first Boeing 787-9 aircraft from Air Chi- manufacturing na . Ameco has CAAC approval on Boeing Shinwa Industry and Mitsubishi Heavy Indus- 787-9’s line maintenance, scheduled check, Dassault Systèmes reported that Airbus tries jointly established Matsusaka Aircraft modification, engine change and auxiliary Group, after a two-year comprehensive Parts Manufacturing Corporation (Matsusa- power unit change, as well as EASA and FAA benchmarking process, is extending its use of ka APM) in Matsusaka City, Mie Prefecture, approval on Boeing 787 line maintenance Dassault Systèmes’ 3DEXPERIENCE platform to perform surface treatment and painting service . As a strong MRO arm of Air Chi- to its additive manufacturing programs inte- of commercial aircraft parts . The new entity na, Ameco will shoulder Air China’s Boeing grating design, simulation and production . is to become a member of the Aircraft Parts 787-9 fleet maintenance services . Air China Airbus Group will deploy Dassault Systèmes’ Manufacturing Cooperative, an industrial plans to introduce a total of seven 787-9s collaborative design and simulation applica- cluster based in Matsusaka . Plans call for this year . Ameco has been providing main- tions as part of the “Co-Design to Target” Matsusaka APM to launch production in the tenance service on Boeing 787 since 2014 . industry solution experience, for the additive fiscal year ending March 2018, to respond Up until now, five customers have selected manufacturing of tooling, prototyping and to mass production of the Mitsubishi Region- Ameco for maintenance service on their parts for test flights and for production use al Jet (MRJ), the next-generation regional jet Dreamliner aircraft in China, four of which on commercial aircraft . This provides Airbus under development by the MHI Group, and from the international market . AviTrader