MRO Japan Takes Advantage Of New Aircraft Production Delays

SINGAPORE—New narrowbody delivery delays and the knock-on effect of airlines extending aircraft leases has delayed the available feedstock of aircraft for passenger-to-freighter conversions.

MRO Japan originally had intended to start passenger-to-freighter conversion of Airbus A320 and A321 aircraft through a partnership with Elbe Flugzeugwerke at the end of this year, but it has delayed the start of the program due to a lack of available aircraft.

However, “we are confident we will start in the future,” says Kazuhiko Sakai, senior director of business development for MRO Japan.

The Okinawa-based MRO says the program delay “was a good opportunity to improve our processes and efficiencies,” he says. For example, it has streamlined how maintenance job cards, parts and tooling are managed and aligned.

Given that passenger-to-freighter programs requires tooling and training, MRO Japan also used the opportunity to not only train its people for the conversion work, but also educate them on structural modifications, sheet metal and related skills. This provides the staff with a wider range of skills and gives the business greater flexibility, says Sakai.

The same production delays that are stalling the passenger-to-freighter programs have sprouted a new opportunity. MRO Japan recently formed a partnership with asset manager Airborne Capital to provide services for the big wave of end-of-leases it sees coming in the next few years for single-aisle aircraft.

The partnership provides “a one-stop-shop” portfolio of end-of-lease services—from maintenance to records review and supply chain management.

MRO Japan is focused initially on Japanese customers but would like to expand to the greater Asian region.

It already has contracted for four aircraft—three from All Nippon Airways and one for Star Flyer. It completed its first—for Star Flyer—on time in about four months, Sakai says.

MRO Japan’s facility at Naha Airport includes hangars for three narrowbody and one widebody aircraft. The company, which just celebrated its 10th anniversary, employs about 470 employees.