By Ken Herbert, Senior VP Research, Wedbush Securities
Do the OEMs want to put the independent MROs out of business? The short answer is no, but OEMs want to increasingly capture the more profitable parts of the business. For economic reasons, OEMs will continue to push to increase their aftermarket business. This represents a continued and real threat to the independent commercial aerospace MRO business model, but not its end.
Lufthansa Technik opened a component pool storage facility in Singapore. The warehouse will be operated by Lufthansa Technik Logistik Services and sits near Changi International Airport.
Pratt & Whitney and Japan Airlines signed seven-year agreements with a combined value of $450 million for engine fleet management and part repair. Under the fleet management agreement, Pratt & Whitney Global Service Partners' Singapore based engine overhaul facility, Eagle Services Asia, will provide maintenance services for Japan Airlines' PW4090 engines. Pratt & Whitney will also provide part repair services for the airline's fleet of Pratt & Whitney PW4074, PW4077 and JT9D engines through its Global Service Partners network.
Worthington Aviation issued STC to upgrade the existing Honeywell traffic alert and collision avoidance system (TCAS) with an aviation communication & surveillance systems (ACSS) TCAS 2000 system, dual ACSS Mode S transponders, and dual Honeywell AZ-810 digital air data computers on various Bombardier DHC-8-100, -200 and -300 series aircraft, STC ST03026CH
Marana Aerospace Solutions is the new name for Evergreen Maintenance Center, which was acquired by Relativity Capital in 2011. The 460-acre facility has a storage capacity to accommodate 400 aircraft.
Manufacturer: Pall Corp Applications: Pall Corp.'s aerospace division manufacturers aerospace-grade true HEPA filters for aircraft types including Boeing, Airbus, Bombardier and Embraer models. Pall has tested the HEPA cabin air filters to a microbial removal efficiency of greater than 99.999%. Pall also provides odor/VOC filters for select aircraft types to remove compounds associated with oil degradation. www.pall.com
Sabena Technics' maintenance facility in Bordeaux, France, is performing heavy check and repair work on two Afriqiyah Airways Airbus A330s. Several aircraft in the Libyan operator's fleet suffered damage during recent conflicts. Philippe Rochet, Sabena Technics' executive VP of airframe services, says the MRO sent a maintenance task force of 10 engineers to Libya to prepare the aircraft for ferry flights to Bordeaux.
Distributor: Interfast Locations: Offices in Canada, United States, Europe. Global distributor. Capabilities: Interface is a distributor of aerospace fasteners, fastening systems, precision hole preparation and production installation tooling. It also offers a customized inventory management service. www.interfast.ca
For Mexico's airline MRO industry, this is a time of change, especially given recent developments with Aeromexico and Mexicana MRO Services, the two in-country heavyweights in airframe third-party maintenance. At Aeromexico, there is the joint venture with Delta TechOps. Mexicana MRO Services continues to operate, despite the August 2010 bankruptcy and service suspension of its sister airline, which once accounted for 60% of its business.
The European Aviation Safety Agency (EASA) mandated the replacement of six aluminum rivets on the Airbus A380 in its latest airworthiness directive (AD 12-014) for the type. The rivets have been used at the junction of Fuselage Stringer 21 left and right and Frame 0. During an engineering review, the pieces have been found “not in compliance with the certification requirements.” While the structural limit load capability is still ensured, the rivets may not sustain ultimate load stress, according to fatigue analysis.
The man-hour rate for North American independent MROs—once cited as the spark for MRO to migrate to Asia and Latin America—is no longer the factor it once was. The exodus of 5-8 years ago “has slowed dramatically,” says David Marcontell, TeamSAI president and COO, partly because of the shrinking differential. The most recent data from TeamSAI finds hourly labor rates in China averaging $43, Latin America $40 and North America $55. During the exodus, rates in Asia and Latin America were "in the 30s," he says.
FRANKFURT—Europe's airlines are under enormous economic stress. Some are to be sold and some—like Malev and Spanair—already have disappeared this year. The consequences for the MRO sector are likely to be more subtle, but that does not mean no changes. Those airlines that already have big MRO organizations in the region will have to look at how to make those operations more efficient. Those that do not will be forced to seek outsourced work for even less. And those that have some in-house capabilities are facing crucial choices: sell, combine or expand.
Manufacturer: Perfect Point EDM Applications: The E-Drill de-flanges fasteners in sizes ranging from 5/32 to 5/16 in. within seconds through a forceless process. Specifications: Utility cabinet is 19-by-38-by-16 in. and weighs 148 lbs. Hand tool is 7.5-by-5 in. and weighs 1.5 lbs. Removes aluminum flanges in three seconds, titanium flanges in six seconds and Iconel flanges in 12 seconds. www.ppedm.com
FRANKFURT—The International Air Transport Association (IATA) recently came up with some encouraging figures. It was never safer to fly than it was in 2011. There were 0.77 hull losses per one million departures in 2005; in 2011 that figures improved significantly to 0.37. And there were regions like Europe or North Asia that did not have any hull losses at all last year.
MROs like HAECO saw a bigger demand for airframe and line maintenance in the first half of 2011 but a slight decrease in the second half as passenger traffic growth slowed. So what does that mean for this year?
Dublin Aerospace signed a contract with Europe Airpost for APU maintenance. The contract covers the operator's Boeing 737 Classic APUs for three years from Jan. 1, 2012.
An MRO's perennially prickly problem is presenting itself at precisely the most inopportune of times. That problem is lack of manpower, and it's manifesting itself during an era ripe with demand for outsourced MRO. The issue seems particularly acute among at some independent North American MROs. At the same time, customers are calling on those MROs to offer nose-to-tail services, and more. In this environment, it's not just the strong that survive, it's the supple. Skills Shortage
Airbus is bringing to market the A330 passenger to freighter program with ST Aerospace, with the aircraft to enter service in 2016. Both the A330-300 (to come first) and -200 (due a year later) will be part of the P2F program which also includes EADS' EFW unit. ST Aerospace will have the development lead, with EFW performing the modification and marketing. The arrangement has been under work for three years.
MRO: Alcoa Fastening Systems' Aerospace Latch Repair Station Locations: Torrance, Calif. Capabilities: In late 2011, Alcoa launched an FAA repair station that specializes in repair and overhaul for Ram aerospace latch and snubber product lines. The facility has an organization authorization designation and has the ability to repair PMA items on Boeing 737, 747, 757, 767, 777, MD-11 and DC-10 aircraft. It also provides repair and overhaul services on latches and snubbers through part approval holder authorization or via further FAA approvals. www.alcoa.com
AAR received design approvals from the FAA and the Civil Aviation Administration of China to perform custom interior modifications on Xiamen Airlines' Boeing 757-200 aircraft. AAR will modify the aircraft into a three-class configuration and install new seats.
A J Walter Aviation signed a deal with GMF AeroAsia to provide integrated consumables management services for the MRO's 737NG maintenance program. A J Walter will position a spares consignment with GMF in Jakarta for replenishment on demand with payment on consumption.
