Aerospace Export Basics for the New Year

JasonDickstein150By Jason Dickstein, President, MARPA

We are always looking for ways to make compliance easier. Aviation is a global business, and sometimes you have look far and wide for the part you need. Many aircraft parts are regulated by the United States for export purposes, and it is important to ensure that you have an adequate compliance system in place to help promote effective export compliance when your parts supply chain involves an export transaction.

Aerospace companies should have compliance systems that help them identify which regulatory bodies have jurisdiction over your export transaction and how your aircraft parts are regulated for export purposes. They should be able to lead your personnel through the export compliance maze and they should identify when a license may be needed. They should also help support the collection of information needed for an electronic export information (EEI) filing. Such systems should also be able to address common aerospace export issues like deemed export (which can arise even if you do not export articles out of the United States), aircraft parts returned to the U. S. for repair, and license exceptions for AOG (aircraft-on-ground) situations.

Most people know that the United States regulates international trade (exports from the U. S.) through either the State Department (for defense-related articles) or the Commerce Department (including civil aircraft articles).

About a year ago, State and Commerce published new regulations that make it much easier to identify which agency has jurisdiction. Many companies revamped their compliance programs in 2014 in order to reflect the new regulatory regime. If you haven’t made export compliance a procedure-based part of your operations, then it is not too late!

But the one agency that has not gotten a lot of notice has been the Treasury Department. The Treasury Department has a number of ways that it limits U. S. exports in order to advance U. S. interests. It has lists of people and parties with whom you may not perform export business, and it also has programs, both country-based (like the Iran sanctions program) and situation-based (like sanctions against those who are part of a transnational criminal organizations).

OFAC
The Treasury Department office with jurisdiction over export programs is the Office of Foreign Asset Control (OFAC). Their name is practically synonymous with exporting; whenever I mention exports, I always hear someone muttering “OFAC.”

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Conference Programme Announced for Aviation Electronics Europe in Munich, Germany in March 2015

Top industry speakers from key organisations share their knowledge and experiences

AEEPSG15Cover200Aviation Electronics Europe, which will take place on 25th-26th March 2015 in Munich, Germany, has launched the conference programme for the forthcoming event, focussing on key industry topics areas, including the Single European Sky initiative.

The conference programme, which has attracted many leading international industry experts to an excellent line-up of presentations, bring together the avionics and aviation electronics community to discuss and debate the latest policies, standards, best practice and technologies for developing a safer skies in an ever increasingly busy airspace.

Following the keynote session, which will see opening addresses from the European Commission and European Aviation Safety Agency, the conference discussions will look at Avionics in SESAR and how the Single European Sky initiative is developing and the impact of avionics in air traffic management systems. Here SESARJU, EUROCAE, Airbus and the European Business Aviation Association will contribute with key presentations.

The delegation will then listen to an exciting panel discussion looking at the Impact of Performance Based Navigation and its affect on airspace from different perspectives, before addressing Standardisation and Certification of software and systems, exploring the latest approaches, analysis and implications in compliance of DO-178B/C – ED-12B/C.

Further details, the full conference programme and speakers can be found at www.ae-expo.eu.

Aviation Electronics Europe delivers the legacy of a premier platform for the international aviation electronics industry to learn, network and source new information, products and services at one unique annual event. Its leading exhibition displays some of the latest technologies and systems available on the market.

Adrian Broadbent, Event Director and owner of Aviation Electronics Europe, said, “We are delighted to announce the conference programme for the forthcoming Aviation Electronics Europe conference and exhibition.”
“We would like to thank the conference Advisory Committee, which has delivered a first class programme, with some very key industry speakers, that will help discuss the hot topics and issues of the day to look at how the industry ensures consistency, integration and reliable communication between and across the different platforms to meet common objectives,” continued Broadbent.

For further information and more details on the conference programme visit the Aviation Electronics Europe website www.ae-expo.eu.

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Giants of MRO Can Repel the OEM Invasion

by James Careless

GiantsofMRO251OEMs are aggressively invading MRO markets, by leveraging the emergence of new aircraft as an opportunity to force airlines to use OEM MRO services—at OEM high prices. But it is possible for airlines and non-OEM MROS to hold back the invaders, by banding together in joint partnerships.

This is the core message contained in the “2014 MRO Survey” compiled by management consultancy Oliver Wyman. Entitled “Signs of New Life” and based on interviews with airlines, MROs, OEMs and financing/leasing firms—and available for free online at http://www.oliverwyman.com the 2014 MRO survey provides tangible suggestions for airlines and non-OEM MROs to keep the profit-minded OEMS from taking over the global industry.

Putting the Stakes In Context
According to the aviation consulting firm ICF International (formerly ICF SH&E), in 2013 the world’s MROs supported 123,000 civilian and military aircraft flying about 97 million hours annually, with business and commercial aviation making up 26 percent and 22 percent of the aircraft flown.

Now for the money. In 2013, the global MRO market earned $131 billion, with about 46 percent ($60.7 billion) being earned by air transport MROs. North America remained the number one MRO market in 2013 (31 percent of the world demand, in terms of revenue). Asia/Pacific edged out Europe for the first time (27 percent and 26 percent respectively), followed by the Middle East (7 percent), South America (5 percent), and Africa (4 percent).

Looking ahead, ICF International predicts that air transport MRO spending will grow 3.9 percent annually to 2023, when it will hit $89 billion. As this is happening, older aircraft such as the A330, B747-B, B767, and B777 will be phased out in favor of new, fuel-efficient models like the A350WXB, B777X and B787.

For airlines and non-OEM MROs, this trend is of fundamental concern, because OEMs Airbus and Boeing are doing everything they can to sew up the after-sales MRO on these aircraft for themselves. Their chances of success will improve once the world’s carriers are reliant on just a trio of their planes.

Even without that edge, the OEMs are already succeeding. In 2014 “Original equipment manufacturers won the market for high-value, aftermarket aviation services, leaving independent maintenance, repair, and overhaul providers scouting for paths to evolve and grow,” declared the Oliver Wyman 2014 MRO Survey. This is no mere guess: “In our annual survey of airlines, MROs, and OEMs, we confirmed the disparity in engine and component maintenance for new, modern fleets.”

To say the least, the OEMs’ successful push into MRO work is a seismic shift from how they used to view the after-sales market. “For years, the OEMs seemed to regard MRO work as being beneath them,” said Wayne Plucker, Frost & Sullivan’s Industry Manager for Aerospace & Defense.

Now that the global air transport MRO market is worth more than $60 billion annually and growing, their attitude has changed. With all this revenue available, “Airbus, Boeing and Bombardier can see the very real advantages of providing such after-market support,” Plucker said, “not just for the money it brings, but the chance it offers to keep customers buying their aircraft when fleet renewal time comes.”

The MRO Squeeze Play
The only way the OEMs can truly dominate the MRO market is by keeping non-OEM MROs from being able to work within the market. Given the number of commercial aircraft currently licensed for non-OEM servicing, this is difficult to achieve.

In-House DOMs vs. Third Party Total Care Providers

by Dale Smith

MRO251It’s no news to anyone reading this that the last 10 or so years have not been kind to business aviation. The reasons? Well, that depends on whom you ask. But, the bottom line is that even steadfast B&GA aircraft owner/operators have had to look for ways to cut costs and “streamline” their operations.

And while I don’t have any facts to prove it, from talking to so many people in the industry I’d say one of the hardest hit groups have been the in-house directors of maintenance. (Funny or sad, it seems that when aircraft owners try to save money one of the first things they cut are the folks that are responsible for the safe operation of a valuable asset.)

Of course, even the most dollar-conscious owner/operators can’t leave their aircraft with no maintenance support. Their decision to cut DOM overhead is often directly related to the availability of a variety of “contracted” maintenance providers. “Why pay someone on staff to do something I can get a contractor to do for less…?”

And, the fact is, whether it’s from the aircraft OEM or a third-party provider, you can get high-quality maintenance support for “less” than it costs to have a full-time DOM on your payroll. Or, at least, that’s what you think you’re going to get.
I’m not saying that these maintenance alternatives don’t have their upside. For many operators they can be the ideal solution. You just have to do your homework and be clear as to what these provider contracts do and don’t provide.

“It really all depends on the flight department itself,” explained George Kleros, senior VP, Strategic Event Management and Fleet Support, Jet Support Services, Inc., (JSSI). “If you’re talking about an owner/operator/entrepreneur—a really hands-on kind of person who basically carries the whole flight department around in their briefcase, then there are fantastic options for these types of owners.”

“If they take their aircraft to a factory service center or a large MRO then someone in their QC department is going to go through the aircraft’s records to see what’s missing or not up to date,” he said. “They will construct a list of items like Service Bulletins, ADs, updates that need to be covered. But that level of detail only happens when the airplane is in a larger shop.”
“What happens between those times? What happens if there is an emergency AD note that is a Do Not Fly or Before Further Flight You Must…?” Kleros said. “The typical owner/operator may not see that, which could lead to a violation or something worse.”
“The basic issue is you just don’t have the level of aircraft care or aircraft history knowledge with these types of contracted programs,” stated independent aviation safety consultant, John Goglia. “You are often just an account number. They don’t have the time or manpower to get to know what is happening with that aircraft every day.”

“When the airplane actually goes in for work, tough questions come up and their representatives don’t have all the maintenance information available,” he said. “So the decisions they make are not always the decisions the operator would have made.”
Too true. When was the last time you took your car to the dealer for service and left all the decisions up to them? Probably never. But to be fair, I really can’t see any reputable aircraft maintainer making repair decisions without first consulting with the owner. Now, whether or not the owner would know what in the world the MRO representative is talking about is a whole different set of challenges.

Airplane Spoken Here
The fact is communication is one of the biggest hurdles these contracted types of maintenance providers have with so many smaller, individual owner/operators. (Honestly, it’s a problem every maintainer has with an aircraft owner, but that’s another story.)

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Everything’s Amazing

by Joy Finnegan, Editor in Chief, Aviation Maintenance Magazine

We are closing another year. Does time seem to move faster with each passing year for you as well? Perhaps this is simply a sign of getting older. But one thing is true, with the technology and connectivity of today, business moves at much faster rates than in previous eras and if you are not keeping up with technology, your business won’t keep up with the competition.

Earlier this year, in our June/July issue, we highlighted some MRO innovators who shared with us what their companies are doing to improve their operations. We looked at real-time tracking of engine parts, rapid repair processes for composite structures using robotics, customer communications portals and company-wide innovation initiatives at MROs around the world.

In this issue we are taking a look at “Big Data” and how that sector of technology is, or will be, impacting MRO. With the fierce competition of our industry, using all available information is really the only way to survive, compete and improve. The world of big data is futuristic and not going to make an impact on the shop floor immediately but that will change soon.

I remember covering health and usage monitoring (HUMS) for helicopters many years ago when they were first being introduced. The overriding consensus at that time was that the technology was amazing and the data prolific but the process of getting that data in an understandable format to the maintainer to utilize in a predictive way was somehow lacking. Hopefully, those early years of use will benefit the coming tsunami of information that big data for MRO is going to flood the industry with. The need to get the information to those that will ultimately be able to use it is paramount.

To that end, some inroads are being made right now to help manufacturers, operators and maintainers work together to prevent downtime using big data. Engine manufacturers like Pratt & Whitney and GE Aviation are leading the way.

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Mining Hidden Assets:Making the Most of Big Data for MRO

by Charlotte Adams

BigData251Airplanes generate large amounts of data as they fly, but only a small part of that data is used in the maintenance process. And the historical maintenance information for legacy aircraft, some of it decades old, is also voluminous, varied and difficult to preserve, organize and search. This huge and ever-growing mass of information, aka “big data,” challenges the wherewithal of traditional computer systems. Yet these vast collections of information hold out tantalizing possibilities for those who can exploit them. Aviation, along with other industries, is trying to mine these lodes and extract more value from them, particularly in the area of predictive analytics.

Big data is data that is high in volume, velocity and variety, explains Svetlana Sicular, research director with Gartner Group, the company which reportedly invented the phrase. Opinions differ as to whether it includes structured data that fits into the rows and columns of a relational database, as well as unstructured data like engineering drawings, simulation files and engine telemetry. And experts differ as to the level of maturity of current tools and whether they are essentially prognostic or diagnostic in nature.

GE Aviation, which processes data for commercial and business aviation customers, further describes big data as “extremely large data sets that can be analyzed computationally to reveal patterns, trends and associations, especially relating to machine behavior and interactions.” Data analytics, by the same token, is “the process of examining large data sets containing a variety of data types, including big data, to uncover hidden patterns, unknown correlations, machine behavior and other useful business information,” according to the GE unit.

Among other characteristics frequently associated with big data and attempts to harness it are the use of the “industrial Internet” for the automated transfer of data from machines to computers using algorithms that preserve, sift, organize, search, analyze and visualize the data to provide insights and suggest solutions.

The challenges of big data range from dealing with floods of information in real time to making sense of streams of disparate data coming in at variable speeds. Service providers include many startups, such as Splunk, as well as giants such as General Electric (GE) and IBM, which have invested heavily in the field. Estimates of the market size for this growing area of computation vary widely, as it is difficult to measure. But IBM cites a forecast of $187 billion by 2015 across industries worldwide.

Although it’s become a popular phrase, big data has been around a long time, Sicular says. Financial institutions, for example, have been trying to sniff out fraud as long as they have existed. Big data is also relative, she points out. What’s valuable for one company might be worthless for another.

In the aviation industry engine manufacturers are known for their data intensity, but new technologies promise to help them exploit larger portions of these assets. The trend toward engine leasing also drives efforts to anticipate and control maintenance costs. Pratt & Whitney (P&W) has allied with IBM, which has invested some $24 billion in big data and analytics. GE also leverages both externally and internally developed technologies. Among the latter is the Predix platform for embedded analytics via the industrial Internet.

Peaxy, one of the many startups in the field of big data analytics, has gained the attention of the Gartner Group as a service provider with deep knowledge of industries rather than a purely entrepreneurial organization built around a new technology. Peaxy’s launch customer is GE oil and gas, which is a large a step—horizontally or vertically—towards aviation.

For Peaxy big data is essentially unstructured data. Although some components of big data may be relative, there are “crown jewel” data sets that are common across manufacturers, says the company’s CEO, Manuel Terranova. These data sets include geometry (such as engineering drawings), simulations (such as structural analyses), and telemetry, whether off the test bench or in the field, he says. The company’s Hyperfiler product helps turn big data into a “readily findable asset,” the company says.

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BP Turbo Oil Products To Be Renamed As Eastman Turbo Oils

Eastman Chemical Company acquired all of the BP Turbo Oil products earlier this year on June 1, 2014. The company says effective immediately, all turbo oil products will now have a new Eastman Turbo Oil name, as seen below:

Previous Product Name New Eastman Product Name
BP Turbo Oil 2197 Eastman Turbo Oil 2197
BP Turbo Oil 2380 Eastman Turbo Oil 2380
BP Turbo Oil 2389 Eastman Turbo Oil 2389
BP Turbo Oil 25 Eastman Turbo Oil 25
BP Turbo Oil 274 Eastman Turbo Oil 274
BP HALO 157 Eastman HALO 157

The only change being made is to the brand name of the products. The manufacturing facility, as well as the product formulations, approvals, sales and technical support teams will all remain unchanged, according to Eastman. In addition, the product package color will remain the same in order to eliminate any customer confusion. The first shipments of the products with the new Eastman Turbo Oils name began in November 2014.

“We want to reassure all of our current and any potential customers that these are indeed the same products they have known and trusted for years,” said Rodger Harris, Eastman Aviation Solutions Global Sales director. “Introducing the new Eastman Turbo Oils product names is the last phase of integrating our hydraulic fluids and aviation solvents, Skydrol and SkyKleen, with our new turbo oils, bringing all of the products under one brand, Eastman Aviation Solutions,” continued Harris.

In addition to the launch of the new product names, Eastman Aviation Solutions will also be unveiling additional customer support programs, such as the Eastman Aviation Solutions Lubricant Academy, and the Eastman Aviation Solutions Value Calculator.

“The training academy and value calculator are just two examples of unique support programs that our customers will soon be able to take advantage of and pass along to their customers,” concluded Harris. “We pride ourselves in providing superior customer service and unique service offerings, and we will continue to develop programs that will further the success of our customers and make switching to the Eastman brand as easy and seamless as possible.”

Rockwell Collins Unveils Mobile Solutions for Training

iPad Male business handsRockwell Collins has unveiled a new program that will equip pilots, flight line maintenance and service repair technicians with intuitive and realistic on-the-go training on mobile devices.

The first mobile courses were demonstrated at the Interservice/Industry Training, Simulation and Education Conference (I/ITSEC) Dec. 1-4 in Orlando.

“This new offering demonstrates our commitment to providing our customers with the right content in the right format, when and where they need it,” said LeAnn Ridgeway, vice president and general manager of Simulation & Training Solutions for Rockwell Collins. “People use mobile devices for nearly everything they do—and now that includes interactive training. Our new mobile training and publication offerings allow our customers to access, manage, and interact with information as they need it.”

In addition, the company is introducing new capabilities that it says will enable customers to view its technical publications and training products electronically from any mobile device. Options enable customers to download specific training tasks and specific publication references, focusing resources to save time and money.

Magnetic MRO Launches Engine On-Wing Maintenance and LRU/QEC Support Services

Magnetic251Magnetic MRO announced the launch of its Engine On-Wing Maintenance unit as part of the strategy to offer Total Technical Care MRO services.

Comprehensive Engine On-Wing Services will cover a wide range of engine line maintenance, as well as extensive LRU/QEC component support programs. The services are aimed to support customers in reducing unplanned engine removals due to foreign object damages, bird strikes, or other unscheduled events, thus improving efficiency and predictability of engine operations.

“Magnetic MRO is pleased to add additional service capability and now offer full scope of Engine Management solutions,” said Ramil Sharov, Engine Line Maintenance manager. “Our engine on-wing maintenance solutions offer shorter turn-around time, minimized impact on aircraft operations and reduced expenses on engine shipping and lease. Magnetic MRO ́s comprehensive LRU/QEC programs include up to Power by the Hour support for engine components, providing predictability and peace of mind to our customers on potential and future expenses, as well as reducing the risks of engine-related AOG situations.”

Engine line maintenance team is available to offer AOG rapid response support on customer’s site, at Magnetic MRO hangars in Tallinn, or by remote means.

AMM covered tasks are performed within the scope of EASA Part145 Certificate, capability includes all commonly used engine types such as CFM56-3; CFM56-5A; CFM56-5B; CFM56-7B and IAE V2500.

Detailed scope of On-Wing services includes Inspection and analysis of engine condition after FOD ingestion, bird strike, in-flight shutdown, over temperature or wind milling; work scoping of maintenance actions; on-site video borescope inspection and damage analysis; on-site engine replacement; on-wing engine preservation on CFM56-3, CFM56-5A,-5B and CFM56-7B; QEC strip and buildup; engine LRUs replacement; on-wing repairs such as fan blade replacement and fan frame abradable shroud local reconditioning on CFM56-7 series, etc.

With this launch of engine on-wing and LRU/QEC services, Magnetic MRO says it has completed its strategic expansion of engine related offerings, which also cover engine fleet management; engine overhauls; engine trading, leasing, and consulting.

DART Gets Transport Canada Approval for R66 Cargo Hook

DART Cargo Hook251With a lift capacity of 1,015-lb, the easy to install DART Hook opens up the utility market to R66 operators. Designed to mount directly to the belly of the aircraft, the hook utilizes an electrical release system as well as a manual backup to jettison the load, ideal for aerial operations. Now approved by Transport Canada. FAA and EASA to follow shortly.