Insider’s Guide to Managing an Aircraft Refurb Project

Refurb251The longer you’re involved with the business aircraft industry the easier it is to see that it’s like a giant pendulum – new aircraft sales go up and refurbs go down. New aircraft sales go down, as they are today, and the business of refurbishing older aircraft gets a boost.

In fact, the folks at marketsandmarkets.com recently put out a study that says that the aircraft refurbishing and repurposing market will grow from “$3.04 billion in 2012 to over $4.2 billion by 2017.” While not all of that gain will be in cabin refurbs on corporate and VIP aircraft, that segment will no doubt account for a good portion of it.

Talking to some leading refurb MROs that all stressed that between the combination of increased activity and the pressures of a combination of increased competition and tight schedules, there are traps out there it’s not all good news.

If all the customer really wants is a good cleaning and a scuff-and-buff on the woodwork, well, that’s a far cry from a complete start-from-scratch cockpit or cabin refurb.

And one of the biggest areas of concern is entering into a new project without a clear vision of what the customer is really trying to accomplish.

“A lot of times they (customers) don’t have a really good idea of what actually what can be done in their airplane,” explained Aaron Kreissler, sales director for Jet Aviation, St. Louis. “That’s why it’s important to get engineering involved with the sales department early on. Customers need to get involved with the shop’s technical people up front.”

Kreissler said that the goal is to not only understand what can, and more importantly, cannot be done in the airplane but to also to create pretty firm package which can be submitted to all the shops the customer wants to bid on the project.

“Everyone needs to be working from the same plan to create their proposals,” he said. “It all needs to be apples-to-apples to give the customer a good point of comparison.”

So what kinds of information should be in this plan you ask? “The first thing we want to know the work scope. Is it just a cockpit or cabin, or does it include things like paintwork? Do you want to change the leather on the seats? Do you want to install a new CMS (cabin management system)?” stated George Bajo, completions sales representative, Duncan Aviation. “Usually when you ask the customer these questions it leads to other information on other parts of the project.”

Another very important piece of “other information” is whether there is any major airframe maintenance or inspections coming due on the aircraft in the next 12- to 18-months. “It’s always a very good idea to couple that type of maintenance with the interior refurb,” he said. “That kind of work requires removing the interior so it’s just best to do it all at the same time. It will save money and time and eliminate any possibility of damaging the new interior.”

 

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MRO Titans Facing Increased Competition from OEMs, Each Other

Giants251Depending on who you talk to, the global MRO market (engine and airframes combined) is currently worth anywhere from $50.0 billion (Frost & Sullivan) to upwards of $55 billion-$60 billion (FL Technics). What these experts agree on is that the market is definitely growing. For instance, Frost & Sullivan’s Wayne Plucker (the company’s industry manager, Aerospace & Defense) sees the global MRO market as “being worth $62 billion in five years time,” up more than $10 billion from his current $50.0 billion estimate.

Of course, some areas are growing faster than others. Specifically, “The North American and European markets are showing slow growth rates while the growth in Asia and the Middle East are accelerating,” said Marcel Versteeg. He is owner and managing director of VZM Management Services, an aviation consultancy based in Sassenheim, The Netherlands.

Later, we will look more closely at what is driving these various regions. But before we do, consider who the titans of MRO are.

In general, the titans’ ranks remain unchanged from the previous year. In fact, “we have not really seen a change of the MRO titans in the last five years,” Versteeg said. In the Top Five, it is engine OEMs such as GE, Pratt & Whitney, and Rolls-Royce who lead the pack, based on their turnover. Following them are Lufthansa Technik (LHT) and Air France Industries-KLM Engineering & Maintenance (AFIKLM) remain on top, said Versteeg. “Of the last two, we have seen AFIKLM more and more focussing itself on the components and engines business as they have missed the battle for airframe maintenance. Both of their divisions hardly perform any C-checks for customers, and have no worldwide network like LHT to perform base/heavy maintenance in lower labor cost countries,” he said.

Up-and-coming to the titan’s ranks is the UAE’s Mubadala Aerospace, which has acquired Abu Dhabi Aircraft Technologies (ADAT) and SR Technics (SRT) in a bid to gain market share. Still, this newly consolidated company has a turnover that is only a third of the smallest of the Top Five MROs. As a result, “they are now about same size as ST Aerospace, another worldwide player,” noted Versteeg.

 

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Here’s to You

As one year comes to an end and another begins, I want to take a moment to express gratitude to aviation maintenance professionals all around the world. To those of you who dedicate you life to learning the inner workings of the aircraft that carry us, our families and loved ones, our precious cargo, our pets and more to destinations across the globe, you have our unending appreciation. Whether you are in maintenance planning, supply chain, maintenance software, avionics, airframes, engines, sheet metal, the tool crib, wiring, parts, back shops, training or manage some or all of the above, please know that your efforts and dedication are gratefully acknowledged and appreciated.

A cold wave has descended across much of North America as I write this note. It reminds me that regardless of the weather, the professionals entrusted with the care of aircraft must continue on in spite of weather conditions. More often today there is a hangar that is environmentally controlled to work in. But sometimes aircraft break in the most inconvenient of places and require work to be completed on a freezing ramp in precipitation of many kinds. My hands hurt just thinking about trying to manipulate tools and parts in the kind of weather we are experiencing in much of the U. S. right now.

On the flip side, I remember the hottest days of last summer. Thinking about working on an aircraft in an un-air-conditioned hangar with sweat dripping and clouding eyesight, becoming dehydrated and being under the pressure of departure time while the passengers wait comfortably in air-conditioned terminals is enough to make me thirsty.

To those aircraft maintainers who saw something wrong on someone else’s aircraft, perhaps it was even a rival airline’s aircraft, and stopped to point it out, we salute you.

To those aircraft maintainers who took the time to take a new mechanic under your wing and help them learn the ropes, do things the right way and pass along your knowledge and passion, we salute you.

 

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Honeywell Publishes Whitepaper on Eyewash

HON_EyewashWhitepaper2013_CoverHoneywell has published a whitepaper entitled “How to Identify Safe and Effective Emergency Eyewash – and the Hidden Dangers to Avoid.” This nine-page publication from Honeywell Safety Products serves as a resource to everyone responsible for industrial health and safety. The whitepaper is available now for download in English and French at http://www.honeywellsafety.com/USA/Eyewash_Training.

“Our in-depth experience with customers around the world shows there are still a lot of questions about proper emergency eyewash selection, installation, maintenance and usage. Beyond that, there is a lack of awareness for the many ways that improper eyewash practices can further damage an already compromised eye – at a huge expense to workers and employers alike,” said Kelly Piotti, senior product manager for Honeywell Safety Products. “We developed this whitepaper to support safety and facility managers in making informed decisions about not only the various types of eyewash devices and flushing fluids available, but also to warn against the less obvious dangers that require careful consideration.”

Readers will learn the latest national safety standards as well as equipment options and proper overall usage. Emergency eyewash flushing fluids are also detailed, including the differences between sterile and non-sterile fluids, buffered and Ph-balanced fluids, manufacturing processes and other possible sources of harmful impurities. By providing a comprehensive look at the facts behind the safe and effective treatment of industrial eye injuries, Honeywell aims to reduce the impact of recordable eye injuries and support every organization’s overall safety culture.

SR Technics and Garuda Maintenance Sign Service Agreement for Component Repairs in Indonesia

SR Technics, part of the Mubadala Aerospace MRO network, and Garuda Maintenance Facility AeroAsia (GMF) have signed a five-year service agreement for component repairs in Jakarta, Indonesia. Under this agreement, GMF will act as SR Technics’ regional support workshop for approximately 150 part numbers, and will develop its existing in-house repair capabilities accordingly.

SR Technics and Garuda Indonesia say they have been working together for almost 30 years. This closer cooperation will contribute towards significantly reducing turnaround times of component repairs, and will build on existing agreements to provide Integrated Component Services (ICS) for the airline’s Airbus A330 and Boeing 737NG fleets.

A worldwide network of regional Centers of Excellence leverages SR Technics’ global presence for ICS, providing tailor-made and flexible solutions to its airline customers, wherever they are based around the globe. Thanks to this expanded cooperation with GMF, SR Technics will be able to provide closer in-country support in Indonesia.

“This agreement is important for us to expand our regional presence in South-East Asia for component overhauls, and we are very pleased to deepen our relationship with the Garuda Group in Indonesia,” James Stewart, Group CEO of the Mubadala Aerospace MRO network, says. “We will work closely with GMF to support them in creating attractive customer solutions for any local or regional airlines looking for reliable and high quality component support.”

 

AJW Aviation Signs Five-Year PBH Contract with WOW air

AJW Aviation has signed a five-year power-by-the-hour contract with European airline WOW air. The initial contract is to provide on-going support for one of the airline’s A320 aircraft.

WOW air which is based in Iceland, is the country’s only low-cost carrier since acquiring its predecessor Iceland Express in 2012. The airline made considerable changes to its schedule, in order to accommodate the majority of Iceland Express’ routes.

“AJW is committed to supporting WOW air as their business evolves. Our focus on Europe ensures that we have strategically located support hubs to minimize AOG situations,” Boris Wolstenholme, CEO of AJW Aviation comments. “As our PBH business continues to build across the region, it is indicative of our aviation community that understands and values the commercial advantages AJW’s flexible support programs can offer.”

GA Innovation First Parts Redistribution Company to Achieve ASA-100 Accreditation in China

GA Innovation China, a joint venture between GA Telesis and Air China, announced that it successfully passed its audit by the Aviation Suppliers Association (ASA), and its quality system is accredited and able to operate to ASA-100, the most widely followed level of organizational and quality assurance certification standard available for aerospace companies worldwide.

Aviation Suppliers Association, and the 490 plus global members promote safety, regulatory compliance and ethical business practices among aviation parts suppliers and throughout the aviation community. Member companies include: distributors, suppliers, surplus sales organizations, repair stations, manufacturers, airlines, operators, and other companies that provide services to the aviation parts supply industry. ASA also interacts with and participates within working groups from agencies across six continents including the FAA, EASA, Transport Canada, CAAC, Australian CAAC, and many others. As a result of the group’s auditing capabilities, over 280 companies have received global accreditation to the ASA-100 Quality System Standard and FAA Advisory Circular 00-56 since 1996.

“As we continue our growth in mainland China and the Asia region ASA-100 reflects our commitment to excellence,” said Mark Atkeson, general manager of GA Innovation China. “Our ASA-100 in addition to our AS-9120 accreditation elevates us to a level of quality never seen in the Chinese market. We are driven to provide customers with the highest quality-level service and reliability in the industry.”

FAA Renews JDA Aviation Certification Consultant Agreement

balzo-2JDA Aviation Technology Solutions announced that the FAA has renewed JDA’s Part 121 Certification Consultant Agreement through December 2015.

Under the FAA Certification Consultant Program, qualified firms such as JDA may be used by new Part 121 applicants to assist them with the FAA certification process. In October 2005 JDA became one of only two aviation consulting firms to first meet the qualifications necessary to be recognized as a Part 121 Certification Consultant. The renewal demonstrates that JDA continues to maintain the high program standards and requirements established by the FAA.

“To become a qualified certification consultant requires arduous FAA training and scrutiny, and to maintain our qualification is certainly a testament about the quality of our team of seasoned experts and the successful results of our projects” said JDA President and CEO Joe Del Balzo.

In addition to a team of highly experienced personnel, JDA uses a rigorous proprietary procedure, CertAssure, to guide applicants through the certification process. By following the CertAssure process, both the carrier seeking Part 121 certification and the agency are assured that all aspects of the certification process have been met. CertAssure helps carriers expedite the process while maintaining high quality and cost effectiveness throughout the certification effort. The CertAssure process is also used by JDA to help existing air carriers implement FAA Air Transport Oversight System (ATOS) and Safety Management Systems (SMS) programs.

As part of the Certification Consultant Agreement renewal process, JDA was required to document its SMS training qualifications and SMS implementation methodology for assisting new Part 121 operators develop and employ SMS as part of their certificate program.

STS Component Solutions Acquires Two ATR’s 72 – 212

STS Component Solutions, a division of STS Aviation Group acquired two ATR 72-212’s (MSN 410 & MSN 431) with engines. The aircraft were previously operated by American Eagle Airlines. These fixed wing multi-engine ATR’s have PW 127 Turbo-Prop engines and are currently in the process of being disassembled. All of the components will be available for sale, exchange or lease to ATR operators and engine MRO’s.

“The purchase of these assets further solidifies our commitment to expand our inventory portfolio and services and further benefit our customers with a variety of choices for support. Our strategy is to continue to provide our airline and MRO customer’s with cost savings opportunities for high quality surplus aftermarket airframe and engine components,” Tom Covella, Group President of STS Component Solutions, states.

Hawker Beechcraft Services Named Sherwin-Williams Distributor for Aerospace Coatings

Beechcraft Corporation announced that its division of factory-owned service centers, Hawker Beechcraft Services (HBS), has signed an agreement to become a distributor for aerospace coatings for The Sherwin-Williams Company. The distributor agreement applies to the full HBS network of facilities in the United States and Mexico, allowing HBS to continue expanding its product offerings and capabilities across different platforms for its customers.

“HBS is a large consumer of Sherwin-Williams products today,” said Christi Tannahill, Beechcraft senior vice president, Global Customer Support. “In addition to expanding our product offerings, this partnership allows us to be more competitive in the marketplace for paint services and the ability to provide more value to our customers and other service providers beyond just paint application.”

As a distributor, HBS is able to sell and distribute Sherwin-Williams aerospace coatings directly to customers and to other service providers, such as paint facilities servicing larger aircraft in commercial aerospace. In addition, customer access to the Sherwin-Williams product is greatly improved via the HBS facilities in Mexico as a part of this agreement.