cabin design update
Transcription
cabin design update
AviTrader MRO August 2012 - www.avitrader.com CABIN DESIGN UPDATE • LATEST IFE SYSTEMS • CONFIGURATION OPTIONS • NEWS FROM ACROSS THE INDUSTRY • WHY SUPPLIER COMMUNICATIONS MUST TAKE TOP PRIORITY when it comes to cabin maintenance, other companies simply can’t keep up m ax capa b i li t i e s Overnight servicing. Seat part replacement. Carpet refresh programs. Building on the backbone of the TIMCO LineCare network, TIMCO leverages the extensive design and manufacturing experience of its TIMCO Aerosystems interiors group to deliver superior cabin support services that few can match. www.timco.aero Editor‘s Page 3 MRO NEGLECT LEADS TO DISASTER Missing parts W elcome to the August edition of MRO. When an Antonov plane crashed into a mountain in Sudan in mid-August this year, killing 32 people, it was the third major air disaster to afflict the African country in the past four years. Some commentators suspected that political intrigue was behind the tragedy, which claimed the life of the Sudanese government’s religion minister, along with several other high ranking politicians and military personnel. But a more likely cause of the accident is less dramatic and far more predictable: the lack of spare parts for Sudanese aircraft. The same argument holds in Iran, another country with a woeful record of air safety spanning all the way back to the 1970s. Since 1980, Iran has had 24 major air disasters claiming more than 1,700 lives. These are disturbing figures, for a number of reasons. First, they mean that hundreds of innocent people are losing their lives thanks to avoidable causes. Second, it highlights the crucial importance of MRO services in keeping people safe in the air, not only when they fly on carriers belonging to developing countries, but from day to day on the largest carriers of all. Russia, China and Indonesia also have poor flight safety records, with Nigeria and Democratic Republic of Congo not far behind. potentially fraught issue, liable to cause acute problems if it is not conducted properly. Elsewhere, Keith Mwanalushi looks at the latest developments in cabin upkeep and renovation, as the options available to operators continue to multiply and the demands from customers grow ever more elaborate. Thanks for reading and, as ever, please get in touch with any comments or suggestions. David Nicholson The answer is for the industry to continue sharing best practice, updating its technological capacity so that issues are spotted and addressed in good time, for manufacturers, airlines and suppliers to be more aware of the absolute need for high MRO standards. As we explore in a special feature this month, communication with suppliers is a complex and AviTrader MRO Published monthly by AviTrader Publications Corp. 9500 Aquila Road Richmond, BC Canada V7A 3P9 Email: peter.jorssen@avitrader.com Tel: +1 (604) 448 0970 www.avitrader.com Editorial David Nicholson, Editor Email: editorMRO@avitrader.com Tel: +44 (0) 020 7359 1200 Mobile: +44 (0) 7802 834477 Advertising inquiries Contents MRO & Production News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-6 Cover Story: Cabin Interior Upkeep . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-11 News From Across The Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12-14 Effective Supplier Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Finance News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18-21 Industry People on the Move . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Jenny Falk Head of Sales & Marketing Email: jenny.falk@avitrader.com Tel: +49 (0) 8761 346007 Registration AviTrader MRO is a subscription-free monthly publication. To receive a copy in your inbox every month, please send an email with the subject “subscribe” to oemmro@avitrader com Opinion Please send your comments and queries to editorMRO@avitrader.com AviTrader MRO - August 2012 S I A E n g i n e e r i n g SIA Engineering Company, Marketing & Sales Email: siaec_marketing@singaporeair.com.sg Website: www.siaec.com.sg Tel: (65) 6541 6794 Design. Installation. Cabin Programme Integrator. Create the ultimate cabin experience for your passengers, complemented by a communications suite, effortlessly. As a pioneer in one-stop turnkey cabin solutions, we provide a complete, seamless management programme for cabin reconfigurations. Partnering reputable design houses, aesthetic suppliers and experienced engineers, we will help you take care of ever y step — planning, engineering, procuring, fabricating, installing and even certifying your brand-new aircraft cabin. The only thing you need to do is, share with us your dream cabin today. MRO and Production News 5 • LHT signs 10 year component support contract with GoAir Go Airlines (GoAir), one of the leading domestic carriers in India, and Lufthansa Technik have signed a 10-year component support contract, effective from August, 2012, for the carrier’s present and future fleet of 20 A320 classic and 72 A320 neo aircraft. The contract covers most of the spare parts required for the regular maintenance of A320 classic aircraft and will also cover the new A320neo fleet of GoAir which is expected to enter into service from 2016 onwards. The component support will be handled via the Lufthansa Technik Group network. Spare parts shall be supplied to the airline’s bases at Mumbai and Delhi. The contract also provides GoAir access to Lufthansa Technik’s manage/m technical operations WebSuite, through which both parties will observe just-in-time inventory management. This will enable further efficiency gains on both sides. le, differing with respect to scratch resistance, finally achieved surface roughness and wear resistance. Interfill not only restores components to serviceability, but endows them with better wear characteristics than the original surface. This results in an improved performance of the complete assembly or system, while the base material properties remain unaffected even after repeated application. • Lufthansa Technik receives CAMO approval from United Arab Emirates Effective immediately, Lufthansa Technik AG can offer customers from the United Arab Emirates (UAE) airworthiness services for the Boeing 747-400 and 747-8 aircraft types as a CAMO (Continuing Airworthiness Management Organisation). Lufthansa Technik received the relevant approval from UAE’s General Civil Aviation Authority (GCAA) for its Hamburg location on July 1, 2012. The background to this step is a change in the legal framework for aircraft owners whose aircraft are registered in the UAE: now, both commercial and non-commercial operators, like private aircraft owners, are obliged to have their own CAMOs or to commission a CAMO such as Lufthansa Technik. For this reason, Lufthansa Technik applied to the GCAA for approval as a CAMO before the legal change took effect, and supplied all the necessary documentation and evidence for this step to be taken. Provisional approval was granted on the basis of the Part M approval already issued to Lufthansa Technik by the German Federal Aviation Office; in order to grant final approval, the GCAA will conduct an audit in Hamburg sometime during the next few months as soon as CAMO tasks are performed for the first UAE customer. Final component testing at LHT Photo: Lufthansa Technik • LHT Component Services expands North American market offer Lufthansa Technik Component Services (LTCS), headquartered in Tulsa, Oklahoma, has significantly expanded its portfolio of technical services for aircraft components and plans to grow even further. LTCS has bundled all its services for the repair and supply of aircraft components at this site in the heart of the American continent, with the result that the square footage of its workshops and warehouses has significantly increased in recent years. In addition to component services, the company now also offers services for the disassembly of aircraft and the sale of their components and engines. “With our expanded service offer in the centre of one of the world’s most important aviation markets, we can meet the needs of our customers on site in the Americas even better,” said Dr. Thomas Stueger, Lufthansa Technik Chief Executive Product and Services, after meeting elected officials in Oklahoma on 1 August in Tulsa. “For this reason, we definitely see potential for a further expansion of our service portfolio for the American market at this successful location.” • Lufthansa Technik Intercoat broadens Interfill repair capability Lufthansa Technik Intercoat has enhanced its repair capability spectrum with Interfill to regional aircraft, namely to hydraulic parts of the Q400. Interfill is the key component of the Advanced Epoxy Repair Process, which is an advanced repair method for aircraft and engine components. With the adaption of Interfill to Q400 components the company is now able to offer operators of regional aircraft this cost efficient repair solution. Lufthansa Technik Intercoat is now capable of repairing the hydraulic pump port cap subassembly as well as the steering actuator transfer tube of the Q400. Further developments for regional aircraft components are in progress. Interfill as an airworthiness approved material can be applied to the component in a coating thickness ranging from 0.2 mm to 5.0 mm (0.008″ – 0.2″). Three variants of the Interfill material are availab- • Lufthansa Technik AERO Alzey services the 1.000th CF34-series engine Lufthansa Technik AERO Alzey (LTAA) celebrated the final test run after servicing the 1.000th turbofan engine of the General Electric (GE) CF34series. The first engine of the CF34-series of the American manufacturer was serviced by LTAA in 1991. Since then the engine type has become a backbone in the service portfolio of the company specialising in maintenance, repair, and overhaul of regional aircraft and business jet engines within the worldwide Lufthansa Technik network. • ACG orders 5th B737-400SF for SPEC conversion Aeronautical Engineers (AEI) has been selected by Aviation Capital Group to provide one B737-400SF 11 Pallet Configuration conversion. The speculative conversion is expected to be completed in mid-November 2012 at which time the freighter will be available for immediate lease. The aircraft is a high gross weight B737-400 (MSN 28661) built in 1997 and is currently undergoing freighter modification at AEI’s Authorized Conversion Center, Commercial Jet, located in Miami Florida. • Gama Support Services awarded UAE GCAA Part 145 maintenance approval Gama, the global business aviation and services group, reported that the United Arab Emirates General Civil Aviation Authority has awarded Gama Support Services FZE UAE CAR 145 Approval, permitting it to undertake Line Maintenance on Challenger 604 and 605 business jets and King Air B300 turboprop aircraft. • GKN Aerospace wins Global aircraft winglets and ailerons contract GKN Aerospace has won a contract from Triumph Aerostructures – Vought Aircraft Division, a subsidiary of Triumph Group, covering the design, build and supply of composite winglets and ailerons for the Bombardier Global 7000 and Global 8000 ultra long-range business jets. The ailerons will be developed and manufactured at GKN Aerospace’s Munich wing structures operation in Germany, with the winglets activity being undertaken by the company’s team on the Isle of Wight, in the south of the UK. AviTrader MRO - August 2012 MRO and Production News 6 • CTS Engines signs new long-term contracts with Nordic Global and Spirit Airlines CTS Engines, a leading independent engine MRO, has signed multiyear engine maintenance service agreements with Finnish cargo carrier Nordic Global Airlines and Ft. Lauderdale-based Spirit Airlines. The agreement with NGA is a multi-year power-by-the-hour engine overhaul agreement for seven CF6-80C2D1F engines operating on NGA’s fleet of MD-11Fs. Under the contract, CTS is responsible for all off-wing maintenance performed on the contracted engines. The Spirit agreement, also multi-year, encompasses all on-wing engine field service work for Spirit’s fleet of 42 V2500-powered A320s. 11 Pallet Configuration Freighter Conversions. The aircraft are all ex Qantas high gross weight B737-400′s, (MSN 24440/1992, MSN 24433/1994, MSN 24446/1994). All three aircraft will undergo freighter modification at AEI’s Authorized Conversion Center, Commercial Jet, Inc., located in Miami Florida. AEI’s B737-400SF 11 Pallet Configuration will provide the ASL Aviation Group with an Ancra equipped Main Deck Cargo Loading System capable of carrying ten 88“x125“x82“ or Eight 96“x125“x82“ ULD’s in P1-P10 and a 53“x88“x64“ high pallet in P11 (More full height ULD’s than any other B737-400 conversion). This unique configuration will allow operators to maximize the interior volume of the B737-400SF by the addition of a tenth ULD position. • Liebherr’s A380 Supplemental Cooling System enters into service The second-generation supplemental cooling system developed, manufactured and qualified by Liebherr-Aerospace for the Airbus A380 aircraft has entered into service in July 2012, upon delivery of the A380 serial number 078 to Malaysia Airlines. Liebherr-Aerospace’s supplemental cooling system is a high-power cooling system that features latestgeneration power electronics and a screw compressor. Complete Turbine Services engine maintenence Photo: CTS • Flying Colours completes first Global Express refurbishment and maintenance project for Malaysian customer Flying Colours has completed and delivered its first Global Express refurbishment and maintenance project for a Malaysian customer. It is the fifth Global Express refurbishment project Flying Colours has completed in the last twelve months and reflects the company’s developing focus on this aircraft type. The latest project in the Flying Colours Corps.’ expanding programme of Global Express refurbishments, modifications, and maintenance orders, was completed and delivered to a Malaysian client in early July 2012. The project was undertaken on behalf of a private client, and reinforces the continued interest in Flying Colours’ services from the Asian market. The completed interior underwent a full refurbishment of all interior soft goods, woodwork, and numerous IFE upgrades which focused on modernizing the aircraft with IPAD holders, and a Honeywell IPOD dock. • Boeing opens new parts processing centre at Portland site Boeing announced the opening of its new parts processing centre and building expansion in Gresham, Ore., a suburb of Portland. Employing about 1,800 people, Boeing Portland is an ISO 14001-certified site that serves as the company’s Center of Excellence for complex machining, gear systems and flight controls. Employees at the 64,000 ft² processing centre will use the latest Lean processes and tools to process machined parts destined for all Boeing 7-series airplanes assembled and delivered in Everett and Renton, Wash, as well as Boeing South Carolina. • Jet Aviation Basel signs narrow-body completions agreement for BBJ3 Jet Aviation Basel signed an agreement with an undisclosed client from the Middle East for the completion of a BBJ3. The spacious cabin interior of the aircraft has been designed by Studio E/motions and its layout includes a living area, a conference/dining room and a private bedroom with en-suite bathroom. Completions work on the cabin interior of this aircraft is scheduled to begin in the third quarter of 2012. • ASL Aviation Group orders three AEI B737400SF conversions Aeronautical Engineers (AEI) has been selected by ASL Aviation Group, to provide three B737-400SF A350 Flight Deck The system provides additional cooling to control the temperature level in such critical areas as galleys and electronic bay. In addition to the supplemental cooling system, Liebherr-Aerospace supplies a wide range of key systems to the Airbus A380, including the high lift system, spoiler actuation, the engine bleed air system as well as the hydraulics cooling system. • Constant Aviation completes Citation X winglet modification Constant Aviation has announced that it has completed its fifth winglet modification on the Citation X. “We made a commitment to make the Citation X one of our niche aircraft. The commitment required a significant investment in talent, training, tooling, and experience allowing Constant to become Citation X experts. Within the first seven months of 2012, we have completed over 60 maintenance events, averaging 8 inspections a month, specifically on the Citation X. These have ranged from the small to the largest inspection, a Doc 11, and have included significant structural and composite repairs,” said Stephen Maiden, President of Constant Aviation. The Citation X is a transcontinental airplane and adding the winglet option increases the performance of the aircraft. The addition of winglets to the Citation X allows the aircraft to climb directly to 34,000 feet in 29 minutes compared to a 93 minute step climb without the winglets, which increases the aircraft’s range by 160 nautical miles. • A350 XWB “MSN1” flight-deck comes to life Airbus has successfully powered-up the flight-deck of A350 XWB “MSN1” for the first time, following the initial application of electrical power to the aircraft’s front fuselage. This significant milestone was passed only two weeks after this section was delivered to the Final Assembly Line (FAL) in Toulouse. Moreover, it gives a promising indication of the A350 XWB’s progress in pre-FAL and the readiness of the aircraft’s systems. Flight-deck power-on is an important step on the route to complete aircraft power-on and first flight, because it enables most systems’ functional checking to be undertaken. Having achieved this nearly a year before first flight will allow early identification and resolution of potential issues and thus help to protect the aircraft’s development schedule. Testing of the front fuselage section will proceed during this summer. This will be followed by the power-on of Photo: Airbus the entire fuselage later this year. AviTrader MRO - August 2012 Cover Story: Cabin interior upkeep 7 From the inside out Keith Mwanalushi outlines the latest thinking in cabin design and configuration Airlines have their work cut out when it comes to configuring whole fleets of aircraft with completely new interiors. This is often to match the service levels of newly delivered aircraft with older types in the fleet. Having determined if the task is minor or major, and fits in within one‘s DOA scope, he says the next task is to ensure that all the relevant regulations are complied with. Compliance can be demonstrated by either an official statement or, in some cases, tests and technical reports or drawings. This often presents itself in the form of a multi-million dollar package that includes inflight entertainment (IFE) system upgrades and cabin refurbishments in tandem with other marketing initiatives, such as upgrading airport lounges. Analysis and testing, in order to support aircraft modifications especially interior work is a delicate task which takes into consideration several critical factors. According to the Singapore based SIA A newly refurbished 777 cabin Engineering Company (SIAEC), cabin makeovers and retrofits will typically include engineering and designing of the new cabin layout; defining, selecting and procuring required materials such as carpet, curtains and galley mats; coordinating vendors and partners for the timely arrival and installation of modification kits on-site; besides ensuring the timely issuance of Supplemental Type Certificates (STC) from the regulatory authorities. Dennis A Santamaria, head of design organisation at Vilnius-based FL Technics, agrees that making interior changes is a very complex process. “The first and most important task is to establish whether the change requested by the customer is classified as minor or major and is within the scope of your DOA. This is usually done through a specifically designed questionnaire. It is a very complex procedure – it involves a lot more than just ticking the questionnaire boxes with a simple yes or no answer as sometimes substantiations are required to support the classification process,” says Santamaria. Photo: SIAEC “Following this, a change bulletin is prepared together with the drawings to provide the customer with the information and instructions that may affect the change and, if necessary, the pu blication amendment as a supplementary document for customer manual amendments. The process is independently mo nitored through the quality department and regular audits by the authorities,” he adds. For cabin retrofits SIAEC serves as the programme integrator, working with a wide selection of partners and vendors, including engineering design houses and aesthetics suppliers, to engineer, plan, procure, fabricate, install and certify the airline’s customised aircraft cabin as seamlessly as possible. A SIAEC spokesperson highlights some of the key factors that airline operators need to consider while managing their cabin retrofit program: “When selecting cabin products, always consider maintenance costs in the long run. The selection of IFE systems should be carefully considered due to constant obsolescence and allocate sufficient lead-time for evaluating the entire programme to allow adequate planning and negotiating of purchase agreements. This will help avoid high mark-ups for rushed lead times.” KEEP YOUR FLEET UP IN THE AIR. NOT YOUR SCHEDULE. We’re proud to be one of the world’s largest airline MROs. And when you combine our size with our experience managing the world’s largest airline fleet, you’ll see we’ve developed the expertise to provide top-notch, on-schedule service to more than 150 aviation and airline customers around the globe. It means we can deliver uncompromising attention to detail on everything from airframe, component and engine jobs, to line maintenance and everything in between. Plus, we’re committed to superior service ... from your expert in the hangar, to your dedicated account manager in the office. That means unparalleled quality. Competitive costs. Quick turnarounds. All the tools to keep your aircraft — and your schedule — moving like they should. For an inside look at the advantages Delta TechOps brings to your aircraft maintenance, visit DTOMROSolutions.com or call +1-404-773-5192. 9 Cover Story: Cabin Interior Upkeep SIAEC also notes that operators should consolidate their requirements to have long term RFP issued with various LOPA options to minimise engineering cost and products as STC retrofits are expensive. Another key point is to track the record of suppliers to ensure their products will be supported. A recent industry report showed that modifications are the fastest-growing segment of the MRO industry, which amounted to $44 billion in 2010. Aircraft modifications represent 7% of that number, or $3 billion per year with about 75% of cabin modification revenue coming from interior upgrades and 25% from IFE installations, supposedly creating opportunities for third-party MROs. The configuration of seats on an Airbus A320 can vary from 136 to 180. The cabin refurbishment orders that we receive vary depending on numerous factors, such as the degree of depreciation, changes in the latest trends or shifts in operation purposes and target passenger groups.” Santamaria adds that the main challenge is to carry out all these changes whilst complying with the aviation regulations which are becoming increasingly strict in order to ensure that the cabin always remains equipped to the highest industry safety standards. Within a relatively short time FL Technics developed a variety of cabin interior services that include seat cover and cushion replacement, carpet replacements, side wall panel installations, cabin As airframe manufacturattendant module change ers will take some years and curtain replacement to launch their new airor fittings. Jeff McShane, craft models namely the executive vice president B737MAX and A320neo at Northwest Aerospace aircraft, SIAEC indicates Technologies (NAT), notes that modifications shall Photo: CSA Technics the opportunities present remain the fastest grow- Cabin modifications were worth $44 Billion in 2010 in the cabin works sector ing segment of the MRO and says there are as many challenges that come with opportunities. industry as airlines try to close the gap between rejuvenating tired cabins on older aircraft and current new models. “The business hasn’t gotten any easier that’s for certain,” he says. “As far as the trend of older cabins being upgraded to match the new models, this has “As a result, there are indeed numerous requests from third party airlines for been going on for a long time but we are seeing an upswing in interest and cabin modification including the upgrade of technologically advanced IFE opportunities with the advancements inside the cabin.” systems, especially when the passenger experience is now one of a carrier’s top priorities,” says SIAEC. He adds: “I think the trend towards a larger cabin SFE content versus BFE at the OEMs for new models is playing into this as well. We recognise and feel SIAEC sees trends that point towards more retrofits on aircraft as rollover the surge in activity for new products and equipment from the front line. programs are expected to have longer cycles. IFE systems are migrating toThe challenge of growing while ensuring we are getting better is constant.” wards plug-in and portable systems rather than traditional systems while the use of PMA parts for cabin items have become more acceptable. Ulti- Virgin Atlantic selected NAT and the Hong Kong Aircraft Engineering Commately, the focus will continue to be on lightweight, aesthetic and durable pany Limited (HAECO) for the British carrier’s 747-400 cabin reconfiguration products with competitive pricing models. work. The modifications will reconfigure Virgin’s 747 fleet with new and upgraded passenger seating, a new IFE system with connectivity, new monuIn April 2012 FL Technics gained approval for cabin interior modifications ments, interior furnishing and décor enhancements. and the company notes that while refurbishing the interiors, specialists must consider a variety of trends. For instance, new, thinner and more so- NAT is the engineering integrator, providing programme and supplier interphisticated seat models require changing the entire configuration accord- face management, modification engineering and parts kits, on-site installaing to the detailed plans. tion support and EASA STC certification under its EASA DOA. “Naturally, all changes create new possibilities for third-party providers,” admits Dennis Santamaria. “Moreover, in some countries the customs taxation depends on the number of seats, in some of them additional taxes apply to aircraft with over 150 seats. The work scope undertaken by HAECO includes aircraft modification project management, material management, on-site coordination with cabin and inflight entertainment vendors, cabin reconfiguration, and associated system testing. AviTrader MRO - August 2012 NEW CHOICE LONG TRADITION Czech Airlines Technics has more than 80 years of experience in in-house aircraft maintenance, 50 years of experience in jet aircraft maintenance and more than 20 years of experience in western built aircraft maintenance. Czech Airlines Technics's experienced technicians and engineers, short turn around, well equipped facilities, 24/7/365 guaranteed availability and advantageous location in the heart of Europe makes Czech Airlines Technics worthy of consideration. Capabilities: Line Maintenance | Base Maintenance | Landing Gear Repair / Overhaul Component Repair and Supply Management | CAMO Services | NDT | Avionics upgrades Cover Story: Cabin Interior Upkeep 11 “The Virgin 747-400 prototype configurations have been completed at HAECO and we are now in production on the follow-on aircraft,” confirms McShane. “We had a substantial 767-300 prototype at HAECO at the same time and that particular program was a very large cabin makeover, essentially gutting the interior for an all new one from floor to ceiling, front to back. Both of these programs are now in full production at HAECO.” program is part of a full cabin reconfiguration program NAT is supporting as integrator, installing a large crew rest in the bulk cargo compartment on A330-200 aircraft. In the end analysis, the location of a crew rest compartment comes down to the economics of passengers, cargo, available space and overall cost to install.” Although airlines with their own MROs will try to do as much of the work on these fleet programs as possible, many airlines use vendors to help with engineering the cabins. Delta and United are both using HAECO for some cabin work and Air Europa has signed a new contract with AFI KLM E&M to provide and certify business class sections on two of its A330-200 aircraft. The modification covers fitting of 18 business class seats, new storage furniture and decorative features, and also involves adapting the IFE to the new aircraft configuration. Day to day cabin maintenance procedures such as refreshing cabins on overnight stops during line maintenance, carpet refresh, seat parts replacement and so on can be delicate tasks. SIAEC, with its line maintenance network coverage across over 30 airports globally, has specially trained teams that support the new “Six star cabin” packages in Singapore and at its Mark Davis, Senior VP MRO sales at TIMCO overseas line maintePhoto: TIMCO nance stations. SIAEC had also recently completed a full cabin reconfiguration project on four B777-300 aircraft for a leading Russian carrier and for two B777200ER aircraft for a new start-up airline, Scoot, with its engineering design house, JAMCO Aero Design & Engineering (JADE). Spanish operator Iberia will start its own retrofit program for 17 Airbus A340-600s in mid-October 2012 at its maintenance facility in Madrid according to press reports. Iberia plans to complete all of the modifications in-house. “Airlines require and are mainly requesting cabin overhauls and interior upgrades, as well as asking to boost seat capacity and to improve overall cabin layout,” comments Pavel Matějka, Czech Airlines Technics’ technical services sales specialist. “According to our experience, OEMs of cabin interiors and aircraft manufacturers are not willing to participate in design preparations of such modifications. If they do, then it’s at extremely high prices and long lead times. Therefore, there are large market opportunities, but on the other hand, competition is enormous in pricing, quality and delivery terms,” says Matějka. Czech Airlines Technics recently won a number of line maintenance These teams will ensure the cleanliness and aesthetics of the cabin interior, as well as the functionality of the IFE systems at each overnight stop at line maintenance, including SIAEC’s collaboration with Leather Institute to provide more repair capabilities on leather products and plastics moldings to its customers. These repair capabilities include leather and fabric cleaning and conditioning, repair, refurbishment and upholstery recovery. Similarly, TIMCO Aerosystems has designed a suite of services under its new Cabin LifeCare programme that provides a range of airlines with what the company believes are consistent levels of cabin reliability and aesthetics. Mark Davis, senior vice president MRO sales at TIMCO told AviTrader that the response and level of market interest for Cabin LifeCare has been quite encouraging. “The reason we decided to develop programmes that provide airlines with care for their investment in interiors was a response to the frustration we hear regularly about replacement parts availability and traditional approaches to product support,” he explains. Davis further says the programme provides a support service that mitigates risks to the airline’s operation while also providing clear visibility to total lifetime maintenance costs. TIMCO is currently preparing the launch programme with the first customer later this year with hopes that the model can be replicated with other interested operators, albeit refined to meet their specific cabin service levels. Repairs of window panels being undertaken by Czech Airlines Technics Photo: Czech Airlines Technics contracts particularly in Russia and the scope of work being done there covers various fixtures of baggage bins, repairs of window panels, replacements of seat tables and of other seat parts. “Our company delivers complete on-call defect rectifications at various Central & East Europe airports, while guaranteeing technicians’ arrival time,” adds Matějka. The refurbishment of crew rest compartments tends to be overlooked supposedly because they are unseen and unused by passengers, but Jeff McShane from NAT sees some activity here. “More recently, we have seen some lower deck activity on the 767 and A330 aircraft,” he says. “The A330 Cabin maintenance processes will no doubt require the need to safeguard the flammability properties of fabrics, protect the fabric colour and preserve brand projection. Managing and integrating these aspects is not an easy task. TIMCO covers some of the regulated standards in their training programmes to ensure consistency and other aspects are stipulated by the airline customer. Davis emphasised the need for the service provider to understand those critical customer-specific requirements as well as the customer’s expectations for the passenger experience they wanted to create. “Today, the requirements can differ significantly from one airline to the next, dependent on how they use their aircraft, the airline’s market strategy and other factors,” he says. AviTrader MRO - August 2012 News • TAE adds new turbine engine light maintenance capability in Brisbane Following on from the opening of Australia’s newest engine maintenance and test facility for turboprop engines and APUs in Adelaide on 27 July, TAE announced the addition of a new PT6 engine maintenance capability at Brisbane Airport. TAE now offers customers a ‘light’ maintenance capability, including hot section and power section repairs for all PT6 models in Brisbane, backed by the great customer service TAE is known for, quick parts supply and the ‘heavy’ overhaul capability available in its new Adelaide facility. CASA approved and managed on-site by Chris Christofis, the facility is integrated with TAE’s regional wheels and tyres operation and is also a new base for TAE’s PT6 and TPE331 Field Service Team that provides ‘on-wing’ engine services across Australia. • TAE opens new turbine engine maintenance facility TAE announced the opening of its new Turbine Engine Maintenance Facility at Adelaide Airport. TAE provides engine maintenance services for the Honeywell TPE331 and the P&WC PT6A turboprop engines and the Hamilton Sundstrand APS500 and APS1000 auxiliary power units for customers across Australia and the Asia-Pacific region from its Adelaide Airport Facility. “It is a great day for TAE” said general manager, Andrew Sanderson. “This new facility now gives us a world class platform for our team to continue delivering great service to keep our customers flying today and offers new expansion possibilities to accommodate our planned growth into the Asia-Pacific region tomorrow. With the addition of this facility, TAE will be the largest independent turbine engine MRO provider in Australia, covering several engine types powering aircraft from the agricultural Air Tractor to the F-18 Super Hornet with more opportunities on the way”. The 1,500m2 facility has been purpose built for the maintenance of turboprop engines and is now fully integrated with TAE’s dual capability 2,000 kW dynamometer test cell, offering customers the best maintenance and test capability for their product in the region, all under one roof. • TP Aerospace Leasing signs 5-year fullservice Wheels & Brakes program with Bingo Airways TP Aerospace Leasing has been awarded a five year contract to provide its full service and all inclusive Wheels & Brakes Cycle Flat Rate (CFR) Program to Poland’s newest charter airline 12 Bingo Airways. TP Aerospace Leasing will provide its highly flexible, cost effective and tailor made Component Maintenance, Pool Access, Onsite Lease Inventory and Logistics Program in support of Bingo Airways’ current and planned fleet of Airbus A320 aircraft. The Program cements TP Aerospace’s position in Northern and Central Europe as the preferred Wheels & Brakes support partner for ‘progressive and vibrant operators,’ says the company. Bingo Airways, based in Warsaw and Katowice, was founded in November 2011 and started flights in May 2012. The airline was set up by a group of Polish aviation professionals headed by Marek Sidor – former vice president of LOT Polish Airlines and CEO of Eurolot. • Aviointeriors awarded contract to supply seats for Nordwind B767 fleet Aviointeriors, the Italian manufacturer of aircraft seats, announced that Nordwind Airlines, a Russian charter airline operating from Moscow Sheremetyevo airport, has awarded Aviointeriors a contract to supply business and economy class seats for four B767-300ER aircraft. The airline is also considering the option to extend the contract to three more B777 aircraft. The Nordwind B767-300ERs, the extended-range version of the B767-300, will seat from 300 to 342 passengers in a two class layout. The Nordwind passenger accommodation will feature the typical six abreast configuration in business class, and eight across (2-4-2) in economy. Aviointeriors will supply the Andromeda seat model for the business class, and the Centaurus seat model for the economy, both of them already successfully installed on the B767 cabin of many other operators around the world. • JetCorp Technical Services flies into Indonesia with first CRJ ExecLiner conversion for the region JetCorp Technical Services, a subsidiary of Flying Colours Corp., has begun work on the latest in its series of state-of-the-art executive conversions of the Bombardier CRJ 200 regional airliner. The Bombardier CRJ will be transformed into an ExecLiner executive VIP configuration destined for a private Indonesian client. This is the first ExecLiner to be readied for Indonesia and during the conversion process Flying Colours will work closely with the client and Bombardier to achieve Indonesian type certification for the CRJ200. Flying Colours will supply an FAA STC that will subsequently be validated by the Indonesian regulatory body and the aircraft will be exported to Indonesia upon completion. In addition to an extensive pre-purchase evaluation, and the interior conversion, Jetcorp will also be carrying out an extensive maintenance package on the aircraft at its full spectrum MRO facility. Maintenance work will include a landing gear overhaul, a 96-month inspection, the conversion from a high utilisation maintenance programme (HUMP) to a low maintenance programme (LUMP) and the incorporation of all outstanding Airworthiness Directives. • Pattonair secures major deal with Airbus Pattonair, a global aerospace and defence supply chain service provider, reported that it has signed a major new contract to supply a range of nuts across all Airbus platforms. This is a significant new development for Pattonair, building on the company’s 25 year relationship with Airbus. Under the terms of the five year contract, Pattonair will supply all Airbus facilities in Europe as well as its EADS sister companies and key sub-contractors. The company will work with a leading nut manufacturer who has designed a product which delivers a significant weight-saving, thereby reducing fuel consumption and enhancing the green credentials of the latest generation of Airbus aircraft. • 328 Support Services signs contract with ACJC for future projects 328 Support Services GmbH has signed a long term contract to be a major supplier to the Airbus Corporate Jet Centre (ACJC) – the specialist in Airbus Corporate Jet (ACJ) VIP cabin completions and associated services – based in Toulouse, France. This Agreement allows the parties to work together and cements a strategic partnership for various future projects and recognises the quality workmanship, that 328SSG has already successfully provided for other major European completion centres, on both large and medium sized VIP aircraft. 328SSG has delivered complete conversion and refurbishment projects on various aircraft types including the manufacture of a complete rear galley complex for an Airbus A340 V VIP aircraft. Current projects in work include all galleys on a B767 VIP aircraft and support to a Gulfstream GIV VIP renovation. 328SSG’s experience as an aircraft Type Certificate Holder gives it an excellent understanding of the system integration and interface elements required for VIP completions. AviTrader MRO - August 2012 13 News • LTQ Engineering to cease operations The Australian aircraft engine overhaul provider LTQ Engineering, which is based in Tullamarine, will cease operations and close its doors in September owing to the strong decline in engine overhaul demand. • Norwegian Air Shuttle becomes Boeing’s largest landing gear exchange customer Norwegian Air Shuttle, the third largest lowcost airline in Europe, has become the largest customer for the Boeing landing gear exchange program with a new service contract covering an additional 15 Next-Generation 737s. Landing gear must be overhauled and recertified every 10 years, or after 18,000 cycles. The closure was announced by the company, a joint venture of Lufthansa Technik (50%) and Qantas Airways Limited (50%), on July 26 in Melbourne. “Reduced regional demand, tough international competition and more reliable new generation engines have directly impacted the viability of the business. Simply put, LTQ does not have the scale of engine maintenance work to be competitive,” LTQ Chairman and Lufthansa Technik Chief Executive Officer, August Wilhelm Henningsen, said. “Significant investment had been made in LTQ since the joint venture was formed and the shareholders had continued to support the business even though it had made consistent losses in each year of its operation. By taking the decision now while the company remains solvent, it ensures that all employees will receive their full entitlements and all obligations to creditors can be met.” Henningsen said. Lufthansa Technik advised Qantas that it could not continue to invest in the loss making Tullamarine facility. LTQ Engineering’s board evaluated a number of different strategies to address the continued losses, including winding down the company. Considering the strong decline in demand and the company’s business and outlook, LTQ is not financially viable. The joint venture partners have therefore decided to wind down production and close the company. LTQ has been in operation since 2004 - formerly under the name of Jet Turbine Services - before becoming a new joint venture between Lufthansa Technik AG and Qantas Airways Limited in 2008. • Lufthansa Technik AERO Alzey and InterSky continue cooperation Austrian based carrier InterSky and Lufthansa Technik AERO Alzey have announced that they will prolong their partnership by signing an agreement that extends the duration of the existing contract by an additional five years. Participants in the landing gear exchange program receive fully overhauled and certified landing gear shipsets during scheduled gear maintenance cycles, giving customers an alternative to the large capital investment of new landing gear. Lufthansa Technik CEO August Hennigsen Photo: Lufthansa Technik nes. Under the exclusive contract, the company will be responsible for maintenance services of all GE90-110B engines powering AeroLogic’s Boeing 777F fleet including their owned spare engines. The long-term contract has a value of more than $200m. • Oman Air and Onur Air select Hamilton Sundstrand as maintenance provider for Auxiliary Power Unit Oman Air has selected Hamilton Sundstrand Corporation for a long-term agreement to be the maintenance provider for the APS2300 Auxiliary Power Unit (APU) on its existing fleet of five Embraer 175 series aircraft. The APS2300 APU is currently on board more than 800 Embraer 170/190 aircraft around the world and is operated by more than 70 customers since its introduction into service in 2004. Onur Air has selected Hamilton Sundstrand to be the maintenance provider for the APS3200 Auxiliary Power Unit (APU) for its fleet of nine Airbus A320 family aircraft, equipped with the APS3200. Hamilton Sundstrand will also retrofit two additional A320 aircraft with the APS3200 APU. The new contract gives Norwegian Air Shuttle a service schedule that runs until 2027. Norwegian has undergone three landing gear exchanges with Boeing to date. This next exchange is scheduled for October 2013. • Avion Express signs up for SMART Monarch Aircraft Engineering (MAEL) has signed an agreement with Avion Express to provide a worldwide support structure for the use of SMART (Specialised Monarch AOG Response Team.) SMART operates under MAEL’s EASA 145 approval and has a highly experienced team of engineers on all day and night standby 365 days a year. Under the terms of the agreement MAEL will provide support to the Lithuanian airline’s Airbus A320 fleet of aircraft at various locations around the world. • MTU Maintenance Hannover completes repair of 3,000th V2500 engine MTU Maintenance Hannover has repaired the group’s 3,000th V2500 engine. It was delivered to US aircraft lessor ILFC (International Lease Finance Corp). MTU Maintenance is the market share leader for maintenance, repair and overhaul (MRO) services regarding this engine type. Co-developed by MTU Aero Engines, the V2500 powers the Airbus 320 family of aircraft. In 2010 InterSky and Lufthansa Technik AERO Alzey entered into an exclusive Agreement to support InterSky’s fleet PW123 powered Q300 aircraft with engine MRO services. • MTU Maintenance wins AeroLogic for maintenance of GE90-110B engines MTU Maintenance Hannover has won another customer, the German express cargo operator AeroLogic, for the maintenance of GE90 engi- Hamilton Sundstrand's APS 3200 Auxiliary Power Photo: Hamilton Sundstrand AviTrader MRO - August 2012 14 News • GE Aviation announces upgraded repair warranty programs for CF6 and CFM International engines GE Aviation has upgraded repair warranties for CF6-80C, CF6-80E and CFM International CFM56 engine parts. Warranty hours for GE repaired CF6-80C/80E engine parts have tripled to 6,000 hours and CFM56 warranties have doubled to 4,000 hours. “The enhanced warranty program demonstrates GE’s commitment to lead the engine services market in meeting the cost and technology needs of our customers,” said Anna Nabb, general manager of Repair at GE Aviation’s Services organization. “GE Aviation is the first in the engine repair industry to introduce these extended warranties on CF6 and CFM engines because we are dedicated to raising the standard of OEM value and quality. GE’s CF6 engines have been among the most utilized and reliable in the industry for more than 40 years. Powering more than 10 models of wide-body aircraft, the CF6 engine family has established an unparalleled record of reliability and has compiled more than 7,000 deliveries with more than 250 operators in 87 countries. • SR Technics completes 50th heavy check for easyJet out of Malta SR Technics has redelivered the 50th heavy maintenance check on an Airbus A319 aircraft for easyJet out of its Malta facility. In addition to the heavy maintenance checks, the Malta team has also completed eight end-of-lease (EOL) checks for the airline, a further four are planned to be completed by the end of 2012. All work is completed out of SR Technics’ two-bay hangar at Safi Aviation Park. • A J Walter Aviation completes part-out of two Boeing 737-600 aircraft A J Walter Aviation, a leading independent complete aircraft spares support specialist, recently completed the part-out of two Boeing 737-600 aircraft purchased from Austrian Airlines. Both aircraft were delivered to eCube Solutions, an aircraft end of life management company in Wales, where the disassembly process was performed undercover in its dedicated 56kft2 hangar. ter DHC-6 aircraft with the installation of new PT6A-27 and PT6A-34 engines. The rejuvenation of these aircraft will provide operators significant performance improvements. Kenn Borek Air operates one of the largest Twin Otter fleets in the world. The company owns a full service overhaul maintenance hangar in Calgary with routine maintenance anywhere in the world. • Epic Aircraft Holdings signs long-term agreement with P&WC Pratt & Whitney Canada (P&WC) has signed a long-term agreement with Epic Aircraft Holdings to power the new E1000 aircraft with its PT6A-67A engine. Epic Aircraft Holdings currently produces the experimental LT aircraft out of its facility in Bend, Oregon. The PT6A-67A turboprop engine is based on the most powerful engine core in this class and incorporates the latest in compressor and hot section materials and design. It provides easy starting and altitude re-lighting in all weather and temperature conditions without the need for large batteries or electronic controls. Its low frontal drag provides the opportunity for significant ram recovery and high speed, critical for this aircraft. The PT6A-67A engine design allows for adaptability in changing propeller output speed to reduce noise, and provides optimal operational flexibility, including the possibility of highspeed low power descents. • Chromalloy begins offering CF6-50 aircraft engine teardown to part Chromalloy has announced that its San Diego, Calif., engine maintenance, repair and overhaul centre now performs CF6-50 power system teardown services for MRO parts suppliers. “We have established a launch customer for our teardown service and will provide it to parts suppliers worldwide, as well as our existing customers,” said Martin George, General Manager. “Chromalloy’s San Diego operation is one of the only service providers that can provide tear- The part-out of these 737-600 aircraft is now complete and the parts recovered are being certified and fed into the AJW inventory reserves for sale, exchange or loan to the Company’s significant B737NG customer portfolio. • P&WC signs new 5-year agreement with Kenn Borek Air Pratt & Whitney Canada (P&WC) has signed a five-year agreement with Calgary-based operator Kenn Borek Air. This contract covers the upgrade of the Viking Twin Ot- Eurocopter opens Peru Service Centre down and manage the piece-part inspection and repair – all under one roof.” Teardown on two 747 commercial airliner engines for a global parts supplier is now under way at the San Diego centre. The CF6-50 is the first engine for teardown service offered by Chromalloy; others will be added in 2012 and 2013. The company’s 110,000 ft² maintenance, repair and overhaul centre – the only MRO in Chromalloy’s global network of component repair stations – provides a range of other services including module refurbishment, equipment exchange, seals, Non Destructive Testing, engine monitoring and test cell analysis. • Eurocopter opens first certified services centre in Peru With a view to increasing the close-proximity services it offers its customers, Eurocopter’s subsidiary in the Southern Cone has put its partnership with Servicios Aéreos de Los Andes SAC on an official footing and has also opened its first certified services centre in Peru. The new centre, based in the city of Ayacucho and opened by representatives of both companies, will offer customers and operators a close and reliable partner providing a comprehensive range of maintenance services. Operators of Eurocopter’s Ecureuil AS350 B3 will now have access to a maintenance centre certified at “Operational & Intermediate” (O&I) level. The centre will carry out inspections up to 600 flying hours and will replace small and large components, including gearboxes, blade and hub units, and electrical and avionics systems. • GE facility in Qatar set to receive engines for upkeep The GE Aviation On-Wing Support Middle East & Africa quick turn engine maintenance facility, located in Qatar Science & Technology Park, as a part of the GE Advanced Technology & Research Centre, will soon start inducting engines for maintenance. The On-Wing Support facility in Qatar is the newest addition to GE’s On Wing Support global footprint, which includes locations in Cincinnati and Dallas in the US, alongside London, Seoul, and Shanghai. The first of its kind in the region, the facility received European Aviation Safety Agency approval on 19 April this year to be an aeronautical engine repair station. Business leader Tyrone Jones explained that his team has been qualified to work on five engines within a short span of 12 months. “The engine models we will support are the CFM56, GE90-115B, CF34, GEnx, and GP7200,” he stated. GE Aviation On Wing Support Middle East & Africa has 15 staff Photo: Eurocopter and two interns based in Qatar. AviTrader MRO - August 2012 Our Best Leaders Make the Best Partners As your Best Partner, VAS Aero Services relies on the ingenuity and expertise of those it chooses to lead its world-class organization. As it continues to expand its global presence, VAS has appointed Gabrielle Costigan to manage its worldwide Military team. Gabrielle brings with her 20 years of impressive experience in the global aviation industry. Her wealth of knowledge and talent will further establish VAS as a global industry leader in aviation logistics and aftermarket services. Gabrielle Costigan, Vice President of Military Programs Costigan joins VAS as a former Colonel in the Australian Defense Force. Most recently, she served as the Director of Multi-National Logistics under the United States Central Command, where the Afghanistan military campaign is headquartered. Gabrielle’s successful and challenging career has been highlighted by key senior, engineering, logistic, operational and command appointments. Says VAS CEO Andrew Dudgeon, “We welcome Gabrielle’s insight, proven leadership abilities and aviation industry expertise, all of which will benefit VAS as we expand our presence in military markets around the world.” www.vas.aero Effective supplier communication 16 David Nicholson speaks to Tom Lessing of Agile Partners I n a worst case scenario poor supplier communication can result in aeroplane crashes and fatalities, simply because the right information was not passed on, or wasn’t acted upon, according to Tom Lessing of Agile Partners. He has known helicopters end up in the ocean, killing all the passengers, because some parts had been over-used and should have been replaced. Agile Partners Inc, founded by Tom Lessing, provides services for aviation, transportation, security and energy sectors “It blows me away how Image: Agile Partners the aviation industry still relies on pieces of paper,” says Lessing, who helped to develop an online monitoring system for supplier By contrast, many operators still rely on old fashioned systems where they communication, using a series of flags and reminders to alert customers have to go looking for potential issues, which means that the system as to when parts need to replaced, for example. a whole is vulnerable to human lapses, to the responsible person being “It’s impossible for the human brain to manage as much detail as there is away from work sick or on holiday, to people neglecting to seek out proin a modern aircraft engine,” he argues, pointing out that a typical engi- blems because it makes their life harder and for irregularities - such as an ne may have more than 3,000 parts, many of them subject to regulations aircraft being used more than expected – failing to register, putting the concerning their use. Many repair operations will then communicate with safety of future passengers at risk. suppliers and sub-suppliers, with different parts of the same engine being repaired in different places at different times. “People rely on an excel spreadsheet, but there’s no one place that you can go, you have to ask multiple people. You can never understand what’s going on with an engine in one place.” Agile Partners launched its software package in 2007, using a web browser to access information and communicating much of the relevant information through its flag system. A number of information sharing systems are now available in mainstream computing, from Microsoft for example, but there is still little specifically for aircraft suppliers. As Lessing explains, aircraft engine repair is more to do with individual ‘positions’ in the engine, rather than specific parts. Each position is subject to multiple impacts and the engine itself will wear out at a certain rate, depending not just on the hours it has flown but on how pilots have flown it. “Repair and operations people have to monitor the health and wellbeing of an engine,” says Lessing. “Our system allows repair operations to red flag parts, because they are time limited for example, to identify potential issues.” “Our system was developed by an aviation expert who understands communication,” says Lessing. “He mapped communications and found weak spots, so that’s what spawned out product. We’re pushing the envelope of the aviation communication industry.” Agile Partners has trained more than 80 aircraft maintenance employees in Asia to use its system.“We’re just looking to make communication between customers and suppliers more effective,” adds Lessing. And help to prevent future disasters in the industry due to lack of good communication. Search or sell with StockMarket.aero FREE online aviation parts marketplace Over 40 million qualified line items of inventory and capability from over 2,300 aircraft parts vendors MRO & Logistics Software Solutions Parts Search Broadcast Messages Part Alerts Price Search Government Procurement componentcontrol.com AviTrader MRO - July 2012 Ten Years and Still Climbing Ten years ago, a small team set-off with a vision to build a company focused on providing services to the airline industry. This vision has materialized into a team nearly 300 strong and a quarter of a billion in revenues. It seems that the impossible, is possible, indeed. Aircraft & Engine Leasing - Component Support & Supply Chain Services - Maintenance Repair & Overhaul We would like to thank our customers, vendors, partners and friends for their dedication and support over the past ten years. And Congratulate the very dedicated team that helped make this happen. YOU ARE ALL PART OF OUR FAMILY. If you’re seeking to make an impact on the world of tomorrow while ensuring a bright future for yourself — GA Telesis is the place for you. We offer talented individuals the resources they need to succeed on both a professional and personal level. We are a diversified, financially-sound employer with a world-class reputation. Our culture rewards initiative and emphasizes learning. Our team approach encourages your individuality while providing you with vital support. Plus, we provide one of the best employee benefits packages in America. www.gatelesis.com Finance News 18 • ST Engineering’s net profit grows 15% in first half 2012 Singapore Technologies Engineering (ST Engineering) reported higher revenue and profits in the second quarter of 2012 compared to the same period last year. Group revenue increased 6% to $1.57bn while profit before tax rose 13% to $187.8m and profit after tax grew 10% to $143.1m. For the first half of 2012, both profit before tax and net profit for the Group grew strongly at 15% on a modest revenue increase of 2% over the same period in 2011. The Aerospace sector posted revenue of $493m, which is comparable to the second quarter of 2011. The Aerospace sector secured about $370m worth of new contracts for aircraft maintenance and modification, component total support, and engine total support businesses. Other developments included its agreement with Airbus, EADS and EADS EFW to launch the A330 Passenger-to-Freighter conversion programme, and its investment completion in EcoServices that expanded its engine total support value chain. • Air Lease Corporation announces second quarter 2012 results Air Lease Corporation reported another quarter of consecutive fleet, profitability and financing growth: diluted EPS increased 250% to $0.28 per share in the second quarter of 2012 compared to $0.08 in the second quarter of 2011. Diluted EPS increased 315% to $0.54 per share for the six months ended June 30, 2012 compared to $0.13 per share for the six months ended June 30, 2011. ALC reported revenues of $158,173 for the 2nd quarter 2012, compared to $74,344 in 2011. Net income was $28,172 in 2012 compared to $7,023 in 2011. ALC Increased its pipeline of fuel-efficient aircraft with an order of 100 737-8/9 MAX aircraft, 25 of which are subject to reconfirmation. The company announced two of its largest narrow body lease placements to date with premier carriers, including 18 new aircraft with China Southern, the single largest lease transaction for ALC, and the placement of 13 new aircraft with Air China. • FLY Leasing closes $395m senior secured term loan FLY Leasing Limited, a leading global lessor of modern commercial jet aircraft, closed a new $395m senior secured term loan. FLY will use the proceeds from the new loan to refinance its remaining 2012 debt maturities, as well as the outstanding debt under a facility that matures in 2013. The senior secured term loan will be secured by 23 aircraft and will be recourse to FLY. The loan, which will mature in August 2018, will bear interest at LIBOR plus 5.5% with a 1.25% LIBOR floor and is priced at 96% of par value. • Avcorp reports improved 2nd quarter 2012 results During the quarter ended June 30, 2012, Avcorp Industries recorded income from operations of $411,000 on $25,192,000 revenue, as compared to a $752,000 operating loss on $20,492,000 revenue for the same quarter in the preceding year; and net income for the current quarter of $13,000 as compared to a net loss of $1,337,000 for the quarter ended June 30, 2011. • Bombardier Aerospace reports financial results for 2nd quarter 2012 Bombardier Aerospace’s revenues totalled $2.3bn, compared to $2.1bn last fiscal year. EBIT totalled $102m translating into an EBIT margin of 4.5% for the second quarter ended June 30, 2012, compared to $105m, or 5%, last fiscal year. Free cash flow usage totalled $504m compared to a usage of $448m for the corresponding period last fiscal year. A total of 62 aircraft were delivered during the second quarter ended June 30, 2012 compared to 56 for the corresponding period last fiscal year. Bombardier Aerospace’s backlog in- creased by 14.5% reaching $25.2bn as at June 30, 2012, compared to $22bn as at December 31, 2011. Bombardier Business Aircraft saw a strong level of order intake with 134 net orders compared to 43 for the corresponding period last fiscal year. This includes the conclusion with NetJets Inc. of the largest business aircraft order in Bombardier’s history, for 100 aircraft of the Challenger family, with options for 175 aircraft. Based on list prices, the value of the firm order is $2.6 billion and could increase to $7.3 billion if all options are exercised. In addition, NetJets Inc. and Bombardier entered into a long-term service agreement valued at $820 million, or $2.3 billion if all options are exercised. • LMI Aerospace acquires TASS LMI Aerospace Inc., a provider of design engineering services and supplier of structural assemblies, kits and components to the aerospace, defence and technology markets, announced that it has acquired TASS Inc., a premier after-market engineering and support services firm. Headquartered in Kirkland, Washington, TASS delivers high-end engineering solutions to aircraft manufacturer, airlines, Maintenance, Repair and Overhaul (MRO) services companies and leasing companies worldwide. TASS has 60 employees with offices in Kirkland, WA, the United Kingdom, Australia and Sri Lanka. TASS will be managed by LMI’s D3 Technologies subsidiary, which is part of LMI’s Engineering Services segment. John Brom and Damian Horrigan, currently managers at TASS, will continue to provide management oversight of the TASS business, with emphasis on domestic and international repair and fleet management services provided to airlines, leasing companies and MRO services companies. LMI funded the purchase of TASS with internal cash. TASS is expected to generate approximately $17m in sales for the full year 2012. Worldwide leader in Commercial Aviation Services Asset Management Initial Provisioning Repair Management Aircraft Inspection Exchange / Loan Programs Inventory Management www.werneraero.com Finance News 19 • DVB Group posts improved first half 2012 results DVB increased its consolidated net income before taxes (and excluding net results from financial instruments in accordance with IAS 39) by 36.6%, to €91.1m (the figure for the first half of 2011 was €66.7m). At €183.9m, total income for the first six months of 2012 (comprising net interest income after allowance for credit losses, net fee and commission income, results from investments in companies accounted for using the equity method, and net other operating income/expenses), was up by 19.6% year-onyear (the figure for the first half of 2011 was €153.8m). Interest income rose by a marked 16.3%, from €419.5m to €487.8m. DVB maintained its business policy – one that is both risk-aware and committed. DVB originated 63 new transactions, with an aggregate volume of €2.2bn (H1 2011: 75 new transactions with a total volume of €2.4bn). The average interest margin on new business originated by the three Transport Finance divisions rose to 356 basis points (H1 2011: 327 basis points). Interest expenses rose by 22.1%, mainly on account of higher funding costs. • L-3 completes acquisition of Thales’ Civil Aircraft Simulation and Training Business L-3 Communications completed the acquisition of Thales Training & Simulation Ltd’s civil aircraft simulation and training business effective 6 August, 2012. The company paid £83m (approximately $130m), subject to certain contractual adjustments to the purchase price, and was funded with cash in hand. The business, which is now known as L-3 Link Simulation & Training U.K. Limited, will become a part of L-3’s existing Link Simulation & Training division, which is part of L-3’s Electronic Systems Group. L-3 Link Simulation & Training U.K. Limited has its main office and production facility in Crawley, U.K., and has a global customer base. The unit’s civil aircraft simulation solutions feature a suite of devices that meet every aspect of flight and maintenance crew training requirements. • Astronics Corporation reports net income up 14.2% in second quarter 2012 Astronics Corporation has reported that sales in the second quarter of 2012 were $65.0m, up $9.5m, or 17.2%, from the prior year second quarter sales of $55.5m. Aerospace sales, which represented 96% of total second quarter sales, increased 20.2% over the prior year period to $62.4m. Test Systems sales decreased to $2.6m for the second quarter 2012 compared with $3.5m in last year’s second quarter. Net income in the second quarter of 2012 was $5.2m compared with net income of $4.5m in the same period of last year. Year-to-date net income in 2012 was $11.3m compared with net income of $9.8m in the same period of last year. Earnings per share for the second quarter and year-to-date periods of 2011 have been restated to reflect the impact of the one-for-ten Class B stock distribution to shareholders of record on 16 August 2011. • Pemco World Air Services announces agreement with Avion Services to acquire the Company Pemco World Air Services, an industry leader in aircraft MRO and engineered services, announced that it has filed with the Bankruptcy Court for the district of Delaware, an amended and restated Asset Purchase Agreement with Avion Services Holdings, an affiliate of Sun Capital Partners. The Company anticipates that the sale to Avion Services Holdings will be completed before the end of August. The Company also announced that it has agreed with Vision Technologies Aerospace to terminate the Asset Purchase Agreement entered into on 23 May 2012 with VT Aerospace. 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Winners of the Aircraft Technology Engineering & Maintenance Award 2012: ‘Best IT Software Provider’ MRO & Logistics Software Solutions componentcontrol.com Visit us at MRO Europe - Booth: 9405 LARGEST AFTERMARKET WHEEL AND BRAKE INVENTORY tpaerospace.com Copenhagen · Hamburg · Las Vegas Finance News • Willis Lease Finance earns $2.4m in second quarter of 2012 Willis Lease Finance Corporation (WLFC), a leading lessor of commercial jet engines, reported that net income was $2.4m in the second quarter of 2012, compared to $2.7m in the year ago quarter, due to lower lease rent and maintenance reserve revenue and differences in gains from the sale of leased equipment, partially offset by lower net finance costs. Lease portfolio decreased 4% to $970.0m from a year ago, with no engines purchased and four engines and one aircraft sold in the current quarter. Average utilization for the second quarter was 82% compared to 83% in the second quarter a year ago and 84% in the first quarter of 2012. Quarter-end utilization was 82%, compared to 83% a year ago and 85% at 31 March 2012. Total revenues fell 9% to $35.2m from $38.7m a year ago, reflecting lower average portfolio utilization, decreased portfolio size and lower gains from sale of equipment. Lease rent revenues decreased 7% to $23.8m compared to $25.7m a year ago. Maintenance reserve revenues decreased 7% to $9.4m, compared to $10.1m a year ago. • Astronics Corporation acquires Enhanced Vision Systems provider Max-Viz Astronics Corporation, a leading provider of advanced technologies for the global aerospace and defence industries, has acquired privatelyheld Max-Viz, Inc. (“Max-Viz”), a market-leading developer and designer of Enhanced Vision Systems (EVS) for fixed and rotary wing aircraft through both OEM and aftermarket channels in the general aviation, commercial and military aerospace markets for $10m in cash. Additional purchase consideration of up to $8.0m may be paid by Astronics if Max-Viz achieves certain revenue targets in 2013, 2014 and 2015. • Butler National Corporation reports fiscal year-end financial results Butler National Corporation reported that fiscal 2012 year ended 30 April, revenues increased 17% to $54.4m compared to $46.3m in fiscal year 2011. The year-over-year increase in revenue reflects additional professional services revenues (up 36%) driven by increased revenues from gaming activities and a decrease in aerospace products revenues (down 9%) attributable to reduced domestic government spending for military support products and the slow growth of the United States economy. Fiscal 2012 net income increased 51% to $1.9m compared to $1.3m in fiscal 2011. • Embraer releases second quarter 2012 results During the 2nd quarter of 2012 Embraer delivered 35 jets to the commercial aviation mar- 21 ket and 20 to the executive aviation market (17 light jets and three large jets); as a consequence, 2Q12 revenues reached US$ 1,717.3m and Gross margin grew from 22.4% in 2Q11 to 23.6% in 2Q12. 2Q12 operating performance was strong and as a result EBIT and EBITDA margins reached 11.5% and 15.4%, respectively, for an accumulated EBIT and EBITDA margin of 9.9% and 14.4%, respectively, for the first semester of 2012; Positive operating cash generation of US$ 189.1m in 2Q12; 2Q12 net income attributable to Embraer Shareholders and Earning per ADS basic totaled US$ 54.3m and US$ 0.2996, respectively, primarily as a result of deferred income taxes generated by the appreciation of the US Dollar during the period, which negatively impacted 2Q12 net income. Therefore, 2Q12 adjusted net income, excluding deferred income taxes, was US$ 186.5m. • Safran delivers strong progress in performance in first-half 2012 For the first half of 2012, Safran’s revenue was €6,413m, compared to €5,622m in the same period a year ago, a 14.1% year-on-year increase (5.2% organic growth). First-half 2012 revenue increased by €791m on a reported basis, notably highlighting a good performance in aerospace and security (both organic and from acquisitions). On an organic basis, revenue increased by €291m as a result of record production rates in aerospace original equipment, as well as improving aftermarket trends and momentum in security (detection, e-Documents). Adjusted net income grew by 30% year-on-year. It was €411m, compared to €317m in the first half of 2011. • United Technologies obtains regulatory approvals for Goodrich acquisition United Technologies has announced that all remaining regulatory approvals related to the proposed acquisition of Goodrich Corporation have been obtained. The conclusion of the regulatory review by the U.S. Department of Justice and the European Commission clears the way for United Technologies to proceed with the proposed acquisition announced on 21 September 2011. In line with previous expectations, the regulatory clearances require that UTC sell Goodrich’s Electric Power Systems business and Goodrich’s Connecticut-based Pumps and Engine Controls business. Also as expected, UTC will sell Goodrich’s interest in Aero Engine Controls (AEC), a joint venture with Rolls-Royce. The AEC aftermarket business will remain with UTC, but Rolls-Royce will have ability to purchase this business in the future. • Rolls Royce Holdings reports half year results The Rolls Royce Civil Aerospace segment increased revenue by 17% in the first half of 2012. There was a 26% growth in OE revenue, primarily reflecting higher deliveries of Trent and corporate engines. Services revenue grew by 10% consistent with growth in the installed base of thrust. Profit increased by 24% due to increased OE volume, better OE mix, services growth and unit cost improvements. This growth was tempered by a higher R&D charge to higher spend and lower capitalisation related to major new programme activity, and lower entry fees related to the Trent XWB. Rolls Royce Civil Aerospace reported new orders of £6.0bn (£6.5bn in H1 2011), resulting in a 4% increase in the order book. • Hawker Beechcraft receives court approval to enter into exclusive negotiations with Superior Aviation Hawker Beechcraft reported that the U.S. Bankruptcy Court for the Southern District of New York has approved the company’s motion to enter into exclusive negotiations with Superior Aviation Beijing Co., (Superior). Approval of this motion allows Hawker Beechcraft to spend up to 45 days exclusively negotiating with Superior regarding a strategic combination that would preserve jobs and product lines. As part of the exclusivity agreement, Superior will make payments over the next month to sustain Hawker Beechcraft’s jet business. An initial deposit of $25m is payable before the end of the week and a second $25m deposit within 30 days. Any definitive agreement reached with Superior would be subject to approval by the Committee on Foreign Investment in the United States (CFIUS) and other regulatory agencies. In addition, any definitive agreement with Superior will be subject to termination if another potential purchaser succeeds in the mandatory competitive auction process which will be overseen by the U.S. Bankruptcy Court. • AAR reports fourth quarter and fiscal year 2012 results AAR (AIR) reported fourth quarter fiscal 2012 results that were in line with the preliminary results released on June 14, 2012. Fourth quarter sales were $563.3m compared to sales of $487.8m in the fourth quarter of last year. For the company’s fiscal year 2012, sales were a record $2.1bn, a 14.4% increase compared to the prior year, and net income attributable to AAR was $67.7m compared with sales of $1.8bn and net income attributable to AAR of $69.8m in the prior fiscal year. Sales to commercial customers increased 48.5% compared to the fourth quarter of last year and 32.4% in fiscal 2012 compared to fiscal 2011. AviTrader MRO - August 2012 Making Informed Decisions IBA Services to the Maintenance Community As the aviation industry cycle continues its unpredictable path, risks and opportunities are forever rising and receding. The combined experience of IBA’s personnel along with the vast amounts of data acquired and analysed of the past 24 years forms an exceptionally strong and unique base for IBA’s studies, whether commissioned by an airline, MRO, parts manufacturer or reseller. Recent studies successfully performed by IBA include; • Market overview and identification of opportunities • Maintenance cost benchmarking • Stock valuations • Merger and acquisition due diligence • Competition analysis • Betterment solutions and oversight Case Study: Maintenance Cost Benchmarking During 2011, IBA was commissioned by an international airline, with a considerable fleet and order backlog, to collate, review and analyse all incurred maintenance costs with a view to formulating its future policy. The resulting report enabled the airline to highlight all costs which were out of scale compared to industry and competitor benchmarks and allow the tracking of these costs through a bespoke model designed for the airline. Potential savings were identified and support was provided to assist the implementation of strategies to combat areas of concern. Due to the flexibility, compatibility and simplicity of the bespoke model delivered, it can be maintained by the airline in order to continue to monitor its ongoing and future exposures. For more information or a quotation on the diverse range of services offered by IBA contact Owen Geach or Ben Jacques. Call: +44 (0) 1372 224488 sales@ibagroup.com www.ibagroup.com www.jetvalues2.com IBA Group Ltd IBA House 7 The Crescent Leatherhead Surrey KT22 8DY United Kingdom Finance News 23 (continued from page 20) Industry People on the Move Fourth quarter sales growth included 16.5% organic sales growth to commercial customers primarily due to strength in the Company‘s Aviation Supply Chain and Maintenance Repair and Overhaul segments. The balance of the commercial sales growth came primarily from the newly acquired businesses, Telair and Nordisk, which were acquired by the company in early December 2011. Sales to commercial customers represented 60% of total sales for the fourth quarter of fiscal 2012. Boeing reported that John Wojick has been named the new vice president of Sales for Commercial Airplanes. Wojick succeeds Ray Conner, who was named president and CEO of Boeing Commercial Airplanes in June. Wojick, a 32-year veteran of Commercial Airplanes who began his career as an aerospace engineer, moves to his new position from vice president, North America Sales for Commercial Airplanes. • Honeywell second quarter 2012 sales up 4% to $9.4bn Honeywell released that Aerospace sales were up 8% compared with the second quarter of 2011. Organic growth was 7%, or 4% organic excluding the absence of prior year payments to Business and General Aviation customers to offset preproduction costs (OE payments). Aerospace growth was driven by an 18% increase in Commercial end markets, partially offset by lower Defense and Space revenue. Commercial original equipment (OE) sales were up 38%, or 16% excluding the impact of the EMS acquisition and lower OE payments year over year. Commercial aftermarket sales were up 9% with growth in both spares and repair and overhaul sales. Segment profit was up 25%, and segment margins expanded 260 bps to 18.6%, primarily due to the absence of prior year OE payments, higher commercial volumes, commercial excellence and productivity net of inflation, partially offset by higher investment in research and development to support future growth. • B/E Aerospace reports second quarter 2012 results B/E Aerospace reported second quarter 2012 revenues of $768.1m, an increase of $159.2m as compared with the same period of the prior year. Pro forma revenue growth, giving effect to all acquisitions completed during 2011 and 2012 as if they had occurred on January 1, 2011, was 17.6%. Exclusive of items, second quarter 2012 operating earnings of $142m increased 33.1% on the aforementioned 26.1% increase in revenues and operating margin of 18.5% expanded 100 basis points as compared with the prior year period, while net earnings and net earnings per diluted share were $74.0m and $0.72 per share, respectively, increases of 35% and 33.3%, respectively, as compared with results from the second quarter of 2011. Second quarter 2012 commercial aircraft segment (CAS) operating earnings of $69.9m increased 34.7% as compared with the prior year period. Operating margin of 17.8% expanded 100 basis points as compared with the prior year period, due to an improved revenue mix and ongoing operational efficiency initiatives. Elbit Systems has announced that the Company’s Board of Directors accepted the request of Joseph Ackerman, the Company’s President and CEO, to retire from his position in the coming months and the Board confirmed the appointment of Bezhalel (Butzi) Machlis as his successor. The retirement and new appointment will become effective on April 1, 2013, and until that time Ackerman will continue to serve as the Company’s President and CEO, leading a gradual succession process. The Company’s Board of Directors intends to recommend to the Company’s shareholders, that following his retirement as President and CEO, Ackerman be appointed to the Company’s Board of Directors as Vice Chairman. On 18 July 2012, Mr. Liao Linghong was appointed as Executive Director of Operations at Ameco Beijing. Prior to this new position, Mr. Liao was the Deputy General Manager of Chengdu Maintenance Base, Air China Technics. Furthermore, Ameco Beijing named Mr. Liu Chunxi as the Executive Director of the Safety & Management Division. Mr. Liu was formerly the Deputy General Manager of Dalian Airlines since 2011. He held the position of Subdivision Manager of Aircraft Overhaul in Ameco Beijing from 2004 to 2010. Dr. Christoph Franz, CEO of Deutsche Lufthansa AG, has been elected Chairman of the Supervisory Board of Lufthansa Technik AG. In addition, on 24 July 2012, the Supervisory Board of Lufthansa Technik AG appointed Dr. Johannes Bussmann to the Executive Board with responsibility for Human Resources, Engine & VIP Services. Bussmann will take over this position on 1 September in place of Uwe Mukrasch, who is leaving the company at his own request. Jordan Aircraft Maintenance Ltd. (JorAMCo), a leading aircraft maintenance, repair and overhaul (MRO) facility based in Amman, Jordan, announced the appointment of Osama Fattaleh as Chief Executive Officer. A veteran business leader, Mr. Fattaleh brings to JoAMCo over 25 years of experience in diverse industries. In his new role, he will be responsible for overseeing the growth and expansion of the company. Mr. Fattaleh started his career at Aramex, where he held various executive positions including Regional Manager, Senior Vice President, Chief Strategy Office, and Chief Operations Officer. Mr. Fattaleh will take over from Simon Tate, the outgoing Chief Executive Officer, who has led JorAMCO in his interim management role. At the Sukhoi Civil Aircraft general meeting on July 12th in Moscow, the Board of Directors re-elected Igor Y. Ozar as the Chairman of the Board of Directors of JSC “Sukhoi Civil Aircraft” (SCAC). The board of directors also appointed Vladimir S. Prisyazhnyuk as SCAC President. Boeing announced that Bernie Dunn will succeed Boeing Turkey president Greg Pepin, who will retire from the company in October. Dunn will be responsible for coordinating all Boeing business activities in Turkey and report to Shep Hill, president, Boeing International and senior vice president, Business Development and Strategy. Dunn joins Boeing from ITT Defense International, where he was vice president of Business Development for Middle East and Africa and responsible for coordinating and overseeing marketing and business development. Osama Fattaleh is the new Chief Executive Officer at JorAMCO. Photo: JorAMCO PAS Technologies reported that Donald R. Spriggs has been appointed Vice President of Quality and Technology effective 8 July 2012. In his new role, Spriggs will lead the Company’s activities associated with Quality Assurance and Process Improvement to enhance the quality management systems across the enterprise through proactive process discipline and data analysis using the Company’s Performance eXcellence Program (PXP). In technology, Spriggs will be the functional lead for technical collaboration efforts across the company. He will serve as the corporate focal point for technical guidance on strategic technology-related projects in the evolving business and product development opportunities of PAS Technologies. AviTrader MRO - August 2012