Satair sets off for new horizons - Satair.com

Uptimes
news & insights – july 2011
Satair sets off for
new horizons

2
Becoming a
service industry
John Staer, CEO of Satair
Our new strategy, Destination 2014, is setting the direction for our
company for the next 3-5 years. After serious sessions and discussion
across the organization we feel confident that we are on the right
track and that we have an attractive plan which is manageable and
we’re in a favorable position when it comes to customer and supplier
relationships. We serve all airlines and most MROs around the world,
and our suppliers represent an impressive portfolio of relevant and
attractive products.
But that’s only half the story. The way people are doing business in this
industry continues to change – and Satair is changing with it.
Not so many years ago, we were almost purely parts distributor with
a lot of parts in warehouses around the world. Spare parts are still
the heart of our business, but the way we handle the value chain has
changed dramatically.
These days, customers and suppliers need to see that we can add
value to their supply chain. What can Satair bring to the table to make
everybody’s life easier and business more profitable? Can we make it
easier to purchase parts? Can we help customers reduce inventories?
Can we help customers and suppliers with repair and warranty
handling? Can we help customers with vendor consolidation?
Requests for such services mean that Satair must step up, and while
Satair for many years to come will be a provider of spare parts, we’re
trying to add more and more value adding services to products leaving
our warehouses.
Flip through this edition of Uptimes and read more about it on the
back cover. On page 6 you can read about our cooperation with
Aveos in Canada – a good example of a customer relationship where
services play an important part.
In other stories we cover our repair businesses in Singapore, the UK
and USA. During the past couple of years we have made successful
inroads into repair and production, and we cover this in depth on
pages 2-5.
I hope you will enjoy this edition of Uptimes. Satair will always strive
to find ways to make your business better, and feel free to contact us
should you have a problem, a good idea or some inspiration.
Satair takes two road
battery market
Satair has signed an agreement
with TransDigm for the acquisition
of Aero Quality Sales (AQS), a
market-leading distributor of
aviation batteries. Concurrently,
Satair has taken over the worldwide
distribution of Acme batteries.
AQS is specialized in the distribution and
servicing of aviation batteries for practically
all types of aircraft. The company has sales
and service centers in Stamford, Connecticut,
USA, and in Heston outside London, UK.
In the latter location we meet up with
Mike Wilson, a Scotsman who after a three-
year stint in Stamford, Connecticut returns to
the UK to head up the operation formed by
Satair’s acquisition of AQS. He outlines the
company history in rough detail:
“I probably can’t remember all the owners
we’ve had through the years. But this is
the first time ever we’ve been owned by
a distribution company, and the difference
is obvious. We’ve always been owned by
private equity companies and the returns
they are used to are simply not generated by
a company such as ourselves. Consequently,
we’ve always been a stepchild in our own
organizations, seen as under-performing in
some way, when in fact we have been doing
very well on our own terms. But becoming
part of the Satair family has really made us
feel like we have finally come home.”
Wide portfolio
Founded in 1954, AQS has acquired a central
position in the market as a specialist with a
very wide portfolio. The products are sold
primarily to the commercial aftermarket,
the main customers being the airlines and
maintenance companies, but also with some
sales to other segments such as business jets,
helicopters and military customers.
The company will continue its operations
in the existing locations for the time being,
while its sales activities will be integrated into
Satair’s global sales organization.
“Another perfect fit with Satair is the fact
that even before coming to Copenhagen
for talks, we were looking into some of the
value-adding business models that Satair is
leading this sector with”, says Mike Wilson.
Concepts such as exchange pooling, payment
by the hour, buy-and-lease-back and total
cost of ownership will be given even closer
scrutiny in the future”, he reveals. “It’s all
about solutions and not just part number
Ready for inspection
sales, it’s providing a service to our customers
to add value and to take burden away.”
Already global reach
With customers like Ryanair, British Midland,
British Airways, Lufthansa, SR Technics, Aero
Quality Sales in London – or Satair UK as
it will be known in the future – is already a
company with a global reach. Mike Wilson
believes that this characteristic will become
even more pronounced in the future when
the weight of Satair is behind the company.
“As a part of Satair we will be able to meet
tough competition and emerge victorious. At
the same time we will maintain the personal
closeness to our customers that they have
come to rely on over the years. And with the
addition of Acme to the portfolio, we will
even be able to service customers with the
need for dry technology batteries. We are
very excited to have added this important
strength”, he says.
Mike Wilson

s into the
Confidence
Mike Wilson takes us on a tour of the
workshops and the success of the operation
is evident in the stacks of batteries waiting
for service on virtually every available surface
of the workshop. The exception to this is
the very neat and airy working space where
the actual servicing and maintaining of the
batteries take place.
“What we sell here is the confidence that
your battery will work the way you need it to
work if an emergency arises. That’s why we
take immense pride in our work: we don’t
just keep batteries working and deliver them
to customers – we actually play a vital part in
the overall flight safety picture.”
This, Mike Wilson admits, leads directly to
a small, recurrent problem when integrating a
new customer.
“Not everybody, it seems, provide their
customers with the level of service and
dedication to quality that we do”, he says.
“So in consequence, we often see that a
new customer needs to have a number of his
batteries exchanged for new ones once we
have serviced them and seen the state they’re
in. So naturally they see this as an extra
expense when in reality it’s just bringing their
equipment up to par.”
John Stær, CEO of Satair comments on the
acquisition:
”AQS is an excellent match for Satair’s
business model, and it adds yet another
dimension to our product portfolio. We
expect Satair to be able to benefit from its
strong market position by accelerating sales
and achieving cost synergies. The acquisition
will help Satair solidify its growth ambitions,
also within value added services.”
Main suppliers for
Satair Battery Sales and
Solutions
Saft
Saft’s Industrial Battery Group (IBG)
is recognised worldwide as a leading
designer, developer and manufacturer
of nickel-based battery solutions for
the industrial and transport sectors.
IBG batteries set the industry standard
for robustness, reliability, and long life
– even under extreme conditions. In
the airline industry, Saft batteries are
used for aircraft safety, ground-check
and starting systems. Over 50 years of
battery servicing and distributing
Marathon Norco Aerospace
MarathonNorco Aerospace is part
of TransDigm’s family of companies
and traces its origin to 1923 when
Marathon began producing carbonzinc
dry batteries and cells. During the
1940s and 1950s the introduction of
several models for military, commercial,
and corporate aircraft made Marathon’s
batteries the industry leader. Today,
MarathonNorco Aerospace, Inc.
continues to manufacture the micro
maintenance (m 3 ) batteries, mechanical
devices and charger/analyzers.
Acme Aerospace inc.
Acme Aerospace has over 30 years
experience in the custom design
and manufacturing of aviation and
aerospace battery systems and similar
support products. The company’s
reputation has been built through the
thousands of Fiber Nickel Cadmium
(FNC) “Zero Maintenance” batteries,
charge control units and converters
flying around the world.
A quick look at AQS
All key employees have vast experience
in application and technical knowledge
of batteries and products in associated
ATA chapters.
Service centres in the USA, Canada and
South America.
Service centre in Turkey and another to
be added in the Middle East – Dubai.
Continue to offer the best cost solution
to customers – including PMA and STC
options.
Continue to grow with new products
lines.
Continue to offer new solutions to
our customers – Battery Maintenance
Programs, purchase of stock and lease
back, battery exchanges and supply of
serviceable batteries etc.
Continue to add value to our customers
and focusing on cost of ownership.
New and upgraded
secondary flight control
equipment from Diehl
The German first tier supplier Diehl Aerospace has developed a brand new line
of secondary flight control equipment for the Airbus single aisle fleet which
provides a huge number of advantages compared to the existing equipment.
After the successful completion of in-service
flight tests, airlines can now enjoy distinctive
technical and commercial benefits from
Diehl’s new range of secondary flight control
equipment. These benefits include – but are
in no way limited to – an attractive price
combined with improved technology and
reliability of the components.
The direct maintenance cost can be
considerably reduced through the new SFCC-
SA and CSU. The weight of the SFCC-SA has
even decreased by 50 percent in comparison
to the previously used equipment. The
improved GMTBUR (guaranteed mean
time between unscheduled removal) also
speaks clearly for Diehl Aerospace’s solution.
Furthermore, an improved power-up
Leading supplier
sequence helps to reduce the NFF-Rate (no
fault found), providing additional benefits for
the customers.
For the development of the new SFCC-SA
and CSU Diehl Aerospace has relied primarily
on its long-standing system expertise with
high lift systems for the entire A330/340,
A350 XWB and A380 families.
As is the case for the existing Diehl
Aerospace equipment range these new
products are completely supported by Satair
in respect of customer support, repairs, spare
parts, AOG services and technical support for
the company’s customers in the Asia Pacific
region. Satair is also teaming up with the
Diehl support engineer located in Singapore.
Diehl Aerospace provides enhanced Secondary
Flight Control Computer (SFCC-SA) and improved
Command Sensor Unit (CSU) for the entire Airbus
A320 family
Diehl Aerospace, a subsidiary of Diehl Aerosystems, is the leading German supplier for
avionic systems and lighting concepts for civil and military aircraft. With system solutions
and equipment functions from the cockpit through to the cabin, Diehl Aerospace sets
standards in cutting-edge technology and customer focus. Diehl Aerospace’s wide range
of products and services includes developing, manufacturing, and supporting systems and
components for equipping commercial and military aircraft from the cockpit to the cabin.
3

4
Apart from a strong foothold in the
distribution business, Satair operates a
component repair and overhaul service
center in Singapore that is authorized
by selected component OEMs.
Combined with its core distribution business,
Satair is able to provide a one-stop shop
for consumables & expendables solutions,
component management, repair services and
supply chain management. The repair center
offers services on a wide range of repair in
avionics component and accessories.
Jenny Li, Director – Product Management,
is responsible for the commercial
development of Satair’s Singapore-based
repair shop. She describes Satair as a niche
player in the Asia Pacific world of generally
sizable MRO operators. With a total staff of
less than twenty the shop focuses on avionics
with a view to specialist capabilities in high
The Eaton Aerospace Aeroquip brand is well
known as the leading manufacturer of high
quality conveyance systems products. The
list of equipment includes hose assemblies,
quick disconnect hydraulic couplings, clamps,
flanges, fittings and seals designed to meet
the demanding requirements of the aerospace
and defense industries. The products are used
in all Airbus and Boeing aircraft as well as
in practically all other types of aircraft, both
large and small.
A good match
“We are moving forward with the integration
of the Aero Quality Sales (see page 2) battery
distribution and repair activities into the Satair
organization. By combining the battery repair
facility with our hose repair facility in Miami,
we are able to efficiently support major
airlines in North, Central and South America”,
One-stop shop for distri
tech applications for the newer aircraft.
Being first and being unique are the two
cornerstone’s of the shop’s strategy. Around
five years ago the shop was one of the first
avionics workshops in Singapore to offer
Airbus 380 capabilities and at the time of
going to press final approvals of the shop’s
new Boeing 787 capabilities were on the
doorstep. Both are aircraft that only a select
few are qualified to work on.
“We are a one-stop shop for both
customers and suppliers – we offer both
distribution and repair services of the
components”, Jenny Li says. “And when
you’re into repair business, you are required
Satair’s hose shop in Miami expands into battery
With the acquisition of Aero
Hardware & Supply Inc. in Miami in
2010, Satair positioned itself as the
world’s premier manufacturer and
distributor of Aeroquip® Aerospace
brand products. Soon battery testing
and repair will be added to the
capabilities at the Miami FAA/EASA
approved facility.
says Rick Tonney, Managing Director of
Satair’s US operations. “The battery product
is a good fit in our portfolio, and the team is
ready to leverage our full capabilities in the
market.”
Rick Tonney explains “as Eaton Aeroquip’s
first aftermarket distributor, appointed in
1947, Satair Miami has advanced with the
aerospace industry for over six decades and
today has an expertise and dedicated team
that can’t be matched. Our investments in
resources, equipment and inventory allow
Satair to be competitive in the airline, OEM,
MRO, and defense markets. We offer
customers Aeroquip Aerospace product
expertise which is backed up by a skilled
production team, who are true craftsmen
and capable of assembling a vast range
of components. The quality assurance
team ensure excellence across all functions
Welcome to Satair in Singapore
to have a wider and deeper spectrum of
product knowledge including the product life
cycle management. Our value proposition is
enhanced as our service offering is more than
just standard distribution. The challenge going
forward is to expand our services to include
more OEMs, have more customers utilize
our services and to deliver the services more
competitively and efficiently.”
With a highly reputable industrial standard,
Satair is serving almost all the major airlines
and MROs in Asia Pacific by providing high
quality workmanship, quick turnaround
time, cost efficient repair solutions and high
standard customer services. Ester Pang,
and stand firmly committed to meeting
the standards of the AS9100 regulatory
requirements.”
Satair Miami offers its entire service
package 24/7 from facilities that occupy
more than 8,500 square feet. Strategically
located directly across the street from Miami
International Airport, our team of 25 capable
employees produce over 12,000 hose
assemblies under the CAGE codes: 00624,
C2178, U2569, 7G414 and 63Y25.
Rick Tonney comments: “We are constantly
investing to ensure quality and productivity
in our hose shop. Case in point, other than
Eaton Aeroquip’s factory in Jackson Michigan,
we’re the only distributor who owns and
operates a state of the art Finn Power
FP160 crimp machine with an electronic VS
controller. ”

ution and repair in Asia Pacific
Director - Customer Service & Supply Chain,
who is heading the repair operation in
Singapore asserts: “We offer a wide range
of customized and flexible solutions catered
for the customers’ needs. Repair solutions
and services can be in the form of fixed
pricing repair agreements, time and material
repair, and we invite our customers into our
exchange pool for key components.”
Satair also serves the general aviation
market through value-added in-house repair
services and also via the vast network of
reputable repair partners. This allows Satair
to provide effective repair cycle management
services to its many customers in this market.
Satair’s capabilities within general aviation
include Garmin, Honeywell BGA, L3 and
Telephonics
Satair’s facilities occupy more than 5,000
square feet of operational space where the
expert technicians test, repair and overhaul
approx. 1,200 part numbers, primarily
concentrated on avionics, instruments, and
electrical components. The workshop can do
up to Level 3 testing and is equipped with
the latest equipment/technologies, e.g. the
ATEC 6 Universal Tester. “We aim to be
proactive in keeping our customers informed
of the latest improvements and technologies
that have been incorporated into various
aircraft components. Whether it is an upgrade
by attrition or retrofit, we’re committed to
assist in every way possible to ensure that
our customers can reap the benefits of
service and repair
Satair Miami is certified to:
AS9100B/ISO 9001:2008
– quality management system
QPL MIL-DTL-25579
– to manufacture medium pressure
Teflon hose assemblies
Eaton Certification of Approval
– to manufacture Eaton hoses with
FAA approvals
Satair Miami is also working on
obtaining NADCAP approval for the
hose shop, which will enable it to add
various AS QPL approvals
Repair and Overhaul services
Satair repair capabilities encompass
roughly 1,200 part numbers and
include warranty and after-warranty
repairs, upgrades and modifications.
The components which Satair
overhaul can be installed in A319,
A320, A330, A340, A380 and B737
aircraft.
Approvals and business partners
Satair’s repair center is directly
appointed by its OEMs and is
having Airworthiness Approvals from
CAAS, EASA, FAA, CAAC, DCA
Malaysia, DCA Thailand, DGAC
Indonesia and ATO Philippines.
Satair is the authorized repair center
for the following OEMs to support
the aftermarket:
Diehl Aerospace
Holmco
Honeywell BGA
Rheinmetall Defence Electronics
GmbH
Siemens
Ultra Eletronics
Wittenstein
CTT
enhanced reliability, economy and operational
efficiency”, Jenny Li explains, and adds:
“The past couple of years have been a
learning curve and while I still believe we
can do even better, we have quite a number
of new potential capacities in the pipeline
which we hope will bring more support to the
customers in the region.”
Authorized repair and warranty
support services for CTT Systems
Latest addition to the service centre is Satair’s
exclusive agreement with CTT under which
the centre will provide repair and warranty
support services for CTT’s humidification
and zonal dryer systems to airlines in the
Middle East and Asia Pacific. The CTT repair
capability supports CTT’s humidification and
Zonal Dryer system fitted as standard on the
new B787 and it will also support other Airbus
and Boeing operators currently operating
fleets fitted with CTT equipment. The CTT
repair capability will be the first in support of
the B787.
“Boeing demands a high level of
aftermarket support to airlines which have
selected the B787 and CTT is confident of
Satair’s capability to provide this high level
of support to these airlines. Having a CTT
authorized repair centre in Asia Pacific will
also provide support to airlines such as Air
New Zealand that has chosen CTT’s zonal
drying system on a fleet wide basis”, CTT’s
VP Customer Support, Peter Landquist says.
5

Keeping our customer’s customers happy
After competing with 300 original suppliers, Satair US has signed a long-term agreement as a preferred vendor for
Aveos Fleet Performance.
Aveos Fleet Performance is the leading
independent, nose-to-tail MRO provider
in the Americas. A member of the Aveos
Group, Aeroman is Latin America’s top
MRO provider. Aveos has strategic partners
such as General Electric, CFM International,
Hamilton Sundstrand and Honeywell, and it
offers the industry a comprehensive range
of customizable services across five MRO
facilities in Canada and El Salvador. It is in this
highly charged environment that Satair has
emerged successful as a preferred vendor.
Don Nelles of Satair US has worked
closely with Aveos throughout the process:
“Originally we were one of 50 suppliers,
a number that Aveos sought to drastically
reduce. In the end only eight companies were
chosen as future partners, and it goes without
saying that we are very proud to have made
the cut.”
Timely service
Robert Gogo, Director, Strategic Sourcing,
Vendor Management & Repair Services at
Aveos says: “Our decision to work with
and develop a relationship with Satair as a
strategic supplier is based on their confidence
in providing timely service, stock on hand,
quality and price competitive products.”
The material program that Aveos and
Satair are implementing will take the business
relationship to the next level. The work has
gone from a transactional purchase order
process to an automated PO system, where
inventory information is exchanged between
both parties through automated feeds on a
daily basis, thus reducing time-consuming
phone calls and communications.
Robert Gogo continues: “Aveos looks
forward to working with Satair in 2011 to
mutually maximize this programs’ potential
and benefits. Our thanks to Don and the
Satair team for bringing this deal to a close
before the end of 2010.”
Good example of motto
There is little time to rest on their laurels,
however. Don Nelles stresses that the contract
is performance-based and that Satair must
perform to strict standards with regards to
punctuality in delivery.
“In the ever changing world we live in,
performance with regards to delivery is
becoming increasingly important to our
customers”, he says. “With this contract
we show our commitment to keeping our
customers’ production lines open. You can say
that this is a good example of why we chose
the company’s motto: Delivering uptimes.
A performance contract is a direct way of
putting our money where our mouth is.”
In a broader perspective, Don Nelles sees a
hyper-competitive business where more and
more customers are looking for these types of
solutions.
“For Aveos, turnaround time is the key to
keeping their customers satisfied. So having
the product ready to ship and getting it to
them within the timeframe agreed upon is
an important contribution to keeping their
customers happy.”
About Aveos
Don Nelles is proud that Satair
made the cut with Aveos
Aveos is a full-service maintenance, repair and overhaul (MRO) provider of airframe,
engine, component and maintenance solutions to the aviation industry. From maintenance
facilities across Canada and in El Salvador, Aveos provides integrated services to over
100 customers, while leveraging a robust network of strategic alliances. Approx.4,900
employees are committed to a tradition of providing world-class quality and expertise to
customers. To learn more, visit www.aveos.com

IATA recommends new 10 minute test for jet
fuel fungus – Conidia and Satair delivers!
FUELSTAT resinae PLUS, the latest product
to emerge from the Conidia Bioscience R&D
pipeline, is a brand new, accurate, on site test
indicating levels of the three main types of
organisms involved in microbial contamination
in kerosene, in just 10 minutes.
For the first time, fuel engineers have a
genuine alternative to the accuracy and
information profile of a laboratory test, but
now delivered in real time and in the normal
maintenance environment. The new test requires
no special skills, facilities or equipment and no
capital investment.
FUELSTAT resinae PLUS delivers genuine
operational time and cost savings, without
compromising on data quality.
The new test, by popular request, relies
upon the same tried and tested immunoassay,
pregnancy-style technology as the wellestablished
FUELSTAT resinae. The original
Conidia test is listed in the Boeing and Airbus
Fast, accurate – and as easy as finding out if you’re pregnant!
manuals and has been chosen by 330+ of the
world’s major airline operators for the last 10 years.
In summary, FUELSTAT resinae PLUS delivers major cost and operational benefits, whilst providing the best nonlaboratory
antidote to delayed flights and costly fuel system damage, with only consumables expenditure.
When used in conjunction with a regular, appropriate to risk fuel hygiene regime, the test provides readings to indicate
the kind of fuel and/or tank treatment required, if any. The fuel hygiene regime, designed to meet each airline’s risk
profile, will involve regularly draining the tank of water and at least annual testing. Risk is increased by operating in high
temperature and humidity environments, or in areas where fuel quality may be suspect. Treatments may range from simply
adding a biocide to a major costly maintenance exercise involving emptying and physically cleaning the tank.
For more information about either FUELSTAT resinae or FUELSTAT resinae PLUS , visit www.conidia.com, or call Phil
Nobbs on +44 01491 829101 or contact your local Satair representative.
To buy FUELSTAT resinae PLUS quote part no FKA8-2, Cage Code KE385.
Meet us at:
Paris Air Show, Le Bourget, France
Hall 3, B30 June 20-26, 2011
Aviation Expo China, Beijing, PR China
Stand R1 September 21-24, 2011
Helitech, Duxford , United Kingdom
Stand 511 September 27-29, 2011
NBAA, Las Vegas, USA
Stand C11334 October 10-12, 2011
Heli Expo, Dallas TX, USA
Stand TBA February 12-14, 2012
Publisher: Satair A/S,
Copenhagen, Denmark
E-mail: editor@satair.com
Editor: Camilla Schuricht
Design, layout and text: Wedderkopp & Ko.
Print: Kailow, circulation: 8,000
Uptimes is published twice a year by Satair.
This issue is number 39.
All rights reserved. No part of this publication may be
reproduced, stored in retrieval system or transmitted,
in any form or by any means, without prior written
permission by the publisher.
FUEL
Satair A/S
Group Head Office
Amager Landevej 147A
2770 Kastrup
Denmark
Tel: +45 3247 0100
E-mail: info@satair.com
Satair UK Ltd.
Heston, United Kingdom
Tel: +44 208 561 421
Singapore Airshow
Stand N29, Chalet CS 38 February 14-19, 2012
Aircraft Interiors Expo, Hamburg, Germany
Stand B545 March 27-29, 2012
MRO Americas, Dallas TX, US
TBA April 3-5, 2012
Airline Purchasing Expo, London, UK
TBA May 2-3, 2012
RAA, Minneapolis MN, USA
TBA May 21-24, 2012
Satair USA Inc.
Atlanta, GA, USA
Tel: +1 404 675 6333
Satair USA Inc. Miami
Miami, Fl, USA
Tel: +1 305 883 8424
Power the
Machine!
2011 marks the year where Satair can celebrate 20 years of
product management.
Satair decided to implement product management in 1991
as a consequence of the first Pall Aerospace contract. This
decision was the first step in establishing a new function and
shortly after it was expanded to four people and additional
principals. From here it has continued over time. Including
the people presently engaged in product management the
team has seen around 50 product managers contributing to
the past and present of Satair.
Earlier in the year, the entire team was gathered in
Denmark for a Global Product Management Conference.
More than 20 product managers from around the world
attended the three-day conference that included extensive
business discussions, workshops and team building.
Despite different cultural backgrounds and uniqueness
of the principals, it is also quite clear that it is through
discussions and best practice sharing across the team
that Satair grows stronger and gets ready for the future
challenges of the industry. Ultimately this brings higher
value for both principals and customers to have a strong and
professional business partner.
Satair is on the path to grow at more rapid rates than ever
seen before and handling that development will also require
an even stronger unity of the product management team.
The theme for the conference in Denmark was ‘Power the
Machine’, and it showed that Satair has a team that is ready
for the challenge.
New Product Manager
Ron Napolillo has joined
Satair USA as Product
Manager for Pall in North and
South America.
Ron comes with a strong
aviation background.
Since 1985 he has worked
at Pan Am, Air Virginia,
Continental Airlines, US
Airways, American Airlines
and several other companies
in sales, marketing, project
management and other sales/
marketing oriented positions.
Satair Pte. Ltd.
Singapore
Tel: +65 6543 0977
Satair China
Representative office
Beijing, P.R. of China
Tel: +86 10 8048 6340

Satair maps its future
with a strong customer focus
As the world’s largest independent aftermarket distributor, Satair is in a strong
position to service its customer and attract the best mix of suppliers.
With more than 25,000 part numbers in stock
and offices and warehouses on all major
continents, Satair is already serving all airlines
and most MROs worldwide. The company
is a key provider of aftermarket services to
Airbus’ and Boeing’s support programs and
runs an advanced supply chain solution built
on a SAP platform.
In a series of strategy sessions key members
of Satair’s management team have spent the
past months formulating a new strategy –
Destination 2014. This strategy is focusing on
the next 3-5 years. CEO John Staer outlines
the starting point:
“We are in a favorable competitive
situation and very well positioned towards
customers. We also enjoy strong supplier
relationships and we have a solid and flexible
operational model. This is the foundation
for our ambitious growth targets – and to
achieve them we will launch more than 50
new initiatives. We are also investing in
new capabilities and upgrading the project
organization. The goal with Destination 2014
is to take Satair to the next level by
exploiting our strong market position for
further growth.”
Listen and act
Satair’s mission is to become the global
leader in aerospace distribution services by
exceeding both customer and supplier needs
for competitive and innovative supply chain
solutions. COO – Head of Sales Morten Olsen
explains how the team aims to accomplish
this:
“First of all we must listen to the market –
and act swiftly according to what we learn.
It’s vitally important to understand market
trends and work to meet new requirements
from customers, suppliers, partners and
other stakeholders. We must exploit Satair’s
strengths, namely our strong position in
the aerospace value chain, our systems and
relationships, and, foremost, our people.”
It is Satair’s belief that long-term growth
in air traffic will continue due to the general
economic growth and the increase in global
trade. Other growth drivers are population
growth and liberalization of airspace. Industry
analysts believe that passenger and cargo
traffic growth will outpace GDP growth by a
factor of around 1.5, thus doubling over the
next 15 years.
To benefit from this growth, aerospace
companies can’t just sit waiting for it. Morten
Olsen points out that customer and supplier
demands are increasing, and Satair must meet
these. As a result, Corporate Management is
constantly looking for ways to minimize lead
time, maximize stability and create service
solutions that directly address the customer’s
ability to focus on his core business and his
bottom line.
Long-term customer relationships
With more than 50 years’ aerospace
experience, Satair already enjoys a preferred
status with customers which are long-term
sustainable. Morten Olsen acknowledges:
“We’re often seen as an integral part of
the customers’ operation, and as customer
satisfaction is our key focus, we have a
strong sales team to manage relationships
and opportunities. Our mantra is that we are
global in reach – but always with a local flair.”
Morten Olsen ticks off the individual
points in favor of Satair: “We have a good
reputation, and we want to keep it. So we
tailor package solutions to customer needs,
we make it possible for customers to reduce
their inventory investment while at the same
time keeping stock close by, we have a strong
product portfolio which supports vendor
reductions, we provide a reliable service
helping maintenance activities, we try to be
easy to do business with and we have a true
sense of urgency in emergencies.”
Needs to evolve
The customers are telling us that their
preferred supplier must evolve in several
aspects: They must have a high degree of
parts availability, deliver on time and keep
promises, provide workable solutions to
complex challenges and minor problems alike,
have industry leading customer service – and
he must have the financial strength to make
investments as and when they are needed.
On top of this Satair is looking to offer
more services such as integrated inventory
planning, vendor inventory planning as well
as sourcing and outsourced procurement.
Add value to the suppliers
Satair has strong supplier relationships that
are long term and tend to strengthen and
evolve over time. It is generally agreed that
John Stær, CEO of Satair
Satair adds significant value to its suppliers.
Steen Karsbo, Group VP – Head of Global
Marketing, expands on the subject of good
supplier relations: “Our overall goal is to add
value in the supply chain between supplier
and customer. We offer predictability in
monthly sales instead of high variance, a
better cash flow due to high turnover of stock
and improved delivery performance. We
also reduce the number of claims and take
over the interface with hundreds of different
customers with different needs and replace it
with one professional buyer with smooth and
consistent processes.”
In the future, Satair will focus on
component management including warranty
handling, repair handling and repair operation
to further enhance its value proposition to
suppliers.
Foundation for success
Satair has with Destination2014 a clear focus
on the direction for the next 3-5 years, but
it is also common knowledge that business
strategy and priorities may change over time
based on external factors. The operational
model is what provides the foundation and
flexibility required to execute the initiatives
defined by the strategy.
Mikkel Bardram, Group VP – Head of
Global Supply Chain raps up: “Over the last
few years Satair has built a strong operational
model. With the implementation of SAP,
Satair has a strong IT platform with advanced
functionality in place. By standardizing
processes, implementing a functional
organization and initiating lean, we have
consistent performance and good control. For
the coming years Satair will continue to make
step-wise improvements while supporting
significant growth”.
Satair’s operational model is strong and
the strategy is designed to exploit this. With
Destination 2014 Satair has a robust strategy
to help meeting and exceeding customer and
supplier expectations. That succeeding, Satair
should experience continued growth and
emerge as the preferred partner in aerospace.