Japan Airlines - Orient Aviation

SPECIAL REPORTAircraft Maintenance & EngineeringCompetitive conversionsHeadhunters target skilled Chinese workersBy Charles AndersonBedek Aviation, Boeing’s B747-400 passenger to freighterconversion rival, may set upa production line in the Asia-Pacific, using GAMECO(Guangzhou Aircraf t MaintenanceEngineering Co) to do the heavy lifting as theneeds of growing cargo fleets fuel demandfor quick access to economic aircraft.The move would put the two companies indirect competition with Hong Kong AircraftEngineering Co (HAECO) subsidiary,Taikoo (Xiamen) Aircraft Engineering Co(TAECO), in which Boeing holds a 9%stake.TAECO, which acts as the airframemaker’s main B747-400 conversion centre– booking orders directly from it – leads thefield with eight aircraft already deliveredand 42 firm orders on its list, working outof a hangar specifically built for the purposeat the company’s ever-expanding facility insouthern China.Boeing also has approved conversioncentres at Singapore Airlines EngineeringCo (SIAEC) and Korean Air’s (KAL)Aerospace division.Dany Kleiman, vice-president andgeneral manager at Bedek, the MRO andconversion arm of Israel Aircraft Industries,believes there is room for more movementbased on industry forecasts that see theglobal freighter fleet doubling in the next 20years, with 75% of that growth coming fromconversions.“The competition from TAECO is verytough, of course,” he said. “These guys areworking with Boeing to convert the aircraft.But we think the size of the market is suchthat it can definitely hold two competitors,or two STC (supplemental type certificate)holders for this type of airplane.”Bedek recently won FAA (FederalAviation Administration) approval forsuch conversions, to go with the EuropeanAviation Safety Authority (EASA) certificateit holds.The company has converted two B747-400s for Air China at its facility in Israel.It has orders for three more from AsianaAirlines and eight from EVA Air.GAMECO is already doing a briskbusiness in B737 conversions for Bedek.“They are a natural candidate to expand ourworking relationship into this programme aswell,” said Kleiman.Joey Lo, GAMECO’s commercialdirector, wants to ensure there are enough‘We think the size of the[aircraft conversion] marketis such that it can definitelyhold two competitors for the[B747-400]’Dany KleimanVice-President and General ManagerBedek Aviationorders, and enough time for preparation,before going ahead, probably at the end ofthis year, or early in 2008.‘There is not much work on the structureor the floor beam for a 737 conversion,” hesaid.“But the floor beam on the 747 is a bigjob. We want to make sure we have enoughskilled people and we must take into accountour hangar slot issues. The first one would sithere for four to five months.“There are more processes involved. It’snot just a question of buying more jacks,but also getting the software, the skilledtechnicians, the sheet metal guys.”Staffing is no easy task. “Overseasfacilities are always head-hunting peoplefrom mainland China,” said Lo. “We wantto make sure we are confident.”GAMECO’s first B737-300 conversion,started last March, is already in operationwith China Postal, leased through GECommercial Aviation Services (GECAS).Another for the same customer was in thepaint shop at press time and two more,destined for Australia and Europe, are onthe books.B737-400s will be handled when Bedek,which supplies the kits, has that particularmodel certified.Taikoo (Shandong) Aircraft EngineeringCo beat GAMECO to the punch last year byconverting and delivering the first B737-300conversion in the Asia-Pacific to ShenzhenDonghai Airlines, using a conversion kitsupplied by Pemco Aviation Group.TAECO, meanwhile, has no slots availablefor B747-400 conversions until 2010.Cathay Pacific Airways and JapanAirlines are among early customers toreceive aircraft, as are Singapore Airlines(SIA) and KAL, which will handle laterconversion work itself. In SIA’s case, thisinvolves aircraft from its own fleet to besold to Dragonair’s cargo arm.All Nippon Airways (ANA), meanwhile,firmed up two options for B767-300 conversionslate last year to go with the threefirm orders it made in late 2005 as launchcustomer.W o r k w i l l b e c a r r i e d o u t b yAleniaAeronavali in Italy. That programmewill increase in numbers when the B787enters service, replacing B767-300s in somefleets and freeing up the older aircraft forconversion, said Boeing.Bedek is setting up a joint venture withJapan’s Mitsui trading house to convertB767-300s on its own account, targeting 80to 100 aircraft within 10 years of the start ofoperations.The company said the work would be42 ORIENT AVIATION February 2007