Aircraft Maintenance Repair and Overhaul Market Study. - OBSA

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• British AirwaysAs the major operator in the UK and with one of thelargest engineering facilities in Europe, they obviouslyneed to be considered. They have traditionallydone all their own work in-house and they now performno third party work.In the late 1980s they sold off their Engine Division toGE and reached a 10-year contract with them for alltheir existing engine work. Latterly this relationshiphas been strengthened by a new 10-year renewalof the contract for all the RR RB211 and GE enginetypes (GE90 and CFM 56). It is believed that Rolls-Royce maintains the RR Trents on the RR poweredB777 fleet.They have also split off their workshop and componentoverhaul units to subsidiary companies and relocatedthem away from Heathrow. In some casesthey have sub contracted specific tasks – such aswheel, brake and undercarriage overhaul – to outsidecompanies.They have greatly reduced both their work loads andworkforce by progressively implementing productivityagreements and working with the manufacturersto improve maintenance practices.• BMIThe main bases are at Heathrow and East Midlands.Besides maintaining its own fleet, BMI perform heavymaintenance up to C check for Virgin Atlantic.• Rolls-Royce plc Aero Repair & OverhaulPart of the aero engine business, Rolls-Royce hasfour UK facilities. Rolls-Royce Aero specialisesin engine refurbishment and overhaul for a largecustomer base including civil, military and marineapplications. It also has a comprehensive parts refurbishmentcapability. Rolls-Royce has associatedcompanies worldwide, including facilities in the USAand Canada.• Marshall AerospaceMarshall is based at Cambridge and specialises indesign, development, maintenance and conversionof military, civil, business and general aviation aircraft.Boeing and Airbus aircraft are services up toD check level. Marshall Aerospace is also a majormaintenance supplier for military aircraft. Additionally,they perform a significant amount of manufacturingwork for aircraft manufacturers. They havefacilities for total airframe maintenance for all sizesof aircraft up to and including the B747.• Bournemouth Aviation Services (BASCO)BASCO is now owned by Singapore TechnologiesAerospace. They specialise in aircraft maintenanceand modifications especially on widebody aircraft.• ATC Lasham LtdATC Lasham was originally part of the charter airlineDan Air. They are now significant suppliers tooperators and individual owners of executive jets.Originally based at Lasham, they have recently acquiredthe premises of the former Heavylift Companyat Southend where they plan to open an A320/321maintenance facility. In addition they have taken overhangar facilities at Cardiff previously used by DARAand plan to open a B757/767 Maintenance Line• MonarchThe main base is at Luton, maintaining its own aircraftand providing third party services.MRO Facilities in Continental EuropeThe main MRO suppliers in Europe have developedfrom airline in-house operations. The most significantexception is EADS. The following is a summaryof some key players.• Lufthansa TechnikPart of the Lufthansa group, Lufthansa Technik isthe largest MRO provider in Europe with total staff of16,000. It provides MRO services for all major commercialaircraft and provides maintenance supportat over 60 international airports.Lufthansa Technik was formed from the EngineeringDivision of Lufthansa at a time when the main nationalcarriers were reviewing their cost bases andorganisations. The intent was to allow more freedomfor the carrier to choose its supplier but, moreimportantly, to ensure that the Engineering divisionwas aware of its true costs and thus to more likely torun its activities on more business like terms.Lufthansa Technik has become highly successfuland has rapidly expanded both in and outsideEurope. Significantly it has set up a joint venture withMalev in Budapest (in which it holds 85%) and anotherpartnership with Air Malta. It has also acquiredShannon Aerospace in Ireland. In a recent move,they have formed a further partnership with Garudain Indonesia. These companies are clearly intendedto provide capacity and services at lower cost thanthe main bases at Hamburg and Frankfurt.• Air France Industries (AFI)AFI is the next largest MRO supplier in Europe, with11,000 employees. Originally the Engineering Divisionof Air France, AFI now operate as an autonomousunit within the parent organisation. They have22STRAIR Aircraft Maintenance Repair and Overhaul Market Study. Glasgow International Airport.
een very active in the Component Support areaoffering total Inventory Management. They also undertakethe full range of Airframe maintenance. Itis believed that about 80% of their work is now forthird parties.• EADSThe majority owner of Airbus, EADS has developed alarge presence in the MRO market through varioussubsidiaries. Not surprisingly the company specialisesin supporting Airbus aircraft.The main subsidiary company is Sogerma. Its headquartersis in Bordeaux and has a number of basesin France and also in Tunisia and Morocco. Theyundertake a total range of engine, airframe andcomponent services. Currently EADS has over 500customers and a staff in excess of 4,000. Other divisionsinclude ASLLC at Lake Charles in Louisiana,Barfield at Miami, EFW at Dresden in Germany andEADS Revima in France.3.4 Cost StructureThe following chart shows a breakdown of the costsfor each MRO segment. For Line maintenance andfor airframe heavy engineering, labour is by far thelargest proportion of the cost.Financial PerformanceThe financial performance of some of the UK MROshas been giving concern for some time. Prior to itsabsorption by SR Technics, the Stansted based MROFLS was reported to be heavily loss-making. BASCOis now part of Singapore Technologies Aerospacealso was reported as loss-making in 2004.Figure 3.5MRO Expenditure by Catagory %100%• SR TechnicsSR Technics, once the Engineering Division of Swissairit has, unusually, survived the demise of its parent.It is very successful and has recently bought upFLS with bases at Stansted, Manchester and Dublin.SR Technics offer a full range of services andhave recently concluded a £10m per year deal witheasyJet for total support of their fleets.MRO Facilities in IsraelMention should be made of Israeli suppliers. Themain MRO suppliers in Israel are able to offer lowerman-hour rates, have established a good reputationfor quality, and are not so far distant from Europe asto significantly penalise the time aircraft are out ofservice. Consequently they are a highly competitiveforce in the MRO market.• El AL TechThe technical organisation of the international airline,EL Al Tech specialises in Boeing aircraft up to Dchecks and provides logistical support, engineeringsupport and modifications. It is prepared to developtailor made solutions for its clients.90%80%70%60%50%40%30%20%10%0%Engine Component Line Mtce AirframeLabour Parts RepairMaterials Other• IAI BedekAn independent third party MRO supplier, IAI Bedekcan provide airframe, engine, component maintenanceand modifications for Boeing and Airbus aircraft.They also perform cargo conversions for Boeing747, 757 and MD11 aircraft.STRAIR Aircraft Maintenance Repair and Overhaul Market Study. Glasgow International Airport. 23
Page 1 and 2: 07Aircraft MaintenanceRepair and Ov
Page 3 and 4: presentationMaria KomendantovaProje
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Aircraft Maintenance Repair and Overhaul Market Study. - OBSA

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