AviTrader_Monthly_MRO_e-Magazine_2017-11

November 2017 - www.avitrader.com 

Oh, 

what a show! 

Company profile 

Engine Lease Finance 

Machining productivity 

MRO News 

from around the world 

People on the Move 

latest appointments

Editor‘s Page 

Published monthly by 

AviTrader Publications Corp. 

Suite 305, South Tower 

5811 Cooney Road 

Richmond, British Columbia 

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Canada 

Email: p.jorssen@avitrader.com 

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Editorial 

Keith Mwanalushi, Editor 

Email: keith@aeropublications.co.uk 

Mobile: +44 (0) 7871 769 151 

The battle for Dubai 

T 

he organisers of the just ended Dubai air 

show say trade visitors to the event were up 

around 20% on the 2015 event, with some 

79380 people entering the event during its 

five-day run. At the end of the show’s final day, the 

order book stood at almost US$113.8 billion. 

Despite a colourful appearance by the regional and 

mid-sized airplane makers, the main battle was [as 

usual] between Airbus Vs Boeing. Among the highlights, 

Airbus revealed its largest single announcement 

ever – a US$49.5 billion deal with Indigo Partners 

to purchase 430 aircraft in its A320neo family. 

With the Airbus order, Indigo Partners, a US-based 

private equity fund, has doubled its existing order 

of 427 A320 family aircraft. The fund owns four 

ultra low-cost airlines, Wizz Air, Frontier Airlines, 

JetSMART and Volaris. In addition to other orders, 

Airbus reports to have generated orders worth a 

combined total of $58.3 billion at list prices. 

Boeing won large commitments across its twinand 

single-aisle commercial airplane families. The 

company said it recorded commitments for 296 airplanes 

- including 50 options - with a value of about 

$50 billion at list prices. 

So who won the battle? It certainly looks like Airbus 

had the slight edge in terms of monetised orders but 

its worth remembering that list prices are not usually 

what the airlines actually pay -they always negotiate 

for discounts and these are usually to commercially 

sensitive to make public. 

Both manufacturers have strong demand for 

their single-aisle programmes the A320Neo and 

737Max. The 787 and 777 are doing exceptionally 

well as is the A330 to a lessor extent. However, both 

OEMs are struggling to attract orders for the the 

747-8 and A380 respectively. 

Dubai has been a success for both companies, but 

at the larger end of the aircraft scale, the jury is still 

out. 

Keith Mwanalushi 

Editor 

2 

Design 

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Layout & Design 

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EK placed orders for 40 787s at the show. 

Photo: Emirates 

Contents 

MRO and Production News ............................................ 4 

Finance News .................................................... 14 

Other News ...................................................... 18 

Cover story: Dubai makes it fly! ........................................ 20 

Company profile: Engine Lease Finance. ................................. 24 

Machining productivity .............................................. 25 

Information Technology. ............................................. 27 

People on the Move ................................................ 27 

AviTrader MRO - November 2017

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MRO and Production News 

4 

necessary test environment to simulate operating 

conditions. Service Bulletin and Mod Kit 

embodiment can be accomplished, alongside 

all Test, Repair and Overhaul tasks. 

flyadeal and LHT sign aircraft engineering services contract 

Photo: LHT 

flyadeal and Lufthansa Technik sign 

comprehensive engineering services 

contract 

Saudi-Arabia’s low-cost airline flyadeal, and 

Lufthansa Technik have signed a comprehensive 

aircraft engineering services contract. The 

contract will run over four years and will cover 

the complete flyadeal A320 fleet. One of the 

major components of the agreement is the 

set-up of a new maintenance control center. 

This will include a full Continuing Airworthiness 

Management Organization (CAMO) and 

aircraft engineering support from Lufthansa 

Technik. Lufthansa Technik will also organize 

troubleshooting and will help flyadeal to 

establish an optimized maintenance program 

which allows highly efficient operations resulting 

from an optimized maintenance schedule. 

Jet Aviation gains EN9110 certification 

and other maintenance approvals in 

Dubai 

Jet Aviation’s maintenance facility in Dubai has 

been awarded EN9110 certification following 

an independent audit. The company has also 

gained EASA, FAA and GCCA approvals for 

the Airbus Corporate Jet (ACJ) family, as well 

as EASA approval for the Bombardier Global 

BD700 series. In recognition of the development, 

implementation and continuous improvement 

of quality management systems, 

Jet Aviation’s maintenance facility in Dubai 

recently received EN9110 certification that was 

confirmed by an independent auditor. Coupled 

with the EASA, FAA and GCCA approvals, the 

company secures its ACJ Service Centre Network 

(SCN) status. With these approvals, the 

company is authorized to support 24-month 

inspections for the ACJ family and EASA and 

FAA-registered Global BD700 series. 

OEMServices extends component support 

services with Singapore Airlines 

OEMServices and Singapore Airlines have 

extened the A380 component support services 

agreement. The agreement provides 

comprehensive 24/7 component support 

from OEMServices’ main A380 regional 

pool based at Singapore’s Changi Airport. 

OEMServices’ Original Integrated Services 

(OIS) division launched operations ten-years 

ago in Singapore and will further accompany 

Singapore Airlines in its need for greater 

proximity and reactivity thanks to a new 

600m² warehouse located at 21, Changi 

North Rise in Singapore. 

MAEL adds Trent 900 engines to Airbus 

A380 Line Maintenance capability 

Monarch Aircraft Engineering has extended 

its line maintenance capabilities by gaining 

Airbus A380 Rolls-Royce Trent 900 engine 

approval. The new addition to MAEL’s capabilities 

has been approved by the Civil Aviation 

Authority (CAA) and has been added to 

the Part 145 approvals. This allows MAEL to 

provide line maintenance support for operators 

with Airbus A380 Trent 900 engines at 

Birmingham Airport. 

Oakenhurst Aircraft Services announce 

new Galley Support Programme 

Oakenhurst Aircraft Services has announced 

its new Galley Support Programme. An extensive 

capability list now covers; Sell, B/E 

Aerospace, Inventum, Monogram, Zodiac, 

Herman, Ipeco and Rumbold. Full MRO requirements 

are carried out from within a 

dedicated Galley Division, which provides the 

Turkish Technic and SAEI consolidate 

maintenance partnership 

Turkish Technic and SAEI (Saudia Aerospace 

Engineering Industries) have signed a Memorandum 

of Understanding (MOU) during the 

Dubai Airshow. The agreement expands the 

support and maintenance solutions in the 

field of component service which forms the 

basis to pursue a longer-term business partnership 

between both companies in support 

of their customers’ fleet operations in the 

Kingdom of Saudi Arabia and surrounding 

market. Under the terms of the MOU, the 

companies cooperate in component maintenance 

and component pool services, and 

improving the partnership through working 

together for warehouse and logistics services. 

CEO of Turkish Technic, Ahmet Karaman, 

said: “The Middle East region is extremely 

important for us. Extending cooperation with 

the SAEI fits perfectly Turkish Technic’s global 

strategy for increasing customer services and 

widening its network.” 

SAFAIR signed GE’s TrueChoice overhaul 

agreement for CFM56 engines 

SAFAIR OPERATIONS has signed a five-year, 

TrueChoice overhaul agreement with GE Aviation 

for the maintenance, repair and overhaul 

of its CFM56-7B engines that power its 

Boeing 737-800 aircraft. 

AES Global gains GCAA Design 

Organisation Approval 

Aerospace Engineering Solutions (AES), a 

UK-based aerospace design and certification 

organisation, has gained General Civil 

Aviation Authority (GCAA) Design Organisation 

Approval (DOA) from the United Arab 

Emirates (UAE). The approval demonstrates 

that AES complies with all regulatory requirements 

for accomplishing and approving Supplemental 

Type Certificates (STC) and minor 

modifications on UAE-registered aircraft and 

compliments the European Aviation Safety 

Agency (EASA) Part 21J Design Organisation 

Approval already held by the company. Receiving 

the GCAA Design Organisation Approval 

enables UAE registered aircraft access 

to the company’s catalogue of over 2,000 

approved major and minor changes. 



5 

regularly hear that next-generation machines 

need to be customizable and configurable. 

The new meter-class machine we’re debuting 

at formnext is our response to that feedback 

– a solution that is scalable and customizable 

and meets the needs of our industry, as 

it matures,” said Mohammad Ehteshami Vice 

President and General Manager, GE Additive. 

Magnetic MRO extends engine repair 

capability 

The signing of the new deal at the MRO Asia: Paul Lochab, CCO at Satair Group (left), Mr. Nguyen Duc Thinh, VP Technical 

at VietJEt (Middle) and Steve O’Connor, VP Aerospace Asia at PALL Aerospace. 

Photo: Satair Group 

Satair Group, PALL Aerospace and 

VietJet sign contract for avionics 

cooling filtration system 

At the MRO Asia exhibition VietJet, Vietnam’s 

fast-growing low-cost carrier signed a five-year 

contract for the fitting of Pall Aerospace’s Avionics 

Cooling Filtration System on to its fleet 

of 92 Airbus A320 family (plus five options) 

aircraft that it operates and has on order. The 

deal is the largest ever Pall Aerospace Supplier 

Furnished Equipment (SFE) contract won 

by Satair Group in Vietnam and is valued at 

some US$1.4m. The Pall system was introduced 

to combat the issue of water ingress and dust 

build-up in the avionics compartment and uses 

a patented cyclone separator system to remove 

free water from the air intake. This provides 100 

percent water separation efficiency even under 

the most adverse Airbus testing conditions. The 

water removal efficiency remains constant and 

is not affected by the pressure drop across the 

filter element. The system gives enhanced dust 

protection in the avionics bay and maintenance 

cost savings due to the improved filtration, as 

well as lower inventory holdings since Pall’s system 

requires only one filter element compared 

to two in the original system. 

BA CityFlyer selects AerFin’s Beyond 

Pool to support Embraer E-Jet fleet 

AerFin has signed a seven-year agreement to 

support BA CityFlyer’s fleet of 20 Embraer E-Jets 

via its “Beyond Pool” support program. “Beyond 

Pool” offers a fixed cost solution for all of BA 

CityFlyer’s E-Jet component requirements and 

will be fully supported out of AerFin’s London 

Gatwick facility. BA CityFlyer is a wholly owned 

subsidiary of British Airways and part of the International 

Airlines Group (IAG). IAG opened 

a competitive tender and conducted a very detailed 

overview of AerFin in its search for both a 

quality support solution and a competitive price 

point. This solution provides supply certainty to 

BA CityFlyer, reducing the operating cost of its 

E-Jet fleet, while maintaining high-quality engineering. 

BA CityFlyer operates from eight UK 

airports to over 30 European destinations per 

year, so proximity of support and reliability of a 

24/7 AOG service were key factors in choosing 

the right supplier. 

GE Additive unveils first BETA machine 

from its Project Atlas program 

GE Additive has unveiled the first BETA machine 

developed as part of its Project A.T.L.A.S 

program. The meter-class, laser powder-bed 

fusion machine has been developed to provide 

manufacturers of large parts and components 

with a scalable solution that can be 

configured and customized to their own specific 

industry applications. Project A.T.L.A.S 

(Additive Technology Large Area System) is 

GE Additive’s company-wide program to 

develop the next-generation large additive 

machines. This first BETA machine was developed 

in just nine months and complements 

the company’s existing portfolio of products. 

Ideally suited to industries that require large 

complex metal parts, such as aviation, automotive, 

space and oil and gas industries, 

the new BETA machine builds on technology 

previously developed by GE, combined with 

Concept Laser’s expertise in laser additive 

machines. The first few BETA machines are 

currently being evaluated by a small group 

of customers and more will be available for 

delivery in 2018. “Irrespective of industry, 

every customer has its own specific needs 

and its own unique levels of complexity. We 

Magnetic MRO has further extended its engine 

repair capability by adding top case repair 

and bushing replacement to its current 

service offering. As of October 20, 2017, the 

company has extended its capability across 

the CFM56 range of engines including the 

CFM56-3, CFM56-5 and CFM56-7, with 

EASA and FAA approvals provided. Through 

this new capability, Magnetic MRO engines’ 

department will be able to shorten its customer’s 

downtime by providing a more efficient 

and in-house repair service supported by a 

global team of specialists. In essence, Magnetic 

MRO’s expert and competent engineers 

will be on standby and ready wherever the 

customer’s engine is located. 

NORDAM and China Airlines announce 

joint venture 

NORDAM and China Airlines have signed a 

joint venture agreement to establish NOR- 

DAM Asia Limited, a company to repair and 

overhaul structural aircraft components for the 

China Airlines fleet and for other airlines in the 

Asia-Pacific region. For NORDAM, the partnership 

brings a consistent baseload of work 

from China Airlines and its affiliates, which include 

Tigerair Taiwan and Mandarin Airlines, 

while affording proximity to regional customers 

as a strategic objective of the company’s 

maintenance, repair and overhaul business in 

the Asia-Pacific region. For China Airlines, the 

flag carrier and largest airline of the Republic 

of China (Taiwan), the agreement in-sources 

control of critical competencies while upgrading 

proficiencies; reduces labor and transportation 

costs; expands its share of the third-party 

maintenance, repair and overhaul market; 

and promotes development of the aviation 

and aerospace sector in Taiwan. 

NORDAM Asia Limited will also leverage the 

China Airlines Cargo freighter network for 

freight-cost advantages and China Airlines 

status to pursue more economical raw-material 

purchases and spare-parts pricing, and 

will benefit from NORDAM’s industry alliances 

and existing network of sales representatives 

in Asia Pacific. 



6 

Magnetic MRO opens its new paint hangar 

Photo: Magnetic MRO 

Magnetic MRO presents new paint 

hangar 

Magnetic MRO is opening its purpose-built 

paint hangar’s doors for operation as of November 

2, and has confirmed that the hangar 

is already booked for the next six months by 

both existing and new customers. The new facility 

is located at its Tallinn home-base and 

has been built as a part of the company’s 

growth strategy. The total size of the new paint 

hangar is 2,853 m² and it enables Magnetic 

MRO to provide commercial and VIP standard 

painting services for a wide range of aircraft 

types, including the Boeing 737max and 

the Airbus 320neo family, as well as all other 

narrow-body aircraft. With this new hangar, 

Magnetic MRO has not only increased the total 

dedicated painting area to 4,354 m², but 

has also gained new competencies in terms of 

customized features applied to the new facility. 

The building is equipped with a custom 

docking system which can be tailored to serve 

different types of aircraft, making the facility 

one of a kind in the whole region. It is also 

designed to accommodate base maintenance 

visits, and engineered to support value added 

qualities such as safety, airflow, contamination 

control, lighting and energy efficiency. 

AEI receives order for three additional 

MD-83SF freighter conversions for 

Aeronaves T.S.M. 

Aeronautical Engineers (AEI) has signed a 

contract to provide Mexico-based Aeronaves 

T.S.M (TSM) with three additional MD-83SF 

freighter conversions. The first MD-83 aircraft 

(MSN 53293) will commence modification on 

December 11, followed by the second MD- 

83 (MSN 53292) commencing modification 

in February of 2018 and then followed by the 

third MD-83 (MSN 49941) starting modification 

in late April, 2018. All the AEI MD-83SF 

modifications will be performed by Commercial 

Jet’s Miami, Florida facility. 

Lufthansa Technik Component Services 

expands workshop in Tulsa 

Lufthansa Technik Component Services (LTCS) 

has substantially expanded its workshop in 

Tulsa, Oklahoma. On November 13, the 

Lufthansa Technik subsidiary officially started 

operation of the new component shop. 

Providing a shop floor area of 10,700 m² 

(115,000 ft²), the facility has doubled in size. 

Additional capabilities and an enhanced logistics 

network in the region further increase 

the performance and service portfolio of the 

company. For Lufthansa Technik the portfolio 

expansion is a major increase of its footprint 

in the Americas. In view of the capability expansion 

and the focus on increasing Boeing 

737 capabilities, the number of employees 

is expected to rise as well. Lufthansa Technik 

Component Services today employs close to 

600 employees at its eight locations throughout 

North America. Numerous changes have 

also been implemented to secure the supply 

chain in the region, including the establishment 

of new processes. Complementing the 

workshop expansion, Lufthansa Technik has 

also opened a new regional office in Miami, 

Florida, in October. The office employs about 

150 employees, with corporate sales and 

other commercial and operational services, 

such as a 24/7 AOG desk and material trading, 

being co-located here. By combining the 

different product divisions under one roof in 

the region, Lufthansa Technik ensures a more 

aligned and efficient market approach. 

StandardAero teams with GDC ME 

and Horizon Shield to provide MRO 

services in Saudi Arabia 

StandardAero has entered into an exclusive 

teaming agreement with GDC Middle East 

(GDC ME) and Horizon Shield Corporation of 

Riyadh to provide MRO services, engineering 

support, and design services for military aircraft 

operators in the Kingdom of Saudi Arabia. 

The three-year teaming agreement will 

initially cover government-owned rotorcraft 

for the Saudi Navy, Air Force and Land Forces. 

Commenting on the teaming agreement, 

Simon Jones, President of StandardAero/Vector 

Global Services, said: “Saudi Vision 2030 

is built around three themes: a vibrant society, 

a thriving economy and an ambitious nation. 

Vector is extremely pleased to extend its decades-long 

history of providing reliable aviation 

services to Saudi Arabia. By teaming with 

leading high-quality service providers such 

as GDC ME and Horizon, we are confident 

of achieving incremental growth for all three 

firms, while also helping to meet the ambitious 

goals of Saudi Vision 2030.” 


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8 

737-700 during conversion at IAI 

Photo: IAI 

Israel Aerospace Industries obtains 

STC approval for freighter conversion 

of 737-700BDSF 

Israel Aerospace Industries (IAI) has received a 

new Supplemental Type Certificate (STC) from 

the FAA (Federal Aviation Administration) for 

cargo conversion of the 737-700BDSF . IAI 

has recently completed its first-ever conversion 

of a prototype aircraft from passengerto-full-freighter 

configuration at its facility, including 

the installation of a wide cargo door. 

The aircraft was delivered to Alaska Airline 

as the first of a three-aircraft order. The work 

was performed at IAI’s Bedek Aviation Group 

facilities in Israel. 

Sichuan Airlines signs A350 XWB 

Flight Hour Services (FHS) components 

support 

Sichuan Airlines, an all-Airbus-fleet airline 

based in Chengdu, has selected Airbus 

Flight Hour Services (FHS) and Airbus Real 

Time Health Monitoring Service (AiRTHM) to 

provide components and predictive maintenance 

support, securing the highest service 

level and operations for its new fleet of four 

A350 XWBs. Sichuan Airlines is to operate the 

A350 XWBs in the coming months on its international 

routes, including Chengdu to the 

USA. This long-term FHS-Components and 

AiRTHM agreement provides an extensive 

scope of A350 line replaceable units (LRUs) 

and APU, guaranteed spare parts availability 

through pool access service and on-site stock 

at customer main base, as well as component 

reliability management and maintenance. In 

addition, AiRTHM brings a proactive maintenance 

mode to A350 operations. 

Honeywell to maintain aftermarket 

components for Emirates Airlines 

under 15-year agreement 

Honeywell has signed a 15-year Component 

Service Solutions agreement with Dubaibased 

Emirates to maintain aftermarket components 

on the airline’s fleet of Airbus A380 

and Boeing 777 aircraft. The technology used 

in this agreement extends through 2031 and 

covers comprehensive component repairs 

and support solutions for Emirates’ fleet, thus 

reducing grounded aircraft time. Honeywell’s 

strengths in the areas of component exchange 

and repairs will help Emirates benefit from a 

strong level of support and expertise, thereby 

reducing disruptions to operations due to 

component repairs. Honeywell’s services are 

designed to reduce maintenance costs, lower 

cost of ownership, and provide the highest 

possible fleet reliability. Aircraft components 

manufactured, supported and repaired by 

Honeywell include avionics and mechanical 

parts. 

Airbus’ and Etihad Airways Engineering’s 

joint A380 MRO Services offering 

commences operations in Abu 

Dhabi 

Work is starting on the first A380 “six-year” 

C-check for a third-party customer airline at 

Airbus’ and Etihad Airways Engineering’s joint 

A380 MRO Services offering in Abu Dhabi. 

The aircraft, A380 MSN072, belonging to 

Lufthansa, arrived at the end of October, and 

following an initial inspection phase, is getting 

ready to undergo the heavy check at Etihad’s 

state-of-the-art heavy maintenance facility. 

The extensive work scope, which includes 

major structural checks and incorporation of 

the mandatory Service Bulletins, is supported 

by an onsite Airbus technical advisory team. 

First agreed last year, this joint services collaboration 

materializes Etihad Airways Engineering’s 

recently announced membership of 

the international “Airbus MRO Alliance”, while 

for airlines it establishes OEM-backed thirdparty 

A380 maintenance, engineering and 

embodiment capabilities in Abu Dhabi, delivering 

efficient turnkey solutions under one 

roof. During the actual heavy maintenance 

visit, Airbus Customer Services provides technical 

advisory, logistical support and planning 

optimization managed by a dedicated on-site 

expert team, allowing minimized downtime of 

the aircraft. 

Honeywell and LHT create largest 

maintenance, repair and overhaul 

capability for Airbus A350 fleets 

Honeywell has signed Lufthansa Technik as 

a licensed component repair center and exclusive 

global asset provider for all Honeywell 

components and the HGT 1700 APU on 

Airbus A350 aircraft. Under the agreement, 

Lufthansa Technik will offer A350 operators 

around the world an unequalled experience 

with maintenance, repair and overhaul services 

for all Honeywell components, including 

auxiliary power units. Since the A350’s entry 

into service in late 2014, Lufthansa Technik 

has had two years of operational experience 

managing six in-service A350 fleets with 

more than 50 in-service aircraft. The new 

agreement extends Honeywell’s longstanding 

relationship with Lufthansa Technik as a Honeywell-licensed 

repair facility for mechanical, 

avionic components and hydro-mechanical 

units, and demonstrates its commitment to reduce 

aircraft downtime, providing faster turnaround 

and getting aircraft back in service. 

CL Aerospace gains EASA approval 

for new, SLA Battery 

C&L Aerospace, in partnership with Securaplane 

Technologies, a Meggitt PLC Company, 

has received EASA approval for the 

Securaplane Sealed Lead Acid (SLA) Batteries 

for Saab 340 aircraft. In August, both 

companies announced the battery’s Supplemental 

Type Certificate (STC) and it’s 

FAA approval. Now with EASA approval, 

the battery can be installed on Saab 340 

Aircraft registered in Europe. In conjunction 

with the STC, Securaplane and C&L have 

entered into an agreement that designates 



9 

C&L as the worldwide Saab 340 Securaplane 

SLA Mainship battery distributor. The 

non-hazardous SLA batteries are maintenance-free,. 

can directly replace existing 

Ni-cad batteries, offer superior hot and 

cold weather performance and the ability to 

recover from deep discharge. 

Pratt & Whitney Turkish Engine Center 

signs maintenance contract with 

Turkish Airlines 

The Pratt & Whitney Turkish Engine Center 

has signed one of its largest maintenance 

contracts, when Turkish Airlines selected the 

engine center for up to a five-year Engine- 

Wise service agreement covering 100% of 

the airline’s V2500® and CFM56-7b engine 

overhaul requirements. The Pratt & Whitney 

Turkish Engine Center, a joint venture between 

Pratt & Whitney and Turkish Technic, started 

operations in 2010 and draws on decades 

of maintenance experience from both Pratt 

& Whitney and Turkish Airlines. The engine 

center is equipped with high-tech, innovative 

flow lines and the latest machinery to overhaul 

engines to the industry’s highest standards. 

Demonstrating a high level of quality 

and safety, the engine center has delivered 

over 600 engines since 2010. 

Technetics Group announces new 

seal selector tool for critical service 

environment 

Technetics, a globally trusted source for engineered 

components, seals, assemblies 

and sub-systems for demanding environments, 

has announced its newly-released 

Seal Selector tool. The proprietary online tool 

quickly and easily determines the right custom-engineered 

sealing solution(s) based on 

the world’s most demanding environments. 

Technetics provides custom-engineered sealing 

solutions that have proven themselves 

time and again in the world’s most extreme 

environments. From abradable materials that 

increase airflow in turbines to inflatable seals 

that protect process materials and operators 

in the life sciences, every sealing solution 

Technetics offers is engineered for safety, performance 

and durability. 

Embraer and Austral Líneas Aéreas 

extend Pool Program for E-Jets 

Embraer and Austral Líneas Aéreas, Aerolíneas, 

Argentina’s domestic airline, have 

extended their Flight Hour Pool Program 

agreement until 2021 to continue providing 

repairable component support for the carrier’s 

fleet of 26 E190 jet aircraft. The announcement 

was made during the Embraer 

Operators Conference, held in Fort Lauderdale, 

Florida, from October 31 to November 2. 

The multiyear program that originally began 

in 2011 features both the Pool Program and 

repair management services for the carrier’s 

E-Jets, which includes material services engineering, 

advanced component exchanges 

from Embraer’s spare parts warehouse in Fort 

Lauderdale, Florida, and a dedicated logistics 

channel to deliver parts to the Aerolíneas Argentinas 

cargo facility in Miami, Florida. 



10 

year, as well as a 30% increase in the number 

of employees in Sofia to 1,300. 

Vector Aerospace signs exclusive 

agreement with Precision Air Services 

GA Telesis and Czech Technics launch joint service for ATR turboprop aircraft 

Photo: Czech Airlines Technic 

Czech Airlines Technics and GA Telesis 

to launch joint service for ATR turboprop 

aircraft 

Czech Airlines Technics (CSAT), a daughter 

company of the Czech Aeroholding Group 

providing aircraft maintenance services, has 

signed a Memorandum of Understanding 

with GA Telesis (GAT), a US-based key player 

within the aviation and aerospace industries, 

at the MRO Europe in London. Based on the 

agreement, the two companies are to form 

an integrated supply chain partnership and 

offer customers a complex service for ATR 

turboprop aircraft. The service will also cover 

the support of rotating aircraft parts including 

repairs, spare parts inventory and logistics. 

The new joint product will be provided based 

on a “Power by Hour” program, charging 

air carriers a fee according to flight hours. 

Under the program, CSAT workers will be in 

charge of performing repairs of rotating aircraft 

parts, such as propeller blades, for GAT 

clients using either its own capacity or via external 

partners. The partner company will be 

in charge of the spare parts inventory, logistics 

and storage. The companies will join efforts 

in terms of business support and search 

for new customers. The creation of a special 

store, a pool, of components for rotating 

aircraft parts into which CSAT is to deposit 

the spare parts it currently owns and cannot 

sufficiently use is also a part of the agreement 

between the parties. GAT will subsequently 

supply the pool with additional spare 

parts and components to ensure it covers all 

requests by future customers. GAT has created 

a special tool called iGEAR (Intelligent 

Global Engine & Airframe Replenishment) to 

facilitate access to the pool. The partnership 

has been entered into for a five-year period 

with the option of extension thereafter. Final 

terms and conditions of co-operation will be 

specified by the end of the year. 

Czech Airlines Technics to launch fifth 

base maintenance line 

Czech Airlines Technics (CSAT), a daughter 

company of the Czech Aeroholding Group, 

providing aircraft maintenance and repair services, 

has launched a fifth base maintenance 

line for Boeing 737, A320 Family and ATR aircraft 

this autumn. Thanks to additional capacity 

increases in the aircraft base maintenance 

area, the workload capacity will grow by 25%. 

The planned launch of operations of the fifth 

base maintenance line is connected with the 

hiring process of about 80 employees. Sufficient 

investment in a hangar stand and material 

supplies for the existing technical facilities 

of Hangar F, located on Václav Havel Airport 

Prague premises, was required to enable the 

launch of operations of the fifth base maintenance 

line. 

Lufthansa Technik Sofia further 

expands capacities in Bulgaria 

Lufthansa Technik is expanding its capacity with 

a new hangar, office and multifunctional building 

at Sofia Airport, becoming the largest base 

maintenance facility in Eastern Europe. Bulgarian 

subsidiary Lufthansa Technik Sofia will be 

also the largest base maintenance site of Lufthansa 

Technik in Europe. The total investment 

in the project amounts to approximately €35m 

(US$41m) invested together with the joint venture 

partner Bulgarian Airways Group. The 

funds were used for the construction of the new 

six-level multifunctional building, combining 

hangar, offices and workshop areas. The new 

expansion will lead to an increase in production 

lines and further growth of the central service 

departments which, from Sofia, serve the 

worldwide Lufthansa Technik network of base 

maintenance facilities. That means 60% capacity 

increase or 1 million man-hours in total per 

Vector Aerospace has signed a new seven-year 

exclusive engine service agreement with Precision 

Air Services, to support the Tanzanian airline’s 

fleet of ATR regional turboprop aircraft. 

Precision Air is the second-largest operator of 

ATR aircraft in Africa, flying a fleet of five ATR 

72-500, three ATR 42-500 and one ATR 42- 

600 regional turboprops to destinations including 

Nairobi, Kilimanjaro, Arusha, Zanzibar and 

Dodoma. Under the terms of the exclusive multi-year 

agreement, Vector will provide Precision 

Air with comprehensive engine maintenance, 

repair and overhaul services from its Gonesse, 

France, facility on the outskirts of Paris, along 

with engineering, training and engine condition 

trend monitoring (ECTM) services. 

Alaska Airlines signs US$500m support 

agreement 

Alaska Airlines and CFM International have 

signed a nine-year Rate Per Flight Hour (RPFH) 

maintenance agreement to support 128 

CFM56-7B engines that power the airline’s s 

fleet of Boeing Next-Generation 737-800 aircraft. 

The agreement, which includes spare engines, 

is valued at nearly $500 million U.S. at 

list price. Rate per Flight Hour agreements are 

part of CFM’s portfolio of flexible aftermarket 

support offerings. After an extensive market Request 

for Proposal (RFP), CFM was selected to 

be Alaska’s CFM56-7B maintenance provider. 

The companies negotiated a unique contract 

throughout the term of which CFM will provide 

complete engine maintenance and support, 

including providing lease engines, transportation, 

and material services. 

Pratt & Whitney signs exhaust system 

component distribution agreement 

with Satair Group 

Pratt & Whitney has entered into an agreement 

with Satair Group for the exclusive distribution 

of PW4000 100-inch engine nacelle exhaust 

system parts. Under the terms of the agreement, 

Satair Group will distribute the spare 

parts to Pratt & Whitney’s worldwide customer 

base. Satair Group will also maintain customer 

orders and fulfillment for the life of the 

program and has already taken over distribution 

duties. “Our mission is to provide our 

customers with the highest level of aftermarket 

support throughout the engine’s lifecycle un- 



11 

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12 

der the Pratt & Whitney EngineWise service 

brand,” said Earl Exum, Pratt & Whitney’s Vice 

President, Transactional Aftermarket. “We are 

pleased that our PW4000 engine customers 

will have expanded use of Satair Group’s 

worldwide distribution network.” 

LHT signs component support contract 

with Pan Pacific Airlines 

Lufthansa Technik AG has been commissioned 

with comprehensive component supply for the 

fleet of A320s operated by the Philippine carrier 

Pan Pacific Airlines. The Total Component 

Support (TCS®) contract with a term of six 

years took effect on November 1, 2017. The 

integrated component support comprises the 

repair and overhaul of components as well as 

pooling and spare part leasing at the airline’s 

home base. To safeguard Pan Pacific Airlines’ 

daily operations, Lufthansa Technik guarantees 

100% reliable deliveries from its TCS® pool of 

more than 100,000 different components. This 

exclusive agreement was signed on November 

1, during MRO Asia-Pacific. 

Sibir Technic completes A-check on 

Embraer E170 

Sibir Technic, a subsidiary of ENGINEERING 

Holding is the first MRO company in Russia to 

start providing light base maintenance, including 

the A-check on Embraer E170 regional jets. 

Russia’s only operator of the Embraer E170, S7 

Airlines launched operation of this type in the 

spring of 2017. Sibir Technic’s maintenance staff 

received appropriate training and ratings in Europe, 

and have already completed A-checks on 

several Brazilian-built aircraft at the company’s 

certified facility at Novosibirsk’s Tolmachevo 

airport. Sibir Technic provides maintenance on 

the Embraer E170 completely in-house, without 

involving any third party assistance. 

AEI to provide two CRJ200 conversions 

for Pinnacle Partners 

Aeronautical Engineers (AEI) has signed a contract 

to provide two CRJ200 SF freighter conversions 

to Pinnacle Partners. The first CRJ200 

(MSN 7421) will commence modification in 

November with redelivery scheduled for March 

2018. The second CRJ200 (MSN 7417) will 

commence modification in December, with redelivery 

scheduled for April 2018. Both freighter 

conversions will take place at Commercial 

Jet’s Dothan, Alabama facility, which is one of 

five authorized AEI Conversion Centers worldwide. 

Prior to the first two CRJ200 SF aircraft 

entering regular revenue service, the freighters 

will be utilized by Another Joy Foundation 

to transport tons of humanitarian aid from the 

USA to Puerto Rico, to help those in need who 

have been affected by hurricane Maria. 

STG Aerospace receives lighting 

retrofit contract 

India’s third-largest airline, SpiceJet, has partnered 

with STG Aerospace in a cabin lighting 

retrofit program, which will see the airline upgrade 

its fleet of 737-700/-800/-900s with 

LED aftermarket ambient lighting solution, 

liTeMood®. This is the first major retrofit win 

for STG Aerospace in the Asia Pacific region 

and the largest lighting retrofit contract that the 

company has been awarded. A customer of 

saf-Tglo® since 2005, SpiceJet will now combine 

both liTeMood® and saf-Tglo® systems to 

provide two cabin lighting systems that complement 

each other, resulting in satisfied passengers, 

increased wellbeing and reduced stress 

during the flight. 

Hebei Airlines relies on emergency 

floor-path marking system from 

Lufthansa Technik 

Hebei Airlines will begin to use the emergency 

floor-path marking system GuideU “Custom- 

Fit” from Lufthansa Technik in its Boeing 737 

and Embraer E190 fleets. For the first time, this 

system will be implemented with an integrated 

corporate logo, enabling an even more customized 

adaptation to the corporate design of 

an airline. A total of 22 aircraft operated by 

the well-known Chinese airline, which is headquartered 

in Shijiazhuang, are scheduled to 

be fitted with the solution. The first is already 

in service. Through the use of its logo on the 

floor path marking, Hebei Airlines is pursuing 

a highly individual design that underscores the 

high quality of the cabin product it offers. 

Lufthansa Technik extends component 

support for SriLankan Airlines’ 

A320 fleet 

SriLankan Airlines and Lufthansa Technik have 

extended their existing component support contract 

for the growing Airbus A320 fleet of Sri 

Lanka’s national carrier. The expanded Total 

Component Support (TCS®) agreement comprises 

all aircraft of SriLankan Airlines’ growing 

A320 fleet, including its new A320neo aircraft. 

Lufthansa Technik will take care of all aspects 

relating to daily component supply for SriLankan 

Airlines. The components will be repaired 

and overhauled at Lufthansa Technik’s global 

network of repair facilities. Pooling will be provided 

through Hong Kong and Singapore, 

where Lufthansa Technik operates two warehouses 

for the Asia Pacific region. SriLankan 

Airlines first placed its trust in Lufthansa Technik’s 

component support in 2012. Currently, 

the carrier’s A320 fleet consists of nine A320 

and six A320neo aircraft. 

HAECO Americas and IAC announce 

co-location in Lake City, FL 

HAECO Americas, a subsidiary of the HAE- 

CO Group with headquarters in Greensboro, 

North Carolina, USA and IAC (International 

Aerospace Coatings) have signed a three-year 

agreement for IAC to sub-lease Hangar 9 of 

HAECO Americas’ Lake City, Florida, facility. 

Jim Sokol, President of MRO Services, HAECO 

Americas, said: “IAC provides a complementary 

service, which now allows us to offer full 

painting capability within our Lake City, Florida 

facility. IAC is recognized as a world-class leader 

in aircraft finishing. The co-operation helps 

expand our customers’ options when undergoing 

maintenance or livery needs.” The agreement 

includes the option for further contractual 

extensions. Both HAECO Americas and IAC 

are working together closely to support each 

other’s business and customer base. 

Monarch Aircraft Engineering wins 

China Airlines line maintenance 

contract 

Monarch Aircraft Engineering (MAEL) has 

signed a line maintenance agreement with 

China Airlines. The flag carrier is a new customer 

for MAEL who will carry out line maintenance 

work when China Airlines begins its London 

Gatwick service in December 2017. With 

four flights a week in the winter, followed by 

five flights or more next summer, the line maintenance 

work will be carried out on the airlines 

Airbus A350 aircraft. 

AJW Group expands contract with Air 

Transat to cover A330 fleet growth 

AJW Group has expanded its power-by-thehour 

(PBH) contract with Canadian carrier Air 

Transat. AJW Group originally signed a longterm 

PBH contract with Air Transat in 2013 to 

provide support for the airline’s Airbus A330 

aircraft, and the expanded contract will now 

support their increased Airbus A330 fleet, 

which has grown by 33% since the start of the 

contract. 



13 

Georgian Airways now supported by 

Spairliners 

Georgian Airways, the Tbilisi-based airline, 

and Spairliners, one of the market leaders in 

Aircraft Component Care based in Hamburg, 

Germany, have signed a multi-year contract 

for all-embracing component maintenance 

services of two Embraer E190 aircraft. The 

contract comprises pool access and component 

repair services for Georgian Airways. 

Spairliners supports Georgian Airways with 

spare parts from its large-scaled component 

pool in Munich and Paris. Hereby, smooth 

flight operations will be ensured in an efficient 

and timely manner. The agreed component 

repair services are carried out by Spairliners’ 

parent companies Lufthansa Technik AG 

and Air France Industries KLM Engineering & 

Maintenance. 

ATR offers new Vibration Monitoring 

System 

Turboprop manufacturer ATR, has certified its 

new Vibration Monitoring System (VMS) which 

will allow airlines to constantly monitor and 

fine-tune propeller vibration. This innovation, 

which will be available on all new aircraft 

from March 2018, improves both aircraft reliability 

and passenger comfort. It will also be 

available to retrofit on in service aircraft, via 

Service Bulletin. The new VMS will be permanently 

installed on the aircraft and replaces 

the previous temporary ground tooling systems 

used to monitor engine vibration. This 

equipment, which will be supplied by Meggitt 

Sensing Systems, removes the need for airlines 

to organize regular ground testing or put 

maintenance personnel on revenue flights, 

therefore improving maintenance efficiency. 

AAR expands ATR product line by 

acquiring Island Air inventory, plus 

tooling 

AAR, a leading integrator of aviation supply 

chain solutions, has expanded its ATR parts 

offerings by purchasing the entire ATR inventory, 

plus tooling, of Honolulu-based Island 

Air, which recently phased out its ATR operations. 

The acquisition deepens AAR’s commitment 

to providing global, customer-facing 

solutions to the ATR market. The inventory 

will be integrated into AAR’s existing ATR supply 

chain and strategically positioned at the 

Company’s distribution hubs in the United 

States, Singapore and Hannover, Germany. 

This is the first ATR inventory package AAR 

has purchased since entering the ATR market 

earlier this year when it bought ATR inventory 

from ASL Aviation subsidiary ACLAS Global 

as part of a PBH agreement with ASL. AAR 

has a dedicated ATR product line team based 

in the UK to serve ATR customer parts requirements 

globally. 

CFM signs third-party LEAP aftermarket 

support agreements 

CFM International has signed agreements 

with Lufthansa Technik and AFI KLM E&M 

to provide maintenance and overhaul support 

for its advanced LEAP engine product 

line. CFM has long-standing relationships 

with both companies on the CFM56 family, 

and has granted licenses for them to develop 

MRO services offerings to provide both onwing 

and on-site support, as well as engine 

overhaul for LEAP. CFM has three of its own 

shops with LEAP capability to support the engine’s 

entry into commercial service: Lafayette, 

Indiana in the U.S., which can support 

both the LEAP-1A and LEAP-1B; Brussels, Belgium, 

which has capability for the LEAP-1A; 

and Saint-Quentin-en-Yvelines, France, which 

will support the LEAP-1B. The company has 

also established worldwide On-Site Support 

(OSS) capabilities to provide customers with 

extended on-wing support. These facilities 

can also perform lighter MRO workscopes. 

The new third-party shops will provide additional 

LEAP-1A and -1B capacity as they come 

online over the next couple of years. 

Singapore Airlines signs US$1.7bn 

GE9X services agreement 

Singapore Airlines has signed a 12-year 

TrueChoice flight hour agreement with GE 

Aviation for the maintenance, repair and 

overhaul of its 45 GE9X engines that will 

power its Boeing 777-9 aircraft. The services 

agreement is valued at more than US$1.7bn. 

This announcement follows Singapore Airlines’ 

February 2017 notice of intent to order 

20 GE9X-powered Boeing 777-9 aircraft and 

five spare engines. The engine order is valued 

at more than US$2bn list price. 

Boeing, Mitsubishi Heavy Industries 

reach agreement on cost reduction 

for 787 production 

Boeing and Mitsubishi Heavy Industries (MHI) 

have reached an agreement to strengthen 

collaboration in ways that will enhance both 

companies’ competitiveness. The agreement 

includes efforts to reduce costs in MHI production 

of wings for the 787 Dreamliner and joint 

studies of advanced aerostructure technologies 

for future-generation commercial aircraft. 

MHI manufactures 787 composite wings at its 

factory in Nagoya. The agreement aims to enable 

sales by pursuing increased efficiency in 

MHI’s production system and its supply chain 

through lean production methods, automation 

and other activities. MHI’s work statement for 

Boeing Commercial Airplanes also includes 

fuselage sections for the 767, 777 and 777X 

programs. In total, about 150 Japanese companies 

are suppliers to Boeing across its commercial 

and defense product lines. Boeing procures 

approximately US$5bn worth of goods 

and services from Japan every year, while Boeing-related 

work supports tens of thousands 

of highly skilled aerospace jobs in the United 

States and Japan. 

HAECO Xiamen and Comac sign 

trainings co-operation framework 

agreement 

HAECO Xiamen and Commercial Aircraft 

Corporation of China (COMAC) have signed 

a training co-operation framework agreement. 

Under the agreement, HAECO Xiamen 

Technical Training Centre, a CCAR-147, 

HKAR-147 and EASA Part-147 approved 

aircraft maintenance training organization, 

will become a key training base for the continuous 

development of COMAC’s personnel. 

HAECO Xiamen will utilize its extensive experience 

and resources in training within the 

aviation industry to deliver a series of aviation-focused 

theoretical and practical training 

courses to COMAC. Starting from the basic 

skills in maintaining aircraft components, 

HAECO Xiamen and COMAC are committed 

to working together in progressively nurturing 

well-rounded aircraft engineering professionals 

who will serve the Chinese aviation industry’s 

growing needs for aircraft design, manufacturing 

and customer service personnel. 

ST Aerospace secures new contracts 

worth about S$530m in third-quarter 

2017 

Singapore Technologies Aerospace (ST Aerospace) 

secured new contracts worth about 

S$530m in the third quarter (3Q) of 2017 

for services ranging from heavy airframe and 

engine maintenance, component repair and 

overhaul to cabin retrofit. The heavy airframe 

maintenance contracts include long-term 

agreements to support a range of aircraft 

platforms from MD-11, Boeing 777 and Boeing 

757 to A300 for freight operators. Other 

MRO contracts clinched in 3Q2017 include 

agreements to service CFM56-7B engines for 



14 

European and Asia airlines, as well as agreements 

to overhaul the landing gears of commercial 

and military aircraft. 

ST Aerospace further grew its cabin retrofit 

business and secured a launch customer 

for its aircraft seats when it won a contract 

from an aircraft leasing company to refresh 

and reconfigure the cabin interior of two 

A320 aircraft. ST Aerospace will be installing 

its in-house designed seat, which is tailored 

specifically for narrow-body aircraft and medium-haul 

flights, when refreshing the cabin 

interior of the two aircraft. The aerospace 

sector redelivered a total of 1,134 aircraft for 

airframe maintenance and modification work 

in 3Q2017. Additionally, a total of 11,509 

components, 65 landing gears and 34 engines 

were processed, while 2,565 engine 

washes were conducted. 

The sector continued to expand its capabilities 

when its airframe MRO station in Guangzhou, 

China, received approval of the Civil 

Aviation Authority of Malaysia to provide 

maintenance service for Boeing 767, while its 

VIP completion and refurbishment business, 

AERIA Luxury Interiors, registered successfully 

for an independent repair certification with 

the Federal Aviation Administration, allowing 

the company to streamline its completion process, 

and expedite its maintenance, refurbishment 

and completion contracts in the most 

efficient way possible. 

PEMCO hosts inaugural door doorcutting 

ceremony for B737-700 Flex- 

Combi conversion aircraft 

PEMCO World Air Services (PEMCO) has held 

a ceremony to mark the cutting of a cargodoor 

opening in a passenger airframe for 

the conversion of its first Boeing Next Generation 

737-700 Passenger-to-FlexCombi 

aircraft. The event is a major milestone for 

Bahrain-based Chisholm Enterprises, an internationally 

recognized provider of tailored 

aviation and business solutions in the Middle 

East, which is the customer for this aircraft. 

Its subsidiary Texel Air, a non-scheduled cargo 

airline, will operate the B737-700 Flex- 

Combi from Bahrain International Airport. 

The FlexCombi design provides separate 

main-deck compartments for passengers 

and cargo. PEMCO expects to receive U.S. 

Federal Aviation Administration supplemental 

type certification (STC) approval for its 

B737-700 conversion programs by the third 

quarter of 2018. After the initial FAA issuance, 

PEMCO plans to certify the programs 

with the European Aviation Safety Agency 

and the Civil Aviation Administration of China 

shortly thereafter. PEMCO intends to offer 

three configurations of the PEMCO B737-700 

FlexCombi: a 24-passenger cabin plus a 

2,640-cubic-foot cargo hold for up to 30,000 

pounds of payload in six pallet positions; a 

12-passenger cabin plus a 3,005-cubic-foot 

cargo hold for up to 35,000 pounds of payload 

in seven pallet positions; or full-freighter 

mode consisting of a 3,370-cubic-foot cargo 

hold for up to 40,000 pounds of payload in 

eight pallet positions. The available positions 

will accommodate 88” x 125” or 88” x 108” 

pallets, with the seventh and eighth positions 

accommodating smaller pallets. 

Finance News 

GE Additive acquires GeonX to strengthen software 

simulation capabilities 

GE Additive has acquired GeonX, a privately-owned developer of simulation 

software. Terms of the deal are not being disclosed. Headquartered 

in Belgium, GeonX provides software for engineers when developing 

new products, to simulate additive manufacturing, welding, machining 

and heat treatment processes in various industries such as aerospace, 

automotive and energy. GeonX’s simulation software tool, Virfac® (short 

for Virtual Factory), assesses products prior to production; predicting defects, 

distortions and stresses and the impact manufacturing has on a 

product’s durability. This helps to reduce the number of prototypes built 

during the development phase, while improving the quality and lifetime 

of the manufactured products. This can minimize the time to market and 

development costs. For many years, GE has been a leading end user 

and innovator in the additive manufacturing space. In addition to the 

US$1.4bn investment in Concept Laser and Arcam, GE has also invested 

approximately US$1.5bn in manufacturing and additive technologies 

over the past 10 years, developed additive applications across all GE 

businesses, created new services applications across the company, and 

earned hundreds of patents in material science. In 2016, the company 

established GE Additive to become a leading supplier of additive technology, 

materials and services for industries and businesses worldwide. 

Locatory.com reports record growth for 2017 

This October, the online aircraft spare parts and repair capabilities 

marketplace Locatory.com has announced hitting record highs and 

increasing the company’s sales by 20%. Moreover, the company has 

managed to achieve such results with half the sales force of 2016. Having 

analyzed its quarterly results, the Locatory.com management team 

concluded that the last trimester has been the quarter with the best sales 

in the entire company’s history. The unprecedented growth was largely 

driven by the introduction of a renewed pricing strategy, more flexible 

payment solutions, and highly optimized in-house processes. This allowed 

the company to significantly raise its operational efficiency and 

reduce the need for extensive human resources. In addition to the aforementioned 

business optimization processes, during the year Locatory. 

com presented the market with a wide range of new online tools and 

products, thus securing the company several large-scale projects and a 

15 percent increase in customer base. 

Astronics Corporation reports 2017 third-quarter financial 

results 

Astronics Corporation has released its financial results for the three and 

nine months ended September 30, 2017. Consolidated third-quarter 

sales were down US$5.5m from the same period last year. Aerospace 

segment sales of US$128.7m were up $3.5 million and Test Systems 

segment sales of US$21.0m were down US$9.0m. Consolidated gross 

margin was 21.7% in the third quarter of 2017 compared with 24.9% in 

the third quarter of 2016. Consolidated gross margin was negatively affected 

by lower organic sales volumes coupled with the Custom Control 

Concepts (“CCC”) acquisition, having a significantly lower margin profile 

at this point in its business cycle, compared with the organic business. 

Net income was US$6.1m compared with US$12.1m in the prior year. 

Consolidated sales for the first nine months of 2017 decreased by 

US$25.9m, or 5.4%, to US$453.1m. Aerospace segment sales were 


Finance News 

16 

down US$11.0m, or 2.7%, year-over-year to US$395.0m, while Test 

Systems segment sales were down US$15.0m, or 20.5%, to US$58.1m. 

Net income for the first half of 2017 totaled US$25.3m compared to 

US$38.5m in the prior year. 

Boeing completes acquisition of Aurora Flight Sciences 

Boeing has completed the acquisition of Aurora Flight Sciences, a worldclass 

innovator, developer and manufacturer of advanced aerospace 

platforms and autonomous systems. Aurora will operate under Boeing 

Engineering, Test & Technology as a subsidiary called Aurora Flight 

Sciences, A Boeing Company. It will retain an independent operating 

model while benefiting from Boeing’s resources and position as one of 

the leading provider of aerospace products and services. Boeing first 

announced the agreement with Aurora on Oct. 5, 2017 pending U.S. 

government approval. Terms of the approved deal were not disclosed 

and do not affect Boeing’s financial guidance. Headquartered in Manassas, 

Va., Aurora has more than 550 employees and operates in six 

locations, including research and development centers in Cambridge, 

Mass. and Luzern, Switzerland; manufacturing facilities in Bridgeport, 

W.Va. and Columbus, Miss., with offices in Dayton, Ohio, and Mountain 

View, Calif. 

Airbus completes sale of Vector Aerospace to StandardAero 

StandardAero Aviation and Airbus have finalized the former’s acquisition 

of Vector Aerospace from Airbus. Vector is a global aerospace 

maintenance, repair and overhaul company, providing responsive, 

quality support for turbine engines, components, fixed- and rotary-wing 

aircraft. A truly international company, it generated revenues of over 

US$700m in 2016 and employs approximately 2,200 people in 22 locations 

across Canada, the United States, the United Kingdom, France, 

Kenya, South Africa, Australia and Singapore. The newly combined 

company, which will maintain the name of StandardAero, has more 

than 6,000 employees in 42 locations across five continents, with annual 

revenues of approximately US$3bn. 

Q400s, at a list price valued of US$1.7 billion. Further engine delivery 

delays from Pratt & Whitney have impacted full-year C Series aircraft 

deliveries, the result being that 8-10 C Series aircraft should be delivered 

in the final quarter. Overall, revenue for the Commercial Aircraft 

sector is now estimated at US$2.5 billion for the full year. The C Series 

program is gaining greater market acceptance, with one European customer 

signing a Letter of Intent (LOI) for up to 61 of the new jets – 31 on 

firm order and options for an additional 30, valued at US$2.4 billion 

at list price. The LOI is subject to the execution of definitive agreements 

between both parties, which is expected before year end. 

Airbus reports results for nine-month period 2017 

In summary, the results for Airbus’ nine-month results for 2017 reveal 

revenue of €43bn, EBIT adjusted at €1.8bn, EBIT reported €2.3bn and 

EPS reported at €2.39bn. According to the company, the commercial 

aircraft market is healthy with a robust backlog which is supporting 

ramp-up plans. However, engine delays have had an impact on the 

9m results. 

Order intake totaled €50.8bn compared to 9m 2016 of €73.2bn with 

the order book valued at €945bn as of September 30, 2017 (year-end 

2016: €1,060bn). A total of 271 net commercial aircraft orders were 

received (9m 2016: 380 aircraft), with the order backlog comprising 

6,691 aircraft at the end of September. Net helicopter orders totaled 

210 units (9m 2016: 211 units), including 14 H175s in the third quarter. 

At Defence and Space, the good order momentum continued in Military 

Aircraft with five A330 MRTTs booked in total for Germany and Norway 

in the third quarter. The overall order intake at the division was impacted 

by perimeter changes from portfolio reshaping and the slow telecommunications’ 

satellite market. 

Revenues were stable at €43.0bn (9m 2016: €42.7bn) despite the perimeter 

changes at Defence and Space and were higher on a comparable 

basis. Commercial Aircraft revenues rose four percent with deliveries 

of 454 aircraft (9m 2016: 462 aircraft) comprising 350 A320 Family, 

50 A350 XWBs, 45 A330s and nine A380s. Helicopters’ revenues were 

slightly higher with deliveries of 266 units (9m 2016: 258 units). Revenues 

at Defence and Space reflected the negative impact of around 

€1.4bn from the perimeter changes. 

Bombardier’s third-quarter 2017 results – positive outlook 

for C Series 

Bombardier, the Canadian plane and train manufacturer has released 

third-quarter 2017 financial results, revealing revenues of US$3.8 billion, 

EBIT before special items of US$165 million and an 8.8 percent 

EBIT margin for its Business Aircraft sector. Commercial Aircraft EBIT 

before special terms was as anticipated, in relation the C Series rampup 

plan, at US$495 million. 

The company is on track to deliver 135 Business Aircraft by year end, 

having delivered 31 during the quarter. The Global 7000 aircraft is on 

schedule for entry-into-service for the second half of 2018. Results show 

the Business Aircraft sector is on target for an 8 percent EBIT margin before 

special items for the full year. October 16 saw the announcement of 

the partnership with Airbus for the C Series which is anticipated will double 

the value of the program. 16 aircraft from the Commercial Aircraft 

division were delivered during the quarter (4 CRJ Series, 7 Q400s and 5 

C Series.) Total deliveries including turboprops reached 39 aircraft, with 

results on track for the delivery of 50 aircraft for the full year. The company 

received its largest-ever order for turboprop planes, with SpiceJet 

placing a firm order for 25 Q400s and purchase rights for another 25 

AeroCentury signs agreement to acquire JetFleet Holding 

AeroCentury (the Company or AeroCentury), an independent aircraft 

leasing company, has signed a definitive Agreement and Plan of Merger 

(Merger Agreement) for the acquisition of JetFleet Holding (JHC) on 

October 26, 2017. JHC is the parent of JetFleet Management Corp. 

(JMC), which has managed the Company’s operations and aircraft 

portfolio since AeroCentury’s founding in 1997. The current management 

agreement between JMC and the Company was entered into in 

2015 and has a term ending in 2025. Under the Merger Agreement, 

JHC shareholders are to receive US$3.5m in cash and 129,286 shares 

of the Company’s Common Stock, subject to various adjustments at 

closing, in return for all the outstanding capital stock of JHC. The closing 

of the acquisition is expected to occur in the first quarter of 2018, 

and is subject to satisfaction of certain conditions customary for merger 

transactions. Until the closing, AeroCentury and JHC will operate as 

separate businesses. Once the acquisition is consummated, JHC will become 

a wholly-owned subsidiary of AeroCentury, thereby consolidating 

the Company’s current management team at JHC with the Company’s 

aircraft portfolio into one enterprise. 


Finance News 

17 

Boeing reports third-quarter revenues of US$24.3bn 

The Boeing Company has reported third-quarter revenue of US$24.3bn, 

with GAAP earnings per share of $3.06 and core earnings per share 

(non-GAAP) of US$2.72, reflecting strong deliveries, services and delivery 

mix, and overall solid execution. 

The company’s cash flow guidance is increased to US$12.5bn from 

US$12.25bn, driven by improved performance. Full year EPS guidance 

is increased to between US$11.20 and US$11.40 from US$11.10 

and US$11.30 and core earnings per share (non-GAAP) guidance 

is increased to between US$9.90 and US$10.10 from US$9.80 and 

US$10.00 driven by a lower-than-expected tax rate. Commercial Airplanes 

third-quarter revenue was US$15.0bn on planned production 

rates and delivery mix. Third-quarter operating margin increased to 

9.9%, reflecting higher 787 margins and strong operating performance 

on production programs, partially offset by additional cost growth of 

US$256m on the KC-46 Tanker program due to incorporating changes 

into initial production aircraft as the company progresses through latestage 

testing and the certification process. 

During the quarter, Commercial Airplanes delivered a record 202 

airplanes, including 24 737 MAX 8 airplanes. The production rate increased 

to 47 per month on the 737 program, and Boeing has confirmed 

plans to increase the 787 production rate to 14 per month in 

2019. Development on 777X is on track as production has begun on 

the first complete wing for structural test. 

Commercial Airplanes booked 117 net orders during the quarter. Backlog 

remains robust with nearly 5,700 airplanes valued at US$412bn 

Safran reports strong sales for third quarter and first nine 

months 2017 

Safran’s reported third-quarter 2017 adjusted revenue was €3,815m, 

up 8.5% on a reported basis year-on-year. Adjusted revenue increased 

11.3% on an organic basis. Adjusted revenue in the first nine months of 

2017 was €11,853m, an increase of 3.0% on a reported basis, up 5.1% 

on an organic basis, compared to 2016. In the third-quarter 2017, civil 

aftermarket increased 14.5% in USD compared to 2016 driven notably 

by service activity and spare parts for CFM56 engines. In the first 

nine months of 2017, civil aftermarket grew 10.4% in USD. (€1.00 = 

US$1.18 at time of publication.) 

IAG reports another strong quarter with operating profit 

up 20.7% 

International Consolidated Airlines Group (IAG) presented Group consolidated 

results for the nine months to September 30, 2017. The Group 

posted third-quarter operating profit of €1,455m before exceptional 

items (2016: €1,205m). Passenger unit revenue for the quarter was 

up 0.7%, up 2.2% at constant currency. Operating profit before exceptional 

items for the period of nine months to September 30, 2017 was 

€2,430m (2016: €1,915m), up 26.9%. Cash of €7,523m at September 

30, 2017 was up €1,095m on 2016 year end. Adjusted net debt to 

EBITDAR improved by 0.4 to 1.4 times. Willie Walsh, IAG Chief Executive 

Officer, said: “We’re reporting another strong quarter with an operating 

profit up 20.7 percent to €1,455 million before exceptional items. 

All our companies performed well. Passenger unit revenue was up 2.2 

percent at constant currency boosted by improvements in the Spanish 

and Latin American markets. Our commercial performance was good 

despite underlying disruption from severe weather and terrorism. IAG 

Cargo improved in the quarter due to stronger Asia Pacific demand 

compared to last year.” 

Embraer posts third-quarter net income of US$110m 

During the third quarter 2017, Embraer delivered 25 commercial jets 

and 20 executive jets (13 light and 7 large). The Company’s firm order 

backlog at the end of the third quarter was US$18.8bn, representing an 

increase from the US$18.5bn reported at the end of 2Q17. Consolidated 

revenues were US$1,310.4m, representing a decline of 13.5% 

compared to the third quarter in 2016, due to lower deliveries in the 

Commercial Aviation and Executive Jets segments. Adjusted EBIT and 

Adjusted EBITDA margins were 5.3% and 10.9%, respectively. Adjusted 

EBIT and Adjusted EBITDA exclude US$3.6m in net non-recurring 

charges in the third quarter 2017. Net income attributable to Embraer 

shareholders and Earnings per ADS were US$110.0m and US$0.60, 

respectively. Adjusted Net income (excluding the impact of FX-related 

non-cash deferred income tax and social contribution and non-recurring 

items) for the quarter was US$75.2m, representing Adjusted Earnings 

per ADS of US$0.41. Embraer expects 2018 to be a transition year 

due to the entry into service of the first E2 model, the E190-E2, combined 

with a still flattish market for Executive Jets and Defense & Security. 

In this transition scenario of ramp-up costs for the initial E2 deliveries, 

the Company releases 2018 Outlook for total revenues of US$5.3 to 

US$6.0bn, with deliveries of 85 to 95 jets in Commercial Aviation and 

105 to 125 jets in Executive Jets. Consolidated EBIT margin is expected 

to be within a range of 5.0% to 6.0%, and Guidance for Free Cash Flow 

is for a usage of US$150m or better for 2018. 

Zeitfracht and Nayak take over airberlin maintenance unit 

airberlin’s maintenance unit, has been acquired by family-owned Zeitfracht 

and maintenance group Nayak, for a sum as yet undisclosed. This 

should save approximately 300 jobs. Zeitfracht is also buying Air Berlin’s 

cargo marketing unit. The remaining 550 maintenance employees who 

will not be going to Zeitfracht will be taken on by a so-called ‘transfer 

company’ which will take on a total of approximately 1,200 redundant 

Air Berlin ground handling staff and will subsequently look to source 

new employment opportunities for them. This figure is still appreciably 

lower than the 4,000 staff unions had hoped would be taken care of. 

MTU Aero Engines presents nine-month results and raises 

earnings forecast 

In the first nine months of 2017, MTU Aero Engines AG saw its revenues 

increase by 10% to €3,745.4m (1-9/2016: €3,401.3m). The group’s 

operating profit increased by 14% from €393.8m to €450.6m, improving 

the EBIT margin from 11.6% to 12.0%. Earnings after tax rose by 

17% to €320.4m (1-9/2016: €273.4m). “Based on these results and the 

positive effects on earnings that we now expect to derive from our product 

mix, we are able to raise our earnings forecast for this year,” said 

Reiner Winkler, CEO of MTU Aero Engines AG. “By year-end, we now 

expect adjusted EBIT to grow to around €600m and net income to reach 

around €420m.” MTU’s original forecast was adjusted EBIT of around 

€560m (2016: €503.0m) and adjusted net income of around €390m 

(2016: €345.4m). MTU has aligned its revenue forecast to reflect exchange 

rate changes and now expects to generate revenues of around 

€5.1bn instead of around €5.3bn (2016: €4.7327bn). 


Finance News 

18 

The strongest increase in MTU’s revenues in the period January to September 

2017 was attributable to the commercial maintenance business, 

where revenues grew by 26% from €1.3683bn to €1.7275bn. The main 

source of these revenues was the V2500 engine for the A320 family and 

the CF34 corporate jet and regional aircraft engine. Revenues in the 

commercial engine business have increased by 5% from €1.7383bn to 

€1.8214bn. Revenues in the military engine business decreased by 24%, 

from €356.8m to €271.5m. The EJ200 Eurofighter engine was the main 

source of these revenues. At September 30, MTU had an order backlog 

of €12.129bn, compared with €14.1722bn at December 31, 2016. The 

majority of these orders relate to the V2500 and the Geared Turbofan 

engines of the PW1000G family, in particular the PW1100G-JM for the 

A320neo. (€1.00 = US$1.18 at time of publication.) 

Other News 

CTT Systems AB, a market leader in aircraft humidity control systems, 

has received Zonal Drying airline orders for a total of 15 Airbus 

A321 aircraft to be retrofitted from December 2017 to June 2018. 

The Zonal Drying system removes trapped water in blankets, keeps 

the crown area dry, and prevents unwanted excess weight from water 

accumulation – phenomena which can affect all passenger-carrying 

aircraft. Consequently, airlines can operate with lower energy needs 

and reduced pollutant emissions for every flight. A lowered excess 

aircraft weight of 200 kg reduces block fuel consumption by around 

0.4%, resulting in fuel savings of approx. 25,000 liters per year per 

aircraft, cutting carbon dioxide emissions by more than 65 tons. Additional 

cost savings come from lower repair costs of moisture-related 

damage to electrical components and equipment, repair/replacement 

of blankets, and reduced down-time due to electrical failures. 

Lufthansa Technik has been appointed by an undisclosed customer 

to equip several Boeing 747-8 aircraft with the new broadband Internet 

solution in the Ka-band frequency range from 2018 onwards. 

Lufthansa Technik is currently equipping the Airbus A320 Family of the 

Lufthansa Group with the latest Ka-band satellite technology. In addition, 

Lufthansa Technik has Supplemental Type Certificates (STC) for 

the Airbus A330/A340 Family and the Boeing 737 Family. Lufthansa 

Technik also holds the STC for all Boeing Business Jets BBJ1 (737-700) 

and BBJ2 (737-800) for the self-developed antenna radome TIOS 

(Two-In-One-Solution), which also enables the use of Ka-band and 

therefore optimum high-speed Internet and TV connections on board. 

The STC proves that subsequent modifications to the aircraft comply 

with the valid design regulations of the responsible aviation authorities. 

Future customers, whether airlines or operators of VIP aircraft, will 

benefit from these additional type certificates, especially in terms of 

costs and aircraft ground time. 

Saudi Arabian Airlines (SAUDIA) and Panasonic Avionics Corporation 

(Panasonic) have announced a new 35-aircraft commitment 

for inflight entertainment across the carrier’s short-haul fleet. 

The carrier has selected Panasonic’s X Series entertainment solutions, 

specifically the company’s eXO and eX1 systems, for installation on 

its various fleets. Panasonic’s X Series inflight entertainment solutions 

feature the industry’s largest selection of options including HD monitors, 

capacitive touch handsets, in-seat power, and ensures a premium 

experience in every cabin class. Saudia has also selected Panasonic’s 

eXO overhead entertainment system to be line-fit installed across 20 

Airbus A320neos and 15 A321neos that the airline has on order. This 

builds on the carrier’s previous commitment in April 2016 when it 

selected eXO for 30 Airbus A320neo aircraft. This news follows an 

earlier order from SAUDIA in which Panasonic will install its eX1 IFE 

system across the airline’s existing fleet of 7 A320 aircraft. 

CTT Systems, a market leader in aircraft humidity control systems, 

has received two Zonal Drying Buyer Furnished Equipment orders, 

for a total of eight Boeing Next-Generation 737-800 aircraft. The 

eight Zonal Drying systems will be line fitted by Boeing from December 

2017 to December 2018. The Zonal Drying system removes 

trapped water in blankets, keeps the crown area dry and prevents 

unwanted excess weight from water accumulation. Consequently, on 

every flight airlines can operate with lower energy needs and less pollutant 

emissions. 

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Cover story: Dubai Air show 2017 

20 

Dubai 

makes it fly! 

Emirates 777 and A380 open Dubai Airshow with Al Fursan. 

Photo: ASDS 

The 2017 Dubai Air show was marked by game-changing deals from start to finish and proved 

another successful run this year. Keith Mwanalushi highlights the event and the opportunities. 

T 

here were some very impressive numbers announced at the 

biennial aerospace event in Dubai this year. Let’s start with 

Boeing, the US manufacturer announced 296 commercial jet 

orders and commitments, valued at about U$50 billion. 

“This has been a very successful show for Boeing. Our regional customers 

have maintained their trust in our products and technology, 

and our partnerships in the Middle East region continue to grow,” said 

Bernard Dunn, President, Boeing Middle East, North Africa and Turkey. 

“We signed agreements with key airline partners including Emirates, 

flydubai, Azerbaijan Airlines, ALAFCO and Ethiopian Airlines. In addition, 

Egyptair became a new customer for the 787. Finally, the Air 

show was a great opportunity to introduce our newest business unit, 

Boeing Global Services, to the Middle East market and reiterate the 

region’s importance to Boeing.” 

At rival Airbus, the OEM reported transactions and business announcements 

totalling 510 aircraft. Validating the company’s slogan: 

‘We make it fly,’ these orders and commitments involved 500 aircraft 

from Airbus’ single-aisle A320neo family and two A330neo from Air 

Senegal worth a combined total of U$58.3 billion at list prices, along 

with five of the company’s multi-role C295 transports and three ‘H 

generation’ H160 rotorcraft. 

The big two aircraft manufacturers were the obvious winners but the 

regional and single aisle aircraft OEMs such as ATR and Embraer also 

had a colourful presence. 

For Embraer, the Dubai Air show is an important event, especially this 

year as the OEM approaches the entry into service of its next generation 

family of aircraft. “The first, the E190-E2 will be delivered in April 

2018,” Martyn Holmes, VP - Europe, Middle East, Russia, Central Asia 

and Leasing tells AviTrader MRO. 

Holmes says with the E2s’ improved performance and capability to 

deal with the harsh operating environment, and with lower per seat 

and per trip costs, Embraer has strong interest from customers in the 

region for the E2s ability to tap into the need for greater connectivity, 

and deliver exceptional hub feeding economics. “We’re ahead of that 

wave, and with the most efficient single aisle aircraft, we intend to 

make our mark again in the Middle East,” he states. 

Returning international exhibitor Turkish Technic, an MRO company 

based at Istanbul’s Ataturk Airport, is celebrating a successful Dubai 

Air show, and plans to return for the 2019 edition. 

“During this year’s event, we signed a MoU with Saudia Aerospace 

Engineering Industries, expanding our support of its customer’s fleet 

in the region,” said Turkish Technic spokesman, Muhammed Memduhoglu. 

Also in Dubai, aviation training specialists CAE announced that it has 

sold one Airbus A320NEO full-flight simulator and one flight train- 



21 

The show was opened in typical Emeriti flamboyance. 

Photo: ASDS 

ing device to support the training needs of Kuwait Airways. “It is a 

pleasure to support Kuwait Airways’ growth and its training needs for 

its latest A320NEO fleet,” said Nick Leontidis, CAE Group President, 

Civil Simulation and Training. “With about 30,000 new airline pilots 

needed in the region over the next 10 years, we are honoured to play 

a central role in the creation of future pilots; we’re glad that our airline 

partner continues to entrust us with our ability to provide comprehensive 

innovative training solutions.” 

Satair Group and CTT Systems A.B of Sweden also announced at the 

Dubai Air show a five-year extension to Satair Group’s existing 10-year 

exclusive global spare parts distribution contract for CTT’s range of 

aircraft climate control equipment including humidification and moisture 

removal systems that are present on a wide range of modern 

airliner types. 

Independent MRO provider Joramco has been a regular participant 

at the Dubai show. “It’s a major opportunity to display our capabilities 

and services that can be offered to our current and potential customers,” 

says CEO Jeff Wilkinson. “For Joramco, the Dubai Air show is the 

ideal place to strengthen business relations through networking and to 

target new partnerships and cooperation opportunities.” 

At KLX Aerospace Solutions the event was an opportunity to connect 

with important customer and supplier partners, as well as introduce a 

new approach to supply chain partnership, as Garry Snow, V P Global 

Business Development, KLX Aerospace Solutions explains: “It’s also an 

opportunity to reintroduce KLX to those who know us primarily as an 

aerospace hardware distributor and are not as aware of our extensive 

Under this contract Satair Group is responsible for spares sales and 

deliveries to the aftermarket, which frees up CTT to focus on sales and 

product deliveries to aircraft production lines. 

At Honeywell the show was a continued opportunity to highlight how 

it is enabling connectivity in business and commercial aviation. “We 

had announcements on the services we offer in conjunction with cabin 

connectivity, specifically the deployment of GoDirect fuel efficiency 

software for a major Middle Eastern operator,” declares Raghed Talih, 

Regional Sales Director, MEA at Honeywell Aerospace. 

Honeywell also demonstrated its commitment to supporting local avionics 

and auxiliary power unit purchases and maintenance, as well as 

regional defence support on services, distribution partners, and retrofit, 

modification and upgrading (RMU) service provider. 

Raghed Talih, Regional Sales Ddirector, MEA, 

Honeywell Aerospace. 



22 

Garry Snow, Vice President Global Business Development, 

KLX Aerospace Solutions 

product line specialisations 

including chemicals, raw 

materials, lighting, tools 

and more and full service 

solutions. We are proud 

of our extensive parts and 

products and services and 

solutions in the Middle East 

to support this growing 

group of airlines, MROs, 

and OEMs.” 

IATA estimates that the Middle 

East region will see an 

extra 244 million passengers 

on routes to, from and 

within the region by 2035. 

This clearly brings huge opportunities 

in this market. 

KLX has a vision of reinventing the supply chain through collaboration 

and transparency. “We free customers to focus on building aircraft and 

keep them flying through efficiency and true partnership,” Snow adds. 

KLX established a Middle East regional focus a few years ago and 

now has a full customer support and stocking warehouse in Dubai to 

support the region. “We are ready to support the customers and their 

growth.” 

With capacity in the Middle East also starting to noticeably lead traffic, 

and IATA forecasting respective growth of 10.1% vs 9.0% for 2017, 

Holmes from Embraer notes that yields are suffering. “The E2 family is 

gaining significant interest from carriers to drive in yield improvements 

through the aircraft’s ability to allow carriers to effectively manage 

capacity. 

“We’re also proud to be supporting the development of Emirati aviation 

talent through the provision of our Phenom small executive jet to 

both Etihad and Emirates for multi-engine pilot training at their respective 

flying colleges in the UAE,” Holmes tells. 

For Honeywell, increased traffic in the region means more planes flying 

daily, which equates to increased support services and technology 

needed by operators. “As such, we’ve positioned ourselves as an extension 

to our affiliates in the region who are distributing our technology, 

and are offering RMU services to local operators,” says Talih. 

Wilkinson - We’ve been part of this show for many years. 

Photo: Joramco 

No doubt, more passengers 

also means increased 

wear and tear on aircraft, 

and that will eventually 

need maintenance work. 

“We’ve solidified our presence 

within the region to 

offer our Honeywell Avionics 

Protection Plan (HAPP) 

and Maintenance Service 

Agreements (MSA) to give 

local operators peace of 

mind when maintenance is 

required” Talih continues. 

Joramco is already well 

placed to capture the market 

growth in the region 

and not just the Middle East but also in Europe, South Asia, Africa, 

Russia and the CIS countries. Wilkinson says, “These opportunities will 

require the introduction of new services and capabilities to meet this 

incremental customer demand which is in line with the vision of Dubai 

Aerospace Enterprise (DAE); Joramco’s new majority owner.” 

DAE invested in acquiring Joramco at the end of last year with the 

intention of capitalising on its current status and reputation to expand 

not only in Jordan but globally and such intentions are now being 

demonstrated through the recent appointment of the new CEO who 

will be fully supported by DAE to lead the company’s growth and expand 

its service offerings. 

Innovation and bringing advanced technologies to the aerospace industry 

was the key theme at this year’s show in Dubai. Wilkinson attests 

that Joramco always keeps an eye on new technologies introduced to 

the aviation market place especially the MRO sector knowing that as 

new-generation airplanes come to dominate the world fleet over the 

next 20 years, airframe MRO’s need to invest in introducing new technologies 

to deal with these new generation aircraft. 

Mr Snow from KLX acknowledges that improvements in operating efficiency, 

advanced avionics, interior design and noise reduction capabilities 

are all driving increased customer demand, which in turn 

changes the way aircraft are manufactured. He says this creates challenges 

across the supply chain as the supply base struggles to make 

the changes necessary to keep up with aircraft demands. 

“Our investment in capacity 

planning, forecasting 

and relationships with key 

manufacturers within the 

industry enables greater 

customer confidence. 

“We talk about innovation 

within aerospace all the 

time, but haven’t always 

seen it materialise. However, 

today we are experiencing 

a renaissance in aerospace 

innovation driven by 

OEMs. Supersonic aircraft, 

flying cars, unmanned aerial 

systems, and anything Holmes - We intend to make our mark again in the 

Middle East. 

Photo: Embarer 

related to enabling connectivity 

and data are trending positively,” Snow observes. 

Holmes says innovation is in Embraer’s DNA and has designed and 

certified more aircraft than anyone else this century; 11 new aircraft 

certified over the last 17 years. “There is a fundamental change on 

how aerospace is approaching business innovation.” He says rather 

than focus on traditional R&D processes only, more and more companies, 

from start-ups to traditional players, are joining a more disruptive 

environment that can bring disruption through new business models, 

solutions and technologies. 

However, most excitedly right now, Holmes refers to the imminent delivery 

of the first of Embraer’s new family of aircraft – the E2s. “These 

aircraft are packed with innovations based on what we have learnt 

from the experience of over 20 million flight hours, carrying over one 

billion passengers, and most importantly what we learned from our 

customers, over 100 airlines across the world.” 

The innovations on the E2 range from the highest aspect ratio wings 



23 

flydubai made a game changing order. 

Photo: Dubai Airshow 

in the single aisle market, fourth generation fly-by-wire, fuel burn improvements 

by up to 24% per seat, to new overhead luggage bins that 

provide up to a 90% increase in carry-on baggage per passenger. “All 

of this together means we’re excited about the future, especially about 

the market in this region,” states Holmes. 

At Honeywell Aerospace innovation goes back 60 years; “We’ve 

worked with some great institutions to progress advancements in aerospace 

technology, like the NASA collaboration to bring back supersonic 

flight, or working with Inmarsat to improve cabin connectivity,” 

Talih points out. 

“We’re also striving to independently create new solutions that help 

aviation move with the rest of the world. The competitive landscape in 

aviation is one of the strongest but we as peers and competitors are 

always looking at ways that we can make aviation a better place. Not 

just for operators, but for passengers, pilots and flight crews too,” Talih 

comments. 

Jet Aviation used the occasion to celebrate the opening of a brand 

new facility in the shared terminal at Dubai South. “We were the first 

business aviation services company to set up a Fixed Base Operation 

(FBO) in the Kingdom of Saudi Arabia, establishing a Saudi-Swiss joint 

venture company to provide ground handling and maintenance services 

in Jeddah in 1979. A second FBO was added in Riyadh two years 

later, followed by Medina in 2012,” says Hardy Butschi, Jet Aviation’s 

VP and General Manager of MRO and FBO Operations in Dubai. 

Jet Aviation also established its MRO and FBO facility at Dubai International 

Airport in May 2005 to strengthen the company’s global 

network for its clientele in the Middle East. The Dubai MRO facility provides 

24/7 AOG support on demand to multiple International Airports 

(e.g. DXB, DWC, AUH, AZI, SHJ, AAN) and has recently supported 

numerous aircraft in maintenance, recovery and AOG support missions 

in Oman, KSA , Jordan, India and other middle East and African 

countries. 

Jet Aviation’s FBO facility in Dubai has handled more than 25,000 

aircraft and received numerous awards for its 24/7 domestic and international 

handling services. Most recently, it was voted Best FBO in 

the Middle East and Africa in the 2017 Professional Pilot PRASE Survey, 

its 7th such honour. 

“Our new FBO location at DWC will offer all the comfort and style 

our discerning customers have come to expect with Jet Aviation, while 

helping ensure we can meet future capacity requirements,” concludes 

Butschi. 

Bütschi - Jet Aviation opened a new facility 


Company profile: Engine Lease Finance 

24 

ELFC – Delivering power 

E 

ngine Lease Finance (ELF) is the world’s largest independent 

spare engine financing and leasing company, specialising in 

the provision of flexible, short to long-term spare engine support 

packages for the airline industry. 

Headquartered in Shannon, Ireland, ELF is owned by Mitsubishi 

UFJ Lease & Finance (MUL) based in Tokyo. 

The ownership structure provides ELF with the underlying financing 

strength and stability required to satisfy the long-term financing 

needs of airlines and to meet the commercial challenges presented 

by today’s rapidly changing world markets. ELF provides extensive 

funding at favourable rates, therefore ensuring low cost flexible financing 

for the airline. This strength is most recently demonstrated 

by the addition of more than one hundred and thirty engines from 

sale and leaseback and portfolio purchases worth more than $1.3 

billion since the beginning of 2011. 

ELF was founded in 1989 by its current CEO, Jon Sharp, with the 

purpose of satisfying the industry’s demand for a quality, truly independent, 

engine leasing company providing operating leases for 

modern aircraft engines to airlines world-wide. 

ELF offers a comprehensive range of individually tailored financing 

and leasing-based products. The company’s initial business 

model was the purchase and lease back of engines on a medium 

and long-term basis. However in response to a changing market 

ELF established a short-term leasing department to complement its 

long-term leasing business and provide and efficient and effective 

response to increasing demand for short term and AOG solutions. 

More recently ELFC has acquired a majority shareholding in INAV 

LLC, the Chicago-based parts company known as Inventory Navigators. 

The partnership with INAV provides ELF with greater flexibility 

with end of life assets and in managing the engine portfolio, 

from acquisition through to disassembly and part-out. 

Engine Lease Finance services including: 

• Spare Engine Purchase & Lease Back 

• Medium & Long Term Operating Leases 

• Short Term Engine Shop Visit Cover 

• AOG Spare Engine Support 

• Engine Acquisitions & Dispositions 

• Engine & Portfolio Management Services 

After twenty-eight successive years of profits and portfolio growth 

the company now owns and/or, manages approximately 280 engines 

worth around $2.5bn. The current customer base includes 

more than 80 airlines and MRO organisations worldwide. ELF has 

served over 140 customers since its inception. 

Our portfolio of spare engines consists of types from the following 

OEM’s: CFM, IAE, GE Aviation, Pratt & Whitney and Rolls-Royce, 

enabling us to support our customers’ Regional, Narrow-Body & 

Wide Body aircraft fleets, including E190, A320CEO, B737NG, 

A320NEO, B737MAX, A330, A340, B767, B777, B787 and B747. 

In addition to its Shannon headquarters, ELF has Sales & Marketing 

representatives based in Beijing, Singapore, Madrid, London, 

Dublin, Boston, and Oklahoma. 

ELF can be contacted for your spare engine requirements; 

Tel: +353 61 363555 

Email: info@elfc.com 



25 

Eliminating the “weakest link” 

in aerospace machining 

Retention knobs in case. 

Manufacturers are increasing productivity 10-40% and reducing tooling costs by addressing an 

often overlooked flaw in toolholder-retention knob design 

H 

igh speed machining in excess of 20,000 RPMs is often utilised 

in aerospace when machining exotic alloys and harder 

metals like titanium. 

At these rates of speed, the precise and secure seating of tapered 

toolholders in the spindle becomes even more critical. So much so, 

that failing to pay attention to this single detail can lead to decreased 

productivity, less precise machining, reduced tool life and even damaged 

workpieces. 

However, that is precisely what is occurring in aerospace machining 

due to an often overlooked, even ignored, link in the chain: poorly 

designed retention knobs that – when tightened – create a bulge in the 

small end of the taper that prevents full contact and proper seating in 

the spindle. 

Yet despite widespread evidence of uneven wear patterns and simple 

“touch-off” tests that immediately identify it as a widespread issue, the 

industry has largely ignored this aspect of machining and, unwittingly, 

are paying a significant price for it. 

The flaw in the system 

Although the shank of tapered toolholders is ground to a fine finish 

within very precise, established tolerances, and are also threaded at 

the narrow end to accept a retention knob. The knob is designed to 

engage with the drawbar, which exerts a pull force that holds the toolholder 

firmly in the spindle. 

The problem is poorly designed, traditional retention knobs – a less 

than $30 part – when tightened create a bulge in the taper that prevents 

proper seating in the spindle. Once this expansion occurs, the 

toolholder will not pull fully into the spindle and so cannot make contact 

with upwards of 70% of its surface. 

The results are manifested in a wide range of CNC milling issues often 

attributed to other causes: vibration and chatter, poor tolerances, nonrepeatability, 

poor finishes, shortened tool life, excessive spindle wear 

and tear, run-out, and shallow depths of cuts. 

“A lot of aerospace work is really tight tolerance,” says Rex Ausbun at 

Cling’s Aerospace, a company that specializes in complex 4 and 5 axis 

precision machined parts. “When you see chatter or vibration, you 

know there is an issue with the toolholder.” 

According to Ausbun, who is responsible for purchasing all the inserts, 

tools and other machining accessories for Cling’s Aerospace, “with a 

tapered toolholder, you want to ‘marry’ it as tight as possible to the 

spindle to get as much contact across the entire taper as possible. 

That way, you are not just hitting at the top of the angle.” 



26 

To accomplish this, retention knobs are used. However, Ausbun says 

that newer CNC milling machines exert significantly more drawbar 

pressure on the knobs than in the past. This is compounded by the 

fact that most retention knob manufacturers provide little information 

on the proper torque required, a factor that can lead to the improper 

seating already described above. 

As a result, Ausbun says several of the retention knobs literally pulled 

apart during operations. 

“As drawbar tension continues to increase in CNC machines, it puts so 

much pressure on the weakest link, the retention knob, that it’s bound 

to come apart,” says Ausbun. 

“It’s a significant issue because if the retention knob comes apart while 

the machine is running it could cause considerable damage,” adds 

Ausbun. “You are talking spindles that cost $10-$14 thousand a piece 

today, not to mention the downtime. That’s a lot of money.” 

High Torque retention knobs 

To find a solution, Ausbun did some online research and found JM Performance 

Products, Inc. (JMPP). In 2009, the company introduced its 

High Torque retention knob. Invented by the company’s founder, John 

Stoneback, the product works with all existing toolholders including BT, 

DIN, ISO, and CAT toolholders from 30 taper to 60 taper. 

The High Torque retention knob is longer by design to reach deeper 

into the threaded bore of the toolholder. As a result, all thread engagement 

occurs in a region of the toolholder where there is a thicker 

cross-section of material to resist deformation. 

It also includes a precision pilot to increase rigidity, and is balanced by 

design. Since even over-tightening of the High Torque retention knobs 

can still create a bulge, the company provides specifically calculated 

torque specs based on drawbar pressure. 

By combining the High Torque retention knob with the correct torque, 

spindle contact with the taper is improved to close to 100% every time. 

After finding out more information about the product, Ausbun says he 

decided to order a few and give them a try. In addition to having high 

hopes for the product, he says he was also impressed that JMPP had 

researched the appropriate torque settings for installing the retention 

knobs as well. 

“When you start checking out different manufacturers as to what they 

recommend for torque specs on the retention knobs, everyone seems 

to have a different opinion,” says Ausbun. “I thought it was pretty impressive 

that [JMPP] went the extra mile and put a lot of research into 

determining the ideal torque.” 

Tool life 

By increasing the rigidity of the toolholder at higher RPMs, the High 

Torque retention knob can also increase tool life. 

Retention knob installed in toolholder. 

“In aerospace every shop is trying to machine parts faster and aggressively 

remove more stock, just to stay competitive,” says Ausbun. “This 

just puts more pressure on the tool.” 

With higher-end technical carbide inserts, the cost of tool replacement, 

not to mention loss of production time due to frequent changeover, can 

add up quickly. 

“Since we changed to the High Torque Retention Knobs, we are not 

going through inserts like we used to and we haven’t had any more 

issues with retention knobs pulling apart,” says Ausbun. “I’m also not 

seeing any distortion in the toolholder taper either.” 

Ausbun estimates that tool costs have been reduced by as much as 

20% as a result. 

Although manufacturers are already benefitting from implementing the 

High Torque retention knobs, others remain unaware – even dismissive 

– that improper seating of tapered toolholders is even a problem. 

Perhaps more than some other industries, aerospace manufacturing 

can take a toll on the carbide cutting tools used when machining exotic 

alloys and hard metals. The result is that cutting tools must be 

changed out more frequently as they dull or break. 


Information Technology 

27 

AerData is growing its leasing software presence in China under a 

new agreement with Everbright Financial Leasing, headquartered 

in Beijing, that will consolidate data from multiple sources using a 

single Corporate Management System (CMS) platform. The platform 

will reduce risk for lessors by giving them full control and oversight 

of asset values, contract information and technical details. CMS is an 

industry-leading program that supports aircraft leasing business processes 

and asset management including maintenance, upgrade and 

flight records for individual airplanes. More than 60 leasing companies 

worldwide use AerData systems to support their business. 

AMOS, the comprehensive, fully-integrated MRO software solution, 

has been selected by the Italian start-up airline Ernest Airlines. The 

airline relies on a Swiss-AS “care-free package”, a combination of 

the proven AMOS Operation Services (AOS, covering the application 

and database administration) and hosting. Ernest Airlines is an Italian 

low-cost carrier headquartered in Milan, Italy. The airline offers flights 

from Italy to Albania and Ukraine and launched its operations only this 

year. The startup airline currently operates one Airbus A319 and one 

A320, with a growing fleet, which is planned to reach five aircraft by 

early 2018 with the addition of three A320s. 

People On The Move 

Aerospace industry veteran 

C. Jeffrey Knittel, formerly 

both Chief Executive of C2 Aviation 

Capital and President of CIT 

Transportation Finance, will join 

Airbus early next year, taking 

the reins of the company’s business 

in the Americas. Mr. Knittel, 

who brings more than 25 years 

of global aerospace leadership 

experience to the position, will 

join the company at its Americas 

headquarters in Herndon, Virginia, 

on January 12, 2018, as 

Airbus Americas Chairman and 

C. Jeffrey Knittel 

Chief Executive Officer. Airbus 

Americas’ current CEO, Barry 

Eccleston, announced that he will retire on February 28, 2018, 

following more than 12 years of service to Airbus. Allan McArtor, 

current Chairman of the Board for Airbus Americas since 2001, will 

remain with the company as Chairman Emeritus. 

Eirtech Aviation Services has appointed Keith McKerchar, Director 

of Engineering and Eamonn McAuley, Head of Design. 

Mr. McKerchar brings more than 35 years aviation experience in 

maintenance, engineering and leasing roles and has been part of 

Eirtech’s story, as Head of Design, for the last six years. He joined 

Eirtech Aviation Services as an Airworthiness Signatory and later 

as Head of Design and Chief of the Office of Airworthiness for 

our Part 21 DOA. Mr. McAuley joined Eirtech Aviation Services 

in 2016 as Deputy Head of Design. With more than 21 years’ 

experience in the Aviation industry, Eamonn has worked globally 

for companies such as Bombardier, Boeing, SAAB and Airbus on 

projects ranging from Regional Jet Manufacturing, Fighter Jet Development 

and some top-security defense projects. 

Lars Wagner 

Peter Kameritsch 

MTU Aero Engines’ Executive Board will be reorganized, with the 

number of members increasing from three to four. This has been 

decided by the company’s Supervisory Board at its meeting on 

October 24. Effective January 1, 2018, Peter Kameritsch has 

been appointed Chief Financial Officer and Chief Information Officer 

for a term of three years. Lars Wagner will become the new 

Chief Operating Officer, also for a term of three years. Dr. Rainer 

Martens, who currently holds the position of Chief Operating Officer, 

will resign from his office by year’s end at his own request. 

Aviation Capital Group has promoted Steven C. Udvar-Hazy 

to Senior Vice President. He will succeed John Feren as head 

of Original Equipment Manufacturers (OEM) Relations & Market 

Development, effective December 31, 2017. As Senior Vice President, 

Mr. Udvar-Hazy will be responsible for OEM relations at 

ACG. In addition to his responsibilities for OEMs, he will also 

be building a market development function that will leverage his 

knowledge of aircraft and the aviation industry to assist the sales 

and marketing teams. 

Doug Rasmussen will be joining the executive leadership team 

of HAECO Americas, a wholly-owned subsidiary of the HAECO 

Group, as President and Group Director of HAECO Cabin Solutions. 

Mr. Rasmussen has deep experience in the aviation industry 

and the aircraft interiors’ market, with more than 15 years in 

industry leadership positions, most recently with Raytheon Missile 

Systems and, before that, B/E Aerospace’s Super First Class Seating 

business.

AviTrader_Monthly_MRO_e-Magazine_2017-11

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