AviTrader MRO Magazine 2017-11

pjorssen

AviTrader MRO 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

V6X 3M1

Canada

Email: p.jorssen@avitrader.com

Tel: +1 (424) 644-6996

www.avitrader.com

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

Volker Dannenmann,

Layout & Design

Email: volker@dannenmann.com

Mobile: +34 657 218706

Advertising inquiries

Jenny Vogel

Head of Sales & Marketing

Email: jenny.vogel@avitrader.com

Tel: +49 (0) 8761 346007

Registration

AviTrader MRO is a subscription-free

monthly publication.

To receive a personal copy in your

inbox every month,

please click here to subscribe.

Opinion

Please send your comments

and queries to

keith@aeropublications.co.uk

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


We keep you flying.

Anytime. Anywhere.

World-Leading Full Service Provider

of End-to-End MRO Services,

Trade and Leasing

From airframes, engines, components and

logistic support - we cover them all!

Around the clock, around the world.

• Total maintenance solutions under one roof

• Trade and Leasing of engines, APUs and

landing gears

• Highly experienced technical teams

• Wide-body hangars & extensive

supporting facilities

• Over six decades of

reliable operations

www.iai.co.il

bedek@iai.co.il


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.

AviTrader MRO - November 2017


MRO and Production News

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.

AviTrader MRO - November 2017


MRO and Production News

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.”

AviTrader MRO - November 2017


iGEARSM

UP

GA Telesis’ iGEAR SM

program (Intelligent Global

Engine and Airframe Replenishment) provides

fixed, predictable costs and flexible commercial

terms to underpin your operational needs. Our

comprehensive in-house component, composite

and engine MRO capabilities deliver reduced

costs and streamline your supply chain. Coupled

with GA Telesis’ global distribution network, we

provide 24/7/365 reliable support to ensure the

maximum dispatch reliability of your fleet.

Your job is in the sky, our job is to keep you there. ®


MRO and Production News

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

AviTrader MRO - November 2017


MRO and Production News

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.

AviTrader MRO - November 2017


MRO and Production News

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-

AviTrader MRO - November 2017


MRO and Production News

11

ACQUISITION. MANAGEMENT. LEASING. MONETIZATION.

WE HAVE ALL THE BASES COVERED.

For more information about TrueAero’s asset management,

leasing, and aftermarket materials solutions, contact us or

visit our website today.

AviTrader MRO - November 2017


MRO and Production News

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.

AviTrader MRO - November 2017


MRO and Production News

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

AviTrader MRO - November 2017


MRO and Production News

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

AviTrader MRO - November 2017


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.

AviTrader MRO - November 2017


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).

AviTrader MRO - November 2017


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.

SERVICE OUT OF

THE ORDINARY.

WWW.AVTRADE.COM

AviTrader MRO - November 2017


WHEELS

& BRAKES

IT’S THAT SIMPLE

WWW.TPAEROSPACE.COM


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-

AviTrader MRO - November 2017


Cover story: Dubai Air show 2017

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.

AviTrader MRO - November 2017


Cover story: Dubai Air show 2017

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

AviTrader MRO - November 2017


Cover story: Dubai Air show 2017

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

AviTrader MRO - November 2017


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

AviTrader MRO - November 2017


Machining productivity

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.”

AviTrader MRO - November 2017


Machining productivity

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.

AviTrader MRO - November 2017


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 MRO - November 2017

More magazines by this user
Similar magazines