Q & A ... operators in component and full support
programs through our subsidiary in the U. S. called Barfield, backed by the group’s know- how and our soon to be launched Bogota repair facility. In the large and rapidly growing region of Asian we are already present on time and material and full support component contracts thanks to the support of our Singapore facility. Nevertheless, there is still a large scope for development given the fleets’ needs in the region for value-added services. The Middle East is a growing market. We are accompanying the growth required in the region through potential partnerships and external growth. We are able, through our know-how, to accompany operators facing labour shortages by sending qualified technicians and mechanics to the region and also by training programs. We also accompany operators with time and material contracts as well as component full support programs, for example Qatar Airways on their A300 aircraft needs.
Overall, we add value in developing markets where our know-how is an asset, and where we are also attentive to external growth and partnership opportunities to accompany the growing fleets in regions such as the Middle East and South America. Critical size is a key to success.
AM What factors are challenging your business?
Bernardini: We need to integrate the fact that as fleet size increases, the number of new generation aircraft increases and that the new aircraft on the market require less maintenance. However economical pressure on airlines will lead them to externalize their needs in order to enable them to concentrate on their core business, thus rebalancing, in a way, the market. In 2012, overcapacity, especially in airframe services, will continue to exist but it will start to decrease as externalization increases along fleet sizes. There will therefore be a difficulty for smaller players to stay in the MRO market and the MRO offering will, as a result, decrease. This will lead to increased consolidation amongst MROs.
during the worst of the recession. “We decided to reduce costs and hang tough,” says John Slieter, the company’s VP of Sales. “Still, it wasn’t easy. For the first time in our history, we had to cut staff.” Having learned how to do more with less, smart MROs are intending to stay ‘lean’ even after the good times return. The reason? “Strict cost management and continuous improvements are not only tools to weather a crisis, they are permanent tasks in good and challenging times,” replies LTH’s Heerdt. “Our lean approach has brought us competitive advantages, and [we] will certainly pursue this path.”
Smart MROs are also expanding to
address the demands of merged airlines, whose fleets have suddenly grown as a result of coming together. “As airlines consolidate, there is ... a need for financial strength, geographical scale and range of capabilities to engage more effectively with the big airline groupings who will, given their scale, demand the best and most cost-effective solutions in the marketplace,” says ST Aerospace President Chang Cheow Teck. In response to this need, “We will continue to invest in new capabilities to extend the scope of our services and in new locations to improve our cost structure and reach to customers.” Mergers of MRO rivals can create a
stronger, bigger entity with the cash and physical resources to compete more effectively for clients. Such has been true for Iberia Airlines and British Airways, who merged early in 2011 – and for their MRO divisions, Iberia Maintenance and British Airways Engineering.
Putting these two MROs together allows for “a close and deep coordination of their operations to maximize ... overall results,” says Jose Luis Quiros, Iberia Airlines’
VP of Sales & Business Development. “Although a merger process might need some dedicated efforts to be successful, it is also a very good opportunity to refocus some of the strategies and processes, reinforcing the individual strengths and opening new, better and more efficient ways of doing things.”
Forming partnerships between MROs with complementary regional footprints can also be a game changer. This is why Delta TechOps has signed a maintenance joint venture with Aeroméxico. The deal “will help us expand our global footprint into the Mexican and Latin American markets,” says Ashley R. Black. “We can no longer rely solely on organic growth,” she explains. “This partnership with Aeromexico will help us to grow our global presence in Latin America and Mexico while also forging ahead toward our goal to achieve $1 billion in annual sales.” Partnerships can be struck between MROs and OEMs, says Mark Iddon, Aveos’ director of Business Development and Marketing. “We continue to have an OEM focus and believe there are mutual benefits to working together,” he tells Aviation Maintenance. “As a full service MRO we can support multiple OEM products which is a value-added service for the airlines, and with our strong engineering services we can also act as another channel to market [for OEMS].” “Although we have observed that OEMs have accelerated their focus in the MRO aftermarket, we do not see them as competitors,” observes ST Aerospace’s Chang Cheow Teck. “In fact, we see them as partners and customers. The reason is simple: OEMs’ core business is in the manufacturing of the products and ensuring annuity of aftermarket parts sales.” Trying to
22 Aviation Maintenance |
avm-mag.com | December 2011 / January 2012
Download your free iPhone/iPad app via
www.avm-mag.com/iPad
Iberia
Duncan
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60