For complete write-ups please visit www.avm-mag.com Jose Luis Quirós Commercial and Business Dev Iberia Maintenance Commercial


In your opinion, what is the state of the aviation maintenance industry? As almost every year, the MRO industry is facing challenges associated to changes and new trends in the airline business, but at the end we can summarize by saying “to gain efficiency and flexibility is the name of the game”. If we talk about figures, total MRO business 2012 for commercial airplanes was around $49.5 billion, 5.7% increase over 2011, and we can still foresee a yearly growth of around 3-4% until 2015. This would be a reasonably stable scenario if there is no significant change in capacity, but we are probably seeing MRO developments that might exceed that natural growth of the market, creating therefore tensions and jeopardizing the sustainability of the more rigid structures. What were the biggest developments for your company in 2012? Probably most of the developments we implemented and launched along 2012 have a common guideline: the coordination of the MRO activities with BA Engineering. After the merger of British Airways and Iberia in 2011, both MRO are dedicating special attention to maximize the benefits of the merger through the achievement of cost and revenue synergies. There are up to 8 working groups, covering from rationalization of inventory to joint sales, with specific targets that will bring savings to the group, but also will help to consolidate one of the biggest MROs in the world, by associating British Airways Engineering and Iberia Maintenance capabilities and operations. What are the biggest changes you have seen in the MRO industry in the last several years? One of the best demonstrations that MRO activity is business-wise interesting is the fact that OEMs step into this field in almost every area (components, engines, modifications, technical support, etc.), probably with exception of airframe routine maintenance. This is, to me, the biggest change we are facing in the MRO map, and he have not found yet a “friendly cohabitation” solution, that would, at the end, benefit the end customer: the airline. But it is at the same time an airline’s decision whether or not to promote this long term environment or to just look for short term benefit. And obviously another significant change in this business, as well as in many others, is the translation of the “center of gravity,” both in needs and in capacity, from the Americas to the Asia Pacific region. Europe remains quite steady in terms of MRO services needs, but there are relevant changes in the type of services provided from this region.


What did your company do in 2012 to adapt to changes in the market? If we break down the general terms (efficiency and flexibility, therefore competitiveness), I would probably say that IB Maintenance focused the many different actions taken along 2012 in 3 different targets: standardization and process management, communication across the organization and cultural change. At the same time, we took strategic decisions related to products (V2500 and CRJ components capabilities) and activities (full support services, cabin and airplane modifications, including VIP) to be offered in the next 5 years, as well as regions to be served (Asia Pacific and ME). For more of Jose Luis Quirós’ answers go to www.avm-mag.com


Mick Adams Managing Director Monarch Aircraft Engineering Commercial


In your opinion, what is the state of the aviation maintenance industry? MRO’s are expected by the operators to provide a full solution to their technical and operational needs, and one where the MRO must assist the operator in reducing maintenance costs and maximising aircraft availability. All of this has to be provided with supreme levels of quality and on time performance. This demand for operational excellence with reduced cost is something we all have to accept as being business as usual. There are reducing numbers of credible MRO’s that can face up to this challenge; one that needs investment on technology and people. What were the biggest developments for your company in 2012? Construction of a 115,000 sq ft state-of-the-art hangar facility at Birmingham International Airport and opening of the industry leading Part 147 approved Training Academy at Luton Airport. Winning a global MRO award, placing MAEL in number one position against other highly regarded and very large MRO’s. What are the biggest changes you have seen in the MRO industry in the last several years? I don’t believe that anyone involved in the industry can see things have changed from the fundamental drive to, 1) deliver more and 2) do this for less. This is not a flippant response - it is an honest response. The fact is; it is the dynamic and nimble MRO that gets on with delivering an outstanding service and at a competitive price that will win the battle. You can only do this (win the battle) with people you can rely on, so for me, it is not so much a change in the last seven years, it is the understanding that in such a competitive and economically challenging environment, you will only win the battle with good people and you have to take your people on the journey with you. To do this, organizations must challenge underperformance fairly and constructively to improve people and then on the other end of the spectrum – recognize exceptional efforts when appropriate. We are all paid to do a good job, so, when we do this, it does not warrant a big song and dance. However, when I see in my team a level of discretionary effort and exceptional performance—I will personally go and thank that person and expect my senior leadership team to embrace this approach. I have a view that people do not drive to work planning to make a mistake or underperform—if they do, this is a leadership failing and one that has to be addressed. What did your company do in 2012 to adapt to changes in the market? Remained very much focused on safety, service delivery and the bottom right hand corner. Invested in facilities, systems and people. Invested in Leadership development, communicated the key business objectives to grass roots—and then cut the reigns and let people do what they are good at and deliver! What are the trends, big or small; you are beginning to see in the MRO business? Growing issues around Intellectual Property, related to advances in technology. Airlines wanting to be just that – an airline thus increased outsourcing. For more of Mick Adams’ answers go to www.avm-mag.com


24 Aviation Maintenance | avm-mag.com | April 2013


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