For complete write-ups please visit www.avm-mag.com Jonas Butautis CEO FL Technics Commercial


In your opinion, what is the state of the aviation maintenance industry? According to a recent global analysis, the aviation maintenance industry has risen to single-digit growth in 2012. So we feel an overall cautious optimism for the industry, with increasingly more MRO work undertaken, and even more scheduled for 2013. FL Technics has determined that the global MRO market, valued at $55 billion, offers the necessary capacity to support our company’s growth over the long time period. However, we do not believe that minor fluctuations in the MRO market size or sentiment for spending should affect our business to any significant degree. It is very easy to fall into the trap of justifying your own underperformance as the mere result of negative market sentiment. What were the biggest developments for your company in 2012? FL Technics recorded another successful year, with organic growth levels of 80 percent. We marked 2012 with a number of new initiatives: • • • • • •


Longer contract terms with existing and new customers


Entered high growth markets, including Asia and a foothold in Africa Acquired an 8-year old 737NG for tear-down


Obtained access to more capital in order to fuel future growth Expanded our team by 120 professionals


Commenced the construction of another 8,000sq m hangar in Kaunas, Lithuania to support five additional narrow-body bays for heavy maintenance


• Upgraded our IT systems and improved the logistics of our services


What are the biggest changes you have seen in the MRO industry in the last several years? Over the last few years the MRO market has been radically changing, with OEMs becoming dominant in certain areas (like engines) as well as labour-intensive business turning into capital-intensive projects. The regions with substantial MRO activity have shifted from the EU and North America to Asia, the Middle East, Africa, and South America. This poses strategic challenges for incumbent MRO players on how to capture growth in these regions, since the rules of the game are changing dramatically when compared to a decade ago. What did your company do in 2012 to adapt to changes in the market? By understanding the trends present in the MRO industry, FL Technics has devised and measured a response to each of the threats and opportunities the changing landscape brings: We joined Boeing Edge/GoldCare, since we believe that joining forces with OEMs is a better business strategy than to fight against them. In addition, we secured the capital to finance growth in our components and engines units. For more of Jonas Butautis’ answers go to www.avm-mag.com


Mark Burns President Gulfstream Product Support BIZAV


In your opinion, what is the state of the aviation maintenance industry? Gulfstream Product Support had another record-breaking year in 2012. Similar to 2011, a surge in flying hours for our fleet during the third quarter translated into record volume for our 12 service centers. To meet growing customer demand in 2012, we continued to expand both internationally and domestically. In February we announced our plans to open Gulfstream Beijing, and in November, with the opening of that service center, we became the first business jet original equipment manufacturer to begin offering maintenance, repair and overhaul services for its customers in China. In June, we took over an existing service center in Sorocaba, Brazil, and rebranded it Gulfstream Brazil. Key domestic additions to our support network included installing a custom-designed maintenance support vehicle in the San Francisco Bay Area and opening a multimedia center at our Savannah headquarters to enhance communication with customers. What were the biggest developments for your company in 2012? The two biggest news items for Gulfstream in 2012 were the certifications and first deliveries of our two new aircraft, the super mid-size G280 and the ultra-long-range, ultra-large-cabin G650, the company’s new flagship. For the past five years, our product support organization has worked closely with the aircraft’s design, manufacturing and flight-test teams to ensure a smooth entry-into-service. Last year may have been our busiest year ever. Not only did we provide the regular day-to-day support of the existing fleet, but our team was immersed in hands-on and classroom training to prepare for the new aircraft. Lastly, we dispersed much of that knowledge to the future operators of these aircraft. What are the biggest changes you have seen in the MRO industry in the last several years? OEMs, including us, have put a greater emphasis on adding service and support resources throughout the world. Whether they’re moving parts, placing people or adding facilities to a particular region of the world—sometimes all three—companies are going where their fleet is growing. What did your company do in 2012 to adapt to changes in the market? We opened service centers in Beijing, China, and Sorocaba, Brazil, to get closer to our growing international customer base. We also partnered with FlightSafety International and opened a Hong Kong Learning Center with a Level-D qualified full-flight simulator for the G550 and G450. This facility allows pilots and technicians to train closer to where they are based. Another example of Gulfstream adapting to market changes is the opening of our multimedia center last June. We’ve always prided ourselves on good communication with our customers, but we needed something more efficient. The center, which includes a broadcast studio, allows us to produce and distribute a higher quantity and quality of information to our operators. We are still sending them information digitally, but reading about how to troubleshoot something is not as useful as having a Web-based portal—we call it The Gulfstream Network—that includes on-demand instructional videos with aviation maintenance professionals. For more of Mark Burns’ answers go to www.avm-mag.com


Aviation Maintenance | avm-mag.com | April 2013 45


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