For complete write-ups please visit
www.avm-mag.com Todd Duncan Chairman Duncan Aviation BIZAV
In your opinion, what is the state of the aviation maintenance industry? The first three quarters of 2012 showed a nice recovery for the industry. However, during the fourth quarter, there seemed to be a bit of a stall and now, nearly three months into 2013, we are still in that pattern. Operators continue to be very cautious. Leading indicators including flying hours and fuel sales are not necessarily down, yet it appears that some customers are pulling back on their discretionary spending. We believe that 2013 will continue to be a recovery year for the industry, but it does not appear that the climb will be sharp or pronounced. Airframe and engine maintenance business remains strong as our customers continue to fly their aircraft for business and personal use. Interest is very high for technology solutions both in the cockpit for safety and regulatory mandates, and also in the cabin for connectivity technologies such as SatCom and Wi-Fi, and enhanced entertainment technologies such as high definition video. Corporate spending is being scrutinized closely so it’s not surprising that other discretionary upgrades for corporate aircraft are being either delayed or cut back. Pre-purchase activity remains strong, as it was in 2012. What were the biggest developments for your company in 2012? 2012 was a busy year for Duncan Aviation and we made some important strategic decisions to position the company for the future. We developed a 10-year strategic plan that we review periodically to take us where we would like to go and adjust it periodically as needed for economic and industry changes. We completed and opened a new paint facility at our Lincoln, Nebraska, campus and began construction on a new large hangar facility with two 40,000-square-foot maintenance bays, also in Lincoln. We better aligned ourselves with equipment and aircraft manufacturers and strengthened many of those relationships in an effort to provide even better support to them and to our mutual customers. Since the beginning of 2012, we have completed record Wi-Fi installations in the corporate fleet, started work with Universal on certification of the EFI-890 system in a Falcon 900B, completed the first of several Global 8C inspections and added capabilities across the company, from airframe and accessories to parts and rotables sales. Going global is one of five key strategies of our Vision 2020 plan. We now have full-time Duncan Aviation Regional Managers in key international regions such as Europe, South America, Australia, Mexico and India. We also have annual sessions with Customer Advisory Boards in Europe and Latin America, in addition to our North American-based CAB. Duncan Aviation is investing heavily in learning these regions and cultures and adapting our services to the unique needs in these regions. What are the biggest changes you have seen in the MRO industry in the last several years? One thing about our business and industry is that it is very dynamic. We’re all constantly changing and evolving. Over the last several years, we have seen lot of changes in regard to regulations and requirements from the FAA and EASA. Our customers look to us to be experts, so we have committed additional resources and time to understand the impact these changes will have on their aircraft and operations. We’ve also seen changes with business aviation OEMS and an aging fleet of aircraft with decreased hull values. We’ve seen a new worldwide customer base and increases in international travel. And to support the increased worldwide mobility, we have seen the size and range of business aircraft evolve. What did your company do in 2012 to adapt to changes in the market? In addition to the completion of our new paint hangar and the current construction of our maintenance hangars, we ensured that we kept a diverse product mix and flexibility in our services while continuing to develop innovative products, services and processes. We increased our mobile services to help customers in the field with not only Aircraft on Ground situations, but scheduled avionics, installation, airframe and engine services. We have even performed some interior work in the field. We continue to cross-train our workforce, have rebalanced our shifts and developed more mobile service teams so we can provide customers with even quicker turntimes. We now offer 24/7/365 AOG parts support with phone coverage around the clock, even on holidays. We have also honed our certification, engineering and return-to-service processes and continue to work with regulatory agencies, including partnering with a DOA in Europe, in the development of these processes.
What are the trends you are seeing in the MRO business? The decrease in hull values has really affected MRO services. The older aircraft valuations just aren’t coming back and that has changed the amount of work those operators are wanting to have done in the discretionary areas. We are also seeing the size of aircraft gradually increase. As people travel farther, it makes sense that they need bigger cabins and aircraft. We are also seeing more winglets on aircraft. Larger aircraft and winglets require more hangar space for MRO work.
How is your company leveraging partnerships for success? Duncan Aviation has lots of very important ties throughout the business aviation industry. Members of Duncan Aviation continue to hold advisory roles in lots of
organizations...For more of Todd Duncan’s answers go to
www.avm-mag.com
48 Aviation Maintenance |
avm-mag.com | April 2013
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