Page 13 - AAA NOVEMBER - DECEMBER 2017 Online Magazine

INTERVIEW DIEHL AEROSYSTEMS

There are certain predictions that by the end because the lavatory usage on such routes system. We provide the backend and they
of this decade it could go up to 50 per cent. are high and then it’s not really a perfect provide the frontend, besides producing
So, there is of course an interest to reduce solution. But yes, it is a much better product the air product here in Singapore together
the cost, if product goes from A to B. Yes, than what we had in the past. with our help. But we have not yet decided
there will be cabin upgrades necessary to You mentioned earlier about the growing to do so. It’s on our list and as soon as there
rebrand the aircraft. But lighting can be a retrofitting market. Can you tell us more? is a business case around, we will move
source for that and to reduce cost. Harald: In the next five to ten years, the in that direction. If u have a very labour-
retrofitting market will double. About 80 per intense product, then you would probably
The Space-Flex v2 lavatory/galley cent of the retrofitting market involves seats. look at another destination. So, it is product
option, which creates extra space for The rest of it is about the other elements of dependent as well.
seats, seems to have more challenges than the cabin interior, which too is a significant Harald: If you look at Asia, Singapore is a
benefits. According to customer reviews, no portion. The biggest retrofitting market is high cost country. However, it is an innovation
group other than finance was enthusiastic North America, which has the biggest fleet of hub and could be a very interesting place.
about it. Tell us what you think? old aircraft. In Asia Pacific, the aircraft fleet
Harald: There is a version 1, version 2 and now is relatively new. Does Diehl view consolidation within the
there is a new product, which we developed industry as a positive?
together with Lufthansa Technik. We tried Is your operation in Singapore a commercial Harald: Consolidation means that you have
to get rid of the problems from the past one or are you looking to become an less operators but they impact the pricing.
development. The new combination of galley industrial operation? In the OEM market, Rockwell Collins bought
and lavatory gives passengers more room. Michael: Currently, we are not looking into B/E Aerospace, Rockwell was then bought
Although we know it’s very narrow, it’s still a production. It could be an option of course, by UTC and then Safran bought Zodiac. So,
better solution. It fulfills the new requirement but there has to be a business case. We there is consolidation in that market and
from Federal Aviation Administration are looking at US dollar countries typically you get big players. However, the aircraft
(FAA) for handicapped people. This was not because all business is dealt in US dollars. manufacturers are not happy. But the one
possible with the previous arrangements. To make us independent from the conversion advantage is that they have more financial
We have made it lighter and more efficient rates, is of course of interest to us. We power and could be more effective when
for the cabin crew to use. At the end, it purchase in US. We sell in US, so why not it comes to pricing in the source to invest
is a revenue thing. Therefore, you will not produce in US dollar countries, which is somewhere. At the end of the day, everyone
find it being used on long-haul aircraft. It is typically not Singapore but could be. Our has to deliver. There is no doubt about the
something you get only in A320s and maybe partner and shareholder of Diehl Aerospace, fact that there is financial power, but in the
737s on really selected routes. It would not Thales, has started production here. They, end, you to consolidate the company and get
make sense to use it on a 6-8 hour long flight for example, do the A350 compact display the benefits out of the big ship. It’s like a big
tanker. If you want to maneuver a big tanker,
it takes some time. However, smaller boats
are more flexible. I think it’s still a challenge
for us but I think we are not that bad.
There are two things in the future – digital
transformation and product innovation. So,
this is something they have an advantage in
because they become bigger and can spend
more money in research development and
innovation. This is something we have to
really focus upon as well. If we keep that in
focus, I think we are safe as well.

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