Page 19 - AAA SEPTEMBER - OCOTBER 2017 Online Magazine

MRO FEATURE XXXXXXXXX XXXX EUROPE
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The mature US$17 billion-US$19 billion for the MRO sector. With the entry of new China’s Growth May Be a Boon
European market will remain more or less generation aircraft, the company has made The continued and rapid increase of fleet
stagnant, with spending in Eastern Europe big data analytics one of its top priorities. size in Asia is likely to create opportunities
growing at a modest rate of 0.7 percent The company’s PROGNOS offers a bunch of for MRO companies in the Europe and North
and Western Europe doing comparatively solutions that improve maintenance models America, say experts. Acquisition of new
better by growing at a rate 1.6 percent, and processes by using data from aircraft technical skills and additional capacity will,
adding US$3.1 billion to its current US$17.5 systems. The PROGNOS Engine Health however, be required to take advantage of the
billion market. Monitoring (EHM) software does statistical situation.
analyses of engine data to enable dynamic Carriers around the world currently
The Coming of Age of LCCs monitoring and predict failures using an send about 30 percent of wide-body heavy
Being in a crowded and tightly competitive early warning system. Another AFI KLM airframe maintenance needs to the region.
market, MROs in Europe have been forced E&M initiative is PROGNOS A380, the early Asia’s fleet growth, particularly China’s, is such
to get their pricing right or risk being left warning and failure monitoring software that MRO companies in the region are likely, in
behind. Providing quality at a modest price used for the A380’s systems. Not all the focus the not too distant future, to find themselves
becomes more imperative as carriers all is on investing in new technology. According so busy that they will not be able to handle all
over the word, with the exception of those to Romain Helmer, AFI KLM E&M VP Sales, the wide-body heavy airframe maintenance
in North America, are struggling financially. Europe & Key Accounts, the company is work that they now are dealing with. It is not
With low-cost carriers being the main driver also “preserving and beefing up its existing a coincidence that MRO companies in Europe
of passenger growth and trending worldwide, platforms by continuing to innovate to have already started to expand facilities and
the MRO industry will have to get used to the find the most reliable and economic repair position themselves closer to Asia a base for
new normal. solutions, and by exploring low-cost a part of their operations.
Low cost carriers (LCCs) have overtaken replacement solutions for unserviceable Another factor that is likely to work in
legacy carriers in Europe, according to parts. “In December last year, the company favor of companies in Europe and other parts
Netherlands-based VZM Management opened a new materials and logistics service of the globe is that the disparity between
Services’ March 2017 market outlook report. center in Kuala Lumpur, Malaysia, to better labor rates in Asia and other parts of the
The seat capacity of LCCs grew about 70 serve Asia-Pacific carriers. The company, world is slowly becoming a thing of the past.
percent from 2012-2017. which has component facilities in Shanghai This leveling of the playing field, along with
In a sign of things to come, Ryanair, the and Mumbai, has also signed a Memorandum the wide-body heavy airframe maintenance
Irish low cost airline, carried more passengers of Understanding with Safran Aircraft work that Asian MROs won’t be able to
than Lufthansa last year, forcing the German Engines to create a joint company in France handle, will benefit experienced companies
airline to expand Eurowings to ward off for the repair of aircraft engine compressor with a proven track record of delivering
competition from other LCCs. Norwegian, blades. The proposed unit is expected to reach high-quality service on time, something that
which had entered into discussions with full production capacity in 2020.Even before Europe does not lack.
Ryanair for a flight connection agreement, China-based HNA Aviation announced plans
recently announced a similar partnership to acquire 80 percent stakes in the company, Paucity of Skilled Manpower
with easyJet, another LCC. Switzerland-based SR Technics was steadily According to experts, MRO companies in
Caroline Vandedrinck, SR Technics Vice expanding its global presence and now has Western Europe have been having a hard
President (Americas), is of the opinion that plans to expand its Malta operations. “We time finding and retaining technicians and
cost is just one of the factors that influence have global facilities,” says Vandedrinck. “ We specialists. While some companies are yet
decision-making by carriers on the right MRO have facilities in Malaysia, Ireland and Malta; to get out of panic mode, a few others have
partner. “It is about quality, turnaround time we are not just concentrated in Switzerland. been investing with an eye on the future.
and cost,” says Vandedrinck. “In order to be Our prices, just like anyone else’s, are market- Late last year, SR Technics, which had been
competitive, the company needs to have driven. It does not matter what our cost is, providing employees of various Middle East
solutions tailored to the customers’ needs it depends on what the customer needs carriers with basic maintenance training and
and be creative. One solution does not fit all.” and what our competitors are offering.” type rating training, opened a training center
Lufthansa Technik (LHT) has also announced in Abu Dhabi that offers technical training.
Innovating and Partnering to Success plans to expand, including building an engine The dearth of skilled manpower, however,
Among the companies that are adapting to service center in Poland as part of a joint is not an issue faced only by European MRO
the changing situations is AFI KLM E&M. venture with GE Aviation. In February this companies. A CAVOK study presented
Not long after it launched “The MRO Lab - year, the company said it would set up a joint at MRO Americas earlier this year drew
Adaptive Innovations” program brand, the venture company with MTU Aero Engines for participants’ attention to a crisis that is
company announced MRO Lab Singapore, a the repair and overhaul of geared turbofan staring US MRO companies right in the face.
partnership with RAMCO Systems, the India- (GTF) engines. The company is expected to be The median age of the 86,000 maintenance
headquartered supplier of software systems up and running by 2020. technicians in the country is 51, nearly 9 years
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