Page 39 - AAA SEPTEMBER - OCTOBER 2018 Online Magazine

Eyeing the Asian Market Services (GECAS), and the Jeppesen
With as many as 16,930 new aircraft expected to fly in Asia FliteDeck Pro 4.0 app.
Pacific during the next 20 years, the region’s services market is
forecast to double in size over the next ten years, and be worth Joint Ventures, Acquisitions
US$3,365 billion by 2037, far outstripping North America, the ne of the two joint venture com-
second biggest market with US$ 1,850 billion. It is a market that panies announced since BGS was
Deal believes BGS can make major inroads into. “It is a very formed is Adient Aerospace, a
dynamic commercial market; most of the growth markets are Ojoint venture between Boeing and
in the Asia Pacific,” says Deal. “India, China and Southeast Asia Adient, a company that specializes in automo-
are all evolving markets with a lot of potential. On the defence tive seating. The new company, announced in
side, we have had quite a bit of success in Asia and the Middle January this year, will develop, manufacture
East, in countries such as India (The Indian Navy is the first and sell aircraft seats that can be installed
international customer for the P-8 aircraft and is the largest on new aircraft or retrofitted on aircraft
international customer for C-17), Singapore, Japan, Kuwait and produced by Boeing or other manufactur-
Saudi Arabia. Performance-based logistics contracts are quite ers. In June this year, Boeing announced its
popular there.” intention to form a joint venture with French
engine manufacturer Safran, which produces
The commercial side of the market is expected to grow at a engines for Boeing 737 Max, to make auxil-
faster pace than the defence segment, Deal said. “The rate iary power units.
of growth for defence is 1 to 1.5 percent, compared to 3.5 to In May, Boeing announced that it was acquir-
4 percent for commercial, but we are starting to see a slight ing aerospace parts distributor KLX Inc. for
pick-up in defense spending. It is still a very U.S-centric market US $4.25 billion. The company, which is also
on the defence side, but we are starting to see more spending a leading supplier of chemical composites,
by NATO allies and friends. We have started to see a shift in will be fully integrated with Aviall once the
percentage of revenue outside of the U.S.” acquisition process is complete. In July, the
company set up AvionX, its avionics man-
The business unit has four core service capabilities - supply ufacturing division, which will develop and
chain; engineering, modifications and MRO; digital aviation and produce avionics systems for navigation,
analytics; and training/professional services. Deal’s strategy flight controls and information systems.
for the company involves vertical integration, mergers and There is more to come, says Deal. “We are
acquisitions, as well as promoting organic growth by invest- on an expansion path and are always looking
ing in innovative ideas such as the 737-800 Boeing Converted to provide more competitive solutions for our
Freighter, delivered in April this year to GE Capital Aviation customers.”

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