How is the three-year-old AJW Technique facility doing?
Goring: We’re producing around 1,200 units per month across 5,000 part number lines, primarily in Airbus and Boeing platforms but going into the regional markets very soon.
Business is good, we’ve just taken our 60th independent customer and the shop is booming. We have 200 technicians and we’re pretty proud of where we’ve got to so far.
Are there any new shop capabilities on the horizon?
Gogo: We’re currently expanding our slide shop. One of the beauties of AJW Technique is our ability to flex with the market demand. We work closely with the customers, trying to understand their needs, and then bringing it back here. The shop is very modular, so our ability to move things around--sometimes a little bit like a Rubik’s Cube, is fairly easy and we can just move it around and bring in new business as it’s required. The slide shop is the result of a new 10-year deal that we’ve signed with Air Canada and we produce 90% of their slides. We’ve just taken on the 777 slide as well, so we do slides on Embraer, Airbus, Boeing--across all other platforms. So we’re very proud of that contract.
With new capabilities, are there any new certifications?
Goring: We’ve just recently received our Chinese CAAC approval--that’s across around 3,000 parts numbers, it’s actually pretty unique in the industry. Usually people chose to certify a small amount of part numbers. We chose to work in a very broad spectrum of our capabilities, and this will allow us to become a one-stop shop for many people who want a certified product with a Chinese tag. We actually have two or three PBH contracts in China, so we’ll be able to certify our own product to enhance those contacts, as well. The CAAC approval will be effective for three years.
What might we see for AJW Technique in the next three years?
Gogo: We’re looking into new platforms--the regional platforms, the business jet platform—and we will continue to develop our capability listings through new product introduction, so we’re working with a lot of new markets in bring work into the shop.
How has this facility affected the AJW group as a whole now that you have component repair in-house?
Gogo: It’s changed it immensely. When you look at the organization as a whole, we typically say that this was the missing piece of the puzzle. So we have inventory, we have PBH contracts, and we’re a global organization. But the one thing that we were missing was the ability to put our own tag on our own units to send to our customers. We’re able to build in more reliability into our own units--that last on-wing longer--and it makes us the masters of our own destiny.
Goring: It also allows us to target larger airlines as well. Before, growing an MRO organically from a company that was really primarily focused on inventory solutions, has allowed us to target those airlines that maybe didn’t require inventory solutions but did need an MRO service, so it really has broadened our scope with the customers. We took on EasyJet recently. That was one of our biggest contracts to date. Again, having an MRO is a large part of why we won that contract.