Declines in demand at its two largest airframe business units—Haeco Xaimen and Haeco Americas—contributed to an overall 1.8% year-over-year decline in total airframe man-hour services sold through the first six months of the year, and those markets are not expected to rebound before 2016, Haeco Ltd. executives have said.
Haeco, the second-busiest third-party MRO provider according to Aviation Week MRO Edition figures, said it sold 4.87 million airframe man-hours in the first half of 2015, down from 4.96 million in the year-earlier period. Demand at the Americas unit—the former Timco—fell 10%, while accounting for 32% of total hours sold.
Xiamen, which accounted for 40% of the man-hour share in the first six months of 2015, saw demand fall about 3%.
Haeco Hong Kong’s airframe man-hours were up 11%, and its line-maintenance man-hours increased by 2.7% despite a 9% reduction in daily movements handled, to 299 per day. The business offset the volume reduction by increasing work scopes.
“Haeco Hong Kong’s aircraft maintenance capacity for the longer term is expected to grow with an increase in the workforce in the second half of 2015, although there will be an associated cost of training additional staff in the short-term,” Haeco Ltd. Chairman John Slosar explained. “The workload for line services in Hong Kong is expected to remain stable. Demand for the airframe services of HAECO Americas is expected to remain low, while that of HAECO Xiamen is likely to be lower in the second half of the year.”
On the engine side, Hong Kong Aero Engine Services (Haesl)—the Haeco/Rolls-Royce/SIA Engineering Co. joint venture—saw overhaul demand soften, as Trent 500 work continues to dry up and Trent 700 work becomes less frequent. Engine throughput at Haesl fell to 53 engines in the first six months of the year, compared to 68 a year ago.
The shop remains on track to offer “full” overhaul capability by the end of 2015. Haesl—considering the rapid fall-off of its existing work—is accelerating introduction of its XWB capabilities.
Texl, the Haeco/Haeco Xiamen engine venture in Xiamen, completed 25 quick-turn repairs and 13 performance restorations on GE90s in the first half, compared to 14 quick-turns and 15 restorations in 2014’s first half.
Haeco Ltd. boosted first-half revenue by 7% to HK$5.7 billion (U.S.$730 million), while profit fell 10%, to HK$254 million. Haeco Americas’ loss increased to HK$59 million from HK$3 million, primarily due to the decline in heavy airframe work, the company said.