AAR

Inside MRO News Briefs And Contracts... (October 2017)

Highlights

AAR Buys Two Premier Aviation Facilities; Retains Air Canada Work

AAR Corp. announced Sept. 19 a deal to acquire two MRO facilities from Canada’s Premier Aviation and has reached separate agreements to perform heavy-check work for Air Canada on the carrier’s Airbus A320-family aircraft and its Embraer 190s in one of them.

AAR is acquiring privately held Premier’s facilities in Trois-Rivieres, Quebec, and Windsor, Ontario. The Airbus and Embraer work will be performed in Quebec under 10- and 5-year deals, respectively. 

AAR

“This is purely around capturing business in the Canadian market and retaining business they currently do” at Premier, says AAR CEO David Storch.

The deals mean Air Canada will bring its Airbus maintenance back to its home country six years after the abrupt closure of Aveos, the former Air Canada Technical Services.

 UTC’s Used Serviceable Materials Play

UTC Aerospace Systems’ (UTAS) aftermarket business has been on a roll of late, despite the fact that it relies heavily on inconsistent (when viewed quarter by quarter) initial provisioning (IP). One reason for IP variances: While all new aircraft require spares, more operators are turning to pooling to help offset the costs of supporting the newest-technology models, notably the Boeing 787 and Airbus A350, and their increasingly reliable—and increasingly expensive—parts. This cuts down on the number of new parts sold.

The trend, combined with operator demand for lower-cost options, is one reason UTAS—part of the United Technologies Corp. (UTC) conglomerate—has been looking to ramp up its used serviceable-material (USM) business. The engine OEMs have led the way, and many observers see component support as the next big USM frontier. Among the leaders has been Rockwell Collins, with its Intertrade division. No surprise, then, that UTC sees access to Intertrade as one of the major ancillary benefits of acquiring Rockwell Collins.

“They have a great surplus capability, which we don’t have,” UTC Chief Financial Officer Akhil Johri, said at a recent Morgan Stanley investor conference. “We are trying to build that in UTAS. We have opportunities to take advantage of that.”

 Aircraft Storage Figures Down

Global airlines are leaning more heavily on older aircraft to keep up with traffic demand, the latest capacity data from International Air Transport Association (IATA) suggest.

Global carriers parked 86 aircraft in July, the lowest total in “at least” three years, IATA says. Carriers pulled 125 aircraft from storage and put them back into service, compared to 104 in July 2016. The net addition of 39 aircraft accounted for most of the fleet growth during the period, as new aircraft deliveries in the month increased by just two, to 115, from July 2016.

The changes combined with other capacity tweaks meant the number of seats in service in July 2017 grew 6.2% year-over-year.

 

Contracts

Aircraft Recycling International, Hong Kong and Honeywell signed a memorandum of understanding to collaborate and develop used-aircraft solutions, including MRO services, at ARI’s China Aircraft Disassembly Center in Harbin, China.


AFI KLM E&M secured a Delta Air Lines contract for Airbus A350 component support. The deal includes reciprocity with Delta TechOps.


Boeing Shanghai Aviation Services completed its first C check, plus Wi-Fi modification, on a Boeing 787-8 for Xiamen Airlines.


FEAM Maintenance/Engineering secured a contract with Emirates to provide Boeing 777 line maintenance at Chicago O’Hare International Airport.


EPCOR (AFI KLM E&M) renewed its APU maintenance/repair agreement with Transavia for its Boeing 737s.


Taby Air Maintenance secured a contract with Alandia Air of Finland to convert a Saab 340B (224) to a freighter at Orebro.


StandardAero was selected by Nordica Airlines to provide RE220 APU (CRJ) and PW127M engine (ATR) maintenance/repair.


Lufthansa Technik (LHT) was selected by NEOS of Italy to provide Total Component Support for three Boeing 787-9s for delivery starting in December. LHT also will provide independent quality assurance as part of an Aircraft Production Inspection Program in Seattle.


Turkish Technic was selected by Shaheen Air of Pakistan to perform heavy checks on four Airbus A330-200s (811/819/834/900).


HAECO of Hong Kong was selected by Finnair for Airbus A350 heavy maintenance. The first C check is scheduled for later this year.

 

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