Linetech Holding and Adria Tehnika appear to be an ideal merger pairing, based on their complementary capabilities, similar company cultures and location in high-growth areas. Polish-based Linetech specializes in Boeing, Embraer and ATR aircraft maintenance, and Slovenia-headquartered Adria focuses on Airbus and Bombardier aircraft.
There were no redundancies—the companies were never competitors.
Linetech purchased Adria Tehnika on Nov. 25, 2015, for an undisclosed sum and the companies, combined, cover about 80% of narrowbody aircraft in service in Europe, says Mirjana Tratnjek Ceh, deputy CEO of Adria Tehnika and CCO of Linetech.
Together they offer seven hangars that cover about 25,000 sq. meters (269,099 sq. ft.) in total, including 7,000 sq. meters for widebody aircraft as large as Boeing 777-300s. The widebody hangar is in Rzeszow, Poland, and opened this year.
The Rzeszow site, which includes two hangars capable of serving six narrowbody or two widebody aircraft, is the only base in Poland with the technical infrastructure to support the Boeing 787.
“We are also planning to erect a widebody hangar in Ljubljana,” Adria’s base, says Kaczor.
In addition to expanding capacity, the companies will introduce high-demand modifications, such asthe Airbus ESG-1 (extended service goal) program Adria Tehnika is performing to expand Airbus A320 service to 100,000 flight hours and 60,000 cycles from 60,000 flight hours and 48,000 flight cycles. This program, which Adria combines with a heavy check, incorporates service bulletins and modifies parts of the aircraft structure to prevent fatigue damage. Ceh says the MRO completes the package “within eight weeks and spends 12,000-14,000 man-hours, depending on the findings.”
One new modification contract involves reconfiguring EasyJet A320 cabins to boost seating to 186 from 180, as well as reconfiguring the galley and lavatories. The preparatory phase for the program is underway, and kits from Airbus are expected soon; October is viewed as the probable start date.
Linetech and Adria Tehnika’s five-year strategy is based on organic growth, notes Ceh, who says the companies’ synergies, reputation, flexibility, pricing and locations “put us in position to be the fastest-growing MRO in Central and Eastern Europe.”
The companies are also looking at new technology investments. “In April, we received a grant from the European Union to set up a research and development center, says Kaczor, who notes that Linetech plans to construct an advanced nondestructive testing robot that will use three inspection techniques.
“We also are working on an [information technology] system allowing us to plan, monitor and control the full aircraft inspection process,” he says.
The company serves more than 70 customers from three continents. “Our main assumption is providing the planned versus non-planned maintenance ratio of 70% to 30%,” Kaczor says. Its ratio of heavy to line maintenance is 60% to 40%, with more line services offered in the summer.