Fast 5: Adria Tehnika’s CCO On Dealing With Summer Season

Mirjana Ceh, Adria Tehnika chief commercial officer, talked with Lee Ann Shay in Frankfurt during ap&m about growth prospects for the Slovenian MRO.

How’s Adria Tehnika’s business? Are your hangars full?

We specialize in airframe maintenance, covering Boeing 737s, Airbus A320s, Embraers and Bombardier CRJs. But narrowbody maintenance is a very seasonal business so we are busiest November through March. The seasonality has become very apparent in the past year and will become more intensive in the future. Because we’re in this labor-intensive market, with 70% of the cost driven by labor--and there’s a staff shortage--that pushes prices higher for MROs and puts price pressure on prime-time slots. We talk with our customers to see how we can best serve them to minimize pressure in the high season.

Could the use of equalized maintenance packages help solve this?

Yes, it could. EasyJet used to do this but its model has changed to a block program. Equalized maintenance for the next season is not an option yet, but something needs to be done. When you lack hangar and people capacity for the peak maintenance season, but on the other side, run at 30% capacity in the summer, that’s not efficient.

What will fuel your growth?

The biggest portion of our business is airframe MRO, but we also do line maintenance for our customers, which is a way to engage our staff in the summer. We also provide CAMO (Continuing Airworthiness Management Organization) services and training based on Lufthansa Technical Training’s theoretical and practical program. We train our people locally and as well as some in Poland. We cooperate with universities, similar to what we do in Slovenia, for skills other than technical ones.

How has Adria Tehnika’s purchasing process changed, since being purchased by Linetech Holding?

Some of material is common. Based on past years’ consumption, we approach suppliers to quote us. We could either talk consignment stock, which would give us material onsite, or a reserved quantity of particular part numbers so we can replenish stock in short notice. As a group, we have different IT systems. We are discussing implementing a new IT system to support all MRO needs such as purchasing, job card work hours, financial and material usage.

For AMOS, Adria uses it because the majority of our customers use it. We input the data of the components that we remove and install. It’s live data of what is going on the aircraft.

Are there any new projects or business developments that you can discuss?

We are looking at certain partnership agreements with our customers: long-term cooperation so they would have a reliable supplier with reserved slots. We are working on this. Since we became bigger due to the Linetech ownership, we can be a big provider. When you support big airlines, you need to be a certain size as well. We are looking at how to further grow.

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