Ontic completed its acquisition of GE Aviation’s legacy avionics portfolio at the end of last year. What has changed since the acquisition?
Since completion we have invested heavily in our facility in readiness for the physical transition of the business in the fourth quarter. Ontic has been working closely with GE to ensure that the transition is well planned and runs smoothly, with minimal disruption to our mutual customer base and the transferring employees.
What will the facility upgrade involve? What new capabilities are being added?
We have invested heavily in upgrading the facility to accommodate the growth from 150 to 250 employees. This includes doubling our available office space and employee break areas. We have also added new capabilities, including: a new humidity and temperature controlled workshop, a Category A clean room, screen printing capability and a mechanical workshop. These facilities support our expansion in to barometric and gyroscopic instruments as well as complex electro-mechanical avionics products. We have also boosted the space available for the assembly and test of our electronics business.
What is the benefit for a company to outsource its legacy products to Ontic? How are metrics for parts (e.g. turnaround time, cost, lead time, etc.) changed?
Supporting in-service fleets by providing OEM quality parts and services is our core business. The GE legacy portfolio requires us to be equally adept at supporting 737 production rate increases as well as solving long term obsolescence problems and manufacturing yield issues to ensure the continued support and upgradeability of Sea King’s automatic flight control system. Through the course of our planning, customers have recognized our willingness to focus on solving their problems and are supportive of the transition. For GE, this is a divestment that is being viewed by our customers as a positive move that will create value for all parties.
Ontic has stated a strategy to deliver continued profitable growth in mature avionics. How many types of avionics is Ontic supporting currently, and how does this tie in with the company's focus for the future?
Ontic supports a broad range of avionics products, including: fuel measurement systems, automatic flight control systems (AFCS) for rotorcraft, cockpit instrumentation, radar units, engine control units (ECU), smoke detection computing systems etc. For the future, Ontic will continue our focus on supporting our OEM partners looking for extended life solutions for their non-core products and solving problems for our mutual customers by providing quality parts and services that support their in-service fleets.
What trends are you noticing within extended life solutions for aerospace?
OEMs are increasingly looking to divest their non-core business in a responsible way, that maintains their reputation with our mutual customer base. Ontic can help OEMs by freeing up their stranded capital and allow them to focus on core programs and new product developments.