Latin American MRO Demand Source: Aviation Week 2019 Commercial Aviation Fleet & Forecast

Inside MRO News Briefs And Contracts January 2019

New MRO providers in Asia-Pacific and support agreements worldwide are newsbrief highlights for this month.

Highlights

MRO Japan Starts Business at Naha

MRO Japan started operations at Okinawa’s Naha Airport in early January, with a grand opening planned for late this month, says Tadaaki Nobusue, head of sales and marketing for the young Japanese maintenance company.

The government of the Okinawa prefecture constructed a hangar with three narrowbody bays and one widebody bay at Naha at the end of October. MRO Japan has been moving staff and equipment from Osaka to Naha since then.

“We focus on narrowbody aircraft maintenance with painting,” Nobusue says. Since starting up in 2015, MRO Japan in Osaka has performed more than 300 base maintenance events for Airbus A320-family aircraft, Boeing 737s and Bombardier Q400s.

Heavy check customers include parent All Nippon Airways, Vanilla Air, Peach Aviation, Star Flyer and Solaseed.

The company plans to add the Boeing 787 and Mitsubishi Regional Jet to its capabilities, becoming the MRJ’s preferred provider in Asia. 

Latin American 2019 Forecast

Source: Aviation Week 2019 Commercial Aviation Fleet & Forecast

Expect the Latin American market, including Mexico, to generate $4.1 billion in MRO demand in 2019, based on 2019 Aviation Week Commercial Aviation Fleet & MRO Forecast data. Engine maintenance will generate 34% of that demand, followed by components (23%) and line maintenance (20%). MRO for the Brazilian civil aviation market is expected to be worth $971.4 million, and Mexico’s MRO market is estimated at $793.2 million in 2019.

Building an Independent Full-Service MRO in Australia

Heston Aviation acquired Aircraft Maintenance Services Australia, a line-maintenance company, because it sees an opportunity to develop a truly independent one-stop MRO provider in Australia, says Heston Partner Jonas Butautis.

Heston began a few years ago as an aircraft leasing and trading company but recently expanded its management team with individuals experienced in developing independent MRO companies by blending capital and engineering strategies. “It was a natural strategic direction to look for global MRO opportunities that we can buy and add value to through accumulated knowhow and capital,” Butautis says. “Aircraft Maintenance Services Australia, or AMSA, was a perfect fit for this purpose.”

Butautis notes there is a group of global MRO companies that blend labor-intensive MRO with capital-intensive asset management, including AAR, GA Telesis and ST Aerospace. He says that Heston believes in this business model: “MRO engineering infrastructure adds value to asset operations and vice versa, asset projects help develop independent MRO service offerings.”

Heston is not looking at AMSA just for its line operations. “We see AMSA as a platform to develop a full-scale, multiservice independent MRO company in Australia and the wider region,” Butautis says. AMSA will be rebranded and will add component, engine and engineering solutions and possibly move into limited heavy maintenance as well. “There is an empty space for independent heavy maintenance in Australia; we see this as an opportunity.” 

Contracts

AAR won a $51 million U.S. Marshals Service contract to provide maintenance/logistics support for its Boeing 737s owned and operated by the Justice Prisoner and Alien Transportation System in Oklahoma City. The deal includes supporting another 737 at Las Vegas.

American Airlines inducted its first CFM56-5B into its Tech Ops-Tulsa facility for maintenance. Work was previously performed by GE Aviation prior to contract expiration in October 2018.

ATR secured a global maintenance agreement from Bahamasair for three ATR 42-600s and two ATR 72-600s.

IAE International Aero Engines won a 10-year contract from Chile’s JetSMART to perform V2500 maintenance.

Joramco extended its Boeing 737 heavy maintenance deal with Flydubai. The contract calls for 45 C checks, entry-into-service checks and cabin mods.

Lufthansa Technik won a Total Component Support contract from Eastar Jet of South Korea for six 737 MAXs.

Magnetic MRO of Estonia secured a three-year Enter Air contract to provide power-by-the-hour component support for 19 737-800s

Pratt & Whitney won a 12-year Philippine Airlines contract to provide EngineWise services, which includes engine fleet data analytics and real-time intelligence to predict and prevent engine disruptions for 15 GTF-powered Airbus A321neos.

Rolls-Royce secured Jackson Square Aviation and CDB Aviation as launch customers for its new LifeKey component to its LessorCare service. It has signed LessorCare contracts with 11 customers.

 

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