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June 2011 - www.avitrader.com

Engine life cycles

When to repair, when to replace
looking ahead to the paris air show
What’s new and who’s who in Le Bourget

Analysis: Engine Life cycles, Value and costs

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Editor‘s Page 3

Engine life cycles: Repair or replace, that is the question...

W elcome to our JUNE 2011 issue
of AviTrader MRO magazine, published
on the eve of the Paris Air Show in Le Bourget.
- even if they’re in perfect working order. And
that decision goes hand in hand with high oil
prices and growing efficiency - serviceable but
pete in this brave new world.
Moving right along, our regular IBA contribu-
We’ve dedicated two pages in this issue to the older generation engines may more often than tion, provided this month by Phil Seymour, looks
biggest air show of the year, where we let you in not be tossed on the scrap heap as it becomes at engine life cycles, costs and values, and how
on a few pre-event announcements. We’ve also more economical to buy new. to create value through optimized management
asked industry expert Phil Seymour, president - right on subject and timely, as usual.
In short, greater fuel efficiency, the continuing
of the International Bureau of Aviation (IBA), to Next month, our Paris Air Show summer spe-
expansion of air travel, OEM packages allowing
weigh in with his predictions and insight. We’ll cial magazine centres on the industry event of
affordable cost of ownership, increased leased
catch up with him in next month’s issue to see if the year; we’ll bring you a round-up of all the
portfolios, public perception - all are reasons
the show lived up to his expectations! news, events, innovations and orders, as well
why carriers will increasingly choose new en-
Our lead story this month focuses on the subject gines, and why lower-tier operators will be less as a series of exclusive interviews with leading
of commercial aircraft engine life cycles, and willing to take on the legacy fleet. industry executives.
we’ve had a good response to the questions
The jury is still out from the aftermarket side, In September, we look at landing gear mainte-
we’ve asked from airlines, lessors, engine shops
but the response from the executives we nance, followed by cabin maintenance in Octo-
and aftermarket services and parts specialists.
spoke to was muted; these new engines will ber and managing efficiency in November, and
There’s a general consensus that the emergence be spending a lot more time on-wing, and will we finish off the year with a look ahead to the
of new fuel-efficient engines is going to have a require maintenance at very specific intervals MRO sector in 2012. Why not contact us now
drastic impact on the decision to repair or re- - usually at the hands of the OEM. MROs will- and give us your perspective on these and other
place engines that may have seen better days have to be at the top of their game to com- issues? We look forward to hearing from you!

MRO
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Editorial 
Catherine Davies, Editor  
Email: catherine.davies@avitrader.com 
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Mobile: +44 (0) 7772 896 280
Engine diagnostics on a mature engine at Complete Turbine Services‘ facility in Florida Complete Turbine Services
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AviTrader MRO - June 2011

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Selected Airframe News 5

Airbus, EADS EFW and Russian partners shelve A320/A321 P2F conversion development program
Airbus, EADS EFW and their Russian partners, United Aircraft Corporation (UAC) and IRKUT, jointly decided to stop the A320/A321
Passenger to Freighter (P2F) conversion development program for economic reasons and to launch the necessary legal procedures for
the termination of the joint venture
Airbus Freighter Conversion GmbH
(AFC). Recent market developments,
including the success of the
upcoming A320neo, have resulted
in more demand for A320 passenger
aircraft and less for freighter versions
in this aircraft category.
Strongly growing passenger traffic
also results in high demand for used
A320 Family aircraft, thus reducing
the amount of aircraft available for
AFC
conversion. Against the backdrop
of these market changes and the increasing pressure on the P2F business case, the partners have concluded to stop and freeze the
P2F programme. The AFC joint venture was established between EADS EFW, Airbus and the Russian companies UAC, IRKUT, in
April 2007. Headquartered in Dresden, Germany, AFC was equally divided between Russia (UAC and IRKUT with 25% each) and
EADS/Airbus (EADS EFW 32%, Airbus 18%).

Airbus single-aisle production to
increase to 42-per-month in 2012
Airbus will increase the production rate of
its popular A320 Family of eco-efficient
single-aisle aircraft to 42 aircraft per
month in the fourth quarter of 2012.
Currently Airbus produces 36 A320
Family aircraft each month, a production
rate that will steadily rise to 38 in August
2011 and to 40 in the first quarter of
2012. Currently the production rate for
Airbus’ long-range A330 Family is 8.5 per
month, increasing to nine in early 2012
and ten in the second quarter of 2013.
Boeing 777 returns to seven-per-
month production rate
Workers rolled out the first Boeing 777
jetliner at the seven-per-month rate.
The airplane, a freighter, will deliver to
FedEx Express in June. This is the fourth
time that the program has built the
777 at the seven-per-month rate. The
program also built at this rate from July
1997 to February 1998, August 1998
to October 1999 and most recently
from November 2006 to May 2010. As
production rate increased, the program
reduced production flow from 52 to 49
days from start to finish. Days of flow
were removed in wing spar, service-
ready wing and final body join areas. The
flow reduction is attributed to increased
productivity in those areas.
Final assembly of first Malaysia
Airlines A380 starts
The first A380 for Malaysia Airlines
entered the Airbus Final Assembly Line
in Toulouse for the final production
phase. The final assembly process of an
A380 is made up of five main phases.
At the first station, front, central, and
aft fuselages, wings, Horizontal and
Vertical Tail Plane (HTP and VTP) are
assembled. The aircraft is then moved to
the second station where general tests
on electric/hydraulic systems, mobile
parts and landing gears are carried out
while engines are also installed. During
the third phase, final ground and first
engines tests take place in dedicated
facilities outside of the main building.
Finally, the aircraft is ready for its first
flight to Hamburg, Germany, where the
A380 will receive its cabin and will be
painted to MAS livery. Malaysia Airlines
has six A380s on order with deliveries
due to begin in 2012.
Nextant Aerospace receives type
certificate for 400XT power plant
Nextant Aerospace released that the
Williams FJ44-3AP engine that will power
the world’s first remanufactured business
jet received FAA certification. “This was
the last significant hurdle as we work
towards the final STC for the 400XT,”
stated company president, Jim Miller. “This
engine represents a significant evolution
in technology and it is one of the key
components that will make the 400XT the
most efficient and cost effective aircraft in
its class.” The Williams FJ44-3AP is a Full
Authority Digital Engine Control (FADEC)
turbofan engine and it will replace the
older-generation Pratt & Whitney JT15D-5
on the new 400XT.

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Selected Component News 6

Spirit AeroSystems signs spare parts

Ameco Beijing signs LDG overhaul contract with Asiana Airlines
agreement with Scandinavian Airlines
Ameco Beijing and Asiana Airlines recently signed a five-year contract on Boeing 737CL’s
Spirit AeroSystems and Scandinavian Airlines
landing gear overhaul. It’s the second landing gear overhaul customer from South Korea
(SAS) announced the signing of a supply
after Ameco’s contract with Eastar Jet this year. Ameco Beijing started cooperation with
agreement whereby Spirit will supply spare
Asiana Airlines in 1991. It already performed painting, overhaul and modification on over
parts for SAS’ fleet of Boeing 737 aircraft. This
30 aircraft of the airline. Asiana Airlines, the second biggest airline in South Korea, operates
multi-year contract will enable SAS to obtain
70 aircraft covering Boeing and Airbus types.
predictable and competitive pricing for all
737 parts in the Spirit catalog while ensuring
availability for key parts and components. SAS
currently operates 74 Boeing 737 airplanes.

Skymark Airlines joins Boeing 737

Component Services Program
Skymark Airlines is the newest airline to join
the Boeing 737 Component Services Program
(CSP), a move that will help the airline reduce
its spare parts costs. The program will also help
Skymark enhance efficiency and improve spare
parts availability. The program can help airlines
save as much as 30% on inventory, repair and
administrative costs. This cost-reducing materials
management and supply-chain solution
is a joint operation of Boeing Commercial
Aviation Services and Air France Industries KLM
Engineering and Maintenance. Under the new
agreement, Boeing and AFI KLM E&M will
manage spare parts and components inventory
for the Tokyo-based airline, assuring timely Landing gear overhaul at Ameco Beijing Gregor Schläger / Lufthansa Technik AG
delivery, while Skymark avoids warehousing and
long-term inventory holding costs.
AJ Walter Aviation to provide Avio-Diepen Hong Kong opens new
Aveos wins 5-year repair and overhaul integrated consumables management distribution centers in Melbourne and
contract from Interjet for Small Planet Airlines Singapore
Aveos has signed a five year contract with ABC Small Planet Airlines chose A J Walter Aviation to Avio-Diepen Hong Kong is opening new
Aerolíneas, S.A. de C.V., otherwise known provide integrated consumables management. distribution centers in Melbourne and
as Interjet, of Mexico, to repair and overhaul This new contract will support charter flight Singapore. The openings will enable Avio-
all components on its growing fleet of 24 programmes from Fiumicino (Rome) and Diepen Hong Kong to provide even more
Airbus A320 aircraft. The agreement includes Malpensa (Milan) throughout the year. Small effective and efficient aviation material
access to an inventory pool for Interjet as Planet Airlines now operates in Italy and AJW management service to its customers
well as the placement of main base stock in will position spares consignments to support throughout the region. The distribution
Toluca, Mexico. Aveos will also support the the airline’s line maintenance programme. Small center in Melbourne is managed and operated
development of Interjet’s in-house component Planet Airlines is part of the Lithuanian aviation by John Holland Aviation Services and in
and repair capability. business, Avia Solution Group. Singapore by Safran Electronics Asia Pte.
Interiors / Cabin Modifications 7

TIMCO delivers first FeatherWeight Galley shipset to 767 aircraft production line
TIMCO Aerosystems, a unit of TIMCO Aviation Services, delivered
its first shipset of FeatherWeight galleys to the 767 aircraft
production line. The FeatherWeight galley is another in a series
of weight-saving products designed to save aircraft operators fuel
cost through creative design and the use of innovative materials
and processes. Each shipset consists of multiple galley units. All
design, manufacturing and certification was performed at TIMCO’s
North Carolina facility. The TIMCO Aerosystems team worked
exceptionally hard on a very aggressive schedule over the past year
to make the target delivery date, said Rick Salanitri, president of
TIMCO Aerosystems.
The shiny new FeatherWeight galley by TIMCO TIMCO

Boeing, Greenpoint Technologies team
on 747-8 VIP modifications
Boeing was selected by Greenpoint Tech-
nologies (GTI) to install GTI’s Aeroloft
modification on four new 747-8
Intercontinental VIP airplanes purchased
by customers of Boeing Business Jets. The
airplanes will be modified starting later
this year at Boeing’s Global Transport &
Executive Systems (GTES) facility in Wichita.
The Aeroloft is a passenger area installed
above the 747-8 Intercontinental’s main
deck between doors four and five, forward
of the overhead crew rest. The modification
includes installation of a staircase, an entry
vestibule, a lounge, sleeping berths, and a
crew rest adapter module. GTI is the exclusive
provider of this product.
SR Technics signs first contract for VIP
completion
SR Technics signed its first VIP Airbus Conversion
Contract with an undisclosed customer from
the Middle East. As part of the agreement, a
widebody aircraft will be reconfigured from
a conventional airliner configuration into a
modern aircraft interior with tailor-made VIP
elements, such as a VIP section with club seats,
tables, custom-made design elements, latest
VIP In-flight Entertainment (IFE) system and a
new power system, among other features.The
aircraft will also undergo a heavy maintenance
check. This simultaneous performance of
completion and MRO services offers great
customer benefits as it significantly shortens
the overall project duration. Thus, the aircraft
is brought back into service with only a
minimum down-time and a maximum flight
time between the maintenance intervals. All
work will be carried out in SR Technics’ newly
opened VIP Completion Center in Zurich over
the course of four to five months, beginning
later this year.

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Cover Story - Engine Life Cycles 9

Engine life cycles: when to repair, when to replace

As the market prepares for the release of the new fuel-efficient engines and the
price of oil remains high, the engine life cycle debate takes on new dimensions.
AviTrader MRO speaks to industry executives about the choices facing airlines,
lessors and the aftermarket sectors in the new OEM-dominated landscape.

T HE NEXT FIVE YEARS ARE GOING TO number of carriers already have; over 330 firm
be telling ones for the aviation industry. orders and commitments have been placed for
The high price of oil and the range of new, Airbus’s new A320neo family of aircraft, which
erational requirements of flying the maximum
amount of life out of each engine against any
future maintenance and the residual value
fuel-efficient engines set to enter the market will carry the new engines, and more orders are of the engine,” adds Steve Williams, head of
will force airlines and lessors to make some expected this month at the Paris Air Show. Aircraft Engine Services at A J Walter Aviation.
fairly drastic decisions about the engines on “There will come a point in an engine’s life when
their planes and in their portfolios - decisions The million-dollar question, then, is how do you it is worth more in parts than the current book
that could have a potential determine when a long-
value with the liability of on-going maintenance
make-or-break impact on the serving active engine
costs. Furthermore, older engines are less fuel
aftermarket MRO and parts “The technical life cycle has reached the end of
efficient, so operators are more inclined to want
support industry. of an engine does not its useful life? Well, ac-
to operate newer, more fuel efficient ones.”
cording to Derk-Jan van
Oil is the lynchpin in this rap- necessarily correlate to Heerden, general man- The global engine fleet
idly-shifting picture. The av- its economic life cycle.” ager of Aircraft End- is still dominated by so-
erage price of a barrel of oil Katia Diebold-Widner of-Life Solutions (AELS) called ‘older technology’
47% 15%
is predicted to remain high MTU Maintenance in the Netherlands, an - but only just (see table,
at around $110 per barrel in engine actually never right). MTU data from
2011 and beyond, according reaches its end of life. “It’s the life limited parts year-end 2010 show
to IATA, up 15% from forecasts made in March. (LLPs) within the engine that reach their end of that 53% of the global
That means that the industry’s fuel bill will rise life and they can be replaced by new ones or fleet comprises sun-
by $10 billion to $176 billion this year alone - by a collection of LLPs from tear-downs.” set engines (15%) and 38%
allowing for 50% hedging at 2010 price levels. mature engines (38%),
The burden of high-priced fuel will see collective But the ‘technical’ life cycle of an engine does while new engines rep-
net airline profits plummet to $4 billion in 2011, not necessarily correlate to its ‘economic’ life
down from $18 billion last year - and a substan- cycle, says Katia Diebold-Widner, head of
Active Engine Fleet
tial drop on IATA’s estimate of $8.6 billion made marketing at MTU Maintenance; airlines have
emerged from the recent recession, she adds, Development 47%
only three months ago. 47%
more focused on efficiency than ever before, Technology generation as
With such dire numbers before them, airlines are and the high price of oil means that fuel con- % of global fleet
bound to look closely at the economics of their sumption represents a far higher percentage of Source: MTU Maintenance
engines, and cast their eyes at the promising direct operating costs (DOC) than in the past,
reports of fuel efficiency surrounding next gen- and higher still for older aircraft carrying less Sunset
eration models like Pratt & Whitney’s PW1100G fuel-efficient engines. Mature 11%
and the Leap-X from CFM International, which
boast fuel burn reductions of up to 15%. A “Airlines and lessors have to balance the op- New 2000 2010

CF6, PW2000, RB211 and CFM56 engines awaiting lease or part-out at GA Telesis’ new global headquarters in Fort Lauderdale GA Telesis

AviTrader MRO - June 2011

 Cover Story - Engine Life Cycles 10

resent 47%. As more of these older engines (see table, below). Let’s take a look, then, at • a carrier with limited/unknown future opera-
get sent off to engine graveyards to make way the typical cost considerations of sunset or tions, operating at lowest possible cost for a
for increasing numbers of new generation mod- older mature engines, those nearing the end determined period of time and therefore seek-
els, those percentages will rapidly change. of their natural life cycles (including narrow- ing the best-value deal;
body JT8D/CFM56-3 and wide-body JT8D/ • the desire to maximize value of individual
The pressure on airlines and lessors to re-
JT9D/CF6-50), and what might be taken into components through asset dissassembly; com-
tire their older generation engines will only
account in the repair or replace process: ponents can then be sold into older engine
grow as efficiency considerations increase.
• a low or decreasing residual asset value, due types still operational. The value of the dissas-
Oil prices look set to remain high and
airlines could face further expenditure sembled parts depends on the availabil-
ity and price of new material from the
if, for example, they are forced to pay “The decision to repair or tear down is
out billions under the EU’s planned car- OEM as well as aircraft/engine demand.
bon emissions scheme. Buying into an
mainly driven by the anticipated cost
of a shop visit.” The key driver in determining the fate
OEM-driven total care program to ac-
of an engine, is, according to Air France
quire the latest fuel efficient engine will Air France Industries KLM Engineering & Maintenance
Industries KLM Maintenance & Engi-
become the way ahead for many carri-
neering (AFI KLM E&M) whether or not
ers, especially after Boeing decides on
that engine is needed as a replacement.
whether it will re-engine the 737NG or build a
to low demand for older aircraft types with If a carrier’s fleet size is decreasing, then less
completely new fuel-efficient narrowbody to
higher fuel consumption - especially in times spares are needed, and the choice is: to repair
compete with Airbus’ A320neo.
of high oil prices; and sell, or to tear down and sell the parts. If
• high availability of surplus material and en- the spare is still needed, the carrier will still
AN ENGINE IS NOT FOR LIFE... have to balance the costs of repair versus the
It’s clear that there will be far more ‘new’ en- gine modules up to complete engines;
cost of purchasing or leasing an overhauled
gine types than mature or sunset within the • high availability of DER repairs and PMA parts;
engine, taking into account its net value.
next decade, as the OEMs roll out their lat- • a changing competitive environment, with
“The decision to repair or tear down is mainly
est models to power the predicted 31,000 the transfer of work from ‘prime’ MRO serv-
driven by the anticipated cost of a shop visit,”
new commercial aircraft that will be needed ice providers, such as OEMs and large airline
said a senior company executive.
to accommodate global demand up to 2029 service expanders and independents, to small
- forcing airlines and lessors to make fateful independents specializing in sunset engines;
decisions governing their mature and sunset
BUT NO NEED TO END IT EARLY...
• shift of aircraft to third tier operators (with Fleet management optimization, cost of own-
engines sooner rather than later.
no in-house MRO), partly in developing coun- ership, lease-end and return conditions, re-
The direct operating costs of an aircraft engine tries, with limited engineering know-how and sidual value goals and OEM industrial support
are determined by a series of key cost-drivers financial means; programs and warranty handling are all part

Engine direct operating costs by technology generations

Sunset Mature New
Different cost-drivers
according to engine
age / technology
Source: MTU Maintenance
Photos: CFM International

Financing/leasing cost
Fuel consumption
Overview

Maintenance cost
Shop visit cost vs OWT
MRO competition
DER/PMA availability
Surplus/used parts
Examples

Widebody CF6-6/-80A/-50, JT9D CF6-80C2, PW4000-94 GP7000, GE90, GENX

Narrowbody JT8D CFM56-3, V2500-A1/ -DF CFM56-7/-5B, V2500-A5
Regional Jet Tay, Spey, LF500 AE3007, PW300, CF34-3 CF34-8/ -10
Major Issue / lever Fuel consumption MRO cost & fuel Acquisition cost
Cover Story - Engine Life Cycles 11

of the formula used by operators to determine while on-wing maintenance services, including the engine is low, so airlines and lessors prefer
engine life cycles. top/bottom case repair and compressor bore- to sell it as is,” added Kurdoglu. “For high-
scope blending, postpone any off-wing event. quality mature engines still on-wing, like CF6
The engine maintenance sector, therefore, re-
Standard engine cleaning can provide all-im- engines, operators consider the tear-down op-
lies on its key levers of offering reduced shop
tion, as the repair shops offer good
visit costs and optimized
value for piece parts. New genera-
workscopes, to persuade “Airlines are increasingly becoming more savvy in tion models like the V2500 and the
operators to repair, not
replace. nailing down their cycle costs, and are therefore CFM56 still have high market value
- even for run-down engines.”
very interested in finding providers who can work
In fact, keeping engines
on-wing and prolonging with them to find the most cost-effective solution. Fleet planning and the delivery
stream of new or used aircraft
their life cycle is the rai- The key is flexibility, flexibility, flexibility.” will weigh heavily as factors in an
son d’être of most engine Brian Neff, Complete Turbine Services
engine’s life cycle, as well as the
shops, which would other-
number or ratio of surplus engines
wise find work pretty hard
portant EGT gains of up to 10°C, equivalent to held against an active fleet. If an
to come by in an industry increasingly control-
operator has a sufficient number of spares, it
led by the OEMs producing new engine models a 1% reduction in specific fuel consumption.
can be more economical to tear down an en-
that will require little or no maintenance sup-
“All in all, customers are looking for the offer gine to generate surplus parts for an upcom-
port over the first five to seven years of their
or workscope best adapted to their operation- ing shop visit.
life span, before their first scheduled shop visits
al needs over time,” said Diebold-Widner.
- which will almost certainly fall under OEM to- Airline capacity is also considered: Low or
tal care-type deals anyway. That approach was echoed by Brian Neff, higher load factors, for example, lead carriers
to move to smaller or bigger aircraft which may
According to Enrique Robledo, senior vice chairman and CEO of Complete Turbine Serv-
create surpluses on certain models, according
president of power plant maintenance at Ibe- ices, a Florida-based jet engine MRO facil-
ity. “I would stress that the future of engine to Diebold-Widner. Competition on popular
ria Maintenance; engine shops therefore play
repair is going to be based on flexibility on routes will frequently force budget carriers to
an increasingly important role in decisions
governing the life span of an engine; they the part of the providers, as
can offer “significant savings in maintenance opposed to a ‘one-size-fits-
against new generation engines that could re- all” approach adopted in the
past. Airlines are increas-
duce the gap in efficiency savings”.
ingly becoming more savvy
Maintenance costs for older type engines in nailing down their cycle
naturally go down over time, as more surplus costs, and are therefore very
parts become available and competition be- interested in finding providers
tween shops increases. If a product is reaching who can work with them to
the end of its life, then an operator or lessor find the most cost-effective
will minimize the investments in repairs to solution. It is not a simple
achieve the lowest possible cost-per-flight cy- equation that [type of engine]
cle and flight hour. x [any MRO] = [identical price
for overhaul]. Overhaul pric-
So, while new engines are generally serviced
ing is not a commodity that is
under so-called Fly by Hour or Power-by-the-
priced the same across various
Hour programs or Nose-to-Tail all-inclusive
providers. The key is: flexibil-
schemes offered by the OEMs and larger
ity, flexibility, flexibility.”
MROs, fixed price packages have gained ac-
ceptance as the ideal contract form for sunset
BALANCING COST AND
or mature engines.
EFFICIENCY...
“A switch from a Fly-by-Hour contract to a Time There will inevitably come a
& Material deal with a Not-to-Exceed or Fixed time when the writing is on
Price deal makes sense to ensure that one does the wall for a specific engine
not overpay, and has full control of cost and or series of engines. Typically,
workscopes, including usage of surplus mate- airlines and lessors evaluate
rial,” said Diebold-Widner. Costs are kept low their ‘end-of-life-cycle’ en-
by accessing used or PMA parts instead of new gines according to the number
material, and making use of DER repairs. To this of existing engines flying to-
end, MTU has invested in high-tech repairs to day and the generation type
reduce material cost: Replacing an HPT blade of those engines, said Gulperi
with a new one, for example, generally carries Kurdoglu, managing director
a price tag of close to $6,000, while MTU can of Turkish MRO Airlogic.
repair a used one for $850.
“The decision is directly linked
MTU Maintenance also offers a range of prod- to the expected value of the
ucts and services that improve performance engine after repair. For sun-
and reduce fuel burn. It uses its proprietary set-type engines - of which
Engine Trend Monitoring System to extend few are still flying, like the Keeping engine maintenance costs low: Deburring of a HPT disk from a CF-
Time-on-Wing through predictive monitoring, JT9D series - the core value of 6 engine (top); Milling of a HPC disk at MTU Aena (above) MTU

AviTrader MRO - June 2011

Cover Story - Engine Life Cycles 12

shift to more economical aircraft to be able to PW1100G geared turbofan and CFM Interna-
compete, again leading to surplus. tional’s Leap X, both set to hit the market within
the next five years.
In that case, operators
will often swap engines,
Claes Malmros, president of VAS Aero Serv-
says Othmar Schumacher,
ices, the Florida-based afermarket services
vice president of Engine
provider, expressed the sector’s concerns:
Procurement and Mate-
“Airlines and lessors will have to adjust their
rial Services at SR Tech-
management strategies as the life cycles of the
nics, and burn off green
newest generation of engines have changed
life - the available period
significantly from the previous generation”.
during which an older en-
Abdol Moabery gine can remain in service “These new generation engines are being
GA Telesis
until its last maintenance tailored to require almost all repairs at very
records expire. They can also remove the en- specific intervals,” he added “and in between
gines at the time of aircraft dismantling and these intervals, there is likely to be little or no Low maintenance: The Pratt & Whitney 1100G geared
turbofan engine MTU
sell them on to specialized companies for tear- maintenance outside of simple line support.
down or operation of the remaining engine or The new generation of engines are, according
This will make airlines less flexible in their re-
module life. pair costs, which means old strategies of ‘just to Janagan, “staying on wing much longer,
leaving a longer period from an air-
Green-time lease strategies and craft’s entry into service before the first
part-out are becoming more “Airlines and lessors will have to adjust their spares are required for shop visits. In
prevalent these days, according management strategies as the life cycles of the addition there are likely to be fewer
to Abdol Moabery, president and
CEO of GA Telesis. “It is a deci-
newest generation of engines have changed shop visits during an engine’s life.” The
signficantly from previous generations.” extended life span of these engines
sion based entirely on econom- makes it less attractive for lessors of
ics. Why repair something when Claes Malmros, VAS Aero Services
spare engines for long-term lease or
you can replace it for less money? purchase-leaseback agreements to buy
Since an operator will have the cost anyway,
patch it up for another few thousand hours’ early in a program speculatively.
they can replace an engine and reduce or off-
won’t be possible as life limited parts (LLPs)
set the cost of the new one by using the parts As for the aftermarket industry, adds Malm-
will need total replacement.”
in the core engine for future use.” ros, MROs and parts support firms will find
Patch-ups will soon be a thing of the past an- it increasingly difficult to get a look-in, as
The benefits of tear-down are substantial.
yway, according to Bobby Janagan, vice presi- “only those players able to leverage advanced
Spare parts from various engines slated for
dent of Rolls-Royce & Partners Finance (RRPF), financial modelling, data collection and fore-
tear-down can be used to build one engine casting will be able to compete in this OEM-
the engine leasing subsidary of Rolls-Royce.
with signficantly reduced material costs. The dominated engine market.”
assets are taken off the balance sheet and “OEMs design engines with the objective of
out of the storage area, and the engine will achieving the lowest possible cost of owner- It is clear that many more operators will be
be troubled by fewer LLP history issues. Any ship for a given mission and new technologies looking to retire their older engines as the
remaining spare parts can be sold off, with are adopted to increase reliability with lower newest engines begin to flood the market
the so-called ‘fast movers’, including bearings, emissions and noise,” he says. “As a result, an from sometime next year. Other factors influ-
HPC and HPT airfoils and LLPs, commanding engine’s life cannot be prolonged with patch encing this trend are, according to Janagan,
the highest prices (see below). ups in comparison to legacy engines, and in the continuing expansion of air travel with
the long run it costs more. In 2008/9, just af- global economic growth pushing major air-
LONG LIFE NEW ENGINES ter the financial crisis, airlines deferred refur- lines in a highly competitive market to refresh
Accepted formulae for determining when to bishments to preserve cash but this is not the their fleet for both cost of ownership reasons
retire engines are set for a shake-up with the general trend in the market with the current and public perception, as well as the increased
influx of the ‘new generation engines like the generation of engines.” leased portfolio within airlines, which allows
them more flexibility to achieve this. Further-
more, second-tier airlines and beyond are less
Value in teardown engines willing to absorb the legacy fleet due to higher
Source: MTU Maintenance Combustor oil prices, and finally, financiers and lessors are
‘eager to build their portfolio with current gen-
LPT airfoils
eration aircraft, making it harder for legacy air-
Fast mover craft and engines to source finance’.
Slow mover Engines like the PW1100G and the Leap-X are
game-changers. They provide double-digit im-
provements in fuel efficiency and will require less
HPT airfoils maintenance. The jury’s out on whether mainte-
nance costs will be higher - Iberia Maintenance’s
Robledo thinks they will, particularly as they will
HPC airfoils remain in a non-competitive OEM-controlled
Fan / booster
market - but the imperative to rein in direct op-
Cases & frames LLPs erating costs will surely take precedence. Only
Bearings
Photo: CFM International time - or the Paris Air Show - will tell.

AviTrader MRO - June 2011

 A321-200
GA Telesis, the WORLD LEADER in commercial aircraft and jet
engine component support has commenced the disassembly of
an A321-200.

Other Current Airframe & Engine Disassemblies:

A300-600R B777-200 CFM56-3C CF6-80C2A/B
A310-300 B767-300 CFM56-5A CF6-50C2
A320-200 B757-200 CFM56-5B PW4000
A340-300 B747-400 CFM56-5C JT8D-219
CRJ-200 B737-300 CF34-3A/B V2500-A1

Engines Available for Lease

CFM56-3C1 CF6-80C2A/B1F PW4077

CFM56-5A1 CF6-50C2 PW4158-3
CFM56-5B4/P CF34-3A/B PW4056
CFM56-5C3F/G V2533-A5 JT8D-219

www.gatelesis.com
sales@gatelesis.com
Looking Ahead to the Paris Air Show 14

What‘s new, who‘s who...

...at the Paris Air Show 2011
T he International Paris Air Show at Le Bourget will break records this year, as it opens its doors to more
than 2,100 international exhibitors - the most in its 102-year history. The show’s 28 international pavilions
will open their doors on 20 June to more than 138,000 trade visitor and 3,000 accredited journalists. More than
140 aircraft will be on display, including the ‘Solar Impulse’, a revolutionary solar-powered airplane.
Nearly half of all exhibitors are French (47.8%) followed by other European firms (30.6%), companies from the Americas (16%),
Africa and the Middle East (2.4%) and Asia and Oceania (2.3%), with a total of more than 50 countries represented. New to the
Show this year is the Alternative Aviation Fuels Showcase in Hall 3, as well as a new Mobile Site (www.siae.mobi) and free WiFi ac-
cess throughout the facility.
We’ve included below and on the following page some of the latest news about exhibitors and delegates at Le Bourget and what
you might expect to see as you walk through the doors of the biggest international air show of the year.

New Boeing 747-8 Intercontinental EADS to showcase ‘Future by Airbus’

Heard on the grapevine......
and Freighter to debut at 2011 Paris
• AirAsia is considering the purchase of up EADS is showcasing ideas for a sustainable
Air Show aviation in Le Bourget with visitors invited
to 200 Airbus A320NEOs, equipped with
Boeing’s two new 747-8 airplane models – the new generation fuel-efficient engines, in to see revolutionary
Intercontinental passenger version and the a deal potentially worth $18 billion at list ideas and insight
Freighter – will make their international debuts prices, as it looks to expand in an era of into the ‘Future
in Paris, joining the 787 Dreamliner as high- high oil prices. by Airbus’ – a free
lights of the thinking vision for
company’s pres- • Hong Kong Airlines will order the future of avia-
ence during the an undisclosed number of Airbus tion, brought to life
show. Also on A380s at the Air Show to help it with a spectacular
display will be compete with Cathay Pacific on wrap-around film
an Air Berlin long-haul routes. at the Le Bourget
737-700 with “Musee de L’air”
The A380 over Paris Airbus Planetarium.
the new Boe- • Indian carriers Jet and GoAir
ing Sky Interior, will place orders worth $6.5 bil- Aircraft on static display will include the A380,
a Qatar Airways lion with Airbus in Paris for a an Airbus Corporate Jet (ACJ), the Airbus Mil-
Boeing 777- Boeing’s new 747-8 and the 787 total of at least 60 new aircraft. Budget itary A400M and C295 as well as several cut-
Dreamliner will both be in Paris
200LR, the C- Boeing airline GoAir has said it will order a mini- away models (A350 XWB, A320neo, A330,
17 Globemas- mum of 50 A320s, worth $4 billion, while A380 commercial aircraft, and the A400M
ter III military airlifter, the F-15E Strike Eagle Jet Airways will buy $2.5 billion-worth of military aircraft) and a life size Airbus A320
multi-role fighter jet, and the CH-47F Chinook A330s. Flag carrier (continued overleaf) Family fuel saving Sharklet’ wingtip device.
heavy-lift helicopter.

What to expect at the Paris Air Show 2011: Looking ahead to Le Bourget with IBA’s Phil Seymour
The big airshows are the major leagues of the airframe and engine manufacturing world, with the biggest deals and announcements saved up, for
maximum effect and press coverage, for the three days of the trade event. Last year in Farnborough, Airbus was technically the ‘winner’, with 130
firm and 122 provisional orders worth some $28 billion, while Boeing, which generally puts less focus on airshows, preferring to wait for the end
of the year totals, took in $14 billion in orders and commitments. We asked industry expert Phil Seymour, president and CEO at the International
Bureau of Aviation (IBA) for his inside track on the Paris Air Show.
AviTrader MRO: Phil, what do you predict for new orders in Paris?
Phil Seymour: Traditionally the Paris Airshow has been an Airbus success story - after all it is Airbus’s home ground and several orders are kept
under wraps in order to grab the headlines. We do expect to hear about orders for the A350/A380 but we may still have to wait to hear about
the specific engine selections. For example, If A380’s are ordered will the Qantas engine failure cause a backlash with increased orders for the
Alliance engine rather than the Trent?

AviTrader MRO: Can we expect any news from Boeing on whether it will re-engine or proceed directly to building a new narrowbody?
Seymour: As far as I understand having met senior Boeing executives in Beijing last week, there will not be a definitive statement from Boeing
but an update as to its thinking. The CFMI Leap X can be fitted to the NG but there seems to be more thought about “size”. It appears that
there may be a move towards an aircraft that better fits the 737/757 “gap” perhaps a “up to 200 seat” aircraft rather than a simple 737NG
re-engining or replacement.Boeing do not seem to be focused on Paris as being the milestone for an announcement. (continued overleaf)

AviTrader MRO - June 2011

Looking Ahead to the Paris Air Show 15

Air India is also expected to announce a (continued from p. 14)

dry lease for 10 A330s and 16 A320s.
• Thai Airways‘ new orders are expected
to be officially announced in Paris. The
carrier has committed 118.6 billion baht
($3.9 billion) to acquiring six new Boeing
777-300ERs, due for delivery in 2014-15,
along with four Airbus A350-900s (2016-
17) and five A320-200s (2014-15). It will
also lease 22 aircraft, including eight
Dreaminer 787s.
• Garuda is expected to make a formal an-
nouncement of an order with either Bom-
bardier or Embraer for up to 25 regional
jets of under 100 seats, for its domestic
subsidiary Citilink.
• The Dubai Airshow will be in Paris to
showcase the successful development of
the aerospace industry in the United Arab
Emirates as the country celebrates its 40th
anniversary this year. Running from 13 to
17 November 2011 at the city’s Airport
Expo, the Dubai Airshow is the foremost
aerospace event in the Middle East and the
fastest growing in the world. Dubai Air-
show organiser, F&E Aerospace, is hosting
potential and existing clients at the Paris Air
Show at its chalet, D56. The Dubai event is
set to be the biggest yet, with up to 1,000
exhibitors expected from 50 countries and
more than 55,000 trade visitors.
• Eurocopter will take to the skies in Par-
is, when the X3 hybrid demonstrator and
EC175 make their public flight debut.
• A deal between Bombardier and Qatar
Airways for the airframer’s CSeries nar-
rowbody jet may be back on the cards, ac-
cording to analysts, who believe that ‘posi-
tive momentum’ has increased around the
CSeries after two sets of orders in less than
a week were made earlier this month. Be-
noit Poirier of Desjardins Securities said he
believes that “Bombardier is confident it
will announce further orders at the Paris
Air Show”.
• Airbus will display its Concept Cabin at
Le Bourget, giving the world a sneak peak at
what the aircraft cabin of the future might
look like. A long way from the cramped
AviTrader MRO: Are we nearing ‘make-or-break for Bombardier’s CSeries? And what about
Embraer, Superjet, Comac, Mitsubishi?
Seymour: I still think that many airlines are awaiting real performance data before com-
mitting to the C series. The combination of new airframe and new engine could be a win-
ner but some airlines seem concerned about the technology leap, even with manufacturer
guarantees. I think success will come but perhaps not at Paris.
Embraer could also do with some orders - competition for this space is tough but they
have the established reliable product with good customer support. Sukhoi/Comac and
MRJ will have to prove they have the ability to support the aircraft globally. Not just on
their “front doors”.
AviTrader MRO: Engines - will Paris be a further testament to industry acceptance of the
PW1100G?
Seymour: Well, this may rely upon the A320NEO – my comments about the NEO remain
– there are lots of unanswered questions as far as I am concerned, I understand the fuel saving
but will the 1.8 tonne heavier aircraft require beefed up landing gears and APU? You don’t get
something for nothing – or do you?
I am also a little concerned that the Purepower production will be stretched due to its applica-
tions on the NEO, C Series, MRJ and the Irkut MC 21.
AviTrader MRO: Who do you expect to be the ‘star’ of the show this year?
Seymour: I am not convinced that anything will stand out - lots of important orders and
selections reflecting a move out of recession (on a global basis). Maybe more orders from
Steve Hazy?
• Rumours abound that there could be over a possible order for up to 100 single-
a big order for new narrowbodies from aisle planes, and may have something to
South America in Paris this year, as eco- announce in Paris although pundits believe
nomic growth in the region spurs interna- it could wait to see if Boeing will make a
tional travel. Avianca Taca has been in decision about a new plane or re-engining
the existing 737NG.
talks with Airbus, Boeing and Bombardier
The lull before the storm: Airbus v Boeing orders muted in May
With a raft of new orders and commitments expected across the board in Paris, not just for the
big boys but also for smaller airframers like ATR, activity was unusually low in May. Airbus took
only seven orders, for two A320s from new customer Star Flyer of Japan, which made its first-
ever purchase, and five A330-200s from Korean Air. The company‘s gross total for the year so
far to end-May is 176, just behind Boeing‘s total of 182.
Taking cancellations into account, Airbus has 97 net aircraft orders for the first five months of the
year, compared to Boeing‘s
133. But Airbus boss Tom Airbus v Boeing: Orders and Deliveries
Enders said he expects to Through May 2011
take more orders at Le Airbus Boeing
Bourget this year than at Type Orders* Deliveries Type Orders* Deliveries
last year‘s Farnborough
Air Show, which brought A318 0 0 737-600 0 0
the company a total A319 2 19 737-700 2 18

conditions of today‘s economy travelling of 130 orders and 122 A320 77 127 737-800 66 125
experience, the Concept Cabin will offer commitments.
A321 47 24 737-900 33 6
‘personalized zones‘ with ‘tailored levels of Boeing posted 27 orders in A330 40 39 747 2 0
experience’ ranging from panoramic views May, including 14 orders A340 0 0 767 13 7
to vitamin and antioxidant enriched air, aro- from unidentified customers
matherapy, mood lighting, and so on - all and an order for five 777 A350 0 0 777 66 24
in a 100% recyclable, self-cleaning cabin freighters from Lufthansa A380 10 8 787 0 0
with high green credentials. Let’s hope they Cargo. and is expected to Total 176 217 Total 182 180
don’t do away with the free peanuts... pull in many more in Paris. *Gross Orders Source: Company websites
IBA Analysis - Engine life, value and costs 16

Managing the engine life cycle

IBA Group’s Phil Seymour continues his series of analyses on engine life,
value and costs - and how to create value through optimum management

F ollowing on from my previous intro- keep it simple. So 20 airlines now have five air-
duction to aircraft engines and the all import- craft each.
ant aspect of EGT margin (see Engine Mainten-
Putting this into con-
text of the new aircraft
value, the engines rep-
ance and EGT Margin, AviTrader MRO - April Given the increase in age and use of the en- resent around 40%,
2011), I go into more detail here regarding the gines – perhaps they are close to third or fourth whilst after 12 years
mix of engine life/value and costs, and how this shop visits – the spare engine ratio increases to the engines represent
can create a great value proposition to investors, 20%. Each airline with five aircraft (10 installed around 60% of the
airlines and the MRO’s - if and when they man- engines) therefore needs two engines requir- value. This steadily in-
age the cycle to an ing a total of
creases until the point at
optimum. “Over time, the demand for spare engines 40 engines which the engine value
across the 20 IBA’s Philip Seymour
Since engines are
increases, and when we look at values, airlines – a is pretty much 100% of
the value of the aircraft carcass.
merely the method the distance between engine value versus significant in-
of propelling air- aircraft value is a real eye-opener.” crease from This all demonstrates clearly the convincing
craft through the the initial six value proposition to part-out, or continue to
air, much of the decision process relating to the required by the first operator of the new fleet. operate the engines as the aircraft age.
end of life for the engine is related to the host
aircraft lifecycle. So, firstly we have to look at After 12 years, engines represent Commonality and interchange-
the link between aircraft value and engine value. around 60% of aircraft value abilty
Or perhaps I should say how they are not linked. So over time I think you can see how the de- Another aspect to consider is the engine com-
To highlight this I will create a very simple story. mand for spare engines increases and when we monality and inter-changeability. In a recent pro-
look at values, the distance between engine ject IBA acted as sales agent for the owner of a
Imagine the launch of a new aircraft type, a nar- Boeing NG, a 737-600. The aftermarket for the
value versus aircraft value is a real eye-opener.
row-body along the lines of the B737 or A320. -600 was pretty poor (it is the smallest of the NG
The initial order is for 100 aircraft by a low-cost Engine manufacturers keep a close control on variants), however the engines and parts were
carrier. This means that there are 200 installed the availability/supply and cost of the spare en- useable on the larger -700 and -800 aircraft.
engines. Since the engines are new they provide gines and their constituent parts, especially the
the highest levels of reliability and therefore the life-limited parts. Evidence shows that the en- So whilst the aircraft was only 12 years old it
spare engine requirement is relatively low – 3%. gine and engine parts values tend to increase by had more value to a part-out company than it
That means the airline only requires six spare en- around 4-6% per annum. did to an airline or lessor in terms of sale or lease

CFM International CFM56-78: Engine Variants Available CFM56-78: Airframe/Engine Combinations

Variant Thrust Flat Rating SFC^ Aircraft Type(s) Engines in Service Aircraft Aircraft Engine Worldwide
Manufacturer Population
CFM56-7B18 19,500 lbf 30.0°C 0.603 lb/h/lb 737-600 0 engines
737-600 CFM56-7B20 35 aircraft
CFM56-7B20 20,600 lbf 30.0°C 0.603 lb/h/lb 737-600/700/700C 260 engines CFM56-7B22 33 aircraft
CFM56-7B22 22,700 lbf 30.0°C 0.603 lb/h/lb 737-600, -700 1,126 engines 737-700 CFM56-7B20 95 aircraft
CFM56-7B22 530 aircraft
CFM56-7B24 24,200 lbf 30.0°C 0.603 lb/h/lb 737-700/700c/800/900 1,496 engines CFM56-7B24 394 aircraft
CFM56-7B26 26,300 lff 30.0°C 0.603 lb/h/lb 737-700/800/900/900ER 3,196 engines CFM56-7B26 65 aircraft
CFM56-7B27 85 aircraft
CFM56-7B27 27,300 lbf 30.0°C 0.603 lb/h/lb 737-700/800/900ER 1,042 engines Boeing
737-800 CFM56-7B24 342 aircraft
^Specific Fuel Consumption (SFC) at cruise conditions CFM56-7B26 1,413 aircraft
CFM56-6B27 424 aircraft
737-900 CFM56-7B24 16 aircraft
gines for the first few years. Over the years, the Meanwhile, the aircraft is generally a CFM56-7B26 36 aircraft
engines go into the shop for restoration of the depreciating asset. What may start off 737-900ER CFM56-7B26 80 aircraft
EGT margin. As the engines age, the spare en- as a $40m asset will, after 12 years, be CFM56-7B27 12 aircraft
gines requirement increases to 6%, so the airline valued at around $22m assuming 2.5%
has to access an additional 6 spare engines. inflation. value. Likewise there were no reasonably priced
-700 or -800 aircraft for part-out so the -600
Now, let’s imagine that the airline’s policy is to The new engine value starts off at around $8m
represented a great option for the buyer.
dispose of the aircraft after 12 years of service. It and in 12 years time, given inflation but in a half
is extremely unlikely that all the aircraft will move life condition, it will still be worth close to $6m. All of those -600 parts, from the engines
to one airline. It is more likely that the 100 air- Therefore of the total $22m aircraft value, the through to landing gears and avionic parts are
craft will dissipate in batches of 5 perhaps, to engine share is around $12m. now flying in its larger sister aircraft.

AviTrader MRO - June 2011

IBA Analysis - Engine life, value and costs 17

IBA Engine Values Book

Active Engines = 6856

CFM International CFM56-7B

Parked Engines = 84
All figures in US$

Worldwide Distribution of Installed Engine Population Worldwide Distribution of CFM56-7B Operators

Totalled installed population 7,120 engines Total operators of CFM56-7B engines 164 operators

Africa 314 engines 4.4% Africa 20 operators 12.2%

Pacific Rim 1,874 engines 26.3% Pacific Rim 45 operators 27.4%
North America 2,278 engines 32.0% North America 15 operators 9.1%
South & Central America 466 engines 6.5% South & Central America 9 operators 5.5%
Europe & CIS 1,768 engines 24.8% Europe & CIS 61 operators 37.2%

Asia & Middle East 420 engines 5.9% Asia & Middle East 14 operators 8.5%

Current Market Value, Base Value, Typical Current Engine Maintenance Indicators
Rental Rate (TCRR) & QEC CFM56-7B20/3 CFM56-7B26/3
CFM56-7B20/3 CFM56-7B26/3
Life Limited Part (LLP) Cost $2,231,000 $2,231,000
Market Value Bare Engine $4,645,000 $6,695,000
Average Cost of Overhaul $2,000,000 $2,000,000
Base Value Bare Engine $4,645,000 $6,695,000
Mean Time Between Over-
14,400 FH 18,000 FH
Low $50,000/month Low $60,000/month haul (MTBO)
TCRR
High $85,000/month High $95,000/month
Fleet Average Flight Hour/
1.20 FH/Cycle 2.00 FH/Cycle
QEC $880,000 to $1,500,000 $880,000 to $1,500,000 Cycle Ratio

Looking at the facts

The tables on this page and the previous page are extracts from IBA’s
Engine Values Book and I have reproduced the pages to highlight
the issues in the part-out decision:

The tables on page 16 show the distribution of the various CFM

engines that power the B737NG. Most of the parts are interchange-
able but of course to operate a low thrust engine at the higher thrust
requires payment of the appropriate supplement to the OEM.

The four tables above demonstrate the typical current values and
costs of the shop visits, LLP’s, and time on wing while the table
below shows the expected future values of a typical half-life engine. HPC bladed disk production at MTU AENA in the US MTU

CFM International CFM56-7B: Current Market Value & Base Values Value in $million / Annual inflation of 2.5% assumed

Type CMV 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

CFM56-7B20 4,.400 4.40 4.51 4.60 4.65 4.60 4.49 4.27 3.93 3.54 3.19 2.87
CFM56-7B22 4,.900 4.90 5.02 5.12 5.17 5.12 4.99 4.74 4.36 3.92 3.53 3.18 The International
Bureau of
CFM56-7B24 5.700 5.70 5.84 5.96 6.02 5.96 5.81 5.52 5.08 4.57 4.11 3.70 Aviation is an
CFM56-7B26 6.400 6.40 6.56 6.69 6.76 6.69 6.52 6.19 5.69 5.12 4.61 4.15 independent
CFM56-7B27 6.700 6.70 6.87 7.01 7.08 7.01 6.83 6.49 5.97 5.37 4.83 4.35 aviation
consulting
CFM56-7B20/3 4.645 4.65 4.78 4.90 5.00 5.10 5.15 5.10 4.97 4.72 4.48 4.12
firm based in
CFM56-7B22/3 5.195 5.20 5.35 5.48 5.59 5.70 5.76 5.70 5.56 5.28 5.02 4.62 Leatherhead,
CFM56-7B24/3 5.995 6.00 6.17 6.32 6.45 6.58 6.65 6.58 6.42 6.10 5.80 5.34 UK, with
representation
CFM56-7B26/3 6.695 6.70 6.90 7.07 7.21 7.35 7.42 7.35 7.17 6.81 6.47 5.95
worldwide
CFM56-7B27/3 6.995 7.00 7.20 7.38 7.53 7.68 7.76 7.68 7.49 7.12 6.76 6.22

AviTrader MRO - June 2011

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     constantly updated; and one
Lease Rates is confident that the values
 
     
 and rates are based on
Lease Rates expert knowledge and
          common sense.”
     
Shane Miller,
! " # $ Commonwealth Bank
The system also delivers total flexibility on the model,
specification, length of forecast, inflation parameters, and a
%&'*  /

IBA Group Limited | IBA House, 7 The Crescent, Leatherhead, Surrey, KT22 8DY, UK
Telephone: +44 (0) 1372 224488 www.ibagroup.com
Email address: marketing@ibagroup.com www.jetvalues2.com
Selected IT News 19

Pentagon 2000 Software releases new

Exostar to Deliver Enhanced Authentication to Supplier Portal for Northrop
Kanban module...
Grumman Corporation....
Pentagon 2000 Software announced the
release of its new Kanban module for supply Exostar announced it has been chosen by Northrop Grumman to issue and maintain the public
chain management. The Kanban technique key infrastructure (PKI) digital certificates that will allow the company to control access to its
was developed in Japan as a multiple bin supplier portal. Individuals worldwide who conduct business with Northrop Grumman via the
replenishment system to allow a demand- portal will require Medium Level of Assurance (MLOA) hardware certificates issued via Exostar’s
driven manufacturing process to pull materials hosted Federated Identity Service (FIS) offering. Exostar has a demonstrated track record with
through the supply chain using cards to trigger FIS, extensive Aerospace & Defense experience and a robust community network.
resupply of the bins. Pentagon 2000SQL
software employs a modern electronic version and deploys cloud-based ForumPass on behalf on BAE Systems
of this classic technique that allows customers Exostar announced its cloud-based ForumPass service offering has been deployed on behalf
to fully automate and optimize the supply of BAE Systems. ForumPass, built on Microsoft SharePoint, is allowing BAE Systems business
chain planning and execution process. The owners, IT team members, and its IT program management vendor’s personnel to effectively
Pentagon 2000SQL Kanban module is a collaborate throughout the Project Partnership Approach (PPA) that governs IT project
powerful tool that supports deployment management and delivery between the two companies. “We created the PPA process after a
of value added services such as Direct Line Lean/Six Sigma review of IT project management, with the goal of optimizing the timeliness
Feed (DLF), Vendor Managed Inventory and cost-effectiveness of project delivery,” said Allan Leggetter, head of IT, Enterprise IT
(VMI) and Consignment programs and is Services, Shared Services at BAE Systems.
fully integrated with the existing Contract
Manager, Consignment Manager, KitMaster,
Speed Ship and Reporting features.
Volartec wins contracts with Air Panama, Air Seychelles and Ceiba
...and announces contract with Intercontinental
Nextant Aerospace
Volartec announced that Air Panama successfully implemented its Alkym Management and
Nextant Aerospace selected the Pentagon Control system for aircraft maintenance. A team of maintenance and IT engineers implemented
2000SQL to support their inventory Alkym in a project that lasted approximately four weeks on site. All technical and logistic modules
management and production control were installed. Air Panama selected the following modules: Engineering, Planning, Maintenance
software needs. Following a successful Control, Purchasing & Repairs, Inventory, Receiving & Shipping, M-Transfer and M-Files.”
implementation project, Nextant is now fully
Volartec was also awarded a contract by Air Seychelles for the Alkym Management and
operational with the new system.
Control system for Aircraft Maintenance. Air Seychelles will begin the implementation
project in late June for 10 concurrent users, and will go live with eight modules over a five-
Commsoft signs deal with Northern week implementation period.
Aerotech for OASIS system
A further contract was announced with Ceiba Intercontinental Airlines, the flag carrier of
Commsoft signed a five-year, five-concurrent Equatorial Guinea, for maintenance tracking software services. Ceiba have opted to start with
user deal for the use of the OASES system eight modules and 10 concurrent users. Volartec has signed up seven airlines in the 12 months
for its line maintenance support operations since it launched its Irish office to serve the Europe, Middle East and Africa region.
worldwide with Danish maintenance
organisation Northern Aerotech, which
currently provides line maintenance control
support for SmartLynx Airlines and is planning
to expand its operations to other customers.
The company has bases in Riga, Latvia, Bra-
tislava, Slovakia, Prague, Czech Republic,
Tallinn, Estonia, Vilnius, Lithuania, Tel Aviv,
Israel and Tajikistan. The OASES system
will initially provide services like Inventory
including RFQ, Planning & Workpack
Production, Line Maintenance Control and
Digital Documentation for workcard manual
attachments to Northern Aerotech.

FlairJet chooses Leon Software for

management of Embraer fleet
Executive air charter operator FlairJet, basedat
London Oxford Airport, and Warsaw-based
Leon Software announced a deal at EBACE
that Flairjet implementing Leon‘s web-
based software. Leon‘s system will control
management of all fleet and crew scheduling
needs of one of the largest Embraer Phenom
operators in Europe. A screenshot of Volartec’s Alkym Management and Control System for Aircraft Maintenance Volartec

AviTrader MRO - June 2011

News in Brief
OGMA wins CAMO certification
Industria Aeronautica de Portugal was certified
as a Continuing Airworthiness Management
Organization (CAMO) by the Instituto Nacional
de Aviação Civil (INAC), according to EASA
applicable regulations, giving it the capacity
to perform aircraft condition evaluations and
issue the related Airworthiness Evaluation
Certificates. The certification covers all Embraer
135/145 family aircraft, including Legacy
600 and 650 executive jets; OGMA plans to
further extend this services to other aircraft
in the future. Currently OGMA holds EASA
certifications on a wide spectrum of aircraft
industry activities: Design Office Approved (Part
21G), Production Organization Approved (Part
21J), Maintenance Organization Approved
(Part 145) CAMO (Part M).
Row 44 and Lufthansa Technik form
engineering services
Row 44 formed a partnership with Lufthansa
Technik. As a result of this partnership,
commercial airlines that select Row 44’s In-flight
Broadband Entertainment Platform will be
able to take advantage of Lufthansa Technik’s
installation, certification and integration
services. Row 44 will certify and work closely
with Lufthansa Technik to reduce installation
and maintenance time and costs, reduce overall
project risks, and optimize the advantages of
the Row 44 solution for each airline customer.
Lufthansa Technik will also leverage its global
reputation as an innovative and trustworthy
commercial-aviation engineering firm to
support successful integration of Row 44’s in-
flight broadband entertainment platform to
airlines around the world.
Smyrna Air Center completes first
Power 90 Upgrade conversion
Smyrna Air Center completed its first Power
90 Upgrade conversion for AeroMetric, one of
the largest and most experienced full service
geospatial solutions companies in the United
States. GE Aviation’s M601E-11A engines are
now powering AeroMetric’s King Air E-90
aircraft for their site in Anchorage, Alaska. The
Power 90 Upgrade Program is a conversion
program for owners of King Air 90 aircraft, in
which the installed engines are replaced with
the powerful 705 shaft-horsepower (shp) GE
M601E-11A engines.
Greenpoint and Aviation Technical
Services to provide BBJ interiors
Greenpoint Technologies (Greenpoint) and
Aviation Technical Services (ATS) signed
installation agreements for two Boeing Business
Jet (BBJ) Greenpoint aircraft completions.
Installations will be performed at ATS’ facility,
20
Paine Field, Everett, WA, located adjacent to Bombardier will undertake all repair work
Boeing’s 777 and 747-8 production lines. This on engine nose cowls for Icelandair’s fleet of
agreement completes a two-year coordinated Boeing 757 aircraft. Bombardier has more
effort that ensures the installations will meet than 15 years of experience in repairing
the rigorous quality and aesthetic requirements RB211 535E4 engine nose cowls, and this
of Greenpoint’s customers. new agreement extends a well-established
and successful collaboration with Icelandair.
Bombardier previously had a five-year repair
TAME signs OnPoint solution
contract with the airline.
agreement for CF34-10E fleet
TAME or Linea Aerea del Ecuador, signed a TAT Technologies signs five-year con-
five-year OnPointSM solution agreement with
tract with US Army
GE Aviation for the maintenance of its CF34-
10E engine fleet that power its three EMBRAER TAT Technologies signed a five-year contract
190 aircraft. The contract is valued at $30 with the U.S Army for the overhaul and
million over the life of the agreement. upgrade of Anti Icing Engine Valves for Apache
and Black Hawk helicopters. The value of the
Icelandair extends repair relationship agreement may reach $20 million over the five-
with Bombardier Aerospace year period with the actual value contingent,
among other things, on the Army’s availability
Bombardier Aerospace signed a new repair of funds. A first purchase order for the value
agreement with Icelandair, based in Reykjavik, of $4.3 million has already been placed, with
Iceland. The seven-year contract means that deliveries commencing this year.
SELECTED TRANSACTIONS
Relativity Capital acquires Evergreen Maintenance Center
Relativity Capital, a private equity firm, announced an agreement to acquire Evergreen
Maintenance Center (EMC) from Evergreen International Aviation, headquartered in Oregon
(USA). Evergreen Maintenance Center is the largest aircraft storage and maintenance facility in
the world with 20 million square feet of ramp and storage area that accommodates over 400
aircraft. EMC is a FAA approved FAR Part 145 repair station with a FAA Class IV airframe rate.
Willis enters JV with Mitsui & Co
Willis Lease Finance entered into a joint venture agreement with Mitsui & Co., a Japanese
trading company, to acquire and lease IAE V2500-A5 and General Electric CF34-10E jet
engines. IAE V2500 engines are used on the Airbus A320 family of aircraft and CF34-10E
engines are used on the Embraer E190 and E195 aircraft. Willis Lease and Mitsui will each own
50% of the new joint venture. The new company, named Willis Mitsui & Co Engine Support
Ltd., will be an Irish corporation with offices in Dublin. Initially the joint venture plans to
acquire approximately $150 million in assets. Willis Lease will provide the initial lease portfolio
by selling seven V2500 engines to the joint venture by the third quarter of 2011.
BAE Systems sells business
BAE Systems is to sell its commercial aircraft lease portfolio and asset management business to
Fortress Investment Group for $187 million. The business, known as BAE Systems Asset Man-
agement, is the world’s second-largest regional jet lessor by fleet value and the 10th largest
aircraft lessor by fleet size. The sale comprises 151 commercial aircraft and the management
of third-party owned commercial aircraft on behalf of airlines and investors, but excludes the
company’s support and engineering activities.
Goodrich to close Ohio landing gear facility in 2012
Goodrich announced it will close its Marble Avenue landing gear facility in Cleveland, Ohio
by the end of 2012 due to program volume decline and the lack of appropriate new work to
cost-effectively fill available capacity. Approximately 400 employees are located at the facility
which supplies a range of landing gear equipment for commercial and military customers.
The activities currently performed at Marble Avenue will be gradually transferred to other
landing gear facilities. As previously disclosed, Goodrich will record a charge associated with
the facility closure. The company expects to record pre-tax charges totaling approximately
$39 million of which 40 percent are non-cash.  Approximately $16 million will be recorded in
the second quarter of 2011 and approximately $5 million will be recorded in the second half
of 2011.  Approximately $15 million will be recorded in 2012.  None of these charges were
included in the company’s 2011 outlook, released on April 21, 2011.
AviTrader MRO - June 2011
News in Brief
P&WC launches engine diagnostic tool for PW100 engine
Pratt & Whitney Canada (P&WC) officially launched an engine diagnostic tool, powered
by Spotlight, for its PW100 engine. The diagnostic tool is an interactive system designed
to help operators and service providers solve issues in a fast and thorough manner. With
this tool, the technician is asked
a series of questions about their
engine issue and is provided the
best information available for
fast and effective diagnosis. The
knowledge base behind this tool
represents both P&WC’s Fault-
Isolation Charts data and the
collective wisdom and experience
gained through years of in-field
service. This effort encompassed
26 engine models and created
1680 fully validated fault isolation
charts. It also harmonized
fault isolation data across 11
maintenance manuals. Improved repair for the PW100 series with engine diagnostics
P&WC
Jazz repaints aircraft with advanced
PPG Aerospace ‘Green’ system
Jazz Aviation repainted two regional aircraft
with the most advanced, “green” coatings
system by PPG Industries’ aerospace business.
This chromate-free PPG coatings system reduces
environmental impact, lowers weight, and
provides a smooth, glossy and highly durable
finish. The two Jazz airplanes were repainted by
Springer Aerospace, Sault Ste. Marie, Ontario.
OHS Aviation Service GmbH now an
exclusive affiliate of Fiber Seal AG
The products and systems for finishing and
sealing textiles manufactured by the firm
of Fiber Seal Aviation Services AG, Kesswil,
Switzerland, are now available from OHS
Aviation Service GmbH, Berlin, the experts in
maintenance of executive jet interiors. “We
are delighted to have found in OHS a partner
who appreciates the worth of our advanced
technical Fiber Seal process and who will be
the exclusive supplier for Germany,” says
Hans Ruf, CEO at Fiber Seal. The Fiber Seal
technology protects textiles, like carpets,
upholstered furniture or wall coverings for
instance, from dirt and stains, thus making
them particularly easy to care for.
Monarch Aircraft Engineering signs
agreement with Aeroco Groups
Monarch Aircraft Engineering (MAEL) signed
an agreement to provide The Aeroco Groups
companies with EASA Part 21J Design support.
The Aeroco Group consist of Aeroco; a CAA,
FAA and TCCA Part 145 and 21G approved
repair/production station, Aerograph; an
aircraft livery, internal and external decal
manufacturing supplier and Aerocol; an
aircraft refinishing and specialist coating
21
MAEL seals line maintenance deal
with Estonian Air
Monarch Aircraft Engineering signed a line
maintenance technical handling agreement
with Estonian Air to provide support to the
Estonian operator’s fleet of five Boeing 737’s at
Spanish line stations in Alicante, Malaga and
Tenerife.
New Bombardier CSeries aircraft wing
factory taking shape
Bombardier began installing semi-automated
jigs at its new wing facility in Belfast, Northern
Ireland, to support assembly of the advanced
composite wings for the all-new CSeries
aircraft. The jigs, fixed machinery that will
be used to assemble the primary structural
components of the composite wing torque
box, are being installed in the second phase of
a new, state-of-the-art 600,000 sq. ft. (55,742
m2) manufacturing and assembly facility.
division which are all based at Manchester Bombardier’s Belfast operation is responsible
International Airport, The agreement will see for the design, manufacture and integration of
Monarch’s engineering team provide support the advanced composite wings for the CS100
to The Aeroco Group covering all aspects of and CS300 jets, including all flight control
EASA Part 21J Design work. surfaces and high-lift systems. The primary
HEAVY MAINTENANCE
bmi enhances commitment with Lufthansa Technik
British airline group bmi is to further expand its cooperation with Lufthansa Technik with the
signing of two new agreements. The first sees bmi and Lufthansa Technik extend the base
maintenance agreement for 41 aircraft, the second is a new partnership for line maintenance
support at London Heathrow. Lufthansa Technik will continue to supply base maintenance
services for the 41 aircraft of the complete bmi and bmibaby fleets which consist presently
of 25 Airbus A320 family aircraft, two Airbus A330 and 14 Boeing 737 aircraft. More than
200 C-Checks, which will vary in scope and can be individually configured through a fixed
price building block concept, will be performed during the next seven years. In addition,
the parties have agreed on a “dedicated single line” concept, where the aircraft will be
overhauled nose-to-tail in primary facilities within the Lufthansa Technik Group. The A320
fleet will be overhauled at Shannon Aerospace, the 737 aircraft at Lufthansa Technik Sofia
and the A330 aircraft at Lufthansa Technik Malta.
Kuwait Airways signs up with Lufthansa Technik Philippines
Kuwait Airways is sending two A340-300 aircraft to Lufthansa Technik Philippines for heavy
maintenance checks this May and in September. Under this agreement, the two A340s will
undergo IL-checks and aircraft painting at the Lufthansa Technik AG subsidiary in Manila.
JorAMCo completes heavy structural AD and a C-check for Enter Air
JorAMCo successfully performed several maintenance checks on Boeing B737 aircraft
operated by Polish carrier Enter Air. The checks included among others C check tasks, skin
panel replacements and the lap joint inspection at crown area for cracks (AD note). The
agreement with Enter Air covers 4 aircraft, one already delivered last April and another
two following. Enter Air, operates charter flights from Warsaw and Katowice to holiday
destinations in the Mediterranean.
EgyptAir Maintenance & Engineering wins Nasair contract for heavy checks
EgyptAir Maintenance & Engineering (EGME) won a contract to provide heavy checks for five
of Nasair’s A320 aircraft. Nasair is a low cost airline with one of the youngest fleets in Saudi
Arabia. Since Nasair was launched on February 17, 2007 the company has grown rapidly and
serves more than 30 domestic & international destinations, with over 450 flights per week.
AviTrader MRO - June 2011
News in Brief
SELECTED FINANCIAL NEWS
AerCap announces amendment to
revolving debt facility
AerCap Holdings N.V. completed an
amendment to its revolving debt facility.
The $775 million non-recourse facility,
arranged by UBS Securities LLC, was
originally put in place during April 2006
and has now been amended to allow
for an additional two year revolving
period with a three year term-out period,
extending the transaction to June 2016.
The facility continues to allow for the
acquisition of a range of aircraft types, and
provides AerCap committed financing and
significant flexibility to purchase aircraft.
This transaction includes several new
lenders for AerCap – Credit Suisse AG,
Citibank N.A., Nomura Global Financial
Products Inc. and Scotiabank Capital.
Air Lease Corporation issues $120
million in unsecured notes
Air Lease Corporation (ALC) issued
$120 million in Senior Unsecured Notes
in a private placement to institutional
investors. The notes contain a 5%
coupon for a 5-year term with a maturity
of June 6, 2016. The issuance constitutes
the first time ALC has obtained long term
unsecured financing under the SEC’s
Regulation D in a private placement to
institutional investors. “The issuance
of these notes sends a strong signal
from the investment community about
ALC’s stated goal of tapping unsecured
financing to fund our future fleet
acquisitions,” said Jim Clarke, senior VP
and chief financial officer of ALC.
Héroux-Devtek reports record Q4
results
Héroux-Devtek reported its results for the
fourth quarter and fiscal year ended March
31, 2011. For the fourth quarter of fiscal
2011, consolidated sales reached C$106.0
million, up from C$85.0 million in the fourth
quarter of fiscal 2010. Aerospace sales rose
25.7% to C$99.5 million, while Industrial
sales grew 11.2% to C$6.5 million. EBITDA
was C$18.4 million versus C$12.3 million
a year earlier. Net income totalled C$7.7
million, versus C$4.4 million, in the prior
year. For fiscal year 2011, consolidated
sales reached C$357.6 million, an increase
of 11.6% over sales of C$320.4 million in
fiscal 2010. EBITDA grew 13.2% to C$54.8
million compared with C$48.4 million, last
year. Net income totalled C$18.5 million,
compared with C$16.0 million a year ago.
Continued on p. 23
structural components of the wings will be
produced using the unique Resin Transfer
Infusion (RTI) process that has been developed
by Bombardier Aerospace, Belfast engineers.
Goodrich selected for Russian Helicop-
ters Mi-34C1 upgrade program
Goodrich Corporation was selected by
Russian Helicopters, JSC to provide the main
rotor actuator and hydraulic power supply
for its upgraded Mi-34C1 light helicopter.
The agreement includes research and
development, original equipment supply and
aftermarket support for both units. Prototypes
for flight tests have already been produced
by Goodrich’s Actuation Systems business
with entry into service planned for late 2012.
The upgrade to the existing Mi-34 known as
the Mi-34C1 plans to achieve an increase in
maximum takeoff weight to 1,500 kg (1.5
tons) and allows for the piston engine to be
potentially replaced by a gas-turbine engine
during future modernization.
Jet Aviation to provide aviation serv-
ices from Al Bateen executive airport
The Jet Aviation Group and Abu Dhabi
Airports Company (ADAC) announced the
signing of a lease agreement, whereby Jet
Aviation will start to provide aviation services
from Al Bateen Executive Airport later this
year. The agreement with ADAC includes
the lease of offices at the business aviation
airport, where Jet Aviation will be Al Bateen
Executive’s first independent MRO provider.
Jet Aviation’s service offering will include line
maintenance through a newly established Jet
Aviation Abu Dhabi branch office and staffing
services through Jet Professionals, a subsidiary
of the Jet Aviation Group.
BizJet International licensed to
service RR Tay Mk620/650 engines of
Lufthansa Group
BizJet International, Lufthansa Technik’s
hundred percent US subsidiary based in
Tulsa, Oklahoma, was licensed by Rolls-Royce
to offer repair and overhaul services on Tay
Mk620/650 engines operated by or for
the Lufthansa Group. The Tay Mk620/650
engines power the Fokker F70 and Fokker
F100 aircraft. BizJet is already an authorized
overhaul facility for Rolls-Royce Spey Mk511-
8 powering the Gulfstream II, III and Rolls-
Royce Tay Mk611-8 engines, which power the
Gulfstream IV / IVSP.
LBAS expands Part 145 approval for
Qatar registered aircraft
Lufthansa Bombardier Aviation Services
GmbH (LBAS) extended its portfolio of various
22
approvals to include Qatar. This approval is a
mandatory requirement to offer LBAS’ wide
range of maintenance services to Bombardier
Challenger 604/605 aircraft flying under
Qatar registration. A first - undisclosed -
customer from Qatar has already signed a
maintenance agreement with LBAS and will
use LBAS’ services when flying to Europe.
LBAS, based at Berlin-Schoenefeld airport in
Germany, was formed in 1997 as a subsidiary
of the Lufthansa Technik Group and of
the Bombardier Aerospace Group. LBAS
specializes in the maintenance, repair and
overhaul of Bombardier Learjet, Challenger
and Global business jets.
Freestream Aircraft and Lufthansa
Technik sign LOC for BBJ 2 completion
Freestream Aircraft Limited and Lufthansa
Technik signed a Letter of Commitment for a
Boeing Business Jet (BBJ) 2 VIP Cabin Interior
Completion project. The project is scheduled to
start end of 2012. The hand-over of the aircraft
is scheduled for mid 2013. The interior of the
BBJ 2 will be designed by MNAerospace Ltd.
renowned designer Marc Newson’s London
based Aviation Design Studio.
Lufthansa Technik signs Boeing 747-8
completion contract
Lufthansa Technik signed a completion
contract for a Boeing 747-8 with an
undisclosed customer. The completion will
start in 2012. Additionally, Lufthansa Technik
has signed three Letters of Commitment for
the same type of aircraft so far. Walter Heerdt,
senior vice president Marketing & Sales of
Lufthansa Technik. “We have been able
to support the VIP market with the highest
quality, reliability and short layovers for many
years. We will continue to do so also with new
aircraft types like the Boeing 747-8 of which
Lufthansa has ordered 20 aircraft. Besides
having started engineering on the first B748
completion project, we are currently preparing
our organization and service portfolio for the
arrival of the first Lufthansa 747-8 in 2012.”
Comlux completes VIP fleet with com-
pletion of its first A320 Prestige
Comlux America, the Indianapolis-based
completion center of the Comlux Group,
delivered its first VVIP cabin of an Airbus
A320 Prestige. The company, created just over
two years ago, strategically developed all the
capabilities and shops in-house to perfectly
outfit this ultra luxurious cabin. Since the
beginning of May, the A320 Prestige has
joined the Fly Comlux fleet to start VIP charter
operations from the new Comlux base in
Bahrain: Comlux Middle East. The A320 will
join three A318 Elites and two ACJs.
AviTrader MRO - June 2011
News in Brief
Continued from p. 22
HEICO reports record sales for sec-
ond quarter of fiscal 2011
HEICO CORPORATION reported that net
income increased 34% to $16,830,000
for the second quarter of fiscal 2011, up
from $12,573,000 for the second quarter
of fiscal 2010. For the first six months of
fiscal 2011, net income increased 39%
to $33,904,000 up from $24,366,000
for the same period in 2010. Operating
income increased 27% to $32,913,000 in
the second quarter of fiscal 2011, up from
$25,957,000. Net sales increased 20% to
$184,486,000 in the second quarter of
fiscal 2011, up from $153,845,000.
IAI reports net profit of $46 million
for Q1 2011
IAI’s financial statements for the quarter
ending March 31, 2011 showed net profit
of $46 million (5.4% of sales), compared
to $17 million in Q1 2010 (2.2% of sales),
an increase of 175%. Sales for Q1 2011
reached $855 million, compared to $769
million in Q1 2010, an increase of 11%.
Export sales (80% of sales) totaled $680
million, a growth of 9% compared to Q1
2010. Sales to the military market reached
approximately $628 million, an increase of
8% compared to Q1 2010. Civil market
sales rose from $ 187 million in Q1 2010,
to $227 million in Q1 2011, an increase of
21%, reflecting a recovery in civil operations,
primarily in the field of conversion of aircraft
at the Bedek Aviation Group. The backlog
totaled $8.6 billion, 84% of the orders are
earmarked for export.
Air Lease Corporation reports first
quarterly positive pre-tax income
Air Lease Corporation recorded the first
quarterly positive pre-tax income of $4.9
million and net income of $3.2 million
and recorded cash flow from operations
of $38.5 million for the three months
ended March 31, 2011. For the same
period, they recorded adjusted net income
of $11.7 million and adjusted EBITDA of
$45.2 million. Air Lease Corporation signed
additional lease placements for aircraft
delivering during 2011, 2012 and 2013. As
of today, the total lease placements include
all of their aircraft to be delivered in 2011,
32 out of 38 aircraft to be delivered in
2012, nine out of 25 aircraft to be delivered
in 2013 and one out of 24 aircraft to be
delivered in 2014. During the quarter, Air
Lease Corporation entered into 21 lease
transactions covering 60 aircraft across 18
customers and purchased nine additional
aircraft, all of which have been leased.
Industry People on the Move
Bill Peacher, CEO of NORDAM, will step
down from his current position at NORDAM’s
mid-year board meeting. “This is in accordance
with NORDAM’s long-term succession plan to
return the leadership of the Company to a
member of the Siegfried family,” Peacher said.
Meredith Siegfried, currently NORDAM’s
president, is expected to be elected CEO at the
company’s July board meeting.
Jackson Square Aviation hired Michael
Hazelton to establish the firm’s Singapore office
with an emphasis on new aircraft origination
and capital markets activities. JSA continues to
expand its corporate platform with offices in
key areas throughout the world. Hazelton will
focus on marketing efforts in Asia/Pacific as well
as enhancing JSA’s capital raising efforts.
Jet Aviation announced the appointment of
David Ricklin as the new vice president and
general manager of the company’s maintenance
and FBO facility in Geneva. Ricklin will be
responsible for overseeing business operations
and expanding the service portfolio.
International Bureau of Aviation (IBA)
appointed Adrian Lee as head of Aircraft
Transaction Management, a new role that was
created to bring highly-focused expertise to the
management and remarketing of IBA’s existing
asset management portfolio and to meet an
industry increase in aircraft transitioning.
Furthermore, a number of financial institutions
are outsourcing part or all of their portfolio
management to IBA. Lee has a total of 27 years’
experience in the finance, aviation, aircraft
remarketing and management industries.
Airline Services (ASL), headquartered in
Manchester, UK, appointed Chris Hoy as
head of Sales, Customer Services & Business
Development, for its newly formed Aircraft
Component Repair division based at Stansted
Airport.  Hoy joins the company from SR
Technics where he was sales director –
Component Maintenance.
Juergen Funke took over as president of
ThyssenKrupp Aerospace from Stuart Wilkins.
Jeff Luckasavage will replace Funke as
president of ThyssenKrupp Aerospace North
America. Funke will be based in Essen, Germany,
making communications with global customers
in USA, Europe and Asia easier.
Andy Best was appointed head of commercial
for SR Technics, and will also be a member of
the Group’s Executive Leadership Team. He
will join the company in August 2011 and will
report directly to James Stewart, chief executive
officer. As head of Commercial, Best will lead
all commercial and customer-facing efforts
within SR Technics. Currently, he is commercial
general manager at Thomas Cook Airlines in
23
the UK, where he also held Line Maintenance
general manager position for three years.
EADS North America appointed Michael
Cosentino to be senior vice president and
head of Strategy and Development. He will be
responsible for overseeing the company’s future
strategy for growth, as well as leading the
mergers, acquisitions, and business development
functions at EADS North America.
Goodrich Corporation appointed Richard
Ingram as president of its Engine Control and
Electrical Power Systems business unit. Ingram,
formerly VP of Primary Flight Controls and
Machining Strategy for Goodrich’s Actuation
Systems business, will report to Curtis Reusser,
segment president, Electronic Systems. Ingram
replaces Bob Yancey who is retiring.
Rolls-Royce reported the appointment of
Lewis Booth as a non-executive director. He
will also join the Audit, Ethics and Nominations
Committees today. Booth will become Chair
of the Audit Committee with effect from 31
July 2011, a role most recently undertaken
on a temporary basis by Ian Strachan. Booth
is executive vice president and chief financial
officer of Ford Motor Company.
Michael Sattler was named as vice president
of RUAG Business Aviation, to replace Beat
Höhener, who has been in the position since
2009. Höhener, who is also a member of the
RUAG Aviation board of management, will
hand over the reins on 1 July 2011. Sattler is
presently senior vice president of Maintenance
at Jet Aviation in Basel.
AerCap Holdings N.V. approved the appointment
of Aengus Kelly to succeed Klaus Heinemann
as CEO and member of the Board of Directors,
effective from May 18, 2011. Kelly has been
responsible for AerCap’s operations in North
and South America as CEO of AerCap, since
2008. Prior to this appointment, he was the
group treasurer of AerCap.
Clint Clouatre was appointed vice president
of Marketing – Embraer Executive Jets. He had
previously been the Embraer Executive Jets senior
manager of Marketing for the North American
division. Jim Beckstein was named vice president
of the company’s newly created Pre-Owned Sales
Department for the Executive Jets division.
PAS Technologies announced the addition of
Daniel Adamski to join the company as vice
president of Business Development. Adamski
is responsible for leading the growth and
implementation of PAS Technologies’ global
military strategy that interfaces with the U.S.
and foreign government agencies in support of
its Maintenance, Repair and Overhaul (MRO),
supply, and logistics activities.
AviTrader MRO - June 2011