MAINTAINING STANDARDS

 When the doors open at the co-located MRO Middle East and Aircraft Interiors Middle East events on the first day of February, organisers will be expecting some bright-eyed eager delegates.

For with the growth of orders from the regions airlines, the specialist niche markets are suddenly big news.

The 163 aircraft ordered at the 2011 Dubai Airshow sees Middle East carriers with almost as many aircraft on order (764) as in service (896).

Michele Van Akelijen, aerospace director at F&E Aerospace which is organising the AIME event, said: “Aircraft manufacturers are now fulfilling the huge orders by this region’s carriers from seats to connectivity to the latest in inflight entertainment.”

Meanwhile the MRO aspect of the event is organised by US media company Aviation Week which quoted Bill Lay, PricewaterhouseCoopers’ Dubai-based partner as saying by 2015, the UAE will have more commercial aircraft than Japan, now the world’s third-largest economy,

But while there have been grumbles from the region’s airlines in the past about the lack of  support close by there are now clear signs that  international MRO providers have woken up and smelled the Arabic coffee and are working closely to set up their own or be in partnership with local companies, to develop MRO facilities.

Historically, much of the region’s MRO work was sent abroad, but now local fleet sizes approach a critical mass, it makes sense to maintain aircraft at home.  And ambitions of home-grown businesses to fill the void has seen sovereign wealth investment from the likes of Mubadala (Abu Dhabi) and Mumtalakat (Bahrain) begin the move along the spectrum from a dipped toe into the water to a fully immersed global player.

The region’s airlines have already questioned the value of contract maintenance with Flydubai , Emirates, Turkish and Saudi Arabian Airlines already having MRO capabilities in-house.

But at the Dubai airshow it was clear that many of the local airlines and service businesses are focusing on partnerships.

Turkish Technic, Abu Dhabi Aircraft Technologies (ADAT) and Aerostructures Middle East Services (AMES) have all recognised the benefits of collaboration and at the February show are likely to be at the forefront again.

A year ago, ADAT formed an exclusive relationship with International Aero Engines (IAE) to work on certain V2500 engines that are included within IAE’s aftermarket maintenance packages. ADAT also has had a broad strategic agreement with GE Aviation since 2008, and its parent company Mubadala Aerospace – owners of SR Technics - signed another agreement with Hamilton Sundstrand for Boeing 787 components

The aircraft interiors and completions businesses are the main crossover point with the MRO providers.

Turkish Technic  which has already developed partnerships with OEMs such as Goodrich and with Pratt & Whitney at Sabiha Gokcen airport south of Istanbul where they provide nacelle and thrust reverser repair and rotable support, and CFM56 series and IAE V2500 engine repair,

But now the company has linked with Turkish Airlines and TAI the Turkish Aerospace Industries to develop the Turkish Cabin Interior Systems (TCI) and with Turkish Airlines and Assan Hanil Automotive Industry and Trade Co. to develop aircraft seat manufacturing in Turkey.

Meanwhile in Saudi Arabia, Alsalam the well-respected MRO provider developed as an offset company has created a venture with private aviation business MAZ Aviation to specialise in VIP completions.

The Riyadh-based company has already successfully completed VVIP cabins for government C130 aircraft while the new Turkish venture is due to deliver its first retrofit programme  for Turkish Airlines before the end of March.

Turkish Technik’s general manager Ismail Demir also said the company is targeting low-cost carriers for its new seat and the Dubai show could be the first time the seat is shown.

For the Saudis it is the bespoke market that attracts them. Mohammed Fallatah, Alsalam CEO said: “Our VIP interior design, refurbishment and completions reflect the passion we have for excellence in the most discerning of markets.”

Fallatah said he expects much of the VIP refurbishment lies in existing equipment but that means a complete refurbishment and not simply changing the carpets. “We refurbish extensively. We have our own in-house designers, although we also use outside sources. But, more importantly, we work closely with the customer on the vision they have.”

Already Alsalam has faced some design challenges, but all have been taken in the company’s stride.

“Some of the new completions we have include unique features,” said Fallatah. “One challenging task was to fit the bathroom with an unusual stone. It was a beautiful blue type of stone, which we managed to track down in Afghanistan. That was a challenge, but we managed it and the interior looks stunning. It really adds a personal touch when customers request such things.”

Mubadala has also been looking closely at the completions business. Its European MRO subsidiary, SR Technics, opened its Zurich VIP completions centre a year ago and last brought in its first customer aircraft—a widebody completion for an undisclosed Middle Eastern customer.

There are suggestions that Al Ain could also soon be the site of a major completions operation, perhaps in partnership with an established player.

While international big brands are embracing partnerships there is also still a desire to establish their own positions.

Joel Haldemann, VP for Europe, the Middle East and Africa confirmed Goodrich still aimed to align with its customers’ businesses rather than pursue alliances. “In terms of partnerships, we have a strategy to develop our own campus,” he said.

At November’s Dubai airshow the company did just that. It announced an expansion of the range of services offered by its Dubai-based Middle East MRO campus to support a growing list of operators and products.

The new services include aftermarket support for the company’s full range of engine controls and power systems products.

Capabilities currently provided within the campus include support for nacelle systems, cargo systems, de-icing systems, hoists and winches, sensor systems, engine controls, power systems and evacuation systems.

Haldemann said: “The strategic location of our Middle East campus provides operators with easier, more efficient access to our aftermarket services, the value of which is demonstrated by the growing list of aircraft operators we serve.”

Among those operators is Emirates.

Goodrich signed deals with the Dubai carrier to deliver comprehensive overhaul and support services for the suite of 16 passenger evacuation slides on the Emirates Airbus A380 fleet. All maintenance work will be conducted at the Dubai MRO campus.

Ammar Al Zaben, Emirates’ vice president of procurement (Aircraft) said: “Goodrich’s comprehensive, quality support offerings and locally-based MRO campus make it easier to do business. These were key factors in our decision to outsource this activity to Goodrich.”

“Airlines, generally like to work with the OEM and have more confidence with the OEM support,” said Antoine Succar, general manager of AMES, the Aircelle and Air France joint venture which launched at MRO/AIME two years ago.

The company launched operations in March 2010 and delivered its first overhauled thrust reverser for the Rolls-Royce Trent 700 engine to Gulf Air later the same year.

Providing the right financial deal is also key to MRO success in the region. Sharjah-based Aerostar has launched an engine leasing business to add to its current offering of engine repair, maintenance and overhaul, aircraft acquisition and supply of material and spares. CEO Ajay Chaukulkar said he is now determined that the company should take the next steps in its development and has bought two V2500 series engines, from IAE to form the first part of the leasing business.

“We are targeting the Indian market, where there are 300 A320 aircraft in operation and no other leasing companies,” said Chaukulkar. “We have linked the lease with our MRO service, so the engine coming off wing can visit us for repair.

“Engine leasing is a specialised business and high risk because of the costs involved. We believe that with the correct infrastructure and secure lease transactions we can be successful.” Chaukulkar expects the business to grow rapidly, with a huge market of new generation engines coming due for service.