Why the old “smash-and-grab” days are over

“The days of waiting for repair or having to ferry aircraft half way across the world for maintenance are thankfully now in the past. There are opportunities for MRO providers here,” the Emirates chairman said.

And many more companies are responding and basing regional centres or even manufacturing businesses in the region.

Dubai Airport Free Zone (DAFZ) recorded remarkable growth rates in 2009 compared to the previous year with the revenue rising by 30 per cent. The increase came as a result of considerable expansion in office space by major European and American companies based there.

Sheikh Ahmed is also chairman of DAFZ and said the zone’s contribution to GDP for Dubai had exceeded 2.2 per cent in 2007, assuring the importance of free zones to attract foreign investment and boost the local economy. 

Sheikh Ahmed also said: “The 2009 results give a positive indication about the Emirate’s ability to achieve good results during the coming period and show increasing willingness of foreign firms to operate from Dubai.

“It is no doubt that the global financial crisis has affected the world economic activities but free zones around the world and, in particular, DAFZ, has benefited a great deal from these exceptional circumstances and turned them into positive opportunities by opening doors to foreign companies seeking to expand their markets to distribute their products in the Middle East and beyond.”

DAFZ is expanding its capacity due to increasing demand – already there are close to 1500 aerospace companies registered at the zone.

And several more businesses have announced plans to settle in the UAE. American company Chromalloy, a French joint venture between Air France Industries and Safran called AMES, and French seat manufacturer Recaro all used the AIME and MRO Middle East shows to announce their intentions.

Chromalloy is opening a new sales and marketing office in Dubai to provide the region’s gas turbine engine operators – including aviation, marine and industrial gas turbine operators – with a lower-cost alternative for parts and services.

EMEA sales director Ben Story said: “We are growing our engine aftermarket business to offer the region’s turbine operators with parts, repairs and other services that deliver significant cost savings over OEM pricing. We are trying to partner with our customers rather than just fly in and fly out. We see a need to establish ourselves in the region and work full time with our customers.”

Story said the Middle East has been growing in importance. “The region has been on the radar for a long time. In a declining global market, it is still growing. The less bad news is the new good news. Here slightly good news is great news. We think the Middle East will continue to grow.”

Chromalloy has signed up with DAFZ and the company has already made inroads into the region. Last year it partnered with Saudi Arabia Airlines in a new service centre in Jeddah.

Recaro aircraft seating is expanding its presence with a new customer service facility. Operable since the beginning of the year, the Recaro centre will be serving customers from Afghanistan to Libya and from Lebanon to Yemen. Chief executive Axel Kahsnitz said: “Without time zone differences or language barriers, the members of the service centre team can respond immediately to requests from customers. Along with the procurement of spare parts, the scope of services includes trouble shooting of technical problems and training programs for cabin crews and for maintenance personnel.”

The French joint venture, Aerostructures Middle East Services (AMES) formally inaugurated its new facility in Dubai in March. It aims to bring highly competitive jet engine nacelle repair capabilities to airline operators throughout the region.

Located in the Jebel Ali Free Zone, this 2,200-square-metre installation provides repair and overhaul services that benefit from the expertise of AMES’ two parent companies – Air France Industries KLM Engineering & Maintenance, and Aircelle of the Safran Group.

“AMES was created to support the Middle East’s jetliner fleets of Airbus A320s, A330s, A340s and A380s; Boeing 747s, 767s and 777s, along with McDonnell Douglas MD-11s and Embraer 170/175s. More than 390 of these aircraft currently are in the active inventories of the area’s airlines, with some 200 additional jetliners on order,” said AMES general manager Antoine Succar.

“AMES provides a unique commercial and industrial offer that is backed by Air France Industries as a top provider of MRO services, along with Aircelle’s capabilities as a leading original equipment manufacturer of small, medium and large engine nacelles,” Succar added.

The AMES operation in Dubai is being certified to EASA Part 145 airworthiness standards and it has already initiated industrial activity with the repair of Rolls-Royce Trent 700 thrust reverser doors for a large Middle East airline’s Airbus A330 fleet. Preparations are also underway for the introduction of repair and overhaul services on CFM International CFM56 engines.

Sheikh Ahmed said he was pleased with the way international companies were responding to the call to do business in the region. “DAFZ plays a vital and strategic role in attracting international companies that support our drive for knowledge-based economy,” he said.

European companies in the Free zone represent 34 per cent of the operating companies in various sectors, while US firms represent eight per cent Japanese companies showed remarkable presence during 2009, increasing their number by 130 per cent.