January 2016 - www.avitrader.

com

777
Comes
of age

Company Profile
Pentagon 2000 Software, Inc.
MRO News
from around the world
People on the Move
latest appointments
Editor‘s Page 2

777 reaches maturity

The oldest Boeing 777s are now over 20 years The large numbers of 777s in service mean most cases, airlines are told to look for and cor-
old and the twin-engine widebody continues to that these aircraft are set to dominate wide rect any faults during maintenance. Looking at
be a marvel of aero engineering. The 777 first body MRO spending. We ask the experts what past incidents involving 777s we also find out if
entered commercial service with United Airlines the cost implications are, particularly for the MROs have made any changes or modifications
in June 1995 and the programme has gone on to early -200 models. The oldest 777-200ER at Air to 777 inspections over the years.
sell more than 1,360 aircraft across the differ- France for instance are not showing any major
ent versions. The 777X series is planned to enter recurrent defect that would cause unscheduled The 777-300ER will also receive further im-
service by 2020. extra time to visit or extra cost. There are ob- provements in 2016 designed to reduce fuel use
viously some occurrences, but they are limited by another two percent.
Clearly, the 777 has been a top seller for Boe- and not systematic. However, these factors vary
ing and in this edition we are looking closer at Happy Reading!
according to the airline, specifics of the aircraft
777 maintenance programmes and trends from and the operational environment.
MRO providers AF KLM E&M, AAR Corp and Keith Mwanalushi
HAECO. Airworthiness directives are commonplace. In Editor

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Editorial 
Keith Mwanalushi, Editor
Email: keith@aeropublications.co.uk 
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Design 
Volker Dannenmann, Layout & Design
Email: volker@dannenmann.com 
Mobile: +34 657 218706
The Boeing 777-8 and 9 will be less of a drastic departure. Photo: Boeing

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Registration
Cover story: The triple threat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
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AviTrader MRO - January 2016

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MRO and Production News 4

Rolls-Royce launches new SelectCare

Service

Rolls-Royce has launched a new engine ser-

vice, SelectCare, continuing its reputation for
service innovation and expanding the custom-
ers’ choice of competitive, capable and flexible
services across the engine lifecycle. SelectCare
fits between Rolls-Royce’s fully comprehensive
TotalCare service, which maximises engine time
on wing in addition to giving long-term cost cer-
tainty on a dollar-per-flying-hour basis, and MRO
Services, where customers contract for shop
visit support on an individual time and materials
basis. SelectCare allows customers to tailor the
services they require across an agreed number
of engine shop visits to match their service needs
and budget. The new service launches with
American Airlines as its first customer. American
chose SelectCare for all RB211-535 engines that
power its Boeing 757 fleet. These aircraft were
previously supported by separate TotalCare and
MRO Services agreements.

Messier-Bugatti-Dowty’s new Malaysian plant delivers first brake heat sink to AirAsia Photo: Safran

Messier-Bugatti-Dowty’s new Malaysian generation Ultra-High Bypass Ratio (UHBR) Singapore Airlines extends TotalCare
plant delivers first brake heat sink to AirAsia powerplants – is the focus of a three-year Eu- with Rolls-Royce
ropean Union-funded technology project now
A year after its official inauguration, Messier- underway with 10 companies and organisa- Singapore Airlines has extended its TotalCare
Bugatti-Dowty’s new plant in Sendayan, Ma- tions, and led by Aircelle (Safran) as industrial service agreement with Rolls-Royce for Trent 800
laysia delivered its first heat sink to AirAsia, coordinator. The NIPSE project seeks to find engines that power its Boeing 777 aircraft. Total-
for use on the Airbus A320. The heat sink is a better placement options for equipment, us- Care enables the business models of the aircraft
stack of carbon disks comprising the airplane’s ing locations in the engine, the nacelle and the owner and Rolls-Royce to be fully aligned to im-
brake. Messier-Bugatti-Dowty chose Malaysia aircraft itself. NIPSE also addresses the need to prove engine reliability, increase time on wing,
to set up its new carbon disk production and improve thermal management of integrated and maximise the engine services contribution
refurbishment plant in this region, which has a powerplant systems (IPPS). Called NIPSE (Nov- to customer business performance.
fast-growing fleet of commercial airplanes. The el Integration of powerplant System Equip-
plant is specialized in the supply of carbon disks ment), this programme addresses installation
for commercial airplane brakes. It spans some limitations expected in such future powerplant
10,000 m² (108,000 ft²) and has 80 employees, systems, including the thinner nacelles and
with plans to expand to 150 by 2018. Sendayan larger fan modules; along with architectures Alcoa signs long-term contract with GE
is an ideal complement to Messier-Bugatti-Dow- that require more functionality and provide Aviation
ty’s existing carbon disk facilities, both in France extra thermal constraints through lower ven-
(Villeurbanne and Molsheim) and in the United tilation capability and reduced volume avail-
Alcoa, a global leader in lightweight metals
States (Walton, Kentucky). Messier-Bugatti- ability. NIPSE is targeting a 15% reduction of
technology, engineering and manufacturing,
Dowty now supplies 18 operators in Malaysia, equipment volume for the UHBR powerplant,
has signed a long-term contract with GE Avia-
with a total of 200 aircraft already in service along with weight savings and improved ther-
tion for jet engine components in an agreement
and another 400 on order. More than 2,000 mal management on the more integrated pow-
valued at more than US$1.5bn over the contract
airplanes in Asia already use Messier-Bugatti- erplant systems, enabling UHBR solutions to
life. Under the deal, Alcoa will supply advanced
Dowty carbon brakes. achieve their potential powerplant fuel savings
nickel-based superalloy, titanium and aluminum
of up to 2-3%. Additionally, a reduction of de-
components for a broad range of GE Aviation
velopment time for the installation of power-
engine programs. Alcoa will employ advanced
plant systems is anticipated. Established within
manufacturing capabilities to produce the parts
the European Commission’s Horizon 2020 re-
Aircelle leads Europe’s NIPSE research across several facilities including LaPorte, Indi-
search and innovation framework programme,
project on next-generation powerplant ana; Whitehall, Michigan; Hampton, Virginia;
NIPSE is funded at €6.2m and has a three-year
systems Dover, New Jersey; Wichita Falls, Texas; Winsted,
duration. NIPSE is managed by INEA (Innova-
Connecticut; Dives, France; and Laval, Canada. A
tion and Networks Executive Agency).
The challenges of equipment integration on global leader in lightweight metals technology,
future aircraft powerplants – particularly next- engineering and manufacturing.

AviTrader MRO - January 2016

MRO and Production News 5

Liebherr-Aerospace signs letter of intent STC for Bombardier Challenger 604/605 aircraft The aircraft test flew with zero defects on the test
with Hafei-Harbin types in October 2015, and expands the range of flight. PART’s team members gained valuable ex-
services it can offer to aircraft owners and opera- perience in 2013 when they participated in the
Liebherr-Aerospace has recently signed a letter of tors. The awarding of the STC follows significant first tail section replacement outside the factory at
intent with the Chinese manufacturer Hafei-Har- training and technology investment from Flying Newark Liberty Airport. In addition, PART’s team
bin (AVIC Group) in Harbin to equip the helicop- Colours Corp. over the last twelve months. members have extensive experience with the Em-
ters AC312C and AC312E with air management braer platform as they have performed 4 Embraer
systems. Liebherr-Aerospace will supply the air 145 Nose Section Replacements, 3 Embraer 145
management systems for the versions C and E of Series Wing Changes, a duel fuselage change on
the modernized helicopter AC312 program. The Primera Air signs multi-year power-by- an ERJ-170, and an aircraft recovery of a Legacy
systems will be designed, manufactured and ser- the-hour contract with AJW Aviation 600 that was involved in a midair collision.
viced by Liebherr-Aerospace Toulouse SAS, Tou-
louse (France), Liebherr’s center of excellence Primera Air, the Danish leisure airline, has cho-
for air management systems. They will feature sen AJW Aviation to provide full power-by-the-
highly- reliable, light-weight components based hour (PBH) services for eight Boeing 737NG Aircraft Propeller Service demonstrates
on technologies that build upon Liebherr’s un- aircraft. AJW will also place exclusive and non- ingenuity and commitment to lengthen-
matched experience in air management systems exclusive spares stock at Primera’s operational ing component lifespans
for helicopter cabins and cockpit. Hafei-Harbin, headquarters in Copenhagen. The exclusive
located in the North of China, has manufactured stock is being provided by AJW Leasing. A key Aircraft Propeller Service have recently devel-
helicopters since 1952, partly in partnership with factor in this new PBH support agreement is oped an innovative brush-plating repair solution
Airbus and Airbus Helicopters since the mid- that Primera will have access to AJW’s exten- for a damaged, Cad-plated steel torque plate on
1980s. Hafei-Harbin expects a good market pros- sive stock of Boeing 737NG spares already con- propeller hubs. The repair not only saves the
pect for the AC312C and AC312E in China and to veniently sited across their hub network and part from being scrapped, but it also represents
consolidate its position on the growing Chinese this benefits Primera’s numerous bases across a viable solution for damaged Cad-plated steel
helicopter market. Scandinavia, the Canary Islands and throughout plates that can now be repaired at one-third the
the Mediterranean. It is AJW’s policy to ring the previous costs. According to APS Vice President
globe with strategic hubs of commercial Airbus of Sales and Marketing, Dennis Santare, “I have
and Boeing spares in support of specific PBH to hand it to our technical team for their com-
Flying Colours achieves STC for ADS-B contracts, and to sustain the Company’s award- mitment to our customers. They developed a
OUT on Bombardier Challenger 300 winning 24/7/365 AOG service. process that not only increases the lifespan of a
critical component, but also delivers significant
Flying Colours Corp., the North American MRO, savings directly to our customers’ maintenance
completions and refurbishment company, has budgets. These efforts make APS and our custom-
successfully secured a Supplemental Type Cer- PART completes EMB-145 tail section re- ers more competitive.” Unlike new torque plates,
tificate for ADS-B OUT for Bombardier Challenger placement which are un-plated, the older plates are Cad-
300 airframes, from the US-based FAA. The first plated. Once the Cad plating is damaged, there
Bombardier Challenger 300 was out-fitted with Pacific Aerospace Resources & Technologies is no other approved way to re-use the part. In
the soon-to-be mandatory tracking system in (PART) has completed its first Embraer 145 Aft presenting its solution to this costly problem,
November 2015, at its St. Louis facility. The STC Fuselage and Tail Section replacement at John F. APS was able to secure OEM approval through a
will be submitted for validation by both Transport Kennedy Airport, New York. The Chautauqua Air- supplemental engineering action which will save
Canada and Europe’s EASA this year. The STC fol- lines Aircraft N572RP was involved in a ground customers’ money for every future hub repaired
lows on from Flying Colours Corp. achieving an incursion when it was struck by another aircraft. at an APS facility.

Your True Aviation Solution!

(772) 925-8026
www.trueaero.com

6020 99th Street, Sebastian, FL 32958

AviTrader MRO - January 2016

MRO and Production News 6

ed in no small way to the smooth entry into service

of the 777 freighter for Lufthansa Cargo.

AFI KLM E&M and Boeing renew and ex-

tend Component Services Program 737
partnership

AFI KLM E&M and Boeing have inked the long-term

renewal of their joint efforts to implement their
737 Component Services Program (CSP) program.
At the same time, the two parties agreed to extend
the program to the future Boeing 737 MAX, first
deliveries of which are scheduled for 2017. Stanley
A. Deal, Senior Vice President Commercial Aviation
Magnetic MRO will launch its second painting hangar at Tallinn Airport in 2017 Photo: Magnetic MRO
Services, Boeing Commercial Airplanes said: “We
Magnetic MRO to launch new dedicated overhaul capability in Delta TechOps, during 2016. are delighted to continue to grow this successful
painting hangar at Tallinn Airport Delta Air Lines began operating BR715-powered 737 program and expand our partnership through
Boeing 717s in 2013 and is the largest operator of the addition of the 737 MAX. This proven program
Magnetic MRO, a total technical care provider this aircraft type with 91 entering into service. This has demonstrated its reliability and excellent tech-
headquartered in Tallinn, Estonia is to launch its agreement is part of the ongoing strategic plan for nical quality, providing a significant competitive ad-
second painting hangar in 2017. The new dedicated Rolls-Royce to develop a competitive and capable vantage for 737 customers.”
painting hangar will be built in co-operation with network to meet customers’ needs. Earlier this year
Tallinn Airport, in response to growing demand for Delta TechOps joined the Rolls-Royce Trent Service
painting services from Magnetic MRO customers. A Network as an Approved Maintenance Centre and
will provide engine overhaul services for the Trent
Lufthansa Technik delivers second VVIP
Letter of Intent has been signed and preparations Boeing 747-8
have started to build the 2000 m² hangar with fur- XWB and Trent 7000 engines for Delta Air Lines and
ther expansion possibilities. The new hangar will other customers.
Lufthansa Technik’s Completion Center has finished
be capable of housing aircraft in size up to Boeing
the VVIP cabin conversion of the second Boeing
737MAX9 and Airbus 321neo, as well as regional
747-8 in Hamburg. The aircraft has now been deliv-
aircraft. Equipped with an overhead crane for lifting SWISS contracts Lufthansa Technik to pro- ered to an undisclosed customer. Another aircraft
aircraft engines, the hangar will be suitable for both vide component support for future Boeing of this type is currently undergoing completion.
painting and ad-hoc maintenance activities. Much 777 long-haul fleet Lufthansa Technik AG has, at times, equipped three
like the existing painting facility, the new hangar will
747-8s in parallel.
have a Spraybooth Technology Limited (STL) sys- Swiss International Air Lines (SWISS) has contracted
tem. To ensure the highest level of service quality, Lufthansa Technik to provide component support
painting equipment will include Sherwin-Williams, for its future Boeing 777 long-haul fleet. The corre-
AkzoNobel, PPG and Mankiewicz systems. Scaf- sponding Total Component Support (TCS) contract Sabena technics wins its first B777 cabin
folding solutions are designed by Lahyer and are will run for a period of ten years and includes nine modification
equipped with lighting to enable the best painting aircraft. Lufthansa Technik is working intensively on
conditions possible. According to the agreement, preparations for supplying components for SWISS. French MRO provider, Sabena technics, has wel-
the hangar is planned to be finalized and ready for This includes the basic stocking with spare parts at comed its first Boeing 777 for airframe modifica-
use by June 1st, 2017. the airline’s base airport in Zurich. The start date for tions since obtaining its rating approval. According
supply is 1st January 2016. Lufthansa Technik has to the agreement, Sabena technics will perform
wide-ranging expertise in the area of technical sup- cabin & systems modifications on two Boeing 777
Delta TechOps and Rolls-Royce deepen re- port for the Boeing 777. Apart from comprehensive aircraft from Air France in their dedicated mainte-
lationship with BR715 MRO agreement material supply, the support also covers mainte- nance facilities in Bordeaux (France). Modifications
nance and overhaul of the different 777 versions, will include the integration of the latest Air France
Delta TechOps, Delta Air Lines’ maintenance divi- for example by Lufthansa Technik Maintenance “BEST” cabin as well as the installation of a brand
sion, has signed an agreement on December 21st International (LTMI) in Frankfurt. The maintenance new In-Flight Entertainment system.
with Rolls-Royce for the establishment of BR715 specialists at Lufthansa Technik have also contribut-

Aircraft Parts Aftermarket Sales and Purchasing

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Aircraft Parts Consignment

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AviTrader MRO - January 2016

Finance News 7

tain adjustments), with each of IAI and Formula acquiring 50% of TSG for
US$25m. The consummation of the transaction is subject to, among other
things, obtaining certain regulatory approvals. TSG is a leading provider of
core command and control systems to Israel’s defense organization, includ-
ing the Israeli Defense Forces and the Israeli Police, and its activity is well
suited for both parties. The acquisition represents the parties’ strategic
decisions to expand their scope of activities, and to preserve leading posi-
tions in the markets where they operate, through M&A activity. The parties
will focus on turning TSG into a leader in its field in Israel, by maximizing
the synergies between TSG, IAI and Formula and pursuing its expansion,
among other ways, through mergers and acquisitions of companies that
operate in complementary areas.

Bohai Leasing completes acquisition of Avolon

MTU Maintenance Canada looks back at successful accessory repair ramp-up
Photo: MTU Maintenance
Bohai Leasing has completed the acquisition of 100% of Avolon. Bravia
MTU Maintenance Canada looks back at successful accessory Capital Partners originated and structured the transaction with a total
repair ramp-up enterprise value of approximately US$7bn, bringing Bohai’s investment
in commercial aircraft and new orders to over 500 which, based on this
fleet, makes Bohai the fourth largest aircraft leasing company in the world.
Three years after the opening of the Accessory Repair Center (A.R.C.), MTU Bravia’s initial step was to be the lead equity participant with HNA Group,
Maintenance Canada is satisfied with the development of its business for Bohai’s parent, in 2010 in acquiring the Allco Aviation fleet of 68 widely-
accessory repair and Line Replaceable Unit (LRU) management. The com- leased aircraft in an acquisition with a total enterprise value of approxi-
pany, an affiliate of one of the leading engine maintenance providers, has mately US$3 billion. The acquired portfolio was subsequently re-branded
managed to increase revenues by 48% to US$40m since 2012 and has won Hong Kong Aviation Capital (“HKAC”). HKAC was then acquired by Bohai
a number of new customers. In 2015 alone, MTU Maintenance Canada in 2012. Since then Bohai has worked with Bravia, eventually acquiring
signed several long-term contracts at a total value of US$26m. Accessories Avolon, further enhancing its strategic position. Bohai has been building
and LRUs include parts that do not directly form part of the core engine, presence and scale across transportation finance sectors and Bravia has
but are necessary to sustain its operation. As a one-stop shop provider, been at the center of its acquisition activity having both originated and
they are becoming increasingly important in MTU Maintenance Canada’s co-invested in aircraft leasing and marine container leasing, representing
services portfolio. The A.R.C. was founded in a move to offer customers a US$15bn total enterprise value of acquisitions over the last 6 years.
broader range of MRO services under MTU’s Total Engine Care (TEC) con-
cept. With the aim of lowering the operating costs of its customers, the
facility, co-located with MTU Maintenance’s engine MRO location at the
Vancouver International Airport, offers a wide range of internal accessory HEICO Corporation completes Robertson acquisition
repair capabilities that can be accessed directly.
HEICO Corporation’s Electronic Technologies Group has completed the ac-
quisition of Robertson Fuel Systems. On December 21st, 2015, HEICO an-
nounced it had entered into an agreement, subject to regulatory approval
Floreat Group enters aviation finance and leasing sector which was subsequently received, to acquire Robertson from affiliates of
American Securities for US$255m in cash to be paid at closing, to be ad-
Global Fixed Income Fund I has financed the US$26m junior tranche of justed for typical post-closing adjustments. Tempe, AZ-based Robertson is
a 12-year finance lease for two Boeing Aircraft operated by Norwegian a leader in the design and production of mission-extending, crashworthy
Air Shuttle. The senior lender is Norddeutsche Landesbank Girozentrale and ballistically self-sealing auxiliary fuel systems for military rotorcraft.
(Nord/LB) with a loan volume of US$68m. Doric GmbH is responsible for
the asset management of the aircraft. Floreat Group is a privately-held,
London-based independent financial group, with investments in debt, real
estate and public and private equities. Woodward and GE Aviation initiate large engine fuel systems
joint venture

Woodward and GE Aviation have announced the formal creation of the

IAI and Formula Systems agree to acquire TSG for US$50m large engine fuel systems joint venture announced on May 20th, 2015.
Under terms of the agreements related to the joint venture, Woodward
Israel Aerospace Industries (IAI) and Formula Systems have entered into a received US$250m from GE Aviation on January 5th, in exchange for GE
definitive agreement for the purchase of TSG – a subsidiary and the mili- Aviation’s acquisition of its equity interest in the joint venture. GE Avia-
tary arm of Ness Technologies, engaged in the fields of command and con- tion and Woodward will participate equally in the operating results of the
trol systems, intelligence, homeland security and Cyber security. The total joint venture programs and the future cash flows from the joint venture.
purchase price in the transaction will be US$50m in cash (subject to cer- The joint venture will design, develop, source, supply and service fuel sys-

AviTrader MRO - January 2016

Finance News 8

tem components from the inlet up to the fuel nozzle for the GE90, GEnx, sub-assembly of aircraft wings, fuselages and nacelles, with the company
GE9X and all future large commercial engines developed by GE Aviation. having produced more than 2,200 automated fastening systems through-
Woodward will be the preferred supplier to the joint venture. As a result, out its 78-year history. The joining together of Ascent and Gemcor further
Woodward content on the GE9X engine will increase significantly when strengthens Ascent’s ability to provide a total turn-key factory solution for
compared to the GE90 engine. As previously announced, Woodward has almost any aircraft assembly, anywhere in the world. The transaction is ex-
completed US$125m in share repurchases through an accelerated stock re- pected to close during the first quarter of 2016.
purchase program in the second half of fiscal year 2015. This was part of a
previously announced US$25m share repurchase initiative, and Woodward
intends to complete the remaining US$125m in share repurchases during
the first half of fiscal year 2016. HEICO signs agreement to buy Robertson Fuel Systems

HEICO Corporation has announced that its Electronic Technologies Group

has entered into an agreement to acquire Robertson Fuel Systems from
Constant Aviation and Lone Star AOG announce merger affiliates of American Securities for US$255m in cash, to be paid at clos-
ing, subject to typical post-closing adjustments. The transaction is subject
Constant Aviation, a Directional Aviation Capital Company offering full- to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and
service maintenance, repair, and overhaul with a nationwide network, an- other customary closing conditions. The parties anticipate the acquisition
nounced the merger with Lone Star AOG. The combined companies will op- will be completed within 60 days. Tempe, AZ-based Robertson is the world
erate under Constant Aviation and the full transition will take 30 days. “The leader in the design and production of mission-extending, crashworthy and
AOG business at Constant Aviation has been growing consistently the last ballistically self-sealing auxiliary fuel systems for military rotorcraft. Robert-
year. Our 2016 goal will continue to focus on providing our customers AOG son’s products include approximately 65 different fuel systems serving over
support anytime, anywhere. The merger between Constant and Lone Star 50 different platforms across military and civil aircraft and ground vehicles.
AOG creates a nationwide AOG support system. Our technicians will now
dispatch out of eight cities - Cleveland, Birmingham, Orlando, Las Vegas,
San Francisco, Los Angeles, Dallas and Pittsburgh. We will continue to grow
our AOG business, adding teams to cities where a need exists. We under- Minsheng Financial Leasing closes seven-aircraft portfolio fi-
stand the importance of immediate response when it comes to any AOG nancing aircraft with DVB as arranger
situation, and our Support Center is available 24/7/365 at 844.261.7119,”
said Stephen Maiden, President/CEO Constant Aviation. Minsheng Financial Leasing has announced the closing of a seven-aircraft
financing facility led by DVB. The aircraft portfolio consists of three A320-
200s and four 737-800s on long-term operating leases to airlines from Tur-
key, Spain, China and Indonesia. DVB is the Arranger, Security Trustee and
Gemcor joins Ascent Aerospace’s assembly line integration Facility Agent and also the Original Lender alongside Helaba (Landesbank
portfolio Hessen-Thüringen Girozentrale), ICBC (Asia) and Korea Development Bank.
Berwin Leighton Paisner was the Borrower’s counsel for this transaction
Ascent Aerospace, a leading integrator of aircraft assembly line solu- while Norton Rose Fulbright acted for the Lenders. This deal refinanced
tions, has bolstered its automated assembly capabilities with the addition five aircraft solely underwritten by DVB on a bridging loan and also marks
of Gemcor. Gemcor is a global leader in developing and manufacturing Minsheng Financial Leasing’s largest offshore portfolio financing across
automated fastening systems that are used by virtually every airframe various lessees and jurisdictions.
manufacturer throughout the world. Gemcor systems are used in the

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READY TO SERVE
AROUND THE WORLD
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AviTrader MRO - January 2016

Cover story: 777 MRO 9

The triple threat

The popular 777 twin-jet made its first commercial flight 21 years ago. Keith Mwanalushi looks at how
777 maintenance procedures are shaping as the jet reaches maturity and finds that even the oldest 777s
are still going strong.

A
ccording to Boeing, in the early days
of aviation, maintenance programmes
were developed by mechanics. The pro-
grammes were simple and without analytical ba-
sis. The formation of airlines created the need for
new regulations and broader regulatory involve-
ment in maintenance requirements.

With the entry of large jet airplanes into the

commercial market in the 1950s, the airplane
manufacturer became the source of mainte-
nance programme development. The underlying
concept was to overhaul every component at a
given time.

Over the decades, Boeing has worked closely

with the aviation industry to develop robust
processes that ensure scheduled maintenance
programmes adhere to the highest safety and
operational reliability levels.

HAECO Group as a whole supports some of the

largest Boeing 777 fleets in the world, they in- 777s are dominating widebody MRO spending. Photo: BA Engineering
clude Cathay Pacific which has a 60-strong 777
fleet with more on order, as well as several other types over the years to enhance productivity, ed, largely due to the partnership with Boeing.
major 777 operators in North America. which turned into savings for airline customers One area of cooperation is the Component Sup-
in terms of ground time and maintenance costs,” port Programme (CSP). “CSP has become the
Heavy maintenance (C check or above) and other declares James Barrington, Group Director Air- reference on the market for 777. It was created
modifications and airframe work including cabin frame Services, HAECO Group. in 2003, and renewed in 2015 for a period of 10
retrofit, installation of GCS and NGS systems, as years. It is to be noted that CSP is the leading sup-
well as crew rest area modification, are offered These programmes according to Barrington in- port product on the market,” Guichard states.
at the Group’s Hong Kong and Xiamen facilities. clude the introduction of electronic and wireless
HAECO Americas, on the other hand, focuses on AMM by maintenance staff, “as well as remote Air France-KLM just recently signed a several
cabin solutions and it has recently completed an maintenance tasks sign-off for engineers, lean hundred million US dollar component mainte-
extensive cabin project for a major North Ameri- processes for a streamlined production flow nance agreement for Etihad Airways Boeing 777
can operator. from procurement to redelivery, dedicated air- fleet. The 10-year deal, effective February 2016,
bridge to enhance productivity of cabin projects, provides Etihad and its equity partners with ac-
The HAECO Group also offers various compo- and much more.” cess to an extensive global pool of components
nent services for the Boeing 777 in China in- offered by AFI KLM E&M for the wide-body air-
cluding thrust reversers, cowlings, nacelles and AFI KLM E&M is another long standing player on craft, through the 777 CSP jointly operated with
control surfaces through HAECO Spirit Aero- 777 capability. The first aircraft of that type en- Boeing. Etihad Airways currently operates a fleet
Systems; in-house overhaul for body and nose tered the Group fleet back in 1997. And to date, of 33 long-range and extended-range passenger
gears through HAECO Landing Gear Services; Air France KLM operates a fleet of 91 Boeing and cargo Boeing 777 variants.
TEXL, a joint venture with GE Aviation, special- 777s. “These two aspects explain why AFI KLM
ises in the repair, overhaul and testing of GE90- E&M offers a very complete range of products The maintenance agreement is the latest phase
110/115B engines; and HAESL, a joint venture for the Boeing 777, which have been optimised of a partnership struck between the two airlines
with Rolls-Royce, offers full MRO service for the over the 18 years since the first EIS,” comments in October 2012. Both carriers have a commer-
Trent 800 engines found on legacy 777s. HAECO Jacques-Olivier Guichard, AFI KLM E&M Market- cial alliance involving code sharing on flights
inventory technical management manages a ing Director. across their networks over hubs in Abu Dhabi,
component pool that is currently supporting Paris and Amsterdam.
some 70 Boeing 777 aircraft. AFI KLM E&M work on the full scope of 777 MRO
from engines, components, airframe, modifica- AFI KLM E&M has reviewed its 777 maintenance
“The HAECO Group has introduced various im- tions and aerostructures. The 777 is a commer- programme some 30 times since 1997 which
provement programmes for different aircraft cial success at AFI KLM E&M, with 200+ contract- has led to a number of improvements to the

AviTrader MRO - January 2016

Cover story: 777 MRO 10

AD rectification works such as the (BS) 246 floor

beam issue,” Barrington reveals.

Guichard feels costs will keep going down, but to

a lesser extent as most of the intervals improve-
ments have been done, and operational knowl-
edge is already high. “There is little margin for
improvements in that respect,” he says.

Guichard further reports that the oldest 777-

200ER from Air France does not show any spe-
cific or major recurrent defects that would cause
unscheduled extra time to visit or extra cost.
“There are obviously some occurrences, but they
are limited and not systematic.”

Next generation wide bodies will require less

maintenance man hours and therefore fewer
technicians. Seemingly, processes will change in
preparation for the likes of the new 777X.

“There are several kinds of challenges around

the new generation of aircraft, but the impact
Air France KLM operates a fleet of 91 Boeing 777s. Photo: Boeing on activities is going to come slowly,” Guichard
predicts. As an example, he says, in 2017 and
programme. “New intervals have been granted, we do see some steady retirements of the air- for the first time, the deliveries of new genera-
based on approval received for items escala- plane as time goes on. For instance, we see sig- tion aircraft will be higher than deliveries of the
tions, allowing us to reduce the HMO by over nificant requirements for interior modifications former generation aircraft. “The number of man
35% since EIS, and as a consequence to improve and IFE upgrades for the B777,” Jonas continues. hours will not be the unique driver to consider
aircraft availability.” to assess the number of technicians that will be
With the Boeing 747 and 767, as well as the Air- needed,” he stresses.
Guichard reports that feedback from the com- bus A340 getting closer to the end of their lifecy-
pany’s own operational experience also allows While newer airplanes or next-generation air-
cles for commercial use, the 777 and the Airbus
the possibility to change some perimeters of the planes require less maintenance, Jonas from
A330 are both dominating wide body aircraft
checks, for even more aircraft availability. types that HAECO services most. AAR sees the overall MRO market experienc-
ing healthy growth worldwide,
AAR Corp only recently started while the North American mar-
supporting the 777. AAR sup- ket will see modest growth over
“New intervals have been granted, based on approval the next five years or so. “In
ports the 777 at its Lake Charles,
Louisiana, and Indianapolis, received for items escalations, allowing us to reduce fact, some of the 777 work we
Indiana, MRO facilities, and the HMO by over 35% since EIS, and as a consequence are doing in our U.S. network is
from Latin America and South-
soon at the Rockford, Illinois,
facility opening later this year. to improve aircraft availability.” east Asia,” he adds.
“We support both heavy main- Jacques-Olivier Guichard, AFI KLM E&M Marketing Director
tenance and modifications, and Two major trends observed by
engineering services including HAECO with new generation
engineering integration and programme man- “The 777 definitely offers some savings in cost aircraft are longer maintenance intervals and
agement,” says Troy Jonas, VP – Repair and Engi- to our airline customers compared to the older more composite materials being used. “From a
neering for AAR’s 1MRO Network. wide body models, including the A340 and the business perspective, longer maintenance inter-
747,” says Barrington. He attributes those sav- vals means less revenue, MROs would tackle this
The large numbers of 777s mean that these ings to both a better designed aircraft by the challenge by offering to airlines more value-add-
aircraft are set to dominate wide body MRO manufacturer, wider use of titanium and com- ed services that improves passenger experience,
spending. “Like any airplane, the 777s require posite materials for better corrosion resistance, such as the connectivity (e.g. installation of GCS
more maintenance as they get older. And these as well as the extensive knowledge and experi- systems) offerings, more space-saving new seats,
airplanes have been in service now for over 20 ence gained throughout the 777’s 20 years pro- galleys, crew rest and lavatory relocation, etc.
years,” Jonas points out. duction span.
“The latter trend can be seen as both a challenge
Clearly, older aircraft require more maintenance. “HAECO engineers have found the Boeing 777 to and an opportunity, HAECO Group companies
However, these factors vary according to the air- be a very well designed aircraft. There have been such as HAECO Component Services and HAECO
line, specifics of the aircraft and the operational no major maintenance issues even on the earlier Spirit AeroSystems have started to develop capa-
environment. “But being that it is 20 years old, Boeing 777 models, other than some common bilities and services to leverage on the growing

AviTrader MRO - January 2016

Cover story: 777 MRO 11

demand for composite components, repair and

overhaul,” Barrington explains.

In comparison to other all new aircraft types,

Barrington feels the Boeing 777X is less of a
drastic departure from the legacy Boeing 777, in
terms of the design and structure of the airframe
and engine. “Thanks to the large number of 777
aircraft we have handled, the Group has over
the years evolved into a renowned 777 one-stop
shop, gaining the confidence of operators world-
wide. Therefore, we are confident when entering
into the 777X era, while we continue to acquire
new capabilities to satisfy the emerging needs.”

The 777 has an impeccable safety record but air-

worthiness directives are commonplace. In most
cases, airlines are told to look for and correct any
faults during maintenance. Looking at the few
incidents involving 777s, assumingly there are
Demand for cabin modifications on older 777s is increasing. Photo: American
changes or modifications to 777 inspections.

Barrington says that depends on the operating shown us that humidity and proximity to the Guichard reckons the amount of airworthiness
environment and frequency of the aircraft, as oceans in the Pacific region take their tolls on directives on the 777 programme is within regu-
well as work package specified by individual op- some Boeing 777 airframes in the form of corro- lar activity for aging aircraft type. “No airworthi-
erators. “In general, most of the aircraft types we sion on wings. For example, while corrosion was ness directive has created major down time or
worked on aged quite well, corrosion and major not found on aircraft of the same type operated fleet immobilisation so far.”
structural issues were minimal. Nevertheless, we in less humid regions such as North America. We
tend to pay special attention to freighters and have been in regular communication with Boe- So it seems, the 777 meets expectations on
aircraft that were operated in humid climates ing on identifying recurrent minor issues on the many fronts.
to ensure the airframes are in good shape; our Boeing 777, such as chafmarks found on different
extensive experiences servicing aircraft from parts of the fuselage,” Barrington explains.
Asia Pacific and those from North America have

North America provides a huge market for 777 MRO customers. Photo: Fraport

AviTrader MRO - January 2016

Company Profile: Pentagon 2000 12

Pentagon 2000 Software, Inc.

P
ENTAGON 2000 Software, Inc. is a ven-
dor of enterprise software systems used
in the aerospace, electronics, defence,
power systems, metals trading and related
high technology industries.

The company’s software provides fully inte-

grated control and visibility within and across
an enterprise, enabling significant improve-
ments in efficiency, productivity and financial
performance. Since 1986 Pentagon 2000 Soft-
ware, Inc. has focused on creating software
that fully supports the day-to-day operational
requirements and strategic vision of hundreds
of companies worldwide.

Pentagon 2000 Software, Inc. introduced

its flagship software system in 1986. For 30
years, customer requirements and market-
leading technologies have provided key in-
puts for ongoing development and enhance-
ments to the platform. The system is licensed
globally to customers on every continent.
Industry-specific functionality is available for
operators, MRO’s, FBO’s, manufacturers, dis- Pentagon 2000 software is used over a wide spectrum of sectors. Photo: Pentagon 2000
tributors and parts traders. The software is
fully-integrated to enable rapid deployment
and provide a low cost of ownership. Cus- User access is supported on mobile devices, on-site and on-line with new customers to help
tomers utilise the system to improve efficiency, web browsers and by a rich-client personal ensure a smooth transition onto the platform.
control quality, ensure regulatory compliance, computer interface. The system architecture
increase service and satisfaction, and manage allows scalability from small work groups to The company offers a full in-house customer
their overall financial performance. enterprise class data centre operations. support capability to provide software instal-
lation, defect support, online help, and tel-
From a functional perspective, the system has Customers have always provided the key ephone help-desk assistance. The company
capabilities to support fleet management, requirements for system development and support staff has a strong technical background
flight operations, aircraft recordkeeping, main- enhancements, and there are many ways and deep knowledge of the system and related
tenance, manufacturing, component repairs, for customers to participate in this ongoing technologies. Standard support hours and ex-
materials management, sourcing, and account- process. Pentagon 2000 maintains an open tended all year round coverage is available to
ing/financials. Support for quality system man- dialogue with customers in each region and suit each customer’s needs.
agement, regulatory compliance, tooling/cali- market sector, and feedback is consolidated
bration, technical publications management, as requirements and input for use on an ag- Pentagon 2000 Software maintains a long his-
employee training, skills management and gregate basis to steer the direction of product tory of delivering market-leading solutions for
other functions round out the offering. Built- development. Pentagon 2000 is a member its customers. The system enjoys wide accept-
in support for web based e-commerce and EDI of a many trade associations and the team ance in the market, and customers will contin-
are provided. Industry-specific partner inter- exhibits at a wide range of industry confer- ue to drive development requirements for the
faces are available for interoperability with ences each year. New system enhancements system far into the future. While the current
commercial networks and sourcing services are continuously added based on customer platform employs leading technologies from
such as ILS, Aviall, SPEC2000, Aeroxchange, IHS requirements, and customer advisory coun- Microsoft and Apple, new developments are
Haystack, Fipart, Locatory and others. cil user groups are in place to ensure a direct continuously underway to allow customers to
and continuous closed-loop process to guide take advantage of new devices and increasing
From a technology perspective, Pentagon product development investments. system functionality. Recent expanded com-
2000SQL ™ is implemented using the latest pany investments in the Pentagon 2000SQL
enterprise technologies from Microsoft, Apple Setting up the software, converting data from system will result in improved capabilities for
and others. The system can be deployed on a legacy systems and training customers takes a clients to manage their operations, service
customer premise or through the many cloud- specialised set of skills. A team of training con- their customers, and deliver value to their
based offerings that are growing in acceptance. sultants and implementation specialists work shareholders.

AviTrader MRO - January 2016

Industry Interview 13

In the hot seat.....

Keith Mwanalushi speaks to Mr Franck Terner, EVP Air France KLM Engineering & Maintenance.

AviTrader MRO: What attracted you to this business? Terner: We’ve developed lots of synergies and
knowledge sharing, while respecting each oth-
Terner: I’ve always been passionate for aircraft er’s culture. We used our strengths and skills in
and technology. I must say that my expectations order to increase our market shares, product
were more than fulfilled until now. When you are portfolios, and global customer base. This multi-
lucky enough to work on amazing machines such cultural approach, which is part of what we call
as Concorde, it is more than an honour, and it is a adaptiveness, helps us to adapt to our customer
privilege! Aviation is a very exciting business with needs by carefully listening to them. As we are
a world-wide perspective. not only based in Europe but all over the world
we have the advantage to be inside many differ-
AviTrader MRO: What does a typical day’s work ent cultures and to learn from them.
entail in your job?
AviTrader MRO: AF KLM E&M have placed a lot
Terner: There is no typical day, every day is differ- of emphasis on component support services.
ent being in contact with business partners, cli- How do you plan to develop this sector fur-
ents, providers, employees etc. Technology and ther?
business are always changing, but to work with
high skilled people who are passionate about Terner: First, I would say that we are a global Franck Terner, EVP Air France KLM Engineering & Mainte-
multiproduct MRO, with strong expertise in all nance
their work is something that lasts. And since we
are a global company, I travel a lot and I meet maintenance segments: component, engines, ly extending our MRO network to increase our
many different people from all over the world. airframe, and training. On the component busi- global presence and proximity, and provide the
ness, we are well positioned on current gen- necessary logistics support.
AviTrader MRO: What is the most challenging eration component support and we have put
part of your job? a strong focus on new generation aircraft. We AviTrader MRO: AF KLM E&M enjoys a global
recently made a step with the extension of our customer base but there is growing interest in
Terner: I see it as a challenge but also as a privi- Component Services Programme with Boeing to the emerging markets in general by the MRO in-
lege to lead the integration of so many elements 737 MAX. We already signed A320NEO support dustry. How are you responding to demand from
and interests of all stakeholders, i.e. Our custom- contract and we are leading 787 component these regions?
ers, our people, our company ambitions, the MRO. Being the only MRO part of an airline
changing market demands, the Innovation and group having ordered A380, 787 and A350, we Terner: As part of our adaptive and our flexible ap-
new technology we develop for our products and are well positioned on the latest technologies. proach, we are ready to fulfil the specific needs of
service, the implementation and execution, re- A good example is the recent opening of Helios, rapidly growing markets and airlines. Our clients
sulting in a healthy and profitable growth. our cutting edge aerostructures and composite enjoy our expertise to help them locally and via
shop which is designed to handle the new gen our logistic network so that we are able to provide
AviTrader MRO: In your opinion what has been composite technologies. AFI KLM E&M pro- them with quick maintenance solutions. We rely
the greatest benefit from the integration be- poses a wide range of component support con- on the global Air France KLM reach and we are
tween Air France and KLM from a maintenance cepts, from T&M to pooling solutions and asset building a worldwide MRO network, with shops,
and engineering perspective? management. Furthermore, we are continuous- line maintenance teams and logistic centres.

AviTrader MRO: What can the industry expect to

see from AF KLM E&M in 2016?

Terner: With our Perform 2020 programme, our

goal is to improve our competitive position and
to increase customer satisfaction. In 2016, we
can expect that we will extend our client base,
including with A350 and GEnx customers. We will
continue to develop our capabilities with new
industrial facilities and new partnerships. And a
major focus is innovation, research and develop-
ment, through our MRO Lab programme. Our
co-innovation centre in Singapore will open soon
and, together with all our innovation initiatives,
the MRO Lab will provide new tools and knowl-
edge to make simpler, easier and faster mainte-
AF and KLM have developed several synergies. Photo: Patrick Delapierre nance solutions for our clients.

AviTrader MRO - January 2016

People On The Move 14

ing on GECAS’ cargo aircraft strategy. Previously,

he was Senior Vice President of Specialty Markets,
which included regional aircraft. Greener joined
GECAS in 2001 from BAe Systems Airbus and has
over 25 years of aerospace experience.

International Aircraft Associates, appointed David

Holbert as Vice President, Engine Product Lines
effective immediately. In this new position, Mr.
Holbert will be an integral part of IAA’s strategic
growth plan. His expertise coupled with a vast avi-
Constanze Hufenbecher Alesssandro Amendola
ation background will fortify IAA’s business opera-
Change in Executive Board of Lufthansa Technik tions and growth. International Aircraft Associates new Senior Vice-President Engineering of ATR.
AG in Hamburg: The company’s Supervisory Board is an aftermarket Engine Material and Technical He will be responsible for all the engineering ac-
has appointed Constanze Hufenbecher to the Ex- Support Services company established in 1978, tivities related to the fields of certification and
ecutive Board with responsibility for Finance for IAA supports MRO’s, Airlines and Lease/Finance airworthiness, customization, systems and propul-
three years beginning February 1st, 2016. She suc- organizations worldwide. sion, structures, flight tests, flight technologies,
ceeds Dr. Peter Jansen, who stepped down as a support, and quality, processes and methods. He
member of the Executive Board of Lufthansa Tech- PEMCO Aviation Maintenance has named Doug- will also closely work with the Programs directo-
nik on December 31st, 2015. las Ragsdale, Director of Quality. He will be based rate, providing engineering support and solutions
out of the company’s corporate headquarters at in the definition of new aircraft developments. He
GE Capital Aviation Services (GECAS), the com- Tampa International Airport and will report to will report to ATR’s Chief Executive Officer Patrick
mercial aircraft leasing and financing arm of GE, Ernie Kiss, PEMCO’s Vice President Quality and de Castelbajac, and will sit on the Executive Com-
has appointed Rich Greener to Senior Vice Presi- Engineering. mittee. He replaces Carmine Orsi, which mandate
dent, Cargo Programs. In this role, Greener will expired at the end of 2015.
have global responsibility for building and execut- Alessandro Amendola has been appointed as

Other News

Singapore Airlines (SIA) will upgrade its fleet of Boeing 777 airplanes be installed overnight.
with Astronautics’ Block Point 4 (BP4) Electronic Flight Bag (EFB). “The
newer EFB will enable the storage of more information including detailed Air France Industries will upgrade four Airbus A330 aircraft with Rock-
charts, maps, documents and databases, allowing operators to enhance well Collins’ PAVES Passenger Services System (PSS) for one of its cus-
airplane performance and improve operational efficiency,” said Larry tomers. The standalone, cost-effective reading light and cabin crew call
Levine, Vice-President, Business Development, Airlines and OEMs. “With system with USB charging port brings several benefits, including a signifi-
the expanded performance of the Central Processing Unit, operators can cant reduction in aircraft weight. Depending on the system it replaces,
continue to add new applications as they are developed. Additionally, PAVES PSS can bring weight savings that exceed 1,000 pounds, produc-
the enhancements made to the BP4 EFB have provided a significant im- ing millions of dollars saved annually from a significant reduction in fuel
provement to the mean time between failures (MTBF) making it one of costs. Rockwell Collins teamed with Air France Industries on this cabin
the most reliable avionics systems fielded today, reducing total operating solution. Air France Industries designed the installation and continues to
costs by over 50% for an airline.” The EFB is a form-fit-function replace- develop innovative solutions generated by Rockwell Collins’ new prod-
ment for the existing Astronautics BP3 EFBs on SIA’s Boeing 777 and can ucts. Deliveries of PAVES PSS to Air France Industries will begin in January.

Information Technology

Avio-Diepen continues to provide solutions to optimize the supply chain in search, government data, market intelligence, advertising and SEM servic-
aerospace industry and now offers a new services in finding real-time pric- es. PartsBase has grown into a community of over 7,500 companies with
ing and inventory levels information for aircraft parts through PartsBase. 30,000 end users utilizing services in 162 countries.
“Quick response times and reliable information are critical for aircraft parts
buyers.” says Ben Nieuwland, Corporate Marketing Manager at Avio-Die- AerData, the provider of lease management, records management and en-
pen. “This new real-time connection between PartsBase and Avio-Diepen gine fleet planning software, reported that Standard Chartered Aviation
will provide PartsBase users with the actual inventory levels of aircraft parts Finance, a division of Standard Chartered, has chosen AerData’s STREAM
stocked in any of our worldwide locations. An additional benefit for Avio- Records Management System to support their fleet of over 100 aircraft.
Diepen customers is that with one click, they can receive real-time price STREAM (Secure Technical Records for Electronic Asset Management) is the
quotes for the parts that we list on Partsbase.” PartsBase is the largest and industry’s foremost web-based solution used by some of the world’s largest
most comprehensive aviation marketplace and community, offering listing, airlines, lessors and MROs to manage aircraft and engine records.

AviTrader MRO - January 2016