FROM THE EDITOR

Industry Insights…

In this issue we asked leaders in the industry, who know better than anyone what is happening in our business, to give us their take on the state of the aviation maintenance industry. We are so grateful to have some of the top executives in the world respond. Some of the companies these leaders work for experienced the great recession in many ways while others seemingly sailed right on through. I found their responses thoughtful and enlightening.

Lufthansa Technik’s August Henningsen says, “The cost pressure to our customers, the airlines, remains high and might even increase further.” And he says, “permanently tracking our internal structure” is one way they will forge ahead.

At United, one of Jim Keenan’s biggest challenges is “successfully integrating our systems, processes  and people following our merger with Continental.” He also says at United they “continue to challenge the quality of our supplier relationships to make sure they are win-win.”

Iberia’s Jose Luis Quiros sees this trend: “Mergers and consolidations between MROs, sometimes driven by airline’s mergers, and large investment groups are changing the landscape of this industry.” He also says that the reinforcement of environmental regulations will be an area of focus and effort by MROs. Quiros also suggested that Europe needs to look at manpower issues to ensure they have not only enough human resources but the right kind of human resources.

Sarah MacLeod, of the Aeronautical Repair Station Association (ARSA) said that growth in emerging markets and a push for innovation are driving factors in the marketplace right now. Echoing Iberia’s Quiros, she said that one of the biggest challenges confronting the industry is a shortage of highly skilled technical workers and could inhibit growth around the world. When asked about the regulatory environment MacLeod said, “not only is there the FAA, but the Occupational Safety and Health Agency, the Internal Revenue Service, the Environmental Protection Agency.” She went on to stress that ARSA feels the regulatory environment is overly burdensome for repair stations. She feels one of the biggest challenges for the industry will be integrating safety management systems (SMS) and says, “the flow down effects and requirements are not even recognized by regulators.”

Jorge Sobral of TAP agrees saying the legislative environment is “creating bureaucratic chaos without any evidence that it will bring safety to higher levels. The legislation on SMS, which we welcome, will in fact impact our business since it has implications in very different segments of the maintenance business.” Sobral also stressed the OEMs fierce competition and attempts to restrict the marketplace. “I favor free competition,” Sobral says. He adds it is “important not to forget that manufacturers do not operate the aircraft, engines and components and we have, by far, a much better understanding of what is going on in day to day operations and how to cope with it.”

“The trend will be the shift of the financing burden from airlines to MRO providers,” is one trend Franck Terner of AFIKLM E&M sees. His company uses adaptiveness as their guideline, he pointed out and gave their new very big engines facility as an example of how they are responding to the needs of their customers.

Gulfstream’s Mark Burns says their company had a record-breaking year in 2011 and as a result they have expanded their product support services around the world. He says the company predicts continued growth this year. When asked how politics can impact business, Burns said, “Discussions in Washington regarding the use of corporate aircraft can impact our business.” He added that Gulfstream and all the business jet community need to continue to advocate regarding the strategic importance of business jets.

To see all our responders and more complete insights turn to page 18. Even longer versions of some answers will be on our website at www.avm-mag.com.

Call for Papers - On November 8 and 9, 2012, Aviation Maintenance will hold the AVM Summit in London, UK. The summit will have two distinct tracks. One will be the PMA Summit, our second annual conference about Parts Manufacturer Approval parts. As with our first PMA Summit in London last November, we will continue to open up the dialogue about PMA parts, their use, their challenges, their potential savings to users and will try to dispel any misconceptions about them. This year we will emphasize understanding leasing company agreements, how to make the most of the Bilateral Aviation Safety Agreements (BASA) and more insights from airlines already using PMAs and how they are benefitting. I n our separate but concurrent event, we will focus on software and how to harness the power of aviation maintenance-related software. In this event wewill bring to light how software can help users grow revenues, reduce costs and improve regulatory compliance—a key issue for avoiding run ins with regulators which can lead to fines. We are issuing a call for papers for both the PMA Summit and the Software and Technology Summit. Please submit paper abstracts, topics, suggestions and speaker recommendations to me at jfinnegan@avmain-mag.com.

READ THE FULL ISSUE ONLINE >>> 

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So, put your feet up, flip through the pages of Aviation Maintenance magazine, and continue to enjoy the uniquely tactile pleasures of reading print. Of course, if you prefer the web, our magazine also is available online.