A J Walter Aviation has confirmed that it signed an asset purchase agreement to buy the component repair business of Aveos Fleet Performance. AJW plans to develop a world class MRO operation to enhance its diversified business model and will establish the Montréal facility as its new global headquarters for the maintenance, repair and overhaul of aircraft components.
AJW has worked closely with the International Association of Machinists and Aerospace Workers (IAMAW) to formulate a new business structure that is both fair and commercially competitive, and its efforts have won the support of key stakeholders. AJW says it has an established and growing customer base of more than 800 airlines, more than 400 aircraft under contract and annual group sales in excess of $400m. Global spend will exceed $150m in 2012. This considerable worldwide demand will help support a sustainable and substantial MRO business from the outset, and contribute to the business efficiencies and cost-savings that already form a part of AJW’s customer pledge, according to the company.
A press release from A J Walter states: “A vertical integration into the supply chain is a strategic and logical next step for the evolution of AJW’s core suite of businesses. The purchase of the Aveos component maintenance division satisfies a strengthening portfolio of aviation based services and expands the organization’s repair capabilities through partnership with a highly skilled Canadian workforce.
Both parties are committed to developing further their existing strong relationships with industry OEMs to sustain availability of spare parts and facilitate expanded support services for Airbus aircraft, as well as to provide the resources necessary for any future capability diversification. AJW welcomes the opportunity to work more closely with the current Aveos customer portfolio, including Air Canada, and to providing its global customer base with more comprehensive services. It is keen to establish a programme that secures long-term business and work for the people of Québec, as well as enhancing Montréal’s aviation pedigree.”
“We plan to safeguard an outstanding facility and talent base that will take fresh heart from AJW’s entrepreneurial ethos” says Christopher Whiteside, AJW president. “We are committed to re-establishing a world class MRO operation in Montréal which will enable us to provide competitive service levels, quality and cost guarantees to the global aviation community. Our team has been working with the chief restructuring officer and monitor, the Machinist Union and the Québec government for several weeks to secure unequivocal support for our bid.”