Category: Editor’s Notebook

I have always chuckled when I have heard that classic Yogi Berra line. But now it makes more sense than ever.

I left Aviation Maintenance a bit more than a year ago to pursue another position. Having done that and then been given the opportunity to return to this publication as its editor-in-chief once again, I am delighted to be back. This will be the third time I have been editor of this magazine.

The truth is, you don’t know what you’ve got till it’s gone and although I learned a lot and enjoyed my time away, I am so happy to be back with a group of people dedicated to brining you the best, most useful and pertinent information for your business niche – maintaining aircraft.

I am also so very pleased to, once again, be among the most dedicated professionals in the aviation industry – you – our readers. As I have been telling people for years, the people that work in the aviation maintenance profession are among the hardest working, loyal, responsible, intelligent and creative workers I have ever encountered. It makes me so proud to be back here with the goal of helping bring you insightful information meant to help you learn, grow and meet the challenges of keeping the aircraft of the world flying safely.

I am grateful to Andrew Drwiega for keeping the magazine in good stead while I was away and I am incredibly grateful to our owner/publisher, Adrian Broadbent, for coming back around to offer me to opportunity to return. In addition to this editorial change, we also have additional new, focused members of the sales team. Paul McPherson is joining us to lead East Coast U. S. sales. Danny Faupel is coming aboard to head up West Coast U. S. sales. Becky Duclos is taking on our classified/back-of-book sales. Also newly focused is Josephine Zhu, who will lead China and Asia Pacific sales. As always, Jina Lawrence will continue to champion our European sales.

I have always been proud of the people who read this magazine and the amazing work you do. I have also been so proud to be a part of the team that covers this industry and of the publication that brings you key information to help you do your jobs better, faster, more efficiently and more safely. Now more than ever because, as the only independently audited publication in our market, we can say we are the largest, most widely read publication in the market.

As I mentioned, this is the third time I have taken the reins here at AVM and you know what they say…third time’s the charm!

This is my last issue as editor of Aviation Maintenance magazine. It is simply a happy coincidence that I have been keeping the editor’s seat warm for Joy Finnegan, the previous editor, who will be returning from the next issue. I am moving back into defence journalism and Joy is coming back to an industry with which she has an enduring association.

Having spent an all-too-brief time in the aviation maintenance sector of the aviation industry, it has nevertheless been a hugely informative experience. I have covered military aviation, and in particular military rotorcraft, for most of the last 20 years, and I have learned so much about the details behind the through-life-costs of aircraft ownership over the last 15 months on AVM.

I feel justified in saying that it is a revolutionary time.

The collation, management, understanding and effective use of ‘big data’ is not merely an evolution. But the learning curve is steep, everyone is trying to do the same thing at the same time, the effect of which is that the global aviation industry is facing a serious challenge to recruit and retain sufficent high quality ‘white’ and ‘blue’ collar workers for all its needs. Reforming the curricula and qualifications of today to meet the onrushing, transformational skills requirements of tomorrow poses a very serious challenge.

You will be pleased to know that Aviation Maintenance is also transforming to enable you, the reader, to keep up with all of the changes not only within the magazine but also daily on our website. And here I will hand over to Joy to tell you more.

When it comes to military MRO, the business can be worth nearly as much than the original acquisition contract even more if the aircraft platform stays in service for a long time (all the mainteance hours over the life of the platform together with financial injections for capability upgrades. Often the platform can have its out-of-service date extended if a replacement capability is found difficult to squeeze into already restricted national defence budgets.

The replacement for the German Air Force “Schwerer Transporthubschrauber” (STH) Sikorsky CH-53 Super Stallion heavy helicopter is such a case. In the early 1970s, German Army Aviation (who until 2013 owned and operated the CH-53s) received two pre-production CH-53Gs which were manufactured by Sikorsky in the United States, followed by 110 CH-53Gs manufactured under license by VFW-Fokker ( Vereinigte Flugtechnische Werke) at Speyer, Germany. VFW was taken over by Messerschmitt-Bölkow-Blohm (MBB) in 1981, which was itself bought by Deutsche Aerospace in 1989 (which is now part of the Airbus Group).

Most of the German CH-53G/GS/GE/GA fleet have now been flying for well over 40 years and are in need of replacement. Of that inital fleet there are currently around 60 helicopters (down from 80 a few years ago) that are being used by the German military on a regular basis (and the budget is there to fly and maintain them).

Through the legacy of German production, Airbus has won the last three modernisation contracts for varying numbers of the overall CH-53 fleet. In 2002, Airbus upgraded 38 CH-53Gs to CH-53GS (Special) at a cost of around worth around €23 million, an order placed by the Federal Office for Defence Technology and Procurement (BWB) which was completed by the end of 2005.

In 2012, Airbus modernised 40 Super Stallions to CH-53GAs to include new avionics and communications systems. The German armed forces wanted its new NH-90 transport helicopters and Tiger attack helicopters to be able to work in concert above the battlefield. Airbus of course produced both of the other helicopters, the former alongside other industry partners.

In February this year Airbus received another €135 milliondirective from the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) described as an obsolescence management contract to retrofit 26 CH-53s (20 CH-53GS and six CH-53GE) with new components and up-to-date parts. This contract will ensure that as a new heicopter type enters service around a planned date of 2023, there will be enough heavy lifters around to during the delivery period and volume capability is retained while the older, first modified CH-53s are taken out of service.

The main players for the CH-53 replacement are the original manufacturer, Sikorsky, with its brand new CH-53K. It is not yet in service but any German order could be slotted into the U.S. Marine Corps production line for deliveries to begin around 2022. The rival is Boeing’s latest version of its iconic Chinook, the CH-47F. This is available and in service. However, both American companies are concerned about two things at least: numbers of aircraft ordered and who gets to conduct the MRO on them. If the German government defaults to Airbus, then the unit cost for either aircraft will escalate sharply as the OEM would have little prospect on making a volume of money post-delivery, except for spares supply.

Wolfgang Schoder, CEO of Airbus Helicopters Germany, recently heavily underlined the historical role that his Military Support Centre in Donauwörth has played in supporting the CH-53s: “Airbus Helicopters has been the German specialist for maintaining, repairing and modernising heavy transport helicopters for decades. We have the necessary infrastructure, highly trained professionals and can guarantee supply for all Bundeswehr models.”

The German government is now faced by its own aerospace industry wanting a special deal, while both foreign OEMs will play hard-ball on the price if they aren’t offered any of the OEM pie. The request for proposals is expected to be issued mid-2018 with a contract award in 2019.

Welcome to the State of the Industry issue. The reason behind presenting this annual compilation of thoughts and statements from some of the more recogniseable MRO leaders and their organisations is to bring together this breadth of experience into one readable issue for you, our readers.

Recently we have heard many comments that the media makes (or fakes) the news. The objective of the team at Aviation Maintenance in presenting you with this survey, is to publicise a cross-section of opinions, in their own words, on some of the industry’s most talked about issues. They discuss issues that they consider to be important, talk about their investments and how they are proactive or reactive to the MRO industry as it evolves.

While there are always so many questions that can be asked within any industry sector, we adhered to seven split between external, internal and training / education.

The three ‘external’ questions looked for thoughts and ideas about challenges and opportunities within the MRO sector that they believed their organisations were addressing, or needed to address, including any wider concerns. This section included getting their thoughts and experience of additive manufacturing.

The second set of ‘internal’ questions included the one subject being rasied in every international conversation, that of ‘big data’ (incidentally this issue contains a seperate article on this very subject written by contributor Charlotte Adams). We asked how a ‘big data’ strategy could be implemented and what the perceived (and expected) benefits it would bring.

Another high tech development being embraced my a number of organisations is virtual reality and the opportunities that it brings for training and maintenance practises.

Finally we looked at education and training, and whether the quality of education was preparing new hires for a variety of roles within MRO. Comapanies also volunteered some insight into their own training programs and how to motivate and continually develop existing employees.

Report from AEE

Two shows staged by Aerospace & Security Media, this magazine’s parent company were a great success last month. The Aviation Electronics Europe (AEE) and Avionics & Space Testing Expo (AST) expositions and conferences were staged between 25/26th April 2017 in Munich, Germany. The two events attracted over 1,000 attendees from over 38 counties.

The AEE conference program started with joint opening keynotes presented by Hette Hoekema, senior expert navigation, communication, surveillance at the European Aviation Safety Agency (EASA) who gave an overview of Mandates, New Developments of our Regulatory Material and Future Plans in the avionics sector. Stefanie Erdmann, policy director at Airlines for Europe A4E discussed the latest challenges in policy and directives that could impact on the avionics and aerospace sector. These opening briefs led into a two day conference program.

The launch of the collocated testing event (AST) was welcomed by that community and both events will once again be collated on 19/20th June 2018 in Munich.

“These complimentary events were well received by an international audience and we have plans to make both bigger and further develop their content next year,” said managing director Adrian Broadbent.

Attending the MRO Middle East conference and exhibition in Dubai was, to a certain extent, going back to a previous life for me. Back in the 1990s I spent several years working in the rapidly growing Emirate working for the Dubai World Trade Centre, an independent British bank, and then for my own public relations company.
Emirates Airlines was then the ‘upstart on the international airline block’; rising out of the sand to challenge the established national carriers, predominantly from Europe and southeast Asia, to become the first of the Gulf hubs. British Airways had to ensure its flights from London had the latest inflight entertainment system in order to keep passengers from deserting to experience the wonderful seat-back screened content on every Emirates flight to Europe.
Wind forward just a couple of decades, and the Gulf/Middle Eastern market is now full of national carriers and burgeoning low cost players, most of which are founded on national oil and gas wealth. Emirates Airline is now in the top five airlines in terms of international passengers carried each year.
But the oil price slumped and has not yet roared back to the heady days of US$90-$100+ per barrel during 2010-14. As Air Arabia’s group CEO Adel Abdullah Ali said during his opening address at the MRO Middle East conference: “The oil price is like blood pressure; it should neither be too high or too low.” He said the right price was between US$70-80 per barrel, whereas the price for the last two years has averaged less than US$50 per barrel, and dipping at its lowest point to around US$30 per barrel.
That gap in income has hurt the Gulf’s oil producers although there is still almost an air of denial which permeates the region. Spending on infrastructure and airport expansion continues at pace, with Dubai looking to move Emirates Airline and many other services into Dubai South, and away from its city centre location which has grown out of all proportion over the last 20 years.
In the State of Qatar, the third phase of the project to expand Hamad International Airport (HIA) in Doha is due to begin this year. According to Akbar Al Baker, group chief executive of Qatar Airways, the new expansion will “take the ultimate capacity to over 65 million passengers (annually).” However, Qatar has huge natural gas reserves to fall back on…and price cutting to win passengers has not gone down well with the other Gulf carriers.
Ali also pointed out that airline behaviour has not matched economic reality. “There have been too many aircraft orders….which have exceeded growth expectations. Regional carriers also want to get into the GCC (Gulf Cooperation Council) market.” As the regional competition ‘hots up’ and while it remains a great time for the buyer, Ali wondered whether it was sustainable.
What this has done is create a demand for a much larger workforce in the aviation industry at all levels within the region. However, as Ali said, the cost of manpower within the Gulf continues to rise at a significant rate. “Today it is cheaper to recruit a pilot from the UK or Australia than from the Gulf,” he observed
The expansion has naturally led to the need for more maintainers too, who need to be suitably qualified. But therein lies a problem. Many of the airlines within the Gulf are selective about which international qualifications they will accept. In some cases, well qualified and experienced individuals are not considered because they do not have a qualification which is recognised by a particular organisation or at a national level. There also seems to be no quick solution to ‘fast track’ such people, other than by making them start at the beginning to requalify – a process that can take years. The result is that rising demand for experienced maintainers is very quickly outstripping supply.

As part of the new Aviation Maintenance website, companies are now able to submit press releases directly to me for consideration regarding publication.

It is important to note that these releases must be announcing genuine news about new MRO services, products and industry developments. Product profiles and marketing of existing products and services will not be considered.

Our readership relies on us to deliver genuine, timely and breaking news.

 

Delivering up-to-date news, informed opinion and comment, as well as market sector analysis has been the goal of this publication since 1983. The magazine has been a leader in its field and we intend not only to match our previous performance, but to continually find ways of serving you better.

Business professionals today access their MRO information from a wide variety of sources, thanks to the internet and the wealth of social media options available worldwide. As you would expect, Aviation Magazine naturally has launched its own selection of these.

Social media and the internet is broad, but this breadth does not necessarily mean quality. For that we all rely on trusted sources that have proven their worth over time – and have the ability to adapt and change where and when necessary.

The Aviation Maintenance magazine (AVM) website (avmdevelop.wpengine.com) was previously more of a simple gateway to access the digital PDF version of the printed magazine. It was functional with good content, but lacked the modern dynamic feature-rich design that makes it easy to search, find, read and play the huge variety of information that this continually gathered and presented by us for you to use.

On January 1, 2017 this changed.

“Our complete redesigned of the website now provides dynamic, direct and full access to all the current and archieved content of the magazine, quickly and easily but with the addition of so much more than before,” said AVM’s owner Adrian Broadbent. Being a hands-on kind of guy, Adrian has driven this change. This is what we have done:

EASIER ACCESS – We have simplified access to all the content. As you read you will only be prompted to enter your email IF you have read more than a few posts in a set period. And the good thing is that you will no longer need a password as our connected database can recognise your email. If your email is not recognised, or you have never previously registered, then you can register free for instant access. Once you do that, then the next time the site will remember your email.

MAGAZINE EDITORIAL CONTENT – ALL sections of the printed magazine are now reproduced within the site without having to access a traditional PDF, although the PDFs are still freely available (including back copies). A selection of our coming features for the printed publication will also be available to read online before publication.

INTELLIGENCE NEWS – In addition to all the news from each issue of the printed magazine, extra breaking news will be added throughout every week, giving you access to news as it happens. Additionally, there is now the ability to filter the news according to your particular preference, whether Commercial, Military, Biz-Jet, Rotorcraft etc..

MRO SEARCH – We have also introduced a useful MRO search facility that not only helps you find anything ever printed in the magazine or listed in our directories but also searches the web as well. This is a very unique research tool.

CURRENT/BACK COPIES – You can now directly view/download/share previous issues/articles back to 2012 as PDF’s.

EVENTS – There are so many shows to keep a track off to consider attending and now our site now lists/covers all the major events for this MRO segment in one handy place. You can of course also submit YOUR event for inclusion or suggest any that you think should be included.

VIDEO – Rather than having to trawl the web for MRO content you can now also view our selected content and again submit YOUR clips for inclusion too.

REPAIR CENTER DIRECTORY & BUYERS GUIDE – We publish our extensive and established directories in the February issue of the publication and now this data is searchable within the site. This is a great resource for quickly identifying companies and contact information without having to start from scratch on the web.

We are delighted with the new format of the website and both Adrian and I would welcome your comments too, as would all the members of the AVM team. Try it out today – from a source that you trust!

A side from delighting motorists who have had a respite from escalating fuel costs over previous years, the current low in the price of oil has surprisingly resulted in many airlines getting back into profit.
“Airlines are making money through the low price of fuel. Airline employees getting pay rises for the first time in years and we are starting to attract people back into aviation,” said Jonathan Berger, vice president, ICF International who was addressing attendees of the opening conference at MRO Europe (18-20 October), in Amsterdam, the Netherlands.
Berger said that there was a commercial aircraft OEM production backlog of around 14,000 aircraft who are now focusing on rolling out new aircraft rather than fighting hard to sign up new customers. However, cash rich(er) airlines also meant consequences for the MRO community. Airlines have quickly understood that the lower fuel costs have led to a reversal in aircraft retirement trends. “In the 1990s we were averaging around 200 aircraft retired, which escalated into the 2000s to around 400 aircraft retirees per year,” said Berger. “Now we are witnessing a 30 percent drop in retiring aircraft.”
Where the growing trend was to produce aircraft that could demonstrate improved fuel economy – and that is still important for airlines procurement policies in the medium to long term – Berger said that currently there has been a trend to keep older less fuel efficient aircraft in place as the low oil price allows them to keep returning a profit. The upside of that is an increased MRO spend on older airframes and engines.
But there is also a negative effect on the surplus market with a reduction of ‘feed stock’ parts for older aircraft. This is a benefit to distributors who can improve the sales margins on used part values and sales. Correspondingly OEMs also benefit from a up-kick increase in new part sales. So airlines are paying a premium out of their increase in revenues to keep those older aircraft in the sky.
Berger said that a good number of airlines are showing a return on invested capital (ROIC) which he said is clearly correlated with the drop in fuel costs stating a 20 percent drop in operating costs from the highs of 2008 to 2016.
“The industry will make around $40 billion in profit in 2016. With a strong dollar the US sector is looking at a margin of 15.4 percent, clearly leading the sector, with Europe only showing around five percent.
He pointed to four external macro-economic forces that were significantly modifying the aviation market. Firstly, fuel costs were the lowest they have been for a long time, although a further serious drop is not predicted and a gradual rise should be witnessed again through the 2020s. China has undergone an economic GDP slowdown too, and global commodity prices have fallen. Global currency rebalancing has also resulted in a strong dollar which has effected some countries more than others.
This has meant that not all airlines are in a cash-rich position noted Berger. There have been numerous countries that have suffered and seen their own currency devalued most against the surging value of the US dollar – Canada, Russian, Australia, Brazil, and South Africa (during the two year period September 2014 – September 2016).
Those now in the enviable position of having surplus cash have been quick to give their equity partners some reward – in fact up to 42 percent of the total across the sector. They have also taken the opportunity to upgrade their own facilities and passenger lounges, with up to 38 percent being spent here suggested Berger. Finally, the last 20 percent has gone to profit shares and wage increases.

The international MRO market has strong and sustainable growth ahead of it. Boeing has revealed that the Chinese market will need 6,810 new aircraft over the next 20 years, over 5,000 of which will be single-aisle aircraft. All those aircraft need maintenance and engineering expertise, not all of which can be provided to the level required internally.
The need for good engineers now has an added dimension. The Embry-Riddle story in this issue tells of engineers now embarking on degree qualifications, some of which are combined with (could it be true?) management courses. As the military has discovered over the last couple of decades, aircraft are a system of systems and the days of a few good men skilled in the use of their toolkit is growing smaller in the rear view mirror.
Look at most commercial aircraft: they boast digital avionics, heath and usage system (HUMS), passenger entertainment, satellite communications – they are akin to flying digital and electronics hubs.
The data collected by each aircraft runs into gigabytes for every flight. Multiply this by the amount of data collected by each airline across its fleet and add in the additional date scooped up by the MRO servicing that airline. The next step would be to share all that data among airlines and MROs (yeah – that’s going to happen) which would provide a substantial picture that could be beneficial to everyone. Even small advances in cooperation could provide significant advances for many.
Airlines might be able to benefit from best practice techniques when analysing flight and maintenance procedures and patterns, and perhaps refine optimum maintenance times that would be best suited for their own company’s strategic service offering.
Predictive maintenance has become very important for every airline looking to secure profits and ensure their aircraft keep flying. The economics or running airlines is hazardous enough, and keeping to schedules has been made difficult by having to deal with everything from terrorism and the necessary security checks, through to what seems to be an increase in adverse weather around the globe.

The Global Village

Taking care of smaller detail can pay bigger dividends. Pratt & Whitney Canada (P&WC) has been conducting trials on over 1,800 of its customers engines. The technology being used can detect minute particles within engine oil that can then be extrapolated to predict a deterioration in oiled components – all without the need to remove the engine. The aim is to drive aircraft availability and reduce MRO costs through this type of predictive maintenance.
Aftermarket support has been a global requirement for some years. As ever, customers want the least amount of down time for their aircraft, a minimum amount of inventory on their shelves, and the expertise to identify and solve problems quickly. Inventory management has been made much easier through the internet, but a regional presence is still a major requirement, especially in developing markets. Whether this be distribution centers or maintenance hubs, giving the customer piece of mind and over-delivering on service and support is still a good mantra to live by.
As the new face at Aviation Maintenance magazine it is my responsibility to lead the direction of the editorial within it, identify issues that cause concern in this sector of the aviation industry, and to uncover innovation where it can make a real difference to those conducting MRO activities worldwide. I will be please to receive your comments, suggestions and news at: adrwiega@avm-mag.com.

Since 2004 I have been working at Aviation Maintenance – first as managing editor and then, starting in 2006, as editor-in-chief. I met a former editor-in-chief of this publication, Matt Thurber at the 100th Anniversary of Flight celebrating the monumental accomplishments of the Wright Brothers in Kitty Hawk, North Carolina. He was without a managing editor at the time and learned I was looking for work. He offered to have me out for an interview and said he’d rather teach someone who knew aviation to run a magazine than to try to teach a journalist the intricacies of our unique and complex industry.
When he left for greener pastures, I became editor-in-chief and have been ever since. I did take a brief hiatus to work as editor-in-chief of another aviation publication, Rotor & Wing. I had left that magazine due to a family relocation and when the interim editor of this magazine also found another position and left, I quickly returned to Aviation Maintenance – that was five years ago.
For a total of ten years I have followed, written about, rooted for and been amazed by the dedication and hard work put in by each and every person in this industry. It has been my honor and pleasure to head up this magazine and cover the amazing things you do.
I have never been at a loss to find things to write about – quite the contrary. I am constantly challenged to find room to include all the news, features and information I would like to. From continuous improvement to Lean to software to borescopes to refurbs to high-velocity maintenance to innovation, there never seems to be a lack of things to write about.
During the last ten years I have seen good times and bad times in the aviation industry. The magazine itself has had its ups and downs as well. I have also seen the publication change ownership from a large media company owner to its current owner, Adrian Broadbent, an entrepreneur with a keen eye toward new opportunities.
But one thing has remained constant. Airplanes fly and airplanes break. Helicopters fly and helicopters break. Drones fly and drones break. Maintenance is needed on a regular and continual basis. Without the people who dedicate their lives to making certain maintenance plans are developed and adhered to, procedures are followed and every detail is remembered, the aviation industry would be grounded. Never forget what a crucial and integral part of our industry you are or how the contributions you make to our industry enable it to be as safe, reliable and efficient as it is.
It is a privilege for pilots and passengers around the world to fly on aircraft that are as well maintained as they are today. According to A4A, the association representing U. S. airlines, commercial aviation represents 5.1 percent of the U. S. gross domestic product (GDP) and creates more than 11,200 jobs. United Airlines boast more than 80,000 employees of which more than 10,000 work in technical operations. Other mainline airlines report similar numbers. Tens of thousands more work in independent MROs throughout the world.

Now I am off to start a new adventure of my own and I will miss my many friends in the maintenance industry and all the readers of Aviation Maintenance. I wish you all the best as you continue to do what you do best – solve the challenges of keeping the aviation industry safe and reliable. All of this is to say that ten years later, I am still in awe of what everyone in this industry does. You keep us flying. Thank you for your dedication and hard work.
And now, please meet the new editor-in-chief of Aviation Maintenance, Andrew Drwiega.

Dear Readers,

I am delighted to be taking over the editorship of such a strong and vibrant magazine as Aviation Maintenance. Joy Finnegan leaves having set the bar very high and I will have to work hard to match her achievements over the last five years.
I have been a journalist and communicator for over 30 years, the last 15 of which have been spent addressing a wide variety of issues in aviation and defense. Having reported on the international aviation market for many years, I am very familiar with many of the industry leading corporations but also appreciate the vital role that the supply chain holds, which frequently come under pressure as the world economy ebbs and flows according to the political and financial pressures put upon it (I write this on the morning of Brexit)!
My belief in print magazines is a traditional one. While social media and online cannot be matched for delivering breaking news quickly, it also contains much comment by the uninformed and those without responsibility. I firmly believe that in-depth commentary and analysis are key attributes of the specialist press.
Finally I would like once again to congratulate Joy Finnegan on a job well done and look forward to editing the next issue of Aviation Maintenance.
— Andrew Drwiega