Satisfying Requirements for Engine & Component …...1. Boeing to open an MRO 2. Air India to open a maintenance base in southwest of India 3. Kingfisher in talks to open a joint repair

© 2005 International Aviation Services Group LtdThe information contained herein is subject to change without notice

Satisfying Requirements for Engine & Component MRO Facilities

in the Indian Sub-ContinentPaolo LironiSenior Technical ManagerIASG


Focus on...What component and engine overhaul facilities

currently exist in the Indian Sub-Continent and what are their capabilities?

What level of testing do they offer? What is the potential for growth over the coming 10

years? To what extent is outsourcing required to meet

airlines’ needs? The process of managing these MRO contracts.


Subjects

1. Current market2. Forces3. Trend4. Future market5. Contract

NOME


Current Market


World MRO MarketMRO Spending by category

Modifications, 7%

Engine, 35%

Line, 23%

Component, 21%

Airframe heavy, 14%

MRO Spending by Region

Asia Pacific, 23%

Latin America, 4%

Middle East, 4%

Africa, 2%

North America,

37%

Europe, 30%


The current engine market

• $38.8bn is the 2005 MRO value• 35% is in engine and engine components

equivalent to $13.8bn• The Asia Pacific region is absorbing 23% of the

total - $352 million• The largest fleets are CF6-80 and CFM56-3

engines


The current engine MRO in India region

• Air India shop – CF6-80– PW4000

• Indian Airlines– V2500 modular shop

• Pakistan Airlines– CF6-50– CFM56-3


Current fleet

• 300 aircraft flying in the region within Wide Body, Narrow Body and regional

• Several engine models• No dominant engine model


Where indian engines are repaired

Jet AirwaysIndiGoKingfisherSpiceJetAir DeccanAir SaharaParamount


Forces


Forces

• Revolution among airlines• Necessity to lower the maintenance costs• Actractivity of the region to foreign capitals• Fragmentation• Delocalisation


Delocalisation

• Geographical position• Skilled man power availability• Regulations


Barriers

• Burocracy• Regulations • Vicinity to China• Staff “poaching”


Timings

• New airplanes are being delivered• Aircraft utilisation is constantly increasing


Trends


Current trends

1. Boeing to open an MRO2. Air India to open a maintenance base in southwest of India3. Kingfisher in talks to open a joint repair shop with foreign

MRO4. Jet Airways to expand hangar in Mumbay5. Snecma to establish engine MRO with Indian Airlines6. Etc…


Attractiveness of the market

• Increase of 4.2 % over the next 8 years• India is ordering 25 % of the total aircraft• Increase of 10% of a single engine repair• The Market in 2015 will be worth $20.8bn• Few engines will dominate the market


Danger of the market

• New entrants• Engine models• Airlines flexibility on engine model


Changes in engine MRO

• Join ventures• Modular engine shops• Limited parts capability• Extended engine parts capability


Future market


The Engine Market in 2015

• Current engine shops will have to change products

• New production facilities will have to be built• More attractive for third party work


Engine parts

• Different forces from engines• Investments are bigger• Inventory is continuously changing


Key factors for success

• Price• Quality• Turn Around time• Customer Support• Comprehensive support to customers


Contracts & airlines needs


Contract

• Suppliers base• Long term relationship• Flexibility


Key factors

• Communication• Clarity of role• Defined service standard• Delivery of performance• Dealing with issues


Airlines requirements

• Concentration on core business• Knowledge of technical engine issues• Operations monitoring


Main concerns

• PMA• DER• Back to birth issues• Component traceability• Redelivery requirements


Highlights

• The actual engine and components MRO facilities have a big potential for growth

• India number of orders will guarantee the MRO to growth and expand

• Airlines will benefit from the growth only if will be able to capitalise on it


Presentation

Paolo LironiSenior Technical ManagerIASG Engines [email protected] Tel: +44 (0)1293 456105 / 456106Office Fax: +44 (0)1293 456107Mobile: +44 (0)7855 404039Skype: lironpa


Thanks for your attention

Satisfying Requirements for Engine & Component …...1. Boeing to open an MRO 2. Air India to open a maintenance base in southwest of India 3. Kingfisher in talks to open a joint repair

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