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s p e c i a l r e p o r tJAA approval for GAMECOThe Southern China maintenance facility, Guangzhou AircraftMaintenance Engineering Company (GAMECO) has had its JAR-145certification renewed by Europe’s Joint Airworthiness Authority.Included in the new certification are Airbus A320 and A321 aircraftup to C-3 Check level and MD-11 series line maintenance. GAMECO wasoriginally certified by the JAA in 1998. Since 1998 it has carried out 25C checks on A320s and a similar check on a A321 for mainland carriers,China Southern Airlines, CNAC Zhejiang and Sichuan Airlines.GAMECO is approved by the U.S. Federal Aviation Administration,the Civil Aviation Administration of China and JAA to perform all levelsof maintenance checks for B737, B757, B767, B777 as well as A320 andA321 aircraft.Based at Guangzhou’s Baiyun International Airport, GAMECO isa joint venture between China Southern Airlines, Lockheed MartinAeronautics International of the U.S. and Hong Kong-based HutchisonWhampoa (China) Ltd.R-R’s global viewPATRICK GARRETT spoke to Rolls-Royce aero repair and overhaul’ssenior vice-president, Bill Madison,about business prospects for MROin the new millennium.According to statistics from managementconsultants The Canaan Groupthe aero engine maintenance, repairand overhaul (MRO) business is booming. Itcalculates the industry generated income ofUS$24.48 billion globally in 1997.Rolls-Royce’s Bill Madison said over thenext decade the figure is expected to growby more than US$1 billion annually and willtop US$40 billion.In the next 20 years, based on predicteddeliveries of nearly 17,000 jet aircraft, MrMadison pegs demand at more than 43,000engines, including spares, valued at US$251billion.Corporate aircraft could account for an additionalUS$19 billion of engines. Spare partsalone for the period could be worth US$150billion, he said.Although the Asia-Pacific, including China,is not top of the predicted aircraft deliveriesleague, it is the highest value market to theengine makers because of the higher proportionof large, widebody aircraft required,with larger (above 45,000lb), more expensivepowerplants. The aftermarket potential isimmense. “With such staggering revenuebeing forecast, the race for market share hascaused all MRO providers to re-evaluate theirstrategies,” said Mr Madison.A Rolls-Royce Aerospace Repair andOverhaul Council (AROC) was formed in1997 consisting of senior managementfrom the world-wide repair and overhaulsubsidiaries and affiliates, the Rolls-RoyceOEM Customer Facing Business Units,BMW Rolls-Royce and Industria de TurboPropulsores. The council defines policy onglobal issues and measures performanceof individual businesses against thesestandards.Rolls-Royce has reacted to the effectsof major industry rationalisation – mergers,acquisitions, industry-wide consolidationand changing alliances and structures withinairlines – with a series of partnerships and jointventures. Their strategy is particularly evidentin Asia-Pacific.HAESL, a 50:50 joint venture with HongKong Aircraft Engineering Company (HAECO),a sister company of Cathay Pacific Airways,was launched in Hong Kong in 1997.In 1998, another joint venture was announcedin Singapore – SAESL – owned 50%by SIA Engineering Company, 30% by Rolls-Royce and 20% by HAESL. It will becomeoperational in 2002.And last year International Engine ComponentOverhaul Pte Limited (IECO), a jointventure company owned equally by Rolls-Royce and SIA Engineering Company startedin Singapore.The 4,000 sq metre facility boasts a fullrange of processes, including the refurbishmentof nozzle guide vanes and compressorstators for the region’s sizeable RB211 andTrent fleet.Mr Madison said the major aero engineOEMs have all identified MRO services as asignificant business opportunity and haveorganised aftermarket services ranging fromline maintenance to world-wide logistics andfrom engine buy-back and lease to servicingrival OEM products.Among its many products Rolls-Royceclaims to operate “the world’s largest, specialist,aero gas turbine leasing company”,Rolls-Royce & Partners, with a portfolio of 91engines. GATX Capital took a 50% stake in thebusiness in 1998.The evolving MRO strategy seems to bebearing fruit.In a growing market for repair andoverhaul Mr Madison said that about half ofRolls-Royce civil aero engines world-wide gothrough its own shops.68 | Orient Aviation | February 2000