OAMag-V7N4-Cover [Converted] - Orient Aviation

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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
s p e c i a l r e p o r tImproved year for HAESLHong Kong Aero Engine ServicesLimited (HAESL) handled around 175engines in 1999, up from 146 theprevious year, an increase of 20%. The engineswere a combination of Trent 700, Trent800, RB211-524, RB211-22B, and RB211-535s.At the end of the year it also received itsfirst pair of V2500 engines, one of whichhas been completed for client South AfricanAirways.The gains are certainly impressive. HAESLgeneral manager commercial, Stephen Chu,puts it down to a combination of “biggerdemand, more aggressive marketing and animprovement in our ability to take in moreand still deliver”.In addition to local Hong Kong carriersCathay Pacific Airways and Dragonair, HAESLclients include China Southern Airlines,Xiamen Airlines, China Yunnan Airlines, XinjiangAirlines, Singapore Airlines, MalaysiaAirlines, Thai Airways International, GarudaIndonesia, South African Airways, Emirates,Air Transat, Air New Zealand, QantasAirways, Kitty Hawk, Royal Brunei Airlines,Air Atlanta Icelandic, International Air Lease,Orient Thai, Britannia Airways, MonarchAirlines, and Inter Lease.“Our shop had been kept fairly busy allthroughout 1999, with work coming in fromcustomers in our designated territory as wellas from Europe, the U.S. and Canada,” saidMr Chu. “We worked closely with [Rolls-Royce overhaul] Derby to optimise utilisationof available capacity in the two shops.“Business will continue to be looked at ina global context. Everybody is operating in avery competitive environment wherever theyare located.”Commenting on the receding economicproblems within Asia, Mr Chu said: “There areencouraging signs the worst is over, but it islikely the road to full recovery will be fairlylengthy and not without new challenges.”HAESL also performed work on the Trentfor Cathay Pacific, Garuda, Malaysia Airlinesand THAI.After discussion with both Emirates Airlineand Gulf Air, the former signed a contract inJuly last year for its Trent 700 and 800s.Nothing has yet been signed with Gulf.HAESL continued machining casings forQantas Airways’ 524-Hs 03 module to allowfor installation of Trent 04 modules. HAESLalso is repairing two RB211-524 engines forthe Australian flag carrier.HAESL technicians inspect a Rolls-Royce Trent 800 engine in its Hong Kong test cellA proposed joint marketing agreementdiscussed last year with Taiwanese carrier,EVA Air, for services on the V2500-D5 hasnot yet progressed. HAESL can handle theD5 modules, which are identical to those onthe A5. However, It would have to use theproposed partner’s test cell as a D5 does not fitthe HAESL cell without alternative adapters.Phase one (the finance sub-system) ofa complete Enterprise Resource Planning(ERP) suite of systems from German softwarecompany, SAP, was implemented in mid-1999at HAESL.Company plans for an ISO 9000 certificationhave been delayed until sometime in2001, but in the meantime it has embarkedon a turn-time reduction project to improveproductivity in the engine shop. HAESL saysit also is looking at “business re-engineering”and evaluating Rolls-Royce “better performancefaster” initiatives to see what works bestin its organisation.“Competition has been, and will remain,strong in the industry,” said Mr Chu. “The MRObusiness [is being] given increasing attentionbecause of the need for integration andreducing margins on sales of the engines.”GE expands in MalaysiaGE Engine Services consolidated its ties with Malaysia late last year when subsidiary GEOn Wing Support, Inc., launched its operation in Subang.Bill Vareschi, president of GE Engine Services, said the company’s successful maintenanceand overhaul joint venture with Malaysia Airlines, Aero ’97, and Malaysia’s growing aerospaceindustry were key factors in forming GE On Wing Support Malaysia Sdn Bhd.GE also has an overhaul and repair Centre of Excellence in Kuala Lumpur along withsimilar centres in Xiamen, China and Singapore in Asia as part of its global network.Its on-wing support network also has facilities in China and most recently opened inSeoul, Korea.Initially, the Malaysian on-wing operation will work on CFM56, CF6-80C and Pratt& Whitney PW4000 engines, but plans also include support of GE’s GE90-115B, the solepowerplant for Boeing’s proposed 777X twinjet.February 2000 | Orient Aviation | 69
Page 1 and 2: VOL. 7 NO. 4 FEBRUARY 2000MAGAZINE
Page 3 and 4: P U B L I S H E R ’ S L E T T E R
Page 5 and 6: N E W SRegional round-upMAS winging
Page 7 and 8: N E W Scarriers you can kiss your n
Page 9 and 10: and huge war chest, could be a new
Page 11 and 12: m a i n s t o r yBattlefield Austra
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Page 15 and 16: A s i a n A e r o s p a c eAA 2000
Page 17 and 18: visits for DC-10, MD-11, A310 and A
Page 19 and 20: a i r p o r t smay be hit with fee
Page 21 and 22: a i r p o r t sOver 100 flights a w
Page 23 and 24: a i r p o r t swould continue to ca
Page 25 and 26: g e n e r a l a v i a t i o nContam
Page 27 and 28: f e a t u r e25 years after the fal
Page 29 and 30: pick me up. I was never interviewed
Page 31 and 32: n e w sJapan Express: JAL is doubli
Page 33 and 34: s p e c i a l r e p o r tThe two ai
Page 35: the rest of its global business, th
Page 39 and 40: - Qantas Airways, Cathay Pacific Ai

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