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February 2018

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BOEING GETS INTO THE SEAT BUSINESS bookmark

Boeing and Adient have announced the formation of Adient Aerospace, a joint venture that will develop, manufacture and sell a portfolio of seating products to airlines and aircraft leasing companies. The seats will be available for installation on new aircraft and as retrofit configurations for aircraft produced by Boeing and other commercial aircraft manufacturers.

 

The joint venture between Boeing and Adient, the global leader in automotive seating, addresses the aviation industry’s needs for more capacity in the seating category, superior quality and reliable on-time performance. Adient Aerospace will benefit from the world-class engineering teams and innovative cultures at both companies, as well as shared expertise in managing complex, global supply chains.

 

Kevin Schemm, Senior Vice President of Supply Chain Management, Finance & Business Operations and Chief Financial Officer for Boeing Commercial Airplanes, said: “Seats have been a persistent challenge for our customers, the industry and Boeing, and we are taking action to help address constraints in the market. Adient Aerospace will leverage Boeing’s industry leadership and deep understanding of customer needs and technical requirements, to provide a superior seating product for airlines and passengers around the world. This joint venture supports Boeing’s vertical integration strategy to develop in-house capabilities and depth in key areas to offer better products, grow services and generate higher lifecycle value.”

 

“Adient has a strong set of transferable competencies that will offer a unique opportunity to create value for our company and for Boeing, our shareholders and the broader commercial aircraft market,” said Adient chairman and Chief Executive Officer Bruce McDonald. “To enhance the customer experience for passengers, airlines and commercial airplane manufacturers, we will apply our unmatched expertise for comfort and craftsmanship along with our reputation for operational excellence.”

 

Adient Aerospace’s operational headquarters, technology centre and initial production plant will be located in Kaiserslautern, Germany, near Frankfurt. The joint venture’s initial customer service centre will be based in Seattle, WA. Adient Aerospace aftermarket spare parts distribution will be performed exclusively through Aviall, a wholly owned subsidiary of Boeing. Adient is the majority stakeholder in the new company (50.01%) and expects the joint venture to be included in its consolidated financial statements. Boeing (49.99%) will receive a proportionate share of the earnings and cash flow. Both will have representation on Adient Aerospace’s board of directors.

 

Industry analysts forecast the commercial aircraft seating market to grow from approximately $4.5 billion in 2017 to $6 billion by 2026.

LUFTHANSA TECHNIK PUSHES DIGITALISATION bookmark

Lufthansa Technik and Pepperl+Fuchs have founded an equally owned joint venture called 3D.aero. The aim of this new company is to research, develop and sell innovative automation solutions for the aviation industry. Furthermore, it will work on solutions for the digitalisation of workshops. Its headquarters are at the ZAL TechCenter in Hamburg-Finkenwerder. This location will enable 3D.aero to network with other aviation companies.

 

Besides industrial workshop and factory automation solutions, 3D.aero will also offer the application of optical measuring devices, digital inspection and image processing applications and related consulting services. The company will operate as a modern start-up and have flat hierarchies, with the young team consisting mainly of Pepperl+Fuchs employees and graduates of the Institute for Aircraft Production Technology at Hamburg University of Technology.

 

Bernhard Krueger-Sprengel, Senior Vice President Engine Services at Lufthansa Technik, said: “We are delighted to have won Pepperl+Fuchs, a leading manufacturer of electronic components and sensors for factory and process automation, as a partner. This will enable us to keep pursuing our Industry 4.0 strategy and use this know-how for our processes and products.” While 3D.aero was founded as part of a concrete project at the Engine Services division, it will serve all Lufthansa Technik divisions as well as other companies in the aviation industry.

 

Skeyos, a new company founded by Lufthansa Technik, has developed a digital marketplace and e-procurement tool that provides better transparency, dependability and simplicity when purchasing aircraft component maintenance services. The new online marketplace simplifies all of the steps in the ordering process and simultaneously monitors the service quality of suppliers. Through its network of contacts in the MRO business, Skeyos brings together well-known, trusted companies nd its associated capabilities on its independent online platform. With the industry expertise of the Lufthansa Group, Skeyos has developed a marketplace and procurement tool that links both sides of any transaction, and connects purchasers and MRO service suppliers without detours. This qualified network encourages trustworthy and long-term business relations.

 

Suppliers can present their services worldwide with fully transparent (technical and commercial) conditions, yet adaptable for each customer, and purchasers can search for them without time-consuming RFQs or bid tenders. The simplified workflow is also a result of the user-centred and intuitive design.

 

Purchasers can access professional MRO services for aircraft components and directly compare costs and terms through a single channel. The pricing and availabilities of all services are guaranteed from the start. Once a suitable service has been identified, it can be purchased directly and managed throughout the fulfilment process entirely via the online tool. Integrated track and trace functionality makes it easy to monitor the progress of each transaction. The transparent and standardised terms and conditions, as well as the automated and streamlined processes of the Skeyos Marketplace, improve all stages of purchasing whilst simultaneously minimising compliance issues.

 

Suppliers can create predefined offers whilst being able to adapt each to individual customer requirements to achieve tailor-made efficiency. Services are visible with maximum reach and a sale is just a click away. Thanks to Skeyos, it is possible to get business directly, rather than spending time and energy on bidding processes with uncertain business potential. Skeyos Marketplace also offers integrated handling of billing and payment. An optional escrow service ensures the security of each transaction.

 

Both sides, purchaser and supplier, benefit first and foremost from the time they save, by not having to go through tender processes and from the greatly reduced administrative burden. All transaction-related information is available on Skeyos Marketplace at any time. The development of the Skeyos Marketplace focused on simplicity of use and the uncomplicated initiation of business processes.

 

The Skeyos marketplace and procurement tool can be integrated into existing IT environments or used as a stand-alone platform. As it is part of the digitalisation strategy of Lufthansa Technik, it is closely connected to the AVIATAR platform that was launched in April 2017. Skeyos guarantees comprehensive data security and encryption.

MAGNETIC POINTS EAST bookmark

Magnetic MRO, based in Tallinn, Estonia, has been acquired by Guangzhou Hangxin Aviation Technology (Hangxin) following the sale of 100% of the shares by the previous major shareholder, private equity firm BaltCap, together with minority shareholders.

 

Magnetic MRO Chief Executive Officer Risto Mäeots said: “Magnetic MRO management has been actively looking for opportunities to expand into Asia, the highest growth market in aviation. Hangxin, with its existing geographical presence and service portfolio, is complementary to Magnetic MRO, creating substantial synergies and new business opportunities.”

 

Lv Haibo, Vice President of Hangxin, said: “We are very pleased to welcome Magnetic MRO to the Hangxin team. Magnetic MRO and its team have developed a high quality, reliable, customer-focused MRO business. We fully support the existing strategy and executive management team, and will support Magnetic MRO’s focus on continuing to deliver value to its existing customers, and expanding its global MRO presence.”

STANDARD TAKES OVER RB211-535E4 MRO bookmark

StandardAero has signed a LoI with Rolls-Royce to provide engine MRO services for the RB211-535E4 engine for the life of the type. The award designates StandardAero as the Rolls-Royce end-of-life engine maintenance service partner.

 

StandardAero will service these engines at its San Antonio, TX, facility, where the company recently acquired a long-term lease for its existing facilities, previously leased by Kelly Air Center, and expanded space to provide more capacity for engine MRO growth. Moreover, the expanded lease space also includes four additional engine test cells to support higher thrust class (in excess of 80,000lbs) and afterburning turbofan engines.

 

The RB211-535E4 engine will be the highest thrust engine in StandardAero’s commercial MRO portfolio, capable of generating 40,100 to 43,100lbs thrust. It powers the Boeing 757 aircraft, of which half of the in-service fleet is in North America, and is expected to remain in commercial airline service until 2040.

RECORD YEAR FOR BEDEK FREIGHTERS bookmark

IAI's Bedek Division has declared a record year in 2017 with the delivery of 22 converted aircraft – 18 Boeing 767-300s, two Boeing 747-400s and two Boeing 737-700s. A total of 28 widebody aircraft were converted worldwide in 2017, of which IAI was responsible for 20 projects, including 18 out of 24 Boeing 767s. The company also passed the 100 mark for 767 conversions, with more aircraft awaiting conversion in 2018. IAI was the first to receive STC approval to convert the Boeing 737-700.

 

In 2017, Bedek also opened a Boeing 767-300 conversion site in Mexico City, which is operated by Mexicana MRO Services. Two more conversion sites will open in 2018 in China. The joint venture with Chinese companies focuses on expanding maintenance services for commercial aircraft and  freighter conversions, laying the foundations for future joint ventures. The first conversion projects are expected to start in mid-2018.

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