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Thursday, June 1, 2006

Change Agent

Since assuming the Chief Executive Officer (CEO) spot at Landmark Aviation, Roger Wolfe has overseen the successful integration of Landmark's three formerly stand-alone companies--Garrett Aviation, Piedmont-Hawthorne, and Associated Air Center. The company focuses on maintenance, modifications, FBO operations, aircraft sales, management, and charter services. One result was the major reorganization in 2005 of the former Garrett Aviation Services' TFE731 service business, for which Landmark has the world's largest market share.

AM: What made you decide to reorganize the TFE731 engine maintenance business?

Wolfe: We looked at the TFE731 service organization and realized it was based on a 20-year-old business model. Our customers told us they wanted service whenever and wherever needed, and with less downtime.

AM: What specific goals or objectives were identified for a successful reorganization of the TFE731 business?

Wolfe: There were three basic goals. The first was increased geographic flexibility in order to bring our TFE731 support closer to our customers. The second was to reduce turn times by as much as 40 percent, and the third was to offer improved service.

AM: Did the TFE731 reorganization cause any realignment of your MRO facilities?

Wolfe: Yes. Under the old business model there were five fixed locations for TFE731 work--Long Island (Islip), Springfield, Ill., Augusta, Ga., Houston-Intercontinental, and Los Angeles International. We reduced that to three by closing Long Island, moving TFE731 work out of Springfield, and consolidating the TFE731 business at Augusta, Houston and Los Angeles.

AM: Has the reorganization resulted in new customer services?

Wolfe: Yes. One example is our Weekend Fly-In Service, which lets a customer bring an airplane in on a Friday for a major parts inspection (MPI), with pickup the following Monday. We also offer a 48-hour MPI (major periodic inspection) emergency service for those who need immediate availability of their aircraft. And we have established 14 Mobile Service Teams, which are available for global dispatch 24/7.

AM: How are the Mobile Service Teams structured and what are their capabilities?

Wolfe: Our Mobile Service Teams consist of two technicians, which operate under the auspices of a governing FAA-certified repair station. Each team is assigned a custom-designed van, which can transport two engines and the tooling required for on-site services. When we established the Mobile Service Teams, our goal was to bring service to our customers where and when they need it. That means we can augment our customers' flight department maintenance staffs, especially those that lack the skills for engine removal, reinstallation, and on-wing repair.

AM: Your now-closed Long Island facility was located in one of the busiest corporate aviation environments. What was your strategy for filling this gap?

Wolfe: We based three Mobile Service Teams at our White Plains location with the intent that they will cover Morristown, N.J., Teterboro, N.J., and White Plains, N.Y. We also selected our newest acquisition, Scottsdale, as a base for a Mobile Service Team.

AM: Does the TFE731 reorganization open new opportunities to grow the business to include other engine types?

Wolfe: It does. We are now licensed by Pratt & Whitney Engine Services to do line and hot section work on the PW300 and PW500 engine series. We just received line service authority from Honeywell for the HTF7000. As that engine population increases, we expect to apply for hot section authorization, as well.

AM: What do you see as Landmark Aviation's future with the TFE731 family?

Wolfe: With about 10,000 TFE731 engines in service, we see our TFE731 service as a growth business. Because we expect the TFE731 family has at least a 20-30 year time horizon, we will continue to upgrade our TFE731 service models to meet customer expectations.

AM: Have you kept most of your TFE731 customers since the reorganization was completed?

Wolfe: We estimated an 80 percent retention, but to date it has been over 95 percent. Through our market research firm, we recently asked our customers to rank us on a scale of zero to 100. It indicated a satisfaction rate of 95, up from 90 in a prior survey. That tells us that we did the right thing.


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