Q&A with Rob Mionis, CEO of DAE Engineering

In August of this year DAE Engineering and its StandardAero subsidiary announced the consolidation of their leadership teams. As part of the realignment, Rob Mionis who had been CEO of DAE Engineering, a business unit of Dubai Aerospace Enterprise, assumed leadership of the combined management team and took on the additional position of president and CEO of StandardAero. Mionis, 45, joined DAE from Honeywell, where he served as vice president of Integrated Supply Chain for Honeywell Aerospace.

AM: How is StandardAero weathering the economic uncertainty right now?

Rob Mionis: We have a fairly diversified and balanced portfolio in that we play in a number of markets; business aviation, regional airlines and fleets, rotor-wing, military and the energy sector. This diversity better positions us to weather most storms but we are not immune to high fuel prices, etc. The VIP completions market continues to look strong and we anticipate further demand over the next few years. Regardless, we are asking ourselves whether we’ve taken all the actions we need to take. We’re maintaining a strong dialogue with our customers in an effort to better understand their pain points.

AM: What do you think will happen with the regional jet business?

Mionis: We ask ourselves that question all the time. So far based on observations we are seeing some operators parking 50-seaters. The CF34 customer base that StandardAero supports has thus far not been materially impacted by the cuts and groundings that we have seen in the industry. Anticipating possible impacts, our forecasts and business plans have not materially changed. We are exploring opportunities to diversify and broaden our service and product portfolio, and are continuing to expand our CF34 business. We believe our current business plans remain sound although we are monitoring industry dynamics closely. We are currently evaluating the business case for expanding into larger powerplants. We will announce the specifics of those plans at our earliest opportunity.

AM: Is DAE glad they divested the FBO portion of Landmark?

Mionis: The FBO business was not part of our long-term strategic vision for the business, so we’re neither glad nor sad. We wish all of our former colleagues at Landmark Aviation all the best.

AM: What other factors are impacting engine work?

Mionis: Levels of unscheduled maintenance are a challenge but the CF34 is a very reliable, quality engine. The keystone is winning engine contracts. But with military engines, the contract lasts for the life of the lease, so if you lose one, that’s 16 years until the life of that lease is up. Once you win a contract, it is all about execution, not about selling anymore. The CF34 market is very competitive — it’s a crowded space right now; it is a testament to our service that we have market share that we hold.

AM: Can you break down your engine business for us?

Mionis: Engines are 85 percent of what we do. Of that 85 percent, 25 percent is military and government; 30 percent is airline fleets; and 30 percent is business aviation.

AM: Is the support from Dubai strong?

Mionis: The folks in Dubai are prudent business people. They understand that the world around us is changing and are attuned to the trends in the market. What’s more, they are receptive to opportunities. My personal view is to prepare for the worst and hope for the best. We think aerospace will emerge from this period stronger.

AM: How does StandardAero fit into the DAE picture?

Mionis: StandardAero provides a platform for growth within the MRO space. Be it military, airline or business aviation MRO, StandardAero has the expertise to grow internally or through acquisitions.

AM: What is your strategy for the business aviation market in the coming years?

Mionis: The Mid-East market will still see 20 percent growth over the next five years. A key question is how do we take advantage of that growth and capitalize on it. Many organizations in the area are looking to team with someone. There are some shops but not at the same sophistication level as ours. We can offer process help and leadership skills and look at the world with one set of eyes. With global facilities in North America, Europe and the Southwest Pacific, we continuously monitor the emerging markets for new opportunities.

AM: You have partnered with GE. How is that working?

Mionis: We have linked ourselves so that we act as the backshop to the OEM’s frontshop. This way, we can offer a broader set of services. Our relationship with GE has become a true partnership. They have strong overhaul competency, while we have speed, quality and cost competitiveness. This allows us to grow together.