Intelligence: News

Independent Review Panel Recommends FAA Safety, AD Reforms

U.S. Dept. of Transportation Secretary Mary Peters has directed the Federal Aviation Administration (FAA) to adopt 13 safety recommendations from an independent review team (IRT), including two that focus on airworthiness directives (ADs). The panel was appointed in May to examine the U.S. aviation system and the FAA’s approach to safety management following an April hearing about maintenance lapses at Southwest Airlines and improper FAA oversight. One of the central IRT recommendations is that FAA implement new safeguards to prevent regulators from developing "overly cozy" relationships with the airlines they regulate.

Two of the 13 recommendations focus on ADs — the first involves FAA retaining its right to ground any aircraft that does not comply with an applicable AD, and inspectors not being required "to conduct any type of risk assessment before taking action on AD non-compliance." The panel’s second directive involves providing timely data about new AD requirements to FAA field offices, ahead of compliance dates, so they can respond to airline requests for assistance. In order to accommodate those requests, the panel is asking the agency to revise its workload management systems, including ATOS.

"FAA has already recognized the need to improve the AD process and the quality and clarity of ADs themselves," the report states. Peters adds that the agency is undertaking a full review of AD compliance procedures, and expects to incorporate changes by the end of the year. The reforms "will improve both the intensity and the integrity of the FAA’s safety program," she says. Other initiatives include retaining the agency’s voluntary disclosure program, focusing on FAA’s internal culture and implementing an internal safety management system by 2011.

General Dynamics Purchases Jet Aviation

Falls Church, Va.-based General Dynamics has secured a definitive agreement to acquire Jet Aviation for 2.45 billion Swiss francs (around $2.25 billion). Under the terms of the deal, General Dynamics will buy Jet Aviation from Dreamliner Lux, a company controlled by Permira Funds, which has owned Jet Aviation for the past three years.

Jet Aviation is based in Zurich, Switzerland. The aircraft support provider employs around 5,600 people at 25 airports in Europe, Asia, the Middle East, and North and South America, offering MRO, completions, refurbishments, engineering, FBO services, and aircraft charter, management and sales.

As part of the agreement, Jet Aviation’s management team will remain in place and the company will retain its brand operating as a business unit within General Dynamics’ Aerospace group. Jet Aviation subsidiary Midcoast Aviation will also keep its original name. Following regulatory approvals and endorsement by both companies, finalization is set to take place by the end of 2008. Jet Aviation, Midcoast and Savannah Air Center — which Jet Aviation acquired in January 2008 — have nine U.S. locations in Bedford/Boston, Mass., Cahokia, Ill., Chicago, Dallas, Lambert, Mo., Palm Beach, Fla., San Antonio, Savannah and Teterboro, N.J.

American Fined For Maintenance Lapses

FAA has levied a total of $7.1 million in civil penalties on American Airlines for alleged maintenance lapses and safety violations. The fines come after the carrier announced plans to cut around 1,500 jobs in its maintenance division, including 1,300 mechanics and 200 support personnel.

According to FAA, American is cited for several violations, including that the carrier employed the incorrect provisions of its minimum equipment list (MEL) to return two MD-80s to service in December 2007. Documents state that the aircraft flew 58 times in violation of FAA regulations.

The agency justifies the large fines because American "was aware that appropriate repairs were needed, and instead deferred maintenance. In intentionally continuing to fly the aircraft, the carrier did not follow important safety regulations intended to protect passengers and crew," according to a statement.

Under a restructuring plan, American will reduce its workforce as its Airbus A330 fleet begins retiring later this year. The carrier has major maintenance bases in Kansas City, Tulsa, Okla. and Fort Worth, Texas, as well as smaller centers around the U.S. Details have not emerged about how the carrier will structure work among its three main bases, but company officials have indicated that jobs cuts will take place at all three hubs.

Gulfstream Dedicates Phase II of R&D Complex

Federal, state and local elected officials, customers and members of the press joined company leaders for an Aug. 22 ceremonial opening of the second phase of Gulfstream’s research and development center near Savannah Intl Airport in Georgia. The second phase — part of a 7-year expansion plan costing more than $400 million — involves a 108,750-square-foot office building and 80,500-square-foot laboratory. The office building will house around 550 employees from the company’s engineering, accounting and publications departments and 150 engineers and support personnel will work at the lab.

"The addition of these two buildings to our growing campus will allow us to maintain our competitive edge in research and development," says Gulfstream President Joe Lombardo. He adds that hiring quality personnel for the center has not been an issue, even with a growing shortage of skilled labor available.

"What we’re doing here attracts people," Lombardo says. The second phase of the complex features more than a dozen labs, which will carry out research on a range of aircraft properties, including advanced composites, flight deck technology, acoustics, 3D modeling, rapid prototyping, interior design, wood modeling, cabin systems and other specialized research.

The facility will compliment the first phase of the R&D complex, which opened in March 2006. During the ceremony — which came a week after the Gulfstream’s celebration of the GI’s first flight on Aug. 14, 1958 — General Dynamics Chairman and CEO Nicholas Chabraja uncovered a plaque recognizing the efforts of Gulfstream researchers over the past 50 years.

PMA Component Use Continues to Rise Among European Air Carriers

As the cost of maintaining and operating aircraft trends upward and fuel prices continue to spike, airlines are constantly seeking new methods to lower costs. Parts manufacturer approval (PMA) components have become a more widespread way to shave dollars off the bottom line. For example, carriers are incorporating parts made by third-party aftermarket PMA companies to replace components in the engine, on the airframe, within the cabin or in aircraft systems such as landing gear or brakes.

Martin Ambrose, manager safety and maintenance for the European Regions Airline Association (ERA), says that the number of PMA parts users in Europe is growing. He points to statistics that estimated in 1997, Europe, the Middle East and Africa accounted for 20 percent of the worldwide PMA market and the U.S. around 76 percent. In 2007, the U.S. market share dropped to 49 percent, while the European share rose to around 33 percent. "Estimates I’m seeing note that within the next decade, it will go up to perhaps 40 percent of the market, with the U.S. dropping to 35 percent and Asia/Australia moving up to 25 percent," Ambrose says. "There’s a possibility that Europe as a marketplace will be bigger than America in 10 years," he adds.

Jason Dickstein, president of the Modification and Replacement Parts Association (MARPA), agrees that PMA use is on the rise in Europe. There was a time when only a small handful of European airlines, such as Lufthansa Technik, were interested in PMA parts, but "I can no longer tell you the name of any air carrier in Europe that is not using them," he says. "I used to be able to point to certain air carriers, but now I can’t think of a single one that’s not using PMA parts somewhere."

Last year, only one European airline attended MARPA’s annual conference, but there are a "fair number" registered for this year’s event, which takes place in October. In addition to learning more about PMA parts, many of the operators bring "wish lists" of parts they would like to get into their system, parts that have given them reliability problems or parts that the OEM has been unable to support, according to Dickstein. Some walk away from the event with agreements in place to purchase from PMA suppliers, he adds.

In September 2007, ERA hosted the Great PMA Debate, a forum to bring together representatives from the airlines, EASA, FAA, airframe and engine OEMs, PMA manufacturers, and leasing companies "with an aim of educating and informing the delegates in the room," Ambrose says. At the conference, a representative from British Airways, one of the last European carriers to begin using PMA parts, "said they have moved into PMA now. For them to take a step forward like this into the PMA market says volumes," Ambrose notes. As other major carriers like Lufthansa and Air France employ PMA parts in their operations, it "bolsters confidence within the smaller carriers," he adds.

PMA parts have been around for more than 50 years, but it’s only in the past decade or so that they have gained widespread acceptance in the U.S. While higher fuel and operating costs seem to be catalysts for the expansion of the PMA market in America, it’s harder to pin down the reasons why it took a while for a large number of European operators to begin using PMA parts. Ambrose points to political and cultural differences between the U.S. and Europe. Regardless of the historical reasons, Dickstein says he is "surprised at the speed with which Europe has embraced PMA parts, given the long history of trying to gain acceptance in the U.S."

The U.S. has long had bilateral agreements with its major European trading partners permitting nations to accept PMA parts. But EASA and FAA are working on an agreement that will cover the entire European community.

Dickstein notes that while the pan-European bilateral will more formally recognize PMA parts, a July 2007 EASA directive accepting FAA-approved parts as valid "was all we really needed." The directive stipulates that Europe recognizes parts designed under the U.S. PMA system, as long as it has received FAA design and certification approval and meets the three criteria contained in the directive. Dickstein predicts that remaining perception issues will be cleared up in the next five to 10 years. While there still may be a few Europeans who haven’t jumped on the PMA bandwagon, Dickstein sees a lot more "mainstream people... that have already disabused themselves of the notion that PMAs are anything other than good parts." — Andrew D. Parker

Snecma Services Adds CFM56 MRO to Fast-Growing Mexican Aviation Center

Snecma Services (SNS) opened its latest MRO facility in May, continuing its movement toward a worldwide network of service centers for the CFM56 engine. The new facility, Snecma America Engine Services (SAMES), officially opened on May 16 in Querétaro, Mexico as a joint venture with Mexican engine MRO company Turborreactores SA de CV (ITR), which provides JT8D services at the Querétaro facility. The original agreement was signed in October 2006. Querétaro is the sixth location in SNS’s growing list of dedicated CFM56 MROs. Other sites include three wholly owned shops in Saint-Quentin-en-Yvelines and Châtellerault near Paris, France and Brussels, Belgium, plus two joint ventures with airlines that use CFM engines: Royal Air Maroc in Casablanca (Snecma Morocco Engine Services) and Air China Group in China (Sichuan Snecma Aero-engine Maintenance).

SNS is also in talks with Aeroflot to open a joint venture shop in Russia. There are currently about 300 CFM56 engines in Russia, with about 50 percent serviced by SNS, according to Jean-Paul Herteman, CEO of Safran, parent company of SNS. The company announced plans in 2006 for a joint venture with Aeroflot to service CFM56s operated by Aeroflot and other Russian airlines, as well as the Powerjet SaM146 engine for the Sukhoi Superjet 100. Powerjet, a 50/50 joint venture between Snecma and NPO Saturn of Rybinsk, Russia, is planned to be in place by 2012. The French engine MRO organization is also in discussions for a new joint venture in India.

SNS signed an agreement with TAP Portugal allowing its Maintenance and Engineering division to overhaul CFM56 engines "from and on behalf of SNS." In May TAP and SNS signed a two-year deal covering repairs of high and low pressure nozzle guide vanes for the CFM56-3, -5C, -5B and -7B handled by TAP. These repairs will be done at SNS Châtellerault. SNS Chairman and CEO Denis Vercherin says that expanding relations with TAP Maintenance and Engineering "is a very positive move for both our companies. This latest collaboration on parts repair proves our ability to combine competitive prices with OEM repair quality. The company will also benefit from the added shop visit planning flexibility that the overflow agreement provides."

SAMES opened the Querétaro facility using space leased from ITR. SAMES initially leased 1,260 square meters (13,562 square feet) in ITR’s primary facility, and is adding another 370 square meters (3,982 square feet) this summer. The company plans to add further space by next January to bring the total shop space to about 2,000 square meters (21,527 square feet). Another roughly 1,000 square meters (10,764 square feet) will serve as management offices and for other administrative requirements, providing a total of about 3,000 square meters (32,291 square feet). Total investment is $40 million — $20 million for capital equipment and $20 million for administrative startup costs and working capital, according to SAMES CEO François-Xavier Foubert. Sales and marketing in the Americas will be handled out of the Querétaro facility, headed by Fernando Comenge, VP sales and marketing. "SAMES is ideally located to serve the CFM 56 MRO market in the Americas," Comenge says. "The high number of shop visits in North America account for more than one third of the worldwide market. Coupled with a fast growing market in Latin America, that makes the Americas one of the most attractive regions for CFM56 MRO business."

First customer for the new joint CFM56 overhaul facility is Mexicana, which signed a 20-year contract with SAMES to support the airline’s fleet of Airbus A320/A319/A318s. Northwest, which already has a long-term agreement with SNS, will also use SAMES to repair their CFM56-5As.

SAMES primary function will be to disassemble and reassemble the CFM56s that come through it. Most of the maintenance tasks will be done in-house reusing SNS’s optimized logistics scheme, although some specific tasks will be subcontracted to ITR, such as cleaning and NDT of parts, as well as engine testing in the ITR engine test cell.

However, Foubert notes that SNS in Paris will perform high tech repairs on HP and LP blades. Querétaro’s offerings include engine ground tests, quick engine change (QEC) removal/installation, on-wing servicing with engine maintenance on site, engineering support and fleet management, technical assistance, engine leasing and technical training. SAMES will also provide financing, technical knowledge and equipment for tearing down the CFM56s. A major advantage of the ITR facility is an engine test cell that can be used for either the JT8D or CFM56. The test cell is certified for the CFM56-5A and 5B that powers the Airbus A320 family. Certification for the CFM56-7B, which powers the 737 family, is expected early next year.

Foubert notes that there are some 40 repair and overhaul shops in the world for the CFM56 — SNS being the second largest with 16 percent of market share. With more than 18,000 CFM56s in service and a total of more than 20,000 ordered to date, the number of annual shop visits for the CFM56 fleet is expected to grow by about 40 percent between 2008 and 2011. The company says that it currently keeps "a constant watch through engineering support and assistance on some 1,300 engines, logging more than 3.5 million flight hours a year for 30 customers."

Initially, an engine will take 55 days to go through the overhaul process. However, Foubert says they are trying to get that figure down to 45 days. They currently have 10 engines scheduled for the remainder of this year.

Safran Group opened a facility in Querétaro in October 2007 to provide MRO for Messier Services landing gear and hydraulics (See AM, Dec. 2007). Herteman says that the two companies would work together in any way possible, such as a combined 24-hour call center. Querétaro was chosen by both Messier and SNS because of its growing technological base, particularly in the aerospace industry. ITR is already established in Querétaro, and Bombardier opened a manufacturing facility for wire harnesses, fuselages and flight controls late in 2007 and added a new manufacturing facility for components for the Q400 and Challenger 850 business aircraft in February 2008. GE Mexico also has a facility in Querétaro to maintain and overhaul engines.

Herteman notes that SAMES has signed agreements with a number of universities "to ensure (a source) of engineers." He adds that there are now some 15,000 people in Mexico working in the aerospace industry, of which 3,500 are working for the Safran Group, allowing "a very capable workforce that provides a big source of engineering talent." As for training of the maintenance personnel, Foubert says that they will train some mechanics in France, but primarily training will by French instructors brought to Querétaro. SAMES currently has 13 mechanics working on the first CFM56 engines going through the facility, with another 20 in training. Ultimately, by 2014, the company plans to have a total of 200 mechanics and 100 administration staff employed in Querétaro. — Douglas W. Nelms