Stressing the need for focussed strategy in these trying times, AMETEK MRO recently invested heavily in A350 maintenance solutions for Asia Pacific customers. Alan Harding, Divisional Vice President MRO Europe & Asia, AMETEK MRO explains this as a part of their expansion plans. Apart from this, they will be relocating the Muirhead Avionics business within the next 24 months for the want of more floor-space to accommodate newer contracts. In an exclusive chat with Swati.k, Alan explains the course of AMETEK’s strategy post-pandemic, their expansion plans and speaks in depth about their recently opened facility in Paris. Read On! To find more…
Q – First of all, congratulations on your latest investment in A350 maintenance solutions in Singapore. Can you elaborate on how will it help your Asia Pacific customers with regional support options?
Ans – The A350 has a range of around 15,000km so it is hardly surprising that operators are choosing this aircraft to service their long-haul routes. As such, it is crucial to be able to provide comprehensive maintenance solutions particularly in regions such as Asia Pacific where European- and U.S.-based MROs are not viable repair options from a logistics point of view. As an authorised warranty repair station, we provide OEM warranty assessment as well as repair services for cockpit, galley, wheels & Brakes, Fire, Oxygen and bulk cargo components. In recent years, the Company’s new investment to support aircraft, such as the A350, has been part of a focused strategy to expand the range of repair services to airlines across the broader region, including China and Japan.
Q – Can you tell our readers how has the pandemic changed AMETEK’s strategy going ahead?
Ans – I don’t think the pandemic has significantly changed our fundamental strategy in terms of how we support both our local and global markets, what the pandemic has influenced with pending fleet retirements, is the platforms and market segmentation that we now look to continue to support and develop further. By this I mean the potential for growth within regional, Bizjet, cargo and end-of-life solutions.
Q – How according to you will third party MROs sustain in the present MRO scenario given the situations surrounding early fleet retirements, airline restructuring and changes in airline purchasing strategies?
Ans – Early fleet retirements can be both and opportunity and a threat. Clearly opportunities around USM and Green-Time material availability and supporting potential end-of-life programmes. But also, a threat in terms of devaluation of existing inventories and E&O exposures. Airline restructuring and purchasing behaviours will see additional risk sharing for third party MROs in terms of inventory, investment and cash flow. Closer longer-term strategic relationships sought over one-time pricing awards.
Q – How do you plan to adapt to the new aftermarket that emerges post pandemic?
Ans – I believe we have already adapted over the last 18/24 months that we have been operating under the restrictions and impacts of the pandemic. We have made best use of technology to stay in contact with customers and suppliers and have afforded flexibility to both in how we trade. Digital marketing and e-commerce have also been a significant focus for us and how we engage with the wider community. Flexibility in our service and contractual offering, will be key to developing relationships and business moving forward.
Q – Antavia recently opened a new 2500 sq m facility in Paris, can you tell us a bit more about the facility? Any particular reason as to why this facility replicates your modern unit near Toulouse.
Ans – Our previous facility in Villeron just outside of Paris CDG, was approaching end-of-lease and required quite significant upgrades to accommodate our anticipated growth. The new facility in Le Mesnil is within the airport perimeters at CDG and affords a huge benefit for aircraft operators/owners. The move has enabled ANTAVIA to integrate new equipment and further enhance our very short overhaul and tyre change TATs. Being part of the AMETEK MRO group means we can invest with confidence, and this not only benefits our European customers, but underpins the expanding support programmes that we deliver for the European operations of US/Canadian airframers. We have designed the new shop to replicate the Company’s modern unit near Toulouse and the launch is a fitting accolade for the dedicated workforce as the organisation celebrates its 40,000th wheel and brake repair milestone.
Q – What are your expansion plans going ahead?
Ans – On a ‘planned’ basis, we will be relocating our Muirhead Avionics business within the next 24 months. This is due to both lease expiration and a need for additional floor-space on the back of new contract awards, we will be looking for an additional 10,000 sq ft over the existing footprint of 16,000 in the Heathrow area. Over and above this, we remain open and flexible to changing opportunities and given our global footprint and available resources, we are able to react quickly to meet and support customer needs.
Q – Given the pace of current market, how soon do you think the MRO sector will recover and hit the pre-Covid levels?
Ans – Very difficult as all of us have misjudged this over the last 18/24 months. Certainly Omicron and variants aside, Q4/21 was starting to see some confidence return and inputs were on a steady rise. Early 2022 has seen this stall to some degree but I believe we will start to witness a gradual return from Q2/22, with holiday bookings/flights showing strong uptake and interest. Asia Pac still remains hardest hit and slowest to recover, along with international travel in some respects, and I believe we will not see a significant recovery in this sector until likely H2/22.
Q – As per the global airlines trend, newer, modern and technologically advanced fleet are rapidly replacing older widebody aircraft. Will this pose as a challenge for the MROs in business?
Ans – As with fleet retirements, this is both a threat and opportunity for any MRO. As commented, the priority is to stay nimble, flexible and ahead of the market dynamics. Certainly at Ametek MRO, we look to maximise opportunities at all stages of the aircrafts life cycle, and just as we actively seek and support end-of-life programmes working directly with the OEM’s, we are also focused upon and investing in the support of the newer platforms and our recent press release announcing our newly developed capability in our Singapore operation supporting the A350 Heaters, is a prime example of this.
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Q – What advise will you give to the current AME’s pursuing aviation as their career path?
Ans – Going back more years than I care to remember and starting my apprenticeship with what was Hawker Siddley working on the likes of the Hawk, Harrier, BAE 146, and Tornado, I was told I would be fortunate to see my apprenticeship out! Forty plus years later and the industry is in better shape than ever and continues to be at the forefront of technology advancements. The coming years with the advancement of power generation, hydrogen technology, UAVs and access to travel opening up to everyone, the industry will continue to offer AME’s class leading opportunities and exciting challenges with great longevity for many years to come.
