MTU Maintenance, the world’s leading provider of customized services for aircraft engines has consistently and successfully pursued its growth plans. In 2021, they fortified their standing in the engine aftermarket and remained committed to its expansion activities around the globe – in addition to increasing shop inductions to above pre-Covid levels. Martin Friis-Petersen, SVP MRO Programs, MTU Aero Engines speaks about MTU’s commitment to sustainable aviation, how they weathered the COVID-19 pandemic, their expansion plans going ahead and a lot more in an exclusive interview with Swati.k
Q – First of all, Congratulations on being the first MRO provider worldwide to be offering test runs with SAF. Sustainable Aviation/ Green aviation, CO2 emission, zero-emission travel is the talk of the town these days. MTU Maintenance also recently partnered with JetBlue for testing and data-gathering on sustainable aviation fuels (SAF). Can you tell us more about this deal?
Ans – We are very pleased indeed to have partnered with JetBlue for the testing and data-gathering on SAF for the airline’s V2500 engines following on from shop visits in Hannover. The V2500 is MTU’s largest program and JetBlue is our largest single customer for that engine type.
Both companies are committed to sustainable aviation, so it was an ideal match for both companies. While it is JetBlue’s goal to achieve net-zero carbon emissions by 2040, MTU is adhering to the Paris Climate Agreement. We aim to become carbon neutral at all our German production facilities.
The test runs will initially be performed with a 10% SAF fuel blend – 10% bio-kerosene and 90% Jet A-1 kerosene – and can be expanded to up to 50%, the current regulatory limit, if required. This SAF is sustainably derived from waste fats, oils, and greases and has up to an 80% lifecycle greenhouse gas emission reduction per gallon as compared to the conventional jet fuel it replaces. We are monitoring these tests closely and generally aim to gain experience in the use of SAFs. Due to the fact that SAFs are approved aviation turbine fuels, these tests run similarly to conventional test runs.
Q – Currently, tests are being carried out across the Aerospace sector using 10 percent to 50 percent SAF blend. Do you think the aerospace sector will achieve 100 percent SAF for commercial use?
Ans – While MTU currently uses the 10% SAF blend for engine testing after repair and overhaul work for specific customers, JetBlue uses the same blend in flight. The latter however is restricted to a maximum of 50% SAF as per ASTM7566 norm today. In order to reach a higher share, limitations from the authorities would need to change first.
At present, the main issue in achieving higher rates is more of a supply issue as there is only a limited amount of SAF on the market, and it by far does not cover the growing needs of the aviation sector. Pricing is also still high, which is expected to go down together with higher production rates. As such, it is difficult to predict when a sufficient amount of SAF will be available at a competitive price. Fast-rising crude oil prices could actually help reach that breakeven point earlier than expected.
Q – Recently, Boeing purchased two million gallons of blended sustainable aviation fuel or SAF from EPIC Fuels to power their Commercial Airplanes operations in Washington. This is by far the largest SAF procurement by any company. Your comments
Ans – Boeing’s SAF acquisition is another testament that the aviation industry is committed to the ICAO/IATA goal of zero emissions by 2050. SAF supply remains one of the prime drivers to improve the carbon footprint of installed current generation engine types.
Regarding SAF supply, MTU is evaluating the feedstock and production process so that it is in compliance with the EU Renewable Energy Directive (RED II). Further, SAF transportation from the production plants and its caused GHG emissions are part of the evaluation. Therefore, MTU is following with great interest the build-up of production capacity for synthetic kerosene in Germany and European locations nearby.
Q – Can you elaborate more on the term – “Sustainable MRO solutions for customers” across the lifecycle?
Ans – We began testing SAF with the V2500 engines last November. After the partnership with JetBlue, we look forward to expanding this to other engine types and customers, such as the popular CFM56-7B and GE90 engines in due course. Over time, we hope to increase the number of test runs, as well as the SAF blend ratios. SAF is a key initiative in reducing the climate impact of the aviation industry. At MTU, we are implementing SAF early and promoting its usage to and for our customers, also in our maintenance business.
Of course, we have all kinds of sustainability initiatives within the group over the entire engine lifecycle – from development, production to operations and maintenance. One of our biggest over the past few years actually also was in Hannover and concerned energy efficiency and emissions reductions. We achieved reductions for instance by investing in insulation, heat exchangers, LED lighting, etc. and our ongoing site extension is being built according to the newest standards. We are also planning larger projects, such as changing our heating systems for renewable energy sources.
What has been part of MTU’s DNA for a long-time is our “repairing instead of replacing” philosophy when it comes to engine materials. This not only saves costs for our customers; it has a positive effect on the environment.
Q – Can you throw some light on your latest partnership with the Nayak Group?
Ans – At Maintenance, we are currently focusing on expanding our on-site and near-wing services. Especially during the time of Covid-19, when airlines were looking for reducing their MRO expenditures, we have seen a growing demand for customized solutions at the best cost, either in-shop or on-site. In order to be able to offer the full gamut of services, we have entered into a cooperation with the Nayak group. Thanks to our partner, we are now able to offer our ON-SITEPlus engine services in combination with aircraft line and base maintenance services, a new addition that will be performed by Nayak. This also includes services such as performance washes and engine changes. In turn, Nayak will also be offering more extensive engine services, via MTU Maintenance, to its aircraft customers. This is a win-win partnership – for MTU, Nayak, and our customers.
While Nayak has a decentralized network of 50 facilities in 16 countries, MTU is growing its worldwide service network and dedicated workforce for on-site services. Last year, we completed over 1,000 events annually for more than 400 customers worldwide.
Q – Our readers would like to know how MTU Maintenance battled the COVID19 pandemic and your recovery plans going ahead.
Ans – Luckily, we have weathered the Covid-19 storm rather well, most probably better than most of our competitors. While airline shops run dry as many aircraft remained grounded worldwide for longer periods and OEM production and spare parts sales also fell short, MTU Maintenance benefited from its broad portfolio, partnerships and customers.
For example, MTU’s facility in China saw a faster demand recovery, thanks to a strong domestic market and partner airline China Southern as a base customer. Our flagship location in Hannover served increasing demand from cargo operators, a strong customer base of MTU. Further, MTU was able to perform some necessary work on the PW1100G as part of the OEM network for that engine type, as well as some project shop visits on other engine types.
At present, we see demand picking up fast in nearly all segments and recovery is especially strong for regional jets and narrow-body engines. We expect to see our global MRO levels recover to pre-pandemic levels in 2022 in terms of shop visits, which is far earlier than market predictions in terms of passenger traffic, which should only fully recover globally by 23/24. Luckily, we have retained our highly-qualified staff during the pandemic and have continued to invest in additional capacities and new facilities. We are ready to support the ongoing recovery!
Q – MTU Maintenance opened a new facility with quick-turn docks at MTU Maintenance Berlin-Brandenburg. What are your expansion plans going ahead?
Ans – It is our commitment to our customers to increase our services and network and become the number one on-site engine service provider in Europe. The new facility in Ludwigsfelde was an important milestone towards that goal. We want to be close to your customer and have additional dedicated teams based in the Americas, Europe, and Asia. We are currently considering further expanding those capabilities within our worldwide network.
Q – What advice would you give to the younger generation planning to pursue a career in aircraft maintenance?
Ans – The aviation industry is all about connecting people and it is encouraging to observe the fast recovery of travel with the ongoing lifting the travel restrictions. Forget all about Covid-19, travel restrictions, and a depressed aviation industry! This industry, also its maintenance sector, will soon become again the fast-growing booming industry it used to be. With increased flying comes an increased demand for maintenance, so jobs in this sector are secure. Considering the increasingly scarce maintenance personnel – as many technicians have left the industry during the crisis – there are for sure good opportunities for making a career as a technician or engineer in engine maintenance.
Read other interviews… AMETEK MRO – Adapting to new aftermarket
Engine maintenance starts evolving too and is becoming more digital – with a sharp focus on providing solutions, which may appeal to the younger generation. It is no longer just turning and wrenching but trying to find the best solutions for our customers in terms of flexibility, price, and availability – using the expert brain as well as artificial intelligence tools. As such, MTU Maintenance is heavily focused on investing in digitalization and we recently have launched CORTEX, our new engine fleet management service that combines technical expertise with data, for example from engine trend monitoring, shop work scoping history, and market understanding, with algorithms and artificial intelligence.
