With the tagline 'Transforming aviation efficiency' - The AJW group stands true to their word. Today they are the worlds leading independent specialist in the supply and repair of aircraft spare parts. In an exclusive Interview
Frank Boni, Vice President, MRO Sales talks about the new and latest technologies to improve the component efficiency, how costly is aviation MRO and how they help the airlines in keeping the costs in check.
Q - What sets AJW Group's component MRO and Repair Management offering apart from the competition?
A - AJW sources repair excellence across commercial and business platforms from a wide range of sources including its own component repair and overhaul facility, AJW Technique. All our repair shops and OEM specialists are rigorously benchmarked to ensure absolute quality and consistency in terms of repair quality and turn-around-time.
AJW Technique utilises one of the best industry-specific engineering skill bases in the world, serving the commercial and business aviation marketplace across an expanding and diverse range of platform types.
We ensure outstanding reliability, industry leading turn-around times and superior warranties that deliver the standards our customers expect, supported by guaranteed availability from our extensive global inventory.
We maintain a streamlined global network of specialist approved workshops and spend over US$400m annually on more than 115,000 individual repair orders.
This combined with our exacting standards for quality, reliability and delivery underpin our competitive pricing, ensuring the cost-efficiency of our repair management services - all leveraged by our experienced team.
AJW's greatest strength is its independence, and it is that - together with its size and the reputation of its brand - which gives AJW the freedom and fluidity to move with the market's needs, setting us apart from the competition.
Our strategy is to redefine the aviation supply chain so that we are an enabler and a facilitator that meets the needs of both our customers and partners worldwide to continue to transform aviation efficiency.
Q - Why might a 'local first' approach to component MRO cost operators more than they realise?
A - 'Go local' is one of the most common - and potentially costly myths - influencing the way operators manage their component MRO. It may seem logical that an airline requiring a component repair in Kuala Lumpur should seek help in Singapore, rather than Montreal, but in fact the numbers seldom stack up.
Firstly, there is a common misconception that component MRO is about the time it takes to service a part. In reality, parts are rarely repaired while the aircraft waits, so the time between a part being removed and replaced is the metric that really matters. For example, an Integrated Drive Generator (IDG) can take over four weeks to repair, whereas it can be replaced in a matter of three hours.
When you consider that you are never more than a day away by air courier from all of the major MRO hubs across the globe, it's clear that shipping parts to the geographically closest market may not make sense. The freight costs may be slightly more, but as a percentage of the total overhaul bill, they are negligible.
Of course, there will always be certain parts that are too bulky or hazardous that will need to be transported overland and therefore serviced locally for example, escape slides. However, this is only a very small sample of the thousands of components that operators replace and repair every day.
Q - The success of the low-cost carrier model has forced all airlines to take a hard look at every aspect of their cost base, to which component maintenance is a major contributor. How are you helping operators to keep their costs down?
A - Airlines and manufacturers are realising that there are a range of 'hidden costs' that can be avoided by taking a more strategic and international approach to their parts maintenance.
Sourcing local providers on an individual basis leaves operators with the headache of managing a host of relationships with suppliers in the region, and makes it difficult for operators to guarantee competitive prices. Where contracts and agreements are not in place, the enquiry, logistics and approval process or sourcing a part can add a minimum of at least six days, significantly increasing the cost.
In response, airlines and manufacturers are increasingly outsourcing their component MRO to aggregators, replacing a web of different suppliers with a single point of contact. A good network, with a pre-agreed contractual framework, can do much of the hard work before a part even leaves the aircraft.
Adopting this approach allows operators to benefit from a standardised quality of service and streamlined processes. Aggregators are better placed to select the right supplier and can also more easily offer exchange options, avoiding the need to wait for repairs to be completed.
We are increasingly seeing demand from operators for this type of arrangement as it ensures better customer service - in their preferred language - plus savings derived from the aggregator's on-going relationships with suppliers, where they benefit from economies of scale and can drive continual improvement and efficiencies.
Taking a global approach to MRO and working with an aggregator allows operators to spend wherever they are likely to see the best return - taking advantage of fluctuations in exchange
rates. They can also spread risk by avoiding price spikes driven by regional natural events such as ash clouds and earthquakes.
Q - How are new technologies helping to improve efficiency within the component MRO market?
A - Large aggregators have access to a huge pool of component data across the aircraft they support. This allows them to measure an operator's performance anonymously against their competitors, and drive efficiencies by drawing on best practice learned through work for multiple operators.
Components often reach MRO suppliers without adequate records, which could see a part removed predictively, pass the standard tests and go back into service on the brink of failing. A structured approach to data management and handling can help avoid the risk of this happening.
AJW have recently partnered with a major OEM to develop an online portal to log and maintain visibility for all its component MRO, enabling staff to closely monitor and control stock.