Max Kingsley-Jones/ABU DHABI
GAMCO is offering customers more capacity and more choices as it strives to be a major maintenance force
Gulf Aircraft Maintenance (GAMCO) is driving ahead to become a major force in the world aircraft maintenance market as it begins to expand capacity and offer more services.
The Abu Dhabi-based company was formed in 1980 as a two-way joint venture between the local government, with 60%, and Gulf Air (in which Abu Dhabi has a 25% stake) holding the remaining 40%. The company operates to Joint Aviation Regulations (JAR) 145 standards from a five-bay hangar at Abu Dhabi International Airport, but is poised for major expansion around the region as it moves to become the Gulf's premier maintenance provider.
Allan Dollie, GAMCO's managing director, was appointed two years ago by GAMCO chairman Sheikh Hamdan bin Mubarak Al Nahyan to push expansion into new markets. "The hangar was built to cater for Gulf Air when it had a much larger, older fleet," says Dollie. "The fleet is now smaller and made up of younger aircraft requiring less maintenance. We could no longer justify the hangar just for Gulf Air, so we went out to market it to third parties."
Dollie, who joined from Northwest Airlines, sees his role as expanding the company's reach through a commercially focused approach to business. "Our local customers demand total quality. My job is to provide that quality at prices acceptable to the international market," he says.
Since Dollie joined, an additional one-bay hangar has been built at GAMCO's Abu Dhabi base and plans are being finalised for another new facility. The latest structure will be designed to accommodate two Airbus A3XX-sized aircraft simultaneously.
GAMCO employs some 1,270 staff and, with its strong Gulf Air ties, the focus of its expertise is on the types that have been in the airline's inventory. These include the Lockheed L-1011 TriStar, the Boeing 767 and all the Airbus types. GAMCO is examining whether it should offer Boeing 747 capability.
Dollie says that GAMCO "knows the TriStar well," and the airliner continues to represent an important area of its business despite Gulf Air's retirement of the type. Customers include Caledonian Airways, Air Atlanta Icelandic, American International Airways and the UK Royal Air Force.
TriStar contracts can be very maintenance intensive, and therefore quite lucrative says Dollie: "When we get a TriStar in, we usually get a lot of work," he says, as ad hoc structural repair requirments can double or triple the man-hour count when undertaking heavy maintenance checks.
Business Diversification
The company has set up two joint ventures at its Abu Dhabi facility, to enable it to expand and diversify its business interests. GAMPAS, a joint venture with Preston Air Services, specialises in maintenance and overhaul of small turbine engines such as auxiliary power units and turboprop aero-engines. GAMAERO is a partnership with Aerospatiale in which GAMCO holds a 49% stake and the French company has the rest. The venture undertakes overhaul of airliner avionics using the Aerospatiale ATIC5000/6000 system. Dollie says the company wants to expand its business by increasing its capability to handle more aircraft types.
The first major step in GAMCO's expansion involves setting up regional maintenance divisions within the Gulf and absorbing Gulf Air's line maintenance worldwide. In January, agreement was reached to create GAMCO Bahrain, in which GAMCO holds 51% and Bahrain Airport Services (BAS) the remainder. The new division will initially take over a two-bay hangar at Bahrain used by Gulf Air. This will be able to undertake casualty maintenance and A-level maintenance checks.
In the longer term, a new $80 million, 35,000m2 (376,7500ft2) four-bay maintenance facility is to be built at the airport by Bahrain International Airport Development, for lease to GAMCO Bahrain. This new hangar should be ready for operation in early 2001, equipped with support workshops. The finished product will be able to offer overhauls up to C-level checks. The design incorporates a VIP terminal to handle business aircraft and maintenance.
Dollie, who is chairman of the new Bahrain division, says the thinking behind the VIP terminal centres on plans to develop an executive aircraft maintenance business. Dollie believes this link to the executive market potentially could generate a large chunk of work for GAMCO. "Business jet work could include maintenance up to C-check, cabin refurbishments and avionics upgrades," says Dollie. He adds that GAMCO is in discussions to become a regional service centre for the Boeing Business Jet and Airbus A319CJ.
Productivity boosted
The new dedicated facility in Bahrain will enable Gulf Air to boost its Airbus A320 productivity by eliminating ferry flights to Abu Dhabi for maintenance. "It will also free capacity here in Abu Dhabi for other work," he says.
GAMCO's expansion comes hand-in-hand with a drive to improve the fortunes of its partner Gulf Air. The transfer of the airline's line maintenance operation around the world to GAMCO during April should help this ambition. The initiative for the move, expected to net considerable cost savings for Gulf Air, came from the airline's directors, says Dollie.
Gulf Air's worldwide maintenance staff will be transferred to GAMCO, which will continue to undertake the work under Gulf Air's JAR 121 certificate. Once the division is running, third-party business will be developed to ensure the operation is profitable.
The next phase of GAMCO's expansion could include a joint venture formed with Oman Air Services in Muscat to provide regional aircraft maintenance. Dollie says agreement to move forward could be reached this year.
Although details have not been finalised, "GAMCO Oman" is likely to follow a similar blueprint to the Bahrain operation, with GAMCO holding a minority shareholding. "If we get involved, we would want to look at expanding the facilities and services offered," says Dollie.
Local co-operation eyed
GAMCO does not have strong links with Qatar Airways, although Dollie admits he would like to explore co-operation. Qatar's recent introduction of its A320s could provide the opportunity, with Dollie interested in line maintenance. A recent contract from Emirates to repaint three Airbus A310s has also "opened the door to dialogue" about potential co-operation, says Dollie.
GAMCO is involved in maintaining the UAE Government's fleet of VIP airliners, and Dollie says that area of its business could be extended to military types.
The company hopes to benefit when the UAE air force selects an engine for its delayed new fighter procurement. Pratt & Whitney and General Electric are vying for the contract, and Dollie says he hopes to secure a wide-ranging joint venture deal with the winner. As well as providing GAMCO with military overhaul work, the link with one of the major US engine builders could help broaden GAMCO's civil overhaul expertise.
Source: Flight International
