Mark Pilling PARIS
As it consolidates its number two position worldwide in airline maintenance, repair and overhaul (MRO), Air France Industries (AFI) is looking towards alliance partners and organic growth, rather than acquisitions, to try and overtake market leader Lufthansa Technik.
One of its most important MRO deals is with SkyTeam ally Delta Air Lines which is making a strong push into the third-party MRO business.
The airlines are even studying a joint brand for their overhaul operations, and are jointly marketing their third-party services for types like the latest Boeing 737NG and 767 aircraft as well as the business jet offerings from both Airbus and Boeing says AFI vice-president marketing & sales Pierre Reville. The two are also making joint offers to individual airlines, Reville says. For example, in a recent proposal to Malev, Delta offered to work on PW4000 engines that power the Hungarian carrier's 767s, while AFI would take on the airframe work.
The second round of talks on boosting MRO collaboration with another SkyTeam member, Korean Airlines, takes place in April, Reville says, although these do not yet include the joint branding concept. The possibilities under discussion are Korean performing airframe overhauls for Air France and AFI providing component work for its partner.
AFI, which has a turnover of €1.5 billion ($1.4 billion),expects to grow at a rate of around 3-4% per year. There will be a particular emphasis on expanding engine and component overhaul as these fields offer higher profit margins.
Source: Airline Business
