AFI KLM E&M aims for a 10 billion euros backlog of orders in 2017 |
| Emilie Drab |
|
|
02 MAR 2017 | 505 words
|
 |
© AFI KLM E&M |
|
|
|
Air France-KLM is not only a group that is striving to catch up with its competitors in the passenger business, it is also one of the world leaders in maintenance. And the results of the AFI KLM E&M Division show that the latter knows how to capture the dynamism of the MRO market. Its turnover has indeed increased by 4.9% to 4.2 billion euros, with a very good performance in the external business, which has grown by 16% to 1.8 billion euros.
This external growth has been driven by the engine and equipment maintenance activities, which increased by 17% and 14% respectively. In this regard, Franck Terner, CEO of Air France and the former Director of AFI, commented: "It's an activity that is developing mainly in the area of engines and equipment, a little less on the airframe, because of the competition. It is a labour-intensive activity, so it is not as well-placed in Europe as competitors in the rest of the world." Thus, engines contribute towards 49% of external turnover and equipment 41%.
In terms of operating income, AFI KLM E&M increased by 11% to 238 million euros, with a margin that has improved to reach 5.7%. When distributed five years in arrears, the Division's performances are even more telling: the turnover increased by 76% in 2016 compared to 2011 and the operating income has more than doubled. Another source of satisfaction for Franck Terner is that a geographical rebalancing has occurred, with Asia, which has become the number one market, and the Americas, which have advanced with the establishment of a centre in Miami.
The prospects are equally good for 2017 and AFI KLM E&M is aiming for a growth of 10% in its order book to exceed 10 billion euros.
"The challenge is to become the leader in new-generation aircraft because that's where the future lies"
AFI KLM E&M has succeeded in positioning itself well in the "new areas of growth" that are the new programmes of the aircraft manufacturers: A320neo, 737 MAX, 787, A350... Thus, wishing to become the leader in the neo and MAX components, AFI KLM E&M believes that "it's a good start because the group has signed very significant contracts on these two platforms," reveals Franck Terner, who makes particular reference to the equipment support for AirAsia's A320neo.
On long-haul flights, the positioning is already satisfactory - for example, thanks to the maintenance contract for the GEnx of Xiamen Airlines' 787s or the equipment contracts for the A350s of Air Caraïbes and Thai Airways. AFI KLM E&M holds a market share of 30%, for example, for the support of the 787s. "The group is performing well in these areas of growth", appraises Franck Terner, but the goal remains to develop them.
Furthermore, the Division has launched a new strategy to strengthen itself in the MRO on the airframes, "to develop, especially on these new-generation planes, total care, turnkey services", so that we can say to the customer: "You fly, we do the rest. "
|
|
 |
Emilie Drab
Assistant editor
Civil aerospace, Air transport
|
|
| |
They made this section possible |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Top stories |
|
|
|
|
|
Top stories
|
