Air France Industries-KLM Engineering & Maintenance grows stronger in China |
| Guillaume Lecompte-Boinet |
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16 MAR 2017 | 339 words
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The MRO division of Air France-KLM, AFI KLM E&M has created a joint-venture with Beijing General Aviation Co Ltd (BGAC) in Beijing in the field of line maintenance. The new company, called AFI KLM E&M-BGAC Line Maintenance Co, will start its activities from this 1 April. 60% of its capital is owned by AFI KLM E&M, the remaining balance being in the hands of BGAC. The latter, a subsidiary of the BAIC automotive group, wants to strengthen itself in the aeronautics sector.
BAIC created BGAC to spearhead a process of diversification of the entire aviation chain, from the R&D up to the manufacturing of aircraft and equipment. BGAC Line Maintenance will develop its MRO hub firstly by performing line maintenance at Beijing airport for Air France and KLM, Airbus 330/340, Boeing 777, 787 and 747 aircraft. Secondly, the affiliated company may take charge of the aircraft of third-party airlines.
For AFI KLM E&M, "this agreement provides us with a local anchor," we are told at the division's head office. It is also a way of consolidating its presence in Asia-Pacific. The latter represents 38% of AFI KLM E&M's order book, which amounts to a total of $8.9 billion (on 31 December 2016).
The MRO division of the Franco-Dutch airline group already has an avionics repair shop in Shanghai, and counts several Chinese airlines among its customers. For example, Xiamen Airlines, for which AFI KLM E&M has recently signed a maintenance contract for its 787 fleet and their GEnX engines. The Shanghai site will be strengthened with the installation of a workshop specialising in the repair of Airbus A350 XWB equipment.
Furthermore, AFI KLM E&M is also present in India (Bombay, one JV in equipment), in Singapore (an R&D and logistics centre) and Kuala Lumpur (Logistics Centre). Its main customers in Asia-Pacific are Air China, Xiamen Airlines, Air Asia and Vietnam Airlines. The division has recently signed a major component support agreement with Air Asia for its future fleet of 304 Airbus A320neo.
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