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IN THE AIR years flying 60 years flying WE KEEP YOU WE KEEP YOU SimplyFly Excellence Connected #7, 2017

SimplyFly #7, 017 - services.airbus.com of Pratt & Whitney R-985 piston engines from England. They work in their own time ... Satair Group distributes more than 500,000 different parts

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Page 1: SimplyFly #7, 017 - services.airbus.com of Pratt & Whitney R-985 piston engines from England. They work in their own time ... Satair Group distributes more than 500,000 different parts

IN THE AIR years

flying60 years

flyingWE KEEP YOUWE KEEP YOU

SimplyFlyExcellence Connected

#7, 2017

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SimplyFly

Since I took over as CEO in November 2016, I have met with many customers and business partners. The personal feedback received has been very valuable indeed. It is backed up by the annual customer satisfaction survey, where you review our performance.

This feedback indicated that we had to do better in some areas. I am using this opportunity to let you know that we are taking this very seriously. Customer satisfaction is at the heart of everything we do. We have a significant customer satisfaction improvement program running that will drive the necessary changes this year.

In some areas where issues had to be resolved, we took very quick action and performance levels are back to where they should be.

This edition features some articles about trends and strategic initiatives we are taking to ensure that we provide better customer value and, in the process, place Satair Group in a stronger position for the future.

Our integration project under which the Satair and Airbus channels will eventually be integrated into one portal for our customers and one point of contact is forging ahead. We are optimizing our processes and finding new ways of working.

I am actively sponsoring our digital transformation program and I believe that by becoming an early adopter we can realize some very significant opportunities. A team is now analyzing all the data we have to determine how to generate value to our customers. We will continue to grow our strength in the digital domain under the lead of our new Head of Digital & Business Transformation, Christian Agger, who we are happy to welcome aboard in June this year.

Over the past six months customers have started asking different things of us i.e. to run their whole material planning and procurement processes. This relieves them of the burden of dealing with individual OEMs. We have taken up this challenge and made it a key part of our strategic direction with a lot of effort being put into it.

I take a lot of comfort from the strength of our global set-up in the regions with local managing directors, operations and sales teams. The mix of cultures and diversity we have in Satair Group is a great asset. Through the improvements we are making I believe that the can-do attitude of the Satair Group family will remain a very positive factor.

Kind regards,

Bart Reijnen CEO Satair Group

Hello everyone - and welcome to this next edition of SimplyFly. You may have noticed by the retro front page with our old logo that we celebrate our 60 year anniversary; a great achievement that we will tell more about inside the magazine.

02 SimplyFly – #7, 2017

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CONTENTS

Editor-in-chief:Manja Brichmann Andersen

Editor:David Dorman

Layout: bluerobots

Production: Clausen Grafisk

Subscription: To unsubscribe or subscribe to the printed or digital version of this magazine, please send an e-mail to Manja Brichmann Andersen, Communication Manager Satair Group ([email protected])

04 08

PROUD HERITAGE; EXCITING FUTURE… ................................0460 years ago, 11 colleagues from Scandinavian Airlines System (SAS), decide to create a new company. This company is today Satair Group.

TRENDING WITH BIG DATA AND DIGITALISATION ................08Everyone is talking about Big Data and digitalisation. But what are they and how can they be used to transform the aircraft material services market?

TAKE OVER SAFRAN A340-500/600 NACELLE SUPPORT .... 10Further inroads into the aero-engine aftermarket with Safran Nacelles covering global and exclusive lifetime support for the Trent 500 engine nacelle installed in the Airbus A340-500/600.

SINGLE POINT OF CONTACT ................................................... 12Satair Group’s Single Point of Contact (SPOC) project for its Airbus Channel Customer Order Desk is now fully operational as the first step in Satair Group’s integration.

OUTSOURCING ......................................................................... 14Satair Group is in the pole position to identify and respond to emerging trends. One of these trends is the increased outsourcing from both customers and suppliers.

EXPANSION PLANNED FOR AIRBUS ECO REPAIRS ............. 16Satair Group is seeking customer feedback on the dedicated Airbus ECO (Efficient and Cost-Optimised) repair solution programme.

DOUBLING-UP ON KITS .......................................................... 18Satair Group’s kit marshalling capability to support Airbus aircraft has been boosted by the opening in March of the new Kit Factory Unit 2 at Hamburg.

SINGAPORE ‘CAN-DO’ PILOT SEAT REPAIRS ........................20Satair Group Singapore has been authorised by Stelia Aerospace to become the sole Asia-Pacific repair station (excluding mainland China) for pilots’ seats.

LATEST & GREATEST ............................................................... 21Satair Group news in short.

03SimplyFly – #7, 2017

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PROUD HERITAGE; EXCITING FUTURE…60 years ago, 11 colleagues from Scandinavian Airlines System (SAS), decide to create a new company. This company is today Satair Group.

Picture the scene just before Christmas 1957. Sensing a new market opportunity 11 colleagues from Scandinavian Airlines System (SAS), many of whom had worked in aviation maintenance, decide to create a new company to buy and trade aviation spares for a worldwide market.

As air traffic started to grow they knew that airlines and

maintenance organisations would need spares for the post-war

surplus transport aircraft that were in use all over Europe.

Spares needed tracking down, purchasing and then sold on.

Pooling their personal savings, they put up an initial share

capital of 50,000 Danish Kroner (DKK), approximately

US$7.000, to create the company which they call

Scandinavian Air Trading Co A/S (SAT which later became

the SAT in Satair). They are in a hurry; the company needs

to be incorporated ready to complete its first purchase of a

consignment of Pratt & Whitney R-985 piston engines from

England.

They work in their own time - evenings and weekends

- from the home of one of the founders for three years

until their first employee – a secretary – is hired to handle

correspondence and telephone calls during the day. Sales in

their first year were DKK 141,033 (around US$20.000).

Fast forward to 2017 – 60 years later. That small fledging

company is now Satair Group – a wholly owned and

independent subsidiary of Airbus - with more than 1,200

employees worldwide, a turnover of US$1.54 billion and

the vision to become the global leader in civil aircraft parts

management.

During that 60 years many of the principles and practices

identified by the founders as the key to a successful business

have been carried forward to this day. Their pioneering spirit

and can-do attitude is still the hallmark of today’s Satair Group.

Forging long-term customer and supplier relationships was

one principle. Starting as a distributor for US suppliers, SAT

signed a partnership with Lycoming, the American aero-engine

company in 1958 that endures to this day. The distribution

business has grown steadily and in importance so that today

Satair Group distributes more than 500,000 different parts

for more than 1,000 suppliers; many of these partnership

agreements have flourished for decades, connecting suppliers

and end users in a seamless supply chain.

04 SimplyFly – #7, 2017

PROUD HERITAGE; EXCITING FUTURE…

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Customer relationships have similarly flourished. SAT

created early relationships with airlines in the then embryonic

European package tour airline industry and today distributes

parts to hundreds of airlines and MROs worldwide.

Being innovative and acting fast was another mantra. SAT

introduced one of the world’s first spare parts exchange

programmes for Douglas aircraft parts. Customers would

hand in their own unserviceable component in exchange for

an overhauled one which SAT would then get overhauled

ready for the next exchange customer - a quicker, faster,

more effective service.

Over the years this innovatory spirit has endured. The

ground-breaking Integrated Purchasing Progamme (IPP)

was launched in the early 2000s - bundling together its

distribution products to offer a one-stop shop service

for major OEMs who were finding it more difficult to deal

with myriads of suppliers. This was followed in April 2006

by Satair becoming part of Boeing’s Integrated Material

Management programme.

Today, Satair Group offers its innovative Integrated Material

Service (IMS) programme to airlines and MROs under which

consumable and expendable parts can be managed by Satair

Group and tailored exactly to customer needs.

The company has always believed in global team work.

Renamed as Satair in 1978, it expanded internationally with

dedicated facilities opened in the 1980s in Atlanta and then

Singapore, followed in 1995 with the China office.

The partial flotation of the company in 1997 led to string

of new overseas acquisitions in France, the UK, the Far

East and China and by 2010 Satair had become the world’s

largest independent distributor of spares and components

for the aviation industry, with a truly global reach. Despite

being a Danish company, the first international board

members started to be appointed.

A year later Airbus made a voluntary recommended public

offer to buy all the shares of Satair and in November 2011

Satair became a 100% owned subsidiary of Airbus and

was delisted from the Copenhagen stock exchange.

Three years later Satair Group was officially launched as

the merged organisation between Satair A/S and Airbus

Material and Logistics Management. With world-class

excellence in its DNA from the early days, Satair Group is

now building on its heritage to create an exciting future.

Highlighted quote: “Their pioneering spirit and can-do attitude

is still the hallmark of today’s Satair Group.”

1982, Satair’s very first exhibition in

Hannover. The two employees, Gert Bolvig

and Anne-Lise Bai Jensen, still work in the

company today. Gert has been with Satair

for 38 years and Anne-Lise for 42 years.

Times (and technology) sure have changed

– but not this employee, Anne-Lise Bai Jensen,

who has been with the company for 42 years.

She found her husband in Satair too; Kim Bai

Jensen who has been with the company longest

of all – 45 years. Impressive!

A new 1,300-m² warehouse is ready in March

1967, and a 300-m² suite of offices two months

later. The warehouse quickly fills with components

for DC-3, DC-4, DC-6 and Convair 240/340/440

aircraft. Satair CPH still resides here at Amager

Landevej near Copenhagen airport.

05SimplyFly – #7, 2017

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…DIVERSE; INTERNATIONAL; MULTICULTURAL

Gender Male (69%)

Nationality German (40%)

Age 41,9 years

Seniority 10,9 years

Revenue 1,28m $

06 SimplyFly – #7, 2017

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American

18617%

British

31 3%

Chinese

202%

Danish

15414%

French

404%

German

43140%

Singaporean

11411%

Other

908%

16317% 33

3% 212% 36

4%

768%

14215% 396

41% 10611%

The founders of the Danish company that is now Airbus-owned Satair Group had always embraced internationalism and diversity as they grew their company, knowing that a global marketplace needed expansion into new countries and staff recruitment at all levels to help build a diverse company with a strong international outlook.

Today’s Satair Group has built on these foundations as

is illustrated by these ‘fun facts’ taken from the 2016 HR

Annual Report.

…DIVERSE; INTERNATIONAL; MULTICULTURAL

• Total employees across Satair Group reached just over

1,200 in 2016 boosted by a recruitment drive to cater for

company growth that saw around 200 new employees join;

• Younger Generation Z employees and Millennials now

account for more than one third of employees and more

than 70% of all Satair Group newcomers are younger than

40 years old.

• Four generations of employees are now working together.

Nine employees have been with the company for over 40

years. The average employee seniority with Satair Group

is nearly 11 years.

• Due to Satair Group’s global footprint there are many

different nationalities and cultures employed. Germans

account for 40%, Americans account for 17%, Danish 14%,

Singaporean 11%, French 4%, British 3%, Chinese 2% and

others 8%.

• Women make up 31% of all Satair Group employees and

30% of all new employees during 2016 were women.

07SimplyFly – #7, 2017

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TRENDING WITH BIG DATA AND DIGITALISATIONEveryone is talking about Big Data and digitalisation. But what are they and how can they be used to transform the aircraft material services market?

Everyone is talking about Big Data and digitalization. What are they? How can they both be used to transform the aircraft material services market?

Satair Group believes that digitalization is a key trend for

the future of the integrated aerospace aftermarket. We are

pursuing two areas that will provide better integration.

Big data is a term for a collection of data (to form data

sets) that is so large and/or complex that traditional data

processing application software is inadequate to deal with

it. Major challenges include capture, storage, analysis, data

integration and organization, sharing, transfer, querying and

information privacy/online security, and more.

Data sets grow rapidly because of affordable new

technologies that allow the capture of data. This includes

smart products which have sensors and are connected

throughout expansive and complex processes. This

increasing ability to gather information from just about

everywhere is referred to as the Internet of Things - or IoT.

The combination of data availability and new technologies

allows for predictive analytics, user behavior analytics

and other advanced data exploration methods which drive

much higher value from the data. Organizations can find

new correlations to spot business trends, increase decision

making, automate processes and add velocity to our

businesses. Sophisticated artificial intelligence algorithms

based on great computer power enable machines to mimic

cognitive functions. These advances allow computers to

learn and problem solve.

Rapidly improving and expanding technologies such as

cloud computing, mobile computing and social media foster

the access to data and related intelligence at any place

and any time around the world. Robotics and additive layer

manufacturing are further technologies with great potential

to create new ways of working and allowing new business

models to grow.

Digitalization is considered as the fourth industrial

revolution. Digital transformation not only impacts the way a

business is established and managed, it also influences the

daily life of human beings by enhancing the flexibility of work

and communication across company boundaries.

Innovations such as sensors embedded into aircraft

equipment, parts and systems have increased our ability to

collect valuable data. This expanding data capture allows

us to monitor performance and to oversee potential aircraft

and sub-systems parts failures throughout the aircraft’s

TRENDING WITH BIG DATA AND DIGITALISATION

08 SimplyFly – #7, 2017

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“…drive a superior experience for customers and OEM business partners.”

operational lifecycle. This data collection is based on fully

connected digital devices and advanced analytics systems.

Satair Group wants to fully leverage digitalization with all its

partners to drive a superior experience for customers and

OEM business partners.

Supply chain data collection such as

customer order placement coupled with

data from technical and maintenance

processes and information will help us to

identify behavioral patterns – for example if

some parts are always ordered late because

the need for these pasts were not expected

during a C check.

Satair Group believes that integrating this real-time operational

information with the material services value chain and data

related to aircraft operations, maintenance, supply chain, and

engineering will result in increasing the business velocity. The

velocity will come from automating a predictive approach for

parts inventory planning, and distribution network execution. It

will also increase the speed and reliability of decision making.

Speed and support in complex situations are business

critical factors. Identifying options for parts needed to

keep the aircraft flying using intelligent integration of this

data is one goal that Satair Group aims to accomplish

with digitalization. Digitalization leads to a (digital)

transformation of the current ways of developing and

delivering products and services. This is a strategic

objective of Satair Group.

We have begun to collect, integrate, share and analyze all data

across Satair Group’s ecosystem. This increased and shared

data traffic will generate deeper insights

valuable for customers and suppliers

allowing them to derive added value from

digital efficiencies in the value chain. It

enhances customer and supplier ability to

provide additional digital-based services.

Real-time tracking and tracing of parts around the

globe, predictive maintenance, and smarter inventory

planning systems based on data analytics, will further

link the material value chain with customer demand in an

anticipating and predictive manner.

We are building an ecosystem of data where all users

interact and provide accurate, relevant and integrated

data feedback. It is a system that is more valuable than

the original source. The amount of valuable digital

information the integrator provides as structured feedback

for improvements to the suppliers and customers is

exponentially increasing - so a digital virtuous circle is

created and new ways for market intimacy become possible.

TRENDING WITH BIG DATA AND DIGITALISATION

Digitalization is considered as the fourth

industrial revolution

09SimplyFly – #7, 2017

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TAKE OVER SAFRAN A340-500/600 NACELLE SUPPORTFurther inroads into the aero-engine aftermarket with Safran Nacelles covering global and exclusive lifetime support for the Trent 500 engine nacelle installed in the Airbus A340-500/600.

We have a unique model to acquire

business such as this.

10 SimplyFly – #7, 2017

Satair Group has made further inroads into the aero-engine

aftermarket under a contract signed at the Paris Air Show

with Safran Nacelles covering global and exclusive lifetime

support for the Trent 500 engine nacelle installed in the

Airbus A340-500/600.

Under the agreement Satair Group has now assumed

responsibility from Safran Nacelles of its entire supply chain

for the aircraft’s nacelles and will carry out these support

duties until there are no more aircraft flying.

Currently there are some 90 A340-500/600s flying today

and Per Iversen, Director, Business Development for Satair

Group, states:

“It is still a relatively young aircraft with a

lot of life left. As a four-engine aircraft it

is obviously less fuel efficient than a twin,

but the current oil price level means that

the eventual retirement of some of these

aircraft will only occur on a gradually declining basis. We see

this aircraft type remaining in service beyond 2030.”

He added: “We have support obligations on behalf of Airbus

both for in-production and out of production aircraft and hold

many spare parts/airframe parts to enable us to support these

aircraft for many years to come.”

Safran is one of the worlds’ two leading engine nacelle

manufacturers and designs and builds nacelles and

nacelle components for a wide variety of jet aircraft

including mainline jets for Airbus and Boeing, as well as for

regional jets and business jets for manufacturers such as

Bombardier, Dassault, Embraer, Gulfstream and Sukhoi.

The move to outsource the A340-500/600 engine nacelle

support came as a result of an initiative from Satair Group

several years ago which led to serious discussions leading to

the signature of a MoU (Memorandum of Understanding) in

December 2016.

Per continued: “We realised that Safran wanted to unburden

itself from certain programme support areas, such as supply

chain and warehouse management, for out of production

aircraft and shift, resources, cash and focus towards its current

development programmes. We have a

unique model to acquire business such

as this.”

“Once the MoU had been signed, Satair

Group took ownership of the nacelle

spare parts with Safran executing orders

on our behalf until such time as the inventory had been moved

from Safran Nacelles Paris support centre to Copenhagen. As of

April 24 2017,we commenced direct service to customers.”

Operators of A340-500/600s will benefit from a reduction in

their supplier base and the ability to pool more parts through

Satair Group’s efficient supply chain and global distribution.

This new deal comes only several months after the Group’s

first success in this specialised market segment with an

exclusive distribution deal for Pratt & Whitney PW4000 100-

inch engine thrust reverser spare parts.

SATAIR GROUP TAKES OVER SAFRAN A340-500/600 NACELLE SUPPORT

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Satair Group is a stand-alone company and 100% Airbus subsidiary. Satair Group provides genuine Airbus Material Support and is the Airbus authorized distributor for a wide range of Products and Services. The company offers an exhaustive and innovative multifleet portfolio.

Great Quality. Great Prices.Get the best of both worlds

for your Used Parts#UsedServiceableParts

For further information about our capability list go to AirbusSpares or email us at [email protected]

11SimplyFly – #7, 2017

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SINGLE POINT OF CONTACTSatair Group’s Single Point of Contact (SPOC) project for its Airbus Channel Customer Order Desk is now fully operational as the first step in Satair Group’s integration.

SINGLE POINT OF CONTACT FOR AIRBUS CUSTOMER ORDER DESK NOW OPERATIONAL

12 SimplyFly – #7, 2017

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Satair Group’s Single Point of Contact (SPOC) project for its Airbus Channel Customer Order Desk is now fully operational as the first step in Satair Group’s integration plan to gradually merge the two sales channels – Airbus and Satair – into one customer facing organisation.

Responding to feedback from customers who requested

a simpler procedure for when they contacted the Airbus

Customer Order Desk, the new set-up is designed to

improve long-term relationships and trust, and improve the

understanding of individual customer needs.

Under the new setup – which closely mirrors the Satair

Channel which already works globally with the SPOC

approach – a dedicated SPOC now manages all interactions

with a customer’s account. Crucially, it switches the focus

from an ‘event’ to a fully customised approach.

This means that the SPOC takes care of

the relationship and order management

for all Airbus vendor and proprietary

parts, including order handling and

processing, credit/debit note and

customer claims management.

Furthermore, it now combines the previously separate

Heavy Maintenance (HMV) desk activities and In-Flight Desk

(IFD) into one interface. The former contact details for the

HMV and IFD desks remain valid until further notice.

“We have listened carefully to our customers”, said Stefan

Stolzki, Head of Satair Group Customer Order Desk, “and

have created a new system that we believe will be more service

focused and result in a better customer experience. At the same

time, we have taken the initial steps forward to create a more

integrated Satair Group for the future.”

Each SPOC has one or more allocated customers and

operates in small teams of between two to five people. All

team members are aware of the overall customer enquiries

in their team to ensure rapid response and back-up support

to ensure continuous order management. There is a generic

email for each SPOC team as well as individual telephone

numbers for each SPOC.

Stolzki added: “Importantly, customers need to realise that Airbus

AOG orders will continue to be exclusively managed by the 24/7 AOG

Competence Centre to ensure efficient and swift service to best

handle these ad-hoc and urgent occurrences. We have built a strong

interface between the SPOC and the AOG Competence Centre.”

“In addition, we have decided that for the moment order

management for well-established Airbus product lines such as

Standard Parts, Used Serviceable Parts exchange and lease,

Modification Kits and Tool Repair loan and lease will continue to be

managed by these separate business units to ensure that we are

having the right expertise in place to support these product lines.”

Beyond this, Satair Group is implementing

an integration change project step by step to

ensure that it keeps things simple and easy

for the customer. In time it is foreseen that

only one integrated Customer order desk will

operate across Satair Group reinforcing the

SPOC concept further. The overall objective of the integration

project is to simplify the customer interface and offer one

consolidated channel and one contact which will give customers

access to the full portfolio of Satair Group products and services.

…result in a better customer

experience

13SimplyFly – #7, 2017

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OUTSOURCING Satair Group is in the pole position to identify and respond to emerging trends. One of these trends is the increased outsourcing from both customers and suppliers.

The aircraft material services market was approximately US$42 billion turnover in 2016 and is projected to grow strongly to over $62 billion by 2025.

Serving this market with parts and materials for airline

customers’ maintenance organizations and Maintenance Repair

and Overhaul (MRO) organizations are a multitude of enterprises

ranging from Original Equipment Manufacturers (OEM). Many of

these entreprises are our core business partners.

Supporting both ends of this complex market are the

outsource specialists - such as Satair Group - who cover

the full material value chain processes to connect suppliers

and customers in the most efficient way possible by using

economies of scale and scope.

In this fast-developing market Satair Group is in the pole

position to identify and respond to emerging trends. One

of these trends is the increased outsourcing from both

customers and suppliers leading to integrated offers and

consolidation in the market structure.

Airlines increasingly want to focus on their core flying

operations. They have to ensure the highest aircraft

operational availability. This means having a high material

availability which is especially important for critical,

unscheduled, and unplanned maintenance events.

Cost and schedule reliability pressures are obsoleting

the old ad-hoc methods of procurement and operations

will become increasingly unaffordable. Similarly, their

desire to limit their financial exposures means less capital

commitments for inventory.

Airlines need enhanced expertise and capabilities in this

complex global material services support sector they need

access to leading and innovative technology, solutions and

networks. They want flexible value chain designs that take

into account the specific airline networks and regional

requirements with variability of the cost base.

Jörg Rissiek, Head of Corporate Strategy and Projects

comments: “The solution, increasingly, is that airlines

outsource their material management to qualified partners who

are dedicated specialists in global value chain management, to

give efficiency gains and reduce operating costs. This is exactly

what we want to provide to our customers!”

Airlines outsource their material management to qualified partners

Jörg Rissiek

THE RELENTLESS TREND FOR THE AVIATION MATERIAL SERVICES MARKETBy Dr Jörg Rissiek, Head of Corporate Strategy & Projectsand Paul Lochab, Chief Commercial Officer

14 SimplyFly – #7, 2017

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Airlines increasingly want to focus on their core flying operations

Paul Lochab

A similar outsourcing trend can be seen on the supplier side.

They want to focus on their core research, development and

production business of high-technology aircraft parts. Paul

Lochab, CCO of Satair Group adds: “They want less capital

to be tied-up in an in-house distribution set-up while requiring

excellent parts distribution from us to the market.”

“Satair Group believes that this trend will lead to integrated

offers, covering a very wide range of parts in all material

categories. Such an outsourcing strategy with its long-term

performance and service commitments requires flexible,

extended term contracts, high-risk control and a trustful

customer relationship with open information exchange. As the

airline grows, changes fleets, develops new routes and markets,

so the integrator adapts its service offering in a supportive,

collaborative way,” Lochab ends.

Over recent years Satair Group has responded to this

growing trend with a variety of different integrated product

offerings such as Airbus Managed Inventory in 2010, its

Integrated Purchasing Program and Airbus Flight Hour

Services. But the focus now is on the growth of its Integrated

Material Services (IMS) program as its comprehensive

material offering.

This totally collaborative, customized and modular program

covers all part number demand as requested by customers,

currently for a range from 4,000 to more than 40,000 part

numbers. IMS offers a competitive advantage as it reduces the

total cost of ownership significantly at a guaranteed performance

level and it can include other add-ons such as parts repair,

maintenance tools and customized modification kits.

Keeping up with Satair Group’s strategy of collaborating

(co-creating) with the customer and providing what they

want, not all customers who have chosen IMS have opted for

the fully integrated solution. However, there is a clear trend

towards a more comprehensive range of parts covering

several material categories.

Distributors are becoming material integrators and becoming

bigger and better at improving their offerings along the value

chain. Satair Group believes due to this, further market

structure consolidation will have to take place over the next

decade. The need for this consolidation is to bring down value

chain costs, realize significant economies of scale and scope,

and transaction cost reductions.

Satair Group aims to be the leading player in this market

transformation.

15SimplyFly – #7, 2017

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EXPANSION PLANNED FOR AIRBUS ECO REPAIRSSatair Group is seeking customer feedback on the dedicated Airbus ECO (Efficient and Cost-Optimised) repair solution programme.

First launched in June 2015 in response to customer

demand, the dedicated Airbus ECO (Efficient and Cost-

Optimised) repair solutions programme for Airbus

Proprietary Parts is poised to expand further.

Customers made it clear that they wanted more transparency,

pre-defined prices and fixed lead-times – all of which have now

been incorporated into the ECO repair solutions, along with the

added benefits of OEM engineering know-how, certification

available to EASA, FAA, TCCA and

CAAC standards, plus quick access to

exchange parts from a huge range of

over 11,000 Airbus high-value new and

used proprietary parts.

Currently the ECO repair offerings

cover Airbus proprietary parts for the A380, A330/340 and

A320 family. For the more numerous A320 family, as an

example, the ECO repair scope includes glazing, additional

centre tank which needs inspection every 12 years, artificial

feel unit for the rudder pedal and flap interconnecting strut.

Add to this six fixed price packages covering a wide range of

elevator repairs, three fixed price packages for the horizontal

tail plane leading edge, Sharklet and slat repairs, four options

for rudder modifications and doorsill latch and Y-Guides (also

for the A300/A310).

Customised agreements with attractive flat rates are

available for both repair and exchange options. Also available

is a lease service for proprietary parts to avoid capital

commitment for high value parts. A lease, exchange or sale

order can be converted from one order type to another.

A worldwide network of Airbus repair

stations and approved partners is

available, ensuring more geographic

convenience, ease of access and

swifter service for customers.

Although these ECO repair solutions cover the most

numerous parts repair requirements, they form only a part

of the overall repair capabilities for Airbus proprietary parts.

To extend the ECO repair solutions offer, more products are

in the pipeline and Satair Group is actively seeking and would

welcome customer feedback for specific Airbus Proprietary

parts to be added to the ECO repair solutions programme.

EXPANSION PLANNEDFOR AIRBUS ECO REPAIRS

Customers made it clear that they wanted more transparency, pre-defined prices and fixed lead-times

Maik Lange - Mechanic.

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Today’s topics

Airbus Material Management SeminarsOur Airbus seminars have been specifically developed to support your goal of

optimisedMaterial Management, knowing that cost reduction and increased operationalefficiency are major objectives in the aviation industry. We are offering a selectionof modules with different levels of specialisation from beginner‘s to advanced level

in order to help you gain more expertise in the field of Material Management.

Core Seminars* Advanced Material Management - Gaining conceptual insight (Experts) 26 – 28 Jun 2017 Hamburg, Germany

* Principles of Material Management - Exploring fundamentals (Newcomers) 27 – 29 Nov 2017 Hamburg, Germany

Regional Seminars The most popular lessons and case studies from our core seminars (Newcomers and experts)

* Regional Material Management - 24 – 26 July 2017 Chengdu, China

* Regional Material Management - 10 – 12 Oct 2017 Singapore

Specialisation Seminars* Material Planning & Inventory Management - Concepts and methods to optimise inventory 24 – 25 Oct 2017 Hamburg, Germany

* GSE & Tools Specialisation - Improving tool handling efficiency 08 – 09 Nov 2017 Miami, USA

We still have available seats for:

Homework:For more information about courses, content and registration, please contact us on: [email protected]

Satair Group is a stand-alone company and 100% Airbus subsidiary. Satair Group provides genuine Airbus Material Support and is the Airbus authorized distributor for a wide range of Products and Services. The company offers an exhaustive and innovative multifleet portfolio. For further information visit satairgroup.com/about-satair-group

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DOUBLING-UP ON KITS Satair Group’s kit marshalling capability to support Airbus aircraft has been boosted by the opening in March of the new Kit Factory Unit 2 at Hamburg.

Satair Group’s kit marshalling capability to support Airbus aircraft has been boosted by the opening in March of the new Kit Factory Unit 2 at Hamburg.

The new factory sits adjacent to the original Kit Factory Unit

1 which has been operating since January 2015 and which,

for the first time, consolidated all kit marshalling activities

from all Airbus European sites into one centralised location.

Adding a further 5,300m2 of warehousing to the 10,000m2 of Kit

Factory Unit 1 means that Satair Group will be able to more than

double kit delivery performance to 110,000 kits a year in 2017.

This increase in capacity is needed because of the dramatic

growth for Airbus modification kits, repair kits or upgrade

kits. Each kit consists of many different single parts that are

assembled and delivered for a specific and dedicated task.

Tim Bothe, Satair Group’s Vice President of Supply Chain

stated that the Satair Group Kit Factory is the centralised

worldwide kitting centre for the Airbus and Satair Group

aftersales business.

He added: “The new construction was kicked off in June 2016

and just nine months later we were ready for the inauguration.

This is typical of our highly dynamic business environment

where growth has to take place within a very short time frame

to support our customers.”

The combined Kit Factories, Units 1 and 2, are close to the

Airbus Operations Germany site south of the River Elbe in

Hamburg. The main working and kitting area will stay in

Unit 1, while the move of material into Unit 2, with its extra

capacity, will allow Satair Group to size the productivity and

capacity in line with the forecasted workload.

In the new unit there will be a Hazardous Material

(HAZMAT) area and more space to store the cabin upgrades

monuments and the upcoming retrofits for the A380 and A350

programmes. The extension will also allow for consolidating

the standard hardware stock under a single roof. Further

investment in new technology machinery is already planned to

help automate the physical kitting process.

DOUBLING-UP ON KITS

Satair Group CEO, Bart Reijnen (right), Satair Group VP of Supply Chain, Tim Bothe (left), and Markus Meyer from Goodman (middle)

18 SimplyFly – #7, 2017

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Pall Part # OE Part Number ATA Description Engine CFM56 Competitive/Alternate Part Numbers

ACC462F2038M 219946 73 Fuel Filter -2,-3,-5,-7 WF337661, WF339365, 7595983-101, 7597062-101, CA01962B, CH0697101552N00

QA06422 QA06422 79 LP Lube Scavenge -3,-5,-7 WF335301, 7593194-101, CA00967A

QA06647 QA06647 79 Lube Filter -5 7594155-101, CA00077A

QA07320 335-114-001-0 79 HP Lube Filter -3,-7 11-10976, 7593226-101, WF336737, CA00075A

Pall CFM56 Engine filters – Filters made with your engine i mindThe CFM56 engine is the workhorse behind some of the largest aircraft fleets in the world – for a good reason: power, reliability, and design are all industry leading for existing single aisle aircraft.

As Pall Aerospace’s worldwide exclusive distributor, Satair Group’s global inventory can meet your requirements for immediate delivery.

Talk with your Satair Group Account Director for specific account pricing.

Pall Filters– The best an engine can get!

Pall Aerospace provides more filtration than any other manufacturer in the industry for these engines. As an OE partner with the manufacturers Pall worked in close cooperation on the original design specifications, testing, and the continuing operation of the power plant. Simply put – Pall filters provide the highest level of engine protection available. The best protection means fewer delays, cancellations, and unplanned maintenance for your organization.

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SINGAPORE ‘CAN-DO’ PILOT SEAT REPAIRSSatair Group Singapore has been authorised by Stelia Aerospace to become the sole Asia-Pacific repair station (excluding mainland China) for pilots’ seats.

The ‘can-do’ attitude of Satair Group’s Singapore team has

led to the facility being authorised by Stelia Aerospace in

early 2017 to become the sole Asia-Pacific repair station

(excluding mainland China) for pilots’ seats. In addition to

EASA approval, this authorisation also has airworthiness

approvals from the authorities in Singapore, Malaysia,

Thailand, Indonesia and Vietnam.

Stelia pilots’ seats are installed on every Airbus aircraft type

and since the facility started operations repairs have been

carried out on seats for Airbus Asia Training Centre, HAECO,

Cebu Pacific Airlines, Royal Brunei Airlines and Asiana

Airlines. Previously these repairs had been

outsourced to a local business partner, but

following a business case being made for

these repairs to be done ‘in-house’, a project

team was set up to plan the new venture.

Comprising Product Management, Repair Shop, Supply

Chain, Procurement, Quality and Operations personnel,

the team worked together to overcome all challenges. They

had to ensure that the facility and working environment

was appropriate for the planned work, that the necessary

personnel were available to carry out the work and that the

appropriate equipment, tools and material were available.

On top, ensuring that everything meet regulatory standards

and data procedures and that certifying staff and support

staff had a good understanding of the relevant aircraft

components to be maintained.

Working with such a strong commitment and ‘can-do’ attitude,

the repair facility was completed on time and passed both

regulatory and Stelia Aerospace audits after only six months.

But regional customers still had to be won

over. Vital support was given by the Stelia

regional Customer Support Manager whose

long-standing relationship with end users in

the area was key. He helped in overseeing

the repairs of customers’ seats and Satair

Group employed an experienced technician from the previous

repair shop to carry out the work.

In the words of Selvakumar Kasi Pandiyan, Satair Group

Engineer for Stelia Cockpit: “I stumbled upon many challenges

as I tried to repair the seats but my belief in Satair Group’s core

values, ‘Can-do-attitude’ and ‘customer and supplier focus’ guided

me to face these challenges with confidence and successfully meet

the expectations of my customers within the deadline.”

Once the first units were repaired and re-delivered on time

and on cost, customers were convinced and more seat

repairs have followed to ensure a bright future for this new

capability.

SINGAPORE ‘CAN-DO’Pilot seat repairs

A strong commitment and ‘can-do’ attitude.

Selvakumar Kasi Pandiyan, Satair Group Engineer for Stelia Cockpit performing an in-coming evaluation on the seat and inspecting the control switch batch number

20 SimplyFly – #7, 2017

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LATEST & GREATESTSatair Group news in short.

Strategic Cooperation on Used/Surplus Parts Satair Group has entered into a new strategic services

agreement with VAS Aero Services, a global leader in

aviation logistics and aftermarket services, to support

Satair Group with servicing, certification, warehousing and

distribution of OEM excess parts inventory, consisting of

both surplus and used serviceable material.

Inauguration of New Kit factory in Hamburg, GermanySatair Group has inaugurated an additional centralised

aftermarket kitting centre at Hamburg to add significant extra

capacity to its already impressive kit marshalling capability for

Airbus aircraft and to achieve another milestone in the logistic

& supply chain history of Airbus and Satair Group.

Enhancements on Footprint in the AmericasSatair Group has made several investments, optimizations

and enhancements to our footprint in the Americas. This was

a 3 phase approach: the opening of our new Miami facility in

April 2016, the relocation of our Atlanta office-based staff

to a new location in Peachtree City, Georgia by February

2017, and the transition of the Atlanta warehouse operations

into the existing warehouse in Ashburn, Virginia within the

first quarter 2017 to enable performance and efficiency

improvements.

Stelia Aerospace Repair Station in SingaporeSatair Group’s Singapore facility has been authorised by

Stelia Aerospace in early 2017 to become the sole Asia-

Pacific repair station (excluding mainland China) for pilots’

seats. In addition to EASA approval, this authorisation

also has airworthiness approvals from the authorities in

Singapore, Malaysia, Thailand, Indonesia and Vietnam.

Distribution agreement with TechSatSatair Group has signed a new distribution agreement with

TechSat GmbH, an expert in integration and verification

equipment. The agreement deal covers TechSAT’s Portable

Data Loading Solution in the Americas (except USA and

Canada), Asia Pacific and Europe (except France, Spain,

Portugal, Russia & CIS).

Expanding with UTC Aerospace SystemsSatair Group has entered into another agreement with

UTC Aerospace Systems – Sensors and Integrated Systems

(UTAS-SIS), for the UTAS SIS Fire Protection Systems

products. The multi-year distribution agreement expands

an already strong partnership between the two companies

which dates back to 1990. The agreement covers Europe,

Middle East and Africa (EMEA).

Three new Airbus Managed Inventory (AMI) deals signed The AMI solution optimizes inventory management, ensuring

high-usage and non-repairable parts being automatically

replenished, while granting parts availability and decreasing

inventory stock. GMF AeroAsia signed a long-term agreement

with Satair Group concerning AMI and the JIT (Just In Time)

service. The JIT solution offers fixed pricing, consolidated

shipments and exclusive stocking on behalf of the customer.

Ocean Air Linhas Aereas S.A. has signed an AMI (Airbus

Managed Inventory) deal with Satair Group. Ocean Air Linhas

Aereas S.A. has its registered office in Sao Paulo, Brazil and

is supported from the Group’s network of warehouses in

the Americas. GAMECO (Guangzhou Aircraft Maintenance

Engineering Co., Ltd.) is the first Chinese customer who

signed a long-term agreement with Satair Group concerning

the Airbus Managed Inventory (AMI) service.

LATEST & GREATESTSatair Group news in short

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SATAIR GROUP LOCATIONS

Satair A/S Copenhagen, Denmark Tel: +45 3247 0100 [email protected]

Satair USA inc. Peachtree City, USA Tel: +1 404 675 [email protected]

Satair Pte.Ltd Singapore Tel: +65 6543 0977 [email protected]

Satair (Beijing) Co.Ltd. Beijing, China Tel: +86 10 8048 6161 [email protected]

Satair UK (Battery Shop) Heathrow, United Kingdom Tel: +44 208 561 4211 [email protected]

Satair USA Inc. (Repairs and Production)Miami FL, USA Tel: +1 305 863 7620 [email protected]

Airbus SAS Hamburg, Germany Tel: +49 (0)40 5076-0

Satair USA inc. Ashburn, USA Tel: +1 703 729 4300

Satair Middle East FZE Dubai, United Arab Emirates Tel: +971 (0) 4 299 8080

Ashburn, USA

Atlanta, USA

Miami, USA

Heathrow, UK

Mike Heaton Head of Region and Sales & SupportAmericas E-mail: [email protected]

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Meet us at Airshows You can meet us at several interesting occasions all year round. During the next couple of months, Satair Group will be present at the following events and airshows: ACPC from August 26-29, MRO Europe from October 3-5, Inter Airport from October 10-13, NBAA from October 10-12, MRO Asia from October 31 to November 1 and Dubai Airshow from November 12-16. If you cannot make it to any of these shows, you can…

Find us on Social Media| linkedin.com/company/satair-group | @satair_aviation | facebook.com/satairgroup |

Satair Group is never out of reach – and now you can also subscribe to our Youtube channel with videos of our parts portfolio and much more! You can take Satair Group with you everywhere you go by following us on social media. We’ll keep you updated on news about Satair Group, events and airshows, industry trends and everything else we think will interest you. So, give us a like, a follow, a subscribtion – any kind of input you would like to share. You can always contact us on social media and we will get back to you. Or you can send us a written letter, we so miss getting mail.

Copenhagen, Denmark

Hamburg, Germany

Dubai, UAE

Singapore

Beijing, China

Rene Frandsen Head of Region and Sales & SupportAsia Pacific E-mail: [email protected]

Nicolai Hertz Head of Sales & SupportEurope & AfricaE-mail: [email protected]

Yongdong Hu Head of Region and Sales & SupportChina E-mail: [email protected]

Terry Stone Head of Region and Sales & SupportMIddle EastE-mail: [email protected]

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SimplyFlyWe deliver innovative and world-class solutions within the parts management business and we develop extended distribution and parts support services to every unique customer and supplier in the global aerospace value chain.