February 6, 2017 - No. 011 In This Issue IndiGo Security Training Licence Suspended: What Does It Mean? Stavatti throws Javelin jet trainer into USAF T-X competition NASA to Perform Series of Flights to Test New Interval Mgmt Software Tech Lufthansa to provide the right type of light at the right time Challenges For Expanding MRO Market In Africa Study Highlights Challenges Of Hiring A&P Graduates Aeromexico Considers Bringing Widebody MRO In-house IndiGo Security Training Licence Suspended: What Does It Mean? In what could be a major setback to Gurgaon-based market leader IndiGo airlines, the Bureau of Civil Aviation Security (BCAS) has suspended the licence of the aviation security training centre operated by IndiGo's parent company InterGlobe Aviation. BCAS has accused the training centre of "complete breach of trust" on behalf of the training centre for having moved from computer-based system to pen and paper mode for the examinations without informing BCAS. This means, till the time the training centre license of IndiGo remains suspended, the airline will have to outsource the training programme of its employees, an extra cost for the airlines. Civil aviation rules and regulations make it mandatory for all scheduled airlines to impart aviation security training to its security staff, cockpit and cabin crew either through their own BCAS- approved facility or any other similar authorised centre. BCAS, which is the aviation security watchdog, has also issued a show cause notice to the centre seeking an explanation. BCAS found that having moved from a computer based examination to pen-and-paper examinations, the same set of question papers were repeated for many months by the centre while conducting the examinations. According to an IndiGo spokesperson, the airline is already in contact with the BCAS and is confident of demonstrating "sufficient compliance to the satisfaction of the BCAS". IndiGo spokesperson also said all other trainings are continuing, as scheduled, and there has been no change in the airline's operations. BCAS Order Warning that the licence could be suspended indefinitely unless there is complete compliance, BCAS chief Kumar Rajesh Chandra said this centre is barred from conducting any further security training programme for its employees. The BCAS order reportedly came in last week. According to an agency report, BCAS examined the examination results conducted by the centre and found that for as many as eight batches, all the candidates got over 95 per cent marks. "As this aroused suspicion, an inspection was conducted and it was found that the centre was repeating the same set of question papers and so there was a leak of questions...Naturally, there was no training. This is what they were doing. That is why their licence has been suspended," Chandra was quoted as telling PTI. Why is the security examination important for airlines? The examinations allow the successful airline employees to act as airline security staff, a second line of defence required for screening the passengers and cargo getting into or offloaded from an aircraft. Rough Weather The suspension of training centre licence comes at a time when IndiGo is reportedly facing glitches and delay in its flights resulting in inconvenience to the passengers. On January 31, IndiGo reported 25 per cent decline in its net profit (year on year) at Rs 487 crore for the October- December 2016 quarter (Q3FY17), due to lower yield and increase in fuel cost. The company had profit of Rs 650 crore in the same quarter last fiscal. While its total revenue for Q3FY17 did record 16.8 per cent growth to Rs 5,158 crore, its yields fell due to demonetisation. The company's yield dropped to Rs 3.48 per kilometre in Q3 this fiscal, down from Rs 4 in same period a year ago, it said. Earnings before interest, taxes, depreciation, amortisation, aircraft and engine rent costs (EBITDAR) stood at 29.3 per cent in the reporting period against 39% in the year ago, same period. IndiGo said the operational performance impacted during the quarter primarily due to challenges faced by adverse weather conditions, ATC congestion at key airports and A320neo issues. OTP Woes Having consistently being ranked poorly on the key parameter of On Time Performance (OTP), especially at the Mumbai airport, IndiGo has recently lodged a complaint with the Directorate General of Civil Aviation (DGCA), the sectoral regulator. IndiGo was ranked at third spot on OTP parameters for the month of October, 2016 and at fourth rank for the month of November, 2016 among the six domestic carriers. DGCA has already formed a committee to examine the entire calculation procedure used for calculating the OTP, particularly in Mumbai. http://businessworld.in/article/IndiGo-Security-Training-Licence-Suspended-What-Does-It-Mean- /06-02-2017-112478/ Back to Top Stavatti throws Javelin jet trainer into USAF T-X competition Stavatti Aerospace has thrown its hat - or Javelin - into the ring to replace the US Air Force's jet trainer fleet. Coming in the wake of two major contestants withdrawing from the USAF Advanced Pilot Training Program (T-X) competition, the Javelin's entry shows that the contest to succeed the Air Force's fleet of 400 T-38 aircraft that have been in service for over half a century is still very much open. According to Stavatti, the twin-engine, two-seater Javelin began life in 1998 as the Javelin Mk-30 - a two-seat civil jet sport plane developed by the Aviation Technology Group (ATG) starting in 1998. Despite drawing orders for 151 aircraft and a 2004 partnership with Israel Aircraft Industries (IAI) to develop a military version, the Javelin Mk-30 only reached the prototype phase before the company declared bankruptcy in 2008. On November 14, 2016, Minnesota-based Stavatti was awarded a license to develop, prototype, certify, manufacture, sell, and support the Javelin. The company then began redesign work before announcing its entry into the T-X competition. Like most jet trainers, the Javelin is a small two-seater, but unlike its civilian predecessor it includes a number of structural improvements to allow the airframe to pull nine Gs as well as handling more powerful engines and greater fuel capacity and payload. The Javelin's maximum speed is Mach 1.36 (1.035 mph, 1,666 km/h) and the company says in addition to serving as a high performance military jet trainer, the aircraft will be available for sale to allied air forces as a Very Light Fighter (VLF) aircraft. Stavatti says that is looking for a larger prime contractor as a partner to help with the manufacture, training, and contractor logistical support for the aircraft. Meanwhile, Northrop Grumman and Raytheon have both withdrawn from the T-X competition in recent weeks, leaving the field to Stavatti, Lockheed Martin, Alenia Aermacchi, Textron AirLand, and Sierra Nevada Corporation. http://newatlas.com/stavatti-javelin-t-x-jet-trainer-competition/47746/ Back to Top NASA to Perform Series of Flights to Test New Interval Mgmt Software Tech NASA's Aeronautics Research Mission Directorate will conduct a series of flights in Washington to test a new aircraft technology designed to help airlines mitigate air traffic delays and aid air traffic controller workloads. The space agency said Friday the Federal Aviation Administration and other aviation partners will help conduct the Air Traffic Management Technology Demonstration-1 flights which will test the airborne flight deck interval management software. ATD-1 will use a Boeing757 aircraft, United Airlines-supplied Boeing 737 aircraft and a Honeywell business jet to conduct the flight test over Grant County International Airport. Researchers from NASA Langley Research Center developed software and flight tests to be equipped on the Boeing aircraft to support the management of the arrival of aircraft to airports. NASA added the research team aims to help airplanes spend less time in the air to address engine emission, fuel, money and noise concerns as well as mitigate potential delays. http://www.executivegov.com/2017/02/nasa-to-perform-series-of-flights-to-test-new-interval- mgmt-software-tech/ Back to Top Lufthansa to provide the right type of light at the right time Lufthansa will be the first airline worldwide to use a range of different settings for the on-board lighting of the A350-900 which are designed to fit with the day and night-time biorhythms of their passengers. Any passengers who have ever traveled across a number of time zones will know the problem - your body clock gets out of sync. With the introduction of Lufthansa's new A350-900, it has now for the first time become possible to work with and fit with the biorhythms of the passengers by providing the right type of light at the right time. Lighting effects will also be used to emulate a pleasant restaurant atmosphere on board during mealtimes. "The well-being of our passengers is of particular importance to us. So it represents a real milestone for us that we can now achieve these improvements with this innovative lighting technology," says Dr. Reinhold Huber, who is responsible for further development in the area of Customer Experience. Altogether, the new A350-900 LED technology can provide around 24 different lighting settings. Following on from the A350-900, Lufthansa will also be re-fitting its Boeing 747-800s with the new lighting system. The use of a range of lighting settings is based on findings from research in the field of Chronobiology and on known effects of our day and night-time biorhythms. A large number of scientific findings provide the foundation for the technology, such as those by Prof. Christian Gunga of Charité and by Dr. Achim Leder. Warm light for relaxation is supplied during periods of rest, whereas cooler light provides stimulation for more active phases. Lufthansa has developed these various lighting moods in collaboration with lighting designers from Kardorff Ingenieure in Berlin - "Our focus is on passengers' needs when it comes to selecting the type of light to be used. We are thus able to create a pleasant atmosphere which can significantly improve the passengers' feeling of well-being," explains Professor Volker from Kardorff. As of 10 February, Lufthansa will be stationing the first ten Airbus A350-900 aircraft in Munich. The first destinations served will be Delhi and Boston. The aircraft will have space for 293 passengers - 48 in Business Class, 21 in Premium Economy and 224 in Economy Class. The A350-900 is now the world's most advanced and most environmentally friendly long haul aircraft. It uses 25 percent less kerosene, produces 25 percent fewer emissions and is significantly quieter on take-off than comparable types of aircraft. http://ftnnews.com/aviation/31557-lufthansa-to-provide-the-right-type-of-light-at-the-right- time.html Back to Top Challenges For Expanding MRO Market In Africa Commercial aviation in Africa has long been hampered by geopolitical strife, a spotty safety record and extremely high airport fees and taxes on jet fuel. But thanks to aggressive marketing campaigns, the advent of technologically advanced aircraft and an increased commitment to safety, airline service in Africa is growing rapidly. The Air Transport Action Group report "Aviation: Benefits Beyond Borders" (July 2016), found that in terms of international airline traffic, Africa is the second-fastest-growing region in the world. But the continent's overly strict regulatory environment needs to be simplified for the industry and local MRO providers to really take off. As the report confirms, Africa's airlines are subject to some of the most restrictive regulations in the world, with a plethora of individual bilateral agreements between countries. To overcome this, 52 African states came together to adopt the Yamoussoukro Declaration in 1988, aimed at liberalizing the continent's skies. This was followed by the Yamoussoukro Decision in 1999, which worked toward the same goal. However, since then progress has stalled, with many states failing to agree on the decision's implementation. Another issue affecting airlines in the region is the move by some African governments to block the flow of foreign exchange because of slumping oil prices. For international carriers, this means an inability to repatriate revenues. This action also restricts the ability of carriers registered in those African countries to purchase aircraft spare parts and services, which are mostly priced in U.S. dollars. At the African Airlines Association (AFRAA) general assembly in Zimbabwe in November 2016, Elijah Chingosho, secretary general of the body, urgently called for these restrictions to be lifted. Since then, AFRAA estimates that Angola, Nigeria, Egypt and Sudan have blocked some $2 billion in revenues. Fleet Forecasts Africa accounts for about 5% of the global commercial airline fleet. Musa Zwane, acting CEO of South African Airways (SAA) and CEO of SAA Technical (SAAT), notes that although current aircraft demand from Africa is relatively small compared to the rest of the world, the rapid pace of growth is the same as that projected for the Middle East and Asia-Pacific regions. He puts the current number of airliners in Africa at roughly 1,300, with approximately 1,000 new aircraft deliveries due over the next 20 years. Zwane attributes these growth projections to several factors. The average age of the African fleet is fairly high, and aircraft will need to be replaced. There is also serious competition from Gulf carriers-such as Emirates, Etihad Airways and Qatar Airways-which have a formidable presence in African skies. He stresses that it is vital for local airlines to opt for new-generation aircraft that are more fuel-efficient and offer improved reliability. Another factor is the relationship of GDP growth to air travel expansion. "One must consider that the continent has been affected by the slowdown of China and this has severely affected the African countries that generate much revenue from the export of commodities," Zwane says. "The slow economic growth will affect the demand for air travel, as it is disposable income that can create this need." According to the Airbus Global Market Forecast (GMF) for 2016, air transport growth is highest in emerging markets, where the middle class is expected to grow from 2.8 billion to 4.8 billion in the next two decades. The manufacturer predicts that air traffic worldwide will double in the next 15 years. The Asia-Pacific region leads the way, with 5.7% annual growth projected over 20 years, while Africa is expected to grow at 4.8%. The GMF predicts 1,000 aircraft will be delivered to the continent in the next 20 years. Boeing's Current Market Outlook for 2016-35 projects that air traffic to, from and within Africa is expected to grow at about 6.1% annually over the next 20 years as technology increases fuel efficiency, opening up new international routes that were previously not possible. Flights between Africa and Europe continue to account for the largest share of the region's air travel, although this segment is decreasing. This traffic flow, and that between Africa and the Middle East and within Africa, accounts for more than 86% of total capacity, with intra-Africa traffic the fastest-growing segment by net capacity. Boeing's forecast expects this growth, combined with the need to replace the region's aging fleet, will result in demand for 1,150 new aircraft. Martyn Haines, technical director of Kenya Airways, agrees with the forecast of more than 1,000 new aircraft in the next 20 years, but points out that figure covers only new deliveries from the production line. "There is an influx of older aircraft in age and model that is expected over the same period with the possibility of the number topping up another 1,000 aircraft," he says. "This would cover a range of different aircraft types, manufacturers, and configurations. This assumption is evidenced by the expansion of new low-cost carriers not necessarily positioned to lease/finance new aircraft, and existing operators needing to be more innovative in the use of a mix of new and older fleets." Limited MRO Opportunities The economic, political and geographical issues affecting airline traffic in Africa and the fact that local traffic growth has remained mostly flat has limited opportunities for MRO growth. Aviation Week's MRO Forecast estimates that airlines in Africa spent about $2.5 billion on MRO in 2016. But this spending is expected to grow, as the influx of new aircraft will require new and more sophisticated technical skills and capabilities. ICF International predicts that by 2025, African MRO spending will increase by about $2 billion. The dominant MRO players on the continent can be divided into African and non-African operators. Local MRO providers include SAAT, Ethiopian Airlines Maintenance and Engineering, Kenya Airways Technical, Air Algerie Technics and Tunisair Technics. Non-African operators include Air France Industries KLM Engineering & Maintenance (AFI KLM E&M), Direct Maintenance and Sabena Technics. There are also joint ventures such as Air France Industries' and Royal Air Maroc's Aerotechnic Industries. SAAT is one of Africa's leading MRO providers and has an aggressive focus on building its third- party business. According to Zwane, the market segments for MRO in Africa mirror the global trends of outsourcing and insourcing. Engine and component services are still dominated by the original equipment manufacturers (OEM), which are fast becoming an ever-bigger threat to MROs as they enter the aftermarket with total care and support packages. "Airframe and line maintenance segments have a distribution, especially in Africa, of many legacy airline MROs performing in-house services, but there is a slow transition toward more third-party MRO providers," he adds. Zwane believes that in order for Africa to both grow commercial aviation and stimulate economic growth, it is imperative for all countries to embrace the Yamoussoukro Decision. Consequently, SAAT has taken up a leadership role in promoting this campaign in Africa. Kenya Airways Technical is one of the continent's emerging MRO players. It already offers third- party services with line and heavy maintenance and provides coverage for a range of component repairs and overhaul. It also offers entry into service support, training and technical services. International Investment MRO giants such as AFI KLM E&M have long seen Africa's potential and have made substantial investments in the region. "Africa is an important market for us. We have contracts in West Africa with Air Cote d'Ivoire and Congo Airways and also in East Africa with carriers such as Ethiopian Airlines and Kenya Airways," says Jean-Michel Picard, AFI KLM E&M vice president of sales for Africa and the Middle East. We also have contracts in Reunion, Mauritius and Madagascar, which for us is part of Africa. Local MRO capacities are still limited, but growing, with our support in many cases." In November 2016, AFI KLM E&M and Ethiopian Airlines signed a long-term component services contract covering a fleet of 28 Boeing 737NGs. Picard says AFI KLM E&M is always seeking to develop and expand its MRO support network, but it is often a challenge to set up an MRO shop in Africa. Political unrest can affect the aftermarket supply chain-in extreme cases, spare parts become unavailable. Africa's remoteness from major OEMs and parts suppliers also can be an issue due to the huge distances involved in the logistics supply process. Existing and future MRO operators will have to find solutions for such problems. Whenever a new airline starts operations, AFI KLM E&M proposes a variety of support structures. "Sometimes we acquire equity stakes in an airline, as Air France-KLM has done with Kenya Airways, Air Cote d'Ivoire and others," says Picard. Training Is Essential Kenya Airways Technical Director Martyn Haines argues that the biggest aftermarket requirement is training for MROs, ranging from basic to sophisticated specialized services. These needs vary by operator, size and exposure. One example is software management, which may require bespoke support in development of user interfaces, loading and control. As African operators/MROs are affected by the loss of highly skilled and trained staff being aggressively recruited to move to the Middle East, an emphasis on training will continue to be critical. SAAT's Zwane agrees that skilled labor is a growing requirement. He says local MROs will require significant training on new- technology aircraft, particularly in avionics and composites. One way to gain this expertise is to partner with established providers. In December 2015, SAAT put out a request for proposal that included both component support and a joint venture for MRO support. In June 2016, AAR won that competitive bid and began work at O.R. Tambo Airport in Johannesburg in October. This is a plus for the region, as the deal will boost South Africa's MRO industry and increase access to Africa-based MRO services. According to Cheryle Jackson, president of AAR Africa, legacy airlines in developed countries have long partnered with third parties to reduce the cost and increase the efficiency of aftermarket services. "Carriers in emerging markets like Africa are now realizing the same benefits of outsourcing, which can be particularly helpful during a period of start-up or expansion in terms of helping to keep both capital and operating costs lower." She cites partnership benefits such as supply chain and technical expertise. AAR provides component parts and component repair to Ethiopian Airlines, Kenya Airways and Fastjet in Tanzania. Jackson points out that partnerships are also an important way for the African aviation industry to grow and strengthen its local supplier base and workforce. This is crucial-with the aviation market in Africa expected to grow exponentially by 2030, many aviation services are still outsourced beyond the continent. Zwane believes partnerships are the solution to many of Africa's MRO problems. "Joint ventures and collaborations will certainly provide this continent with the much-needed economies of scale," he says. "Partnering through aviation can lead to economic growth for this entire continent. Now is the time for African aviation to take the lead in propelling this region as an emerging economy with a fortified future." Even with such partnerships, challenges remain in providing and expanding MRO services in Africa. Jackson agrees that a sufficiently trained and ready-to-go workforce is a common problem. She mentions having enough operational aircraft to support an MRO hub as another hurdle. From the perspective of an African airline operator and MRO, Kenya Airways' Haines sees the following obstacles to MRO growth: · Lack of infrastructure to support aviation businesses. · Lack of critical mass that would promote investment. · Lack of agreements between governments to support and enable multi-country business investments. · Middle Eastern carriers' aggressive recruiting of African-educated engineers and technicians. Future Growth Plans The three major African MRO hubs are in Johannesburg, Nairobi and Addis Ababa, Ethiopia. In August 2016, there was much fanfare when ASKY Airlines based in Lome, Togo, and shareholder Ethiopian Airlines announced plans to establish an aircraft MRO and training center in West Africa. This is a significant development, as West Africa does not have any local stations capable of performing heavy maintenance. Tewolde Gebremariam, CEO of Ethiopian Airlines, explained that ASKY was in discussions with the Togolese government and that if approved, the MRO facility would service Boeing and Bombardier aircraft. If this MRO center is established, it will certainly be a boon to the continent's MRO capabilities. Africa has the potential to be one of the fastest-growing aviation regions and to become an important MRO hub over the next 20 years. There are significant growth opportunities for both airlines and MRO providers, but whether the continent will be able to overcome its myriad challenges remains to be seen. But as one of Africa's greatest leaders, Nelson Mandela, said: "It always seems impossible until it's done." http://www.mro-network.com/maintenance-repair-overhaul/challenges-expanding-mro-market- africa Back to Top Study Highlights Challenges Of Hiring A&P Graduates Results of the Aviation Technician Education Council's (ATEC) survey of aviation maintenance technician schools (AMTS) with FAA Part 147 airframe and powerplant (A&P) mechanic programs highlights several challenges and opportunities for the MRO community as it looks to hire the next generation of mechanics and technicians. The ATEC survey found that the typical starting average hourly wage for an A&P program graduate is $16-20 per hour. Veterans make up 19% of the incoming mechanic workforce, 30% graduated from high school within 12 months of enrollment and 6% are female. The average age of an AMTS graduate is 26. The results also suggest that the aviation community is losing new mechanics to other technical fields. Respondents report that one out of every four AMTS graduates pursue a career outside aviation (more than 750 graduates in the response group alone). Further, only 60% of graduates elect to take the FAA A&P mechanic test upon completion of their studies, meaning that more than 1,200 students from the response group alone have the requisite experience (and theoretically the knowledge and skills) to obtain their mechanic certificate but elect not to do so. The data supports the conclusion that the demand for new A&Ps is high: AMTS respondents reported that 76% of their students have a job by the time they graduate from the mechanic program. The finding is in line with a 2015 survey of repair stations indicating that more than 70% of repair stations were looking to hire. The report also states that AMTS educational institutions are working with industry partners to produce noncertificated technicians with specialized skill sets, outside of their A&P programs. Half of the schools responding provide stand-alone, aviation-related programs, including avionics (24%), composites (15%), welding (15%), unmanned aircraft systems (14%) and nondestructive testing (12%). These certificate programs are often created to meet local employer workforce needs. For example, Wichita Area Technical College provides a sheet metal assembly, composites technology and basic avionics program outside of its A&P curriculum. Local employers guarantee interviews for program graduates, creating clear career paths for potential students. The partnership has helped the school recruit students and filled open positions at local aviation companies. The report concludes that while workforce recruitment challenges exist, there is an opportunity to increase the flow of new mechanics and technicians through education-industry partnerships that create defined career paths. The data will be utilized to help support ATEC's initiatives in that area. http://www.mro-network.com/safety-regulatory/study-highlights-challenges-hiring-ap-graduates Back to Top Aeromexico Considers Bringing Widebody MRO In-house Aeromexico recently has either started or expanded its codeshare agreements with GOL, KLM and Garuda Indonesia. Does this create any new line maintenance opportunities? These codeshare agreements are more focused on increasing passenger connectivity and the combination of commercial operations. That will give our customers more benefits, so they can buy one ticket for a specific route and have single check-in and baggage processes. For line maintenance, at this moment, we don't foresee any changes for the way we work. These airlines are not flying to the same destinations or to the same stations where we operate-or the type of fleet they operate is different than what we have, so we don't see any line maintenance opportunities in the short term. How many new Boeing and Embraer aircraft will Aeromexico be accepting this year? What is involved in the induction process for each? Our fleet plan includes two additional Boeing 787-9 Dreamliners, so we will finish the year with 17 widebodies for the fleet. In addition, we are adding four additional Boeing 737-800s and four Embraer 190s. For the inductions, in the case of the Dreamliners, they come from the assembly line, so they just need to comply with some regulatory issues to start commercial operations. In the case of the second-hand airplanes that we incorporate, like the narrowbodies, they are subject to a very strict acceptance process where all of the technical and regulatory requirements are reviewed by our engineers. They also are inducted into our reconfiguration process to fulfill our cabin standards. What are the capabilities at Aeromexico's maintenance facilities? Are any of your strategies for those facilities changing? Our facilities in Mexico City, Monterrey and Guadalajara are focused on providing line maintenance activities to Grupo Aeromexico. All of these facilities are DGAC- [Mexico's Directorate General of Civil Aeronautics] or FAA-certified repair stations. In the case of Mexico City, we have several component repair shops with a large capability to repair and overhaul high-demand line replaceable units, which makes our operation more efficient. I don't foresee any changes to the scope of work at these facilities. Mexico City maintains all types of Boeing and Embraer fleet products. In Guadalajara, we have the same concept, and in Monterrey, it is more focused on the regional jets and Embraer 145s, but it also does some line maintenance for the Boeing fleet. What are Aeromexico's plans for servicing its widebody aircraft? Would you consider bringing that work in-house? Right now, we outsource widebody heavy maintenance to MROs in North America or China because of the size of the fleet we have. However, we are evaluating whether to bring back this work to our Mexico City facilities considering the level of work, the borescope and technical requirements, as well as the age of the 787 fleet. So maybe in the future, we would start doing the first C checks for the fleet-perhaps by the end of the year or early next year. We outsourced the first checks to an MRO in China, Boeing Shanghai, because we had to include some modifications where we didn't have the capability. But after those first airplanes, the rest of the fleet doesn't require the Wi-Fi system modifications and the cabin reconfiguration, so we are evaluating whether to do the C checks in-house. Last year around this time, TechOps Mexico planned to only need seven of the nine bays for partner aircraft so you could start adding third-party clients by mid-2016. Did this happen? We are partners with Delta for this joint venture, and it is the sole supplier of our narrowbody heavy checks. So they perform all of our Boeing and Embraer narrowbody maintenance, which accounts for about 85% of our fleet. And it will continue to be the only supplier. TechOps increased its capacity and has up to 12 narrowbody production lines. Basically, 50% of that capacity is for Aeromexico's fleet and the other 50% is for Delta [Air Lines]. They are at full capacity-doing heavy maintenance and cabin improvements-but it has the opportunity to grow the facility, so maybe in the future, it would look for third-party work. Is Aeromexico's fleet undergoing any major cabin improvements right now? The last two years we've been working on cabin improvements-including the installation of the inflight entertainment system on the Boeing and E-Jet fleets. We also have been working on interior improvements, and during 2017, we will continue with these programs. So yes, we are investing to make the customers' cabin experience better and provide more services. What's that status of upgrading your MRO IT system to AMOS and EmpowerMX? Two years ago, Grupo Aeromexico decided to replace legacy systems we had in the two airlines, and we selected AMOS. We planned to implement the system in two years. The good news is that AMOS implementation has been a success for Grupo, and it went live in November 2016 for the Aeromexico fleet. We decided to do it in two phases: first for the Aeromexico fleet, which are the Boeings, and the second phase will be the Embraer fleet for Aeromexico Connect. The second phase will go live in the first week of March. Aeromexico doesn't use EmpowerMX-that is the system that TechOps Mexico is using for production control. But we are working together to connect the two systems to exchange information. How has the AMOS system changed your operations? We foresee benefits on the production side and also for record-keeping for the airline, but it's too early to see all of the benefits. However, people are happy with the system and they are using it in offices as well as using the mobile functionality, which we are working with AMOS to implement across the whole network in the coming months. We foresee a lot of benefits on the technical and logistics side, as well as the control of documentation. How is the mobile application working? Right now, we have dedicated stations in all of the areas of the maintenance operations-hangars, shops and offices-where you can consult the system: whatever is related to a part number, service bulletin or maintenance task. The mobile application allows technicians to see maintenance tasks or parts availability in the warehouse, for example, and not have to move to one of these stations. They also have access to the technical library via [Boeing's] ToolBox. In the first phase, we supplied iPads to all of the line maintenance technicians, which is about 60% of the population. In the second phase, we will provide iPads to the shop mechanics, so then 100% of production personnel will have them. People can take pictures and videos of maintenance underway and share them among stations, supervisors, engineering or quality control. It's a new tool and it's a good opportunity to expedite information. http://www.mro-network.com/airlines/aeromexico-considers-bringing-widebody-mro-house Curt Lewis