Wednesday, 25 April 2012

Dublin Aerospace Reveals Expansion Plans ©

                                                
“Conor McCarthy has turned this belief on its head by growing Dublin Aerospace into a hugely successful brand in aircraft maintenance based on the premise of high quality and cost competitiveness”-Frank O’Keeffe Partner E&Y Entrepreneur of the Year.

On Tuesday the 8th of March I had the pleasure of attending the Royal Aeronautical Society Lecture by the Chairman Dublin Aerospace Conor McCarthy in Wynns Hotel Abbey, where there was a large audience in attendance to hear the developments taking place at the growing young company which has grown from six employees to over two hundred now entering its third year of operations.

                                              
                                       


The Dublin Aerospace Chairman has vast wealth of experience in the aviation industry- Aer Lingus Commuter CEO, Director and Co-Founder of Air Asia and Director of Group Operations at Ryanair and is Managing Director at PlaneConsult. The experience and knowledge of these businesses enabled Conor to launch a new MRO Model Dublin Aerospace.

                              'Our Employee Model is everything to us'

The lecture was opened by Paul Gorey Chairman of the Royal Aeronautical Society with the opening statement ‘We are getting the industry back on its feet’ which set the tone for the lecture, which was followed by the Head of APU Services Fergus Woods showing three videos of the three business unit’s APU Services, Base Maintenance and Landing Gear Services to give an insight into the business.

              'If you are caught in the middle of the road with strategy you are dead'

The closure of SR Technics enabled Dublin Aerospace to start-up without the legacy structure of its predecessors on the site, with Conor McCarthy assembling a group of investors to raise $25 million to set-up the new business.

The employment model is unique in the MRO business in that company deals directly with its employees and on the first day of employee staff receive a letter stating the competitive nature of the global business. The Labour model is based on that of Low-Cost carriers focused on efficiency, productivity and safety with a strong customer focus, employees are incentivised through a 20% profit share scheme each quarter.

                                  'It is your business-Take responsibility'

Dublin Aerospace broken the model of its legacy prodcessors by focusing on a narrow product line thus reflecting the low-cost business model. The company focuses on Base Maintenance in the Airbus A320 Family and Boeing 737 Classic and Next Generation and in business units APU and Landing Service Centres

              
The Dublin Aerospace Model it’s a three legged stool-APU , Base Maintenance and Landing Services, as each unit helps to cross-sell products. In start-up phase having the three units operational was really important, to enable sales and product focus to develop competences, capability and sell man-hours.

                              'Team Leaders are like captains in a sports team'
                      
The three business units (APU, Base Maintenance and Landing Gear) are run by a team leaders who are responsible for the Profit & Loss (P&L) and the team. The teams are thoroughly integrated with engineering, finance, marketing and planning and each pays it own overhead costs which ensure the centres are run as tight as possible.
 
Dublin Aerospace has ambitious plans for growth ahead in two years time when the Aer Lingus Base Maintenance contract comes up for renewal it will bid for the A330s to win the A320 family business contract.

The company plans to develop it’s APU Service Centre in addition to generating repeat airline fleet business from it’s existing customers Aer Lingus, Air Via and XL Airways Germany.

The company plans to develop its relationship with the aircraft lessors with Ireland a leading centre in the business with the large concenration in the IFSC and Shannon.

The collapse of Spanair saw 14 Airbus A320/1's aircraft being ferried to Dublin for maintenance & care and short-term storage prior to a number of aircraft being re-delivered to Vueling Airlines by lessors. Dublin Aerospace collaborated with Eirtech Aviation who re-painted the aircraft prior to delivery to the customer.


                                          

The company will work with it’s shareholders Airbus and Air Asia also in due course with potential Global footprint/Joint-Venture partners to bring work to Dublin , and may in the medium term re-open the avoinic component repair shops if it can secure a high-volume of work, also the company plans more hangarage and it plans to keep its shape and cost base discipline.


                                    

An exciting future lies ahead for Dublin Aerospace having recently won new contracts from British Airways and Cebu Pacific. It's highly competitive cost base and unique employment model with highly productive workforce has set the foundations for future growth of the company , which will be a win-win for it's customers, employees, shareholders and Ireland Inc.  

Dublin Aerospace Milestones:

3th September 2009: Dublin Aerospace launch operations

7th October 2010: Wins 5 Year Easyjet Airbus A319 Landing Gear Contract

27th September 2011: Wins 2 Year Aer Lingus 8 x A320 Base Maintenance Contract

21st October 2011: Executive Chairman Conor McCarthy Emerging category Ernst & Young Entrepreneur Of The Year 2011

3rd November 2011: Opens new €4.5 million Landing Gear Centre

3rd November 2011: Boeing approved Boeing 737NG Landing Service partner


EOY TV: Dublin Aerospace Executive Chairman Conor McCarthy

Go to Link: http://www.eoy.tv/entrepreneur_detail.php?eID=42


Irish Aviation Research Institute © 25th April 2012 All Rights Reserved.

Monday, 16 April 2012

Irish Airlines Report March Traffic ©

                                                          


Aer Lingus announced that it carried 809,000 passengers in March up 8.2% with the airline carrying 663,000 short-haul passengers up 5.4% with a load factor of 72.6% up 3.4% and 73,000 long-haul passengers with a load factor of 82% up 8.2%. The Aer Lingus Regional Franchise operation carried 73,000 passengers up 30.4% coutinuing its strong performance ,and as usual the carrier does not release traffic figures for the United Airlines Washington Dulles to Madrid route.


                                                       

Ryanair announced that it carried 5.5 million passengers in March down 4% with a load factor of 79% down 1% and in the rolling 12 months to the end of March it carried 75.8 million passengers. On the 26th of March the carrier opened its new Billund Base with two Boeing 737-800s and 28th of March the airline opened its first Polish base in Wroclaw with a single Boeing 737-800, thus as the airline opens new base and resumes seasonal routes the growth will turn positive.

The carrier removed two Boeing 737-800s from service EI-DHI c/n 33818 on the 20th of March and EI-DHJ c/n 33819 on the 26th of March and are stored in Prestwick.

Ryanair Boeing 737-8AS Deliveries:

EI-EVI Boeing 737-8AS c/n 38502 Delivered 2/03/12
EI-EVJ Boeing 737-8AS c/n 38501 Delivered 08/03/12
EI-EVK Boeing 737-8AS c/n 40928 Delivered 14/03/12
EI-EVL Boeing 737-8AS c/n 40299 Delivered 24/03/12

Irish Aviation Research Institute © 16th April 2012 All Rights Reserved. 

Monday, 2 April 2012

European Short-Haul Pressure ©

The market pressures in the European short-haul market continue to intensify as airlines struggle to remain competitive in an increasing hostile environment as revenues are eroded and cost and competitive countinue to multiple creating new challenges, the rate of change to adopt is increasing all the time therefore standing still is no longer an option with a middle of the road strategy when it comes to cost control.

                                                                
Air France announced on the 20th of March a new ‘Transform 2015’ plan aimed to restore the airline to sustainable profitability with particular emphasis on the short-haul and medium haul markets, where it and its regional subsidiaries made an operating loss of €500 million in 2011. To turnaround the operation the carrier plans to consolidate the operations of  Brit Air , Cityjet and Regional Airlines into a single unit which have yet to be defined, also its low-cost subsidiary Transavia France which operates four Boeing 737-800s from Paris Orly will be expanded under  its current brand or another.

                                                                                              

Brussels Airlines according to media reports was considering moving its HQ to Ireland or Luxembourg to enable the carrier to compete against Ryanair due to favourable tax and employment conditions, although the carrier later rejected the idea stating it was option. The opportunity was seized by the Walloon government who made an offer to Brussels Airlines to re-locate its base from Brussels National to Brussels South Charleroi saving the carrier €29 per passenger.

                                                                   
Finnair announced on the 22nd of February it was in negotiations with potential partners to form a JV to take over the operation of the European short-haul network, which would enable it to reduce costs and have a competitive cost base, as low-cost carriers Norwegian Air Shuttle and Ryanair continue to develop their presence in the Finnish market.

                                                                   

Iberia launched its new lower-cost production operation Iberia Express on the 25th of March with four Airbus A320s from its Madrid base which will play a vital role as a feeder for the long-haul network, despite strong opposition from the Iberia unions. The Iberia Express operation will grow to 14 A320s operating 17 routes with 500 employees by the end of the year eventually the fleet will grow to 40 A320s by 2015 making a contribution of €100 million to the IAG group.

The LCC’s in Europe will continue to drive on-going re-structuring of the legacy carriers in Europe in an ever-changing landscape ,for certain they must not take their foot off the brake in on-going cost reduction to maintain competitiveness to ensure their long-term survival.

Irish Aviation Research Institute © 2nd April 2012 All Rights Reserved.