HAECO GROUP. e-newsletter ISSUE 17 MAR Group Services. Company Events 13. CSR Activities. Feature Story. Group Capabilities 19.

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1 HAECO GROUP e-newsletter ISSUE 17 MAR 2015 Group Services Company Events 13 CSR Activities 15 Feature Story 17 Group Capabilities 19 Group Portfolio 22

2 Group Services Airframe Services Line Services Private Jet Solutions Engine Services Component Services Inventory Technical Management Technical Training HAECO GROUP e-newsletter ISSUE 17 MAR

3 Airframe Services HAECO supports Atlas Air In February, HAECO Hong Kong completed a C4 heavy maintenance check on a Boeing F freighter owned and operated by Atlas Air on behalf of Etihad Cargo. The C4 check included aircraft strip and repaint, and it was the first time HAECO had applied a new Etihad Cargo livery for the customer. The sophisticated and challenging painting process involved the application of layers of special MICA paint and clear coat to create different shades of colour. The HAECO Hong Kong team demonstrated extensive technical capabilities and can-do spirit throughout the process. The project marked an auspicious beginning to the Year of the Goat and also began a new chapter in the on-going business relationship between Atlas Air and HAECO Hong Kong. Both companies can look forward to closer cooperation in the future, with the recently renewed contract for HAECO Hong Kong to provide comprehensive aircraft maintenance support for Atlas Air s freighter aircraft for the next five years. 2

4 Airframe Services New capability HAECO Xiamen has expanded its service capability in response to the growing demand for airlines to enhance passengers in-flight experience by providing Wi-Fi on board their aircraft. In October last year, the company gained CAAC approval to perform satellite beam transmission tests on Wi-Fi systems. Installation of Wi-Fi system In February, HAECO Xiamen successfully completed its first installation of a Panasonic Global Communication Suite (GCS) system on a Japan Airlines Boeing 767 aircraft. Close cooperation and great teamwork between HAECO Xiamen, JAL and Panasonic, ensured the installation was completed smoothly and on time. The FAA Supplemental Type Certificate (STC) for this prototype Wi-Fi installation was issued on 11 February and the JCAB STC was issued on 26 February. 3

5 Airframe Services STAECO supports G450 aircraft On 28 November last year, Taikoo (Shandong) Aircraft Engineering Company Limited (STAECO) welcomed its first Gulfstream G450 aircraft (B-8161) from Nanshan Jet for heavy check, weighting and deep-cleaning. The Nanshan Jet aircraft was the first Gulfstream G450 overhauled by STAECO since obtaining CAAC approval for its Continuous Airworthiness Maintenance Programme for this aircraft type last September. The STAECO team carried out detailed planning and worked closely with the airline to overcome technical issues, earning STAECO high praise from the customer. E190 Phase 4 Check and ADS-B modification On 17 December, STAECO completed a Phase 4 Check and an Automatic Dependent Surveillance-Broadcast (ADS-B) modification on an Embraer E190 aircraft (B-3219) for Minsheng Jet. During the course of the project, the STAECO team collaborated seamlessly with the airline and engineers from Embraer to ensure quality and on-time redelivery. STAECO s customer-centric approach and high quality work laid good foundations for an on-going business partnership. 4

6 Line Services Total Care IFEC Solution HAECO Hong Kong and Panasonic Avionics Corporation (PAC) have entered into a new agreement in 2015, by expanding their IFE Maintenance Service agreement to a Total Care IFEC Maintenance Solution Service. While the IFE Maintenance Service has focused on technical support by request, the Total Care IFEC Maintenance Solution Service encompasses both functional and technical support for integrated in-flight entertainment and communications (IFEC) systems, ensuring high quality IFEC performance at every stage of the journey - on the ground, inflight and post-flight - thereby enhancing passengers overall experience. The new Total Care IFEC Maintenance Solution Service adopts an outcomebased maintenance concept, with a new work scope that combines on condition maintenance with monthly preventive and corrective checks. These checks are supported by proactive maintenance that utilises PAC maintenance tools and built-in test equipment (BITE) analysis to deploy manpower when and where it is needed and pre-empt technical defects. All maintenance work is planned and controlled by the newly established IFE Operations Control Centre and a Technical Advisory Team under the aegis of HAECO Line Services. The new HAECO Hong Kong / PAC partnership demonstrates PAC s commitment to be a world-class IFEC service provider for airlines, as well as its vote of confidence on the best-in-class maintenance service and support provided by HAECO Hong Kong. 5

7 Line Services New Customer On 28 February, Jetstar Japan, the largest Japanese low-cost carrier based at Narita International Airport, operated its inaugural flight to Hong Kong, as its first international destination. HAECO Hong Kong is delighted to have been chosen as Jetstar Japan s Line Services provider at Hong Kong International Airport. The service scope covers technical handling services, ramp equipment support and cabin cleaning. Jetstar Japan currently operates three flights a week between Hong Kong and Osaka, Kansai, using Airbus A320 aircraft; flight frequency will increase to daily from July. 6

8 Private Jet Solutions MEBA Show HAECO Private Jet Solutions took part in the Middle East Business Aviation (MEBA) Show held in Dubai in December The three-day event revealed a growing market for private jet operators and growing demand for firms offering maintenance repair and overhaul (MRO) services on these aircraft as well as increasing competition. Exhibiting at the MEBA Show for the first time, HAECO Private Jet Solutions drew widespread attention. His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and CEO of Emirates (second from left), and Mr Ali Ahmed Al Naqbi, Chairman of the Middle East Business Aviation Association (MEBAA) (left), extended a warm welcome to HAECO Private Jet Solutions representatives. In addition to presenting its comprehensive service offering, HAECO Private Jet Solutions took the opportunity to build its awareness in the Middle East market and network with customers and business partners at the event. MEBA is the foremost business aviation platform for the Middle East, and takes place every two years. The MEBA Show 2014 attracted over 420 exhibitors and 8,300 visitors. 7

9 Engine Services HAESL prepares for XWB Hong Kong Aero Engine Services Limited (HAESL), the Group s engine services facility in Hong Kong, is expanding to meet the needs of servicing the new Rolls-Royce Trent XWB engine. HAESL is constructing a new four-storey, 13,000 square-metre building, which will house engine overhaul workshops, offices and training rooms. The new Phase VI facility is being constructed with optimisation of operational and material flow and sustainability in mind. In addition to facility expansion, HAESL staff will receive On-the-Job Training on the engine strip and build activities in Rolls-Royce, Derby, UK later this year. Required tooling for the new engine type has been ordered, and two essential sets of test cell hardware, Special Purpose Test Equipment (SPTE) and the Test Adapter, were delivered in November, to enable test cell shakedown and cross-calibration for the new engine type. 8

10 Engine Services New Nadcap accreditations After obtaining Nadcap reaccreditation for Non-Destructive Testing (NDT) last November, HAESL has taken another step forward in its Nadcap journey by gaining Nadcap accreditation for heat treatment and chemical processing in December. This is an important achievement for the company, reflecting its on-going efforts in the Nadcap programme, as part of its continual pursuit of operational excellence. This latest success will be a strong incentive to extending HAESL s capability by obtaining further Nadcap accreditations for the wide range of repair processes that the company performs. This year, HAESL will continue its Nadcap journey by gaining accreditation for surface enhancement. 9

11 Component Services New Capability In the fourth quarter of 2014, the Group s component services facility, HAECO Spirit AeroSystems, received CAAC and Federal Aviation Administration (FAA) approval for Flight Control Surfaces for Airbus A320 and Boeing 737NG aircraft, and for Boeing GEnx-2B67 thrust reversers, inlet cowls and fan cowls. Forthcoming approval from the European Aviation Safety Agency (EASA) for these products is expected in the first quarter of HAECO Spirit AeroSystems is also developing a rotable pool of components for Airbus A320 and Boeing 737NG flight control surfaces at its facility in Jinjiang, in Mainland China. The company expects the initial phase of rotables to be available to support customers in the first quarter of this year. 10

12 Inventory Technical Management Inventory Pool Support In December, China Airlines (CAL) and HAECO ITM Limited (HAECO ITM) entered into an agreement for a long-term rotable management programme for the airline s 10-strong Boeing ER fleet. The programme will cover a range of line-replaceable units (LRUs) and simulator parts. Under the agreement, HAECO ITM will support CAL with comprehensive component solutions that include repair management, provision of onsite consignment stock in Taipei, as well as access to HAECO ITM s extensive inventory pool in Hong Kong. Underpinning this deal is HAECO ITM s extensive technical know-how and operational experience with the Boeing ER fleet. In addition, CAL can leverage HAECO ITM s close proximity to Taipei and excellent connectivity out of Hong Kong International Airport to ensure the high levels of service required by CAL to maintain our fleet performance, said CJ Huang, Senior Vice President Engineering & Maintenance Organisation of China Airlines. 11

13 Technical Training Training Collaboration In February, HAECO Group entered into a long-term agreement with Airbus to provide maintenance and engineering training in Mainland China and Southeast Asia on Airbus aircraft. Under the terms of the agreement with Airbus, the HAECO Group will deploy Training by Airbus standards, dynamic tools and teaching techniques to provide Aircraft Original Equipment Manufacturer-backed maintenance training capabilities to its own personnel and to third-party customers around the region. Didier Lux, Executive Vice President of Airbus Customer Services (left, front row) and Mark Hayman, HAECO Group Director Engineering and Operations (right, front row) were pictured at the signing ceremony. This collaboration will enable trainees to attain the very highest competence levels, through access to industry-leading technology, training media and optimised courseware. The ground-breaking Airbus Competence Training (ACT) concept for maintenance personnel will bring virtual Airbus aircraft right into a digital classroom within the HAECO Group s facilities. 12

14 Company Events DGCA visit In November last year, HAECO Hong Kong was visited by 10 delegates from the Directors General of Civil Aviation Asia and Pacific Region (DGCA) Conference, hosted by the Hong Kong Civil Aviation Department. The delegation included senior officials from the civil aviation authorities and ministries of transport from Fiji, Japan, Laos, New Zealand, Korea and Singapore, as well as a representative from the Airports Council International. Mark Hayman, HAECO Group Director Engineering and Operations introduced the visitors to the Group s global business and operations and they were then given a guided tour of the hangars and support shops. The visitors were very impressed by HAECO s world-class MRO service offerings. 13

15 Experience Exchange In December, STAECO hosted visitors from the Shanghai Aircraft Design and Research Institute (SADRI) for an experience exchange session. The visitors toured STAECO s world-class facilities, including its training centre, NDT shop and parts store. STAECO and SADRI executives then exchanged views and experiences on a wide range of topics, including aircraft fuselage design, aircraft structure, damage inspection and repair, NDT technologies and more. SADRI hopes to benefit from STAECO s extensive capabilities and experience on a wide range of aircraft types. 14

16 CSR Initiatives/Activities Pedal for good It has become a HAECO Group tradition to participate in the annual Pedal Kart event organised by Round Table Hong Kong an event to raise funds for local and regional charities. The 2014 fundraiser was a Group event, as HAECO Xiamen joined in for the first time with a newly fabricated kart, making up a four-strong fleet for the HAECO Group. Thanks to the great efforts of the organising committee, the pedalling teams and the support team, the HAECO Group was crowned winner in the Men s, Mixed and Fun race categories, as well as being named overall champion of the race day. The Group s fundraising team has meanwhile raised a record-breaking HK$140,000 for charity! 15

17 Leading efforts to improve the health of babies To demonstrate HAECO Americas commitment to supporting March of Dimes an organisation dedicated to improving the health of babies by preventing birth defects, premature birth and infant mortality, CEO Kevin Carter has taken up the role of Chairman of the 2015 Triad March for Babies. March for Babies is the largest annual fundraising event for March of Dimes. As its Chairman, Kevin will play an integral role in raising awareness and funds to advance the scientific research and educational programmes at the core of March of Dimes efforts to ensure babies get a healthy start in life. For more information about the March of Dimes, please visit 16

18 Feature Story Component Overhaul In June last year, HAECO Group opened its new aircraft component MRO facility at Xiamen. HAECO Component Overhaul (Xiamen) Limited [HAECO CRO (XMN)] is a specialist in aircraft hydraulic, mechanical, avionic and pneumatic repair and overhaul, possessing capabilities across the Airbus and Boeing commercial aircraft fleets. Currently, the facility operates under EASA approval, with CAAC and FAA accreditation expected to complete within Capability Development To offer more comprehensive component services to customers worldwide, HAECO CRO (XMN) has recently acquired 5,000 psi Hydraulic Skydrol and MIL 5606 (Red-oil) test benches to complement its existing service offering. These are universal test benches with a wide array of test programmes and adaptors, capable of covering a wide range of hydraulic components for newer generation aircraft such as the Airbus A306, A320, A330, A350 and the Boeing 777-ER. 17

19 Productivity and People Development In the knowledge that extensive capabilities alone are not enough to set HAECO CRO (XMN) apart from competition in the marketplace, the HAECO Group s new facility was designed with lean processes and business optimisation initiatives in mind, in order to maximise productivity, reduce costs and increase profits. Six Sigma and Visual Management practices have been integrated into its production flow, from tool cabinets to workplace design, enhancing process control and improve efficiency. In 2015, the HAECO subsidiary will add to its portfolio 210 more part numbers across 13 ATA chapters, including hydraulic components (ATA 29), Flight Control Systems (ATA 27) and electro-mechanical components (ATA 21, 25, 52), anticipating a workload of up to 27,000 production man-hours during the year. In the second half of 2015, HAECO CRO (XMN) will install additional test benches and equipment, including an Integrated Actuator Testing System, Universal Automatic Test Equipment, Audio Control Panel and Gearbox Testing System. HAECO believes that optimising its production processes will not only benefit the company in terms of cost-saving and profit-earning, but will also translate into customer benefits in the form of lower costs, quicker component turnaround times and ultimately less aircraft downtime. HAECO CRO (XMN) is also investing in human resource development; its existing workforce receives on-the-job and type training in various Part-147 maintenance training organisations, including the Group s own Hong Kong base, allowing the company to acquire additional type approvals on a regular basis. In 2015, the company aims to recruit over 100 more engineers and mechanics. 18

20 Group Capabilities Aircraft Type Airframe Services EASA Line Services Airframe Services FAA Line Services Airframe Services HKCAD* Line Services A A310 A318 A319 A320 A321 A330 A340 A / NG 747SP 747 Classics MD11 MD80 / 90 DC-9 DC-10 DHC-8 CL-600 SAAB340B BD-700-1A10 BE-1900D G450 ERJ135 ERJ145 ERJ170 ERJ190 CRJ200 / 700 / 900 * Maintenance of aircraft registered in PRC, Macau SAR and Hong Kong SAR respectively is provisioned under the Joint Maintenance Management (JMM) cooperation arrangement. Capabilities of the HAECO Group include but not limited to major aircraft types as listed above. Hong Kong U.S. Xiamen Jinan The Group also has approvals for aircraft cabin design and products as well as for airframe, engine and component maintenance from regulatory authorities across Asia, Africa, the Americas, Australia, the Caribbean and the Pacific, including: Australia CASA; Azerbaijan SCAA; Bangladesh CAAB; Fiji Islands CAAF; India DGCA; Indonesia DGCA; Israel CAAI; Japan JCAB; Jordan CARC; Kenya CAA; Korea MOLIT; Macau SAR JMM; Malaysia DCA; Mauritius DCA; Nepal CAA; Pakistan CAA; Papua New Guinea CAA; Philippines CAAP; Qatar CAA; Republic of China CCAA; Singapore CAAS; South Africa SACAA; Sri Lanka CAA; Thailand DCA; United Arab Emirates GCAA; and Vietnam CAAV. Airbus Boeing Other Types Airframe Services CAAC* Line Services Bermuda DCA Airframe Services Line Services Airframe Services Canada TC Line Services 19

21 Cabin Reconfiguration / Modification Winglet Modification - Boeing 737, 757, 767 Freighter Conversion - Boeing /400 using PEMCO STC - Boeing /300 using Boeing & FSI STC - Boeing using Boeing SBs - Boeing using Precision STC - Boeing 767 using customer-held STC Cabin Seats & Products - Passenger seats (Boeing and Airbus approved) - Lavatories, galleys and other monuments - Fully certified, on-site testing laboratory (static, cycle, flammability, prototype workshop, and complete test sled) - FAA repair station - FAA production approval holder Design & Engineering Approvals: - FAA STC and PMA ODA - HKAR-21 DOA - SAR-21 DOA - CAAC DMDOR QMS Accreditations: - ISO 9001: AS9100C Private Jet Solutions - Airbus approved and Boeing licensed VIP cabin completion centre for executive and private jets Engine Services - Rolls-Royce RB Rolls-Royce Trent 500, 700, GE Aviation GE90-110B, -115B - Pratt & Whitney JT8D Component Repair / Overhaul - Avionics: Instrument, Electrical System, Communication System, IFE, Navigation System, Computers, Controllers, Breathing Oxygen System, Galley Inserts - Mechanical: Gear Box, Heat Transfer Equipment, Cargo Handling System, Actuators - Fuel: Fuel Pump, Fuel Flow Regulator, Fuel Metering Unit, Fuel Microbiology Test - Hydraulic: Hydraulic Pump, Hydraulic Actuator, Power Control Package, Servo Valve - Pneumatic: Engine Starter, Air Motor, Pneumatic Valve, Ram Actuator - Safety: Slide Raft, Life Raft, Fire Extinguisher - Lavatory equipment: Vacuum Toilet, Tank, Faucet Landing Gear Repair / Overhaul - Boeing /400/500/600/700/800/900 - Boeing /300 - Boeing P/400F/400ER/ERF - Boeing Boeing /300/300ER - Boeing /300/200ER/300ER - Airbus A318, A319, A320 20

22 Composite Repair / Overhaul - Airbus A330 Trent 700 TR & NC - Airbus A320 V2500 A5 TR, FC & NC - Airbus A319, A320, A321 V2500 A5 CNA - Airbus A318, A319, A320, A321 CFM56-5B TR, FC & NC - Airbus A340 CFM56-5C TR - Boeing 737NG CFM56-7 TR, FC & NC - Boeing 777 Trent 800 TR, FC & NC - Boeing 777 GE90-90/94/110/115 TR, FC & NC - Boeing 777 PW4000 TR, FC & NC - Boeing 767, 747 CF6-80C2, TR - Boeing 767, 747 PW4000, TR Wheels & Brakes Repair / Overhaul - Boeing 737, 747, 757, 767, 777, Airbus A300, A310, A320, A321, A330, A340 - Embraer ERJ135, Bombardier CRJ100, CRJ200, CRJ700 Tyre Retreading - Boeing 737C/NG, 747, 757, Bombardier CRJ200 - Dash /400 - Dornier Embraer ERJ145 - Fokker 70/100 Aircraft Parts Production & Manufacturing Approvals: - HKAR-21 POA - CAAC PMA - FAA PMA - FAA TSO Authorisation QMS and Process Accreditations: - Boeing BQMS - Boeing approved special process D ISO 9001: AS9100C / EN 9100: Nadcap (chemical processing, heat treating, NDT) Calibration & Testing Accreditation: - CNAS ISO Maintenance Training & Examination Approvals: - HKAR CCAR EASA Part SAR HKCAD Aircraft Maintenance Basic License Examination Site - CAAC Aircraft Maintenance Basic License Examination Site - EASA Aircraft Maintenance Basic License Examination Site Aircraft Painting Non Destructive Testing (NDT) Hydrostatic Test Facility Approval: - U.S.A. - DOT Calibration Laboratory (CALMET) - HOKLAS accredited laboratory; Mutual Recognition Arrangement through APLAC on traceability of standards - CNAS accredited laboratory 21

23 Group Portfolio HONG KONG U.S. MAINLAND CHINA Airframe Services Line Services Cabin Solutions Private Jet Solutions Engine Services Component Services Inventory Technical Management Fleet Technical Management Parts Manufacturing Technical Training Associated Companies Goodrich Asia-Pacific Taikoo (Shandong) Aircraft Engineering Sichuan Aircraft Maintenance Engineering Goodrich TAECO Honeywell TAECO Dunlop Taikoo 22

24 Group Services Company Events CSR Initiatives/Activities Feature Story Group Capabilities Group Portfolio Contact Us & Disclaimer Contact Us & Disclaimer Contact Us HAECO Group e-newsletter is published by: Hong Kong Aircraft Engineering Company Limited 80 South Perimeter Road Hong Kong International Airport Hong Kong Editorial and subscriptions: Corporate Communications Hong Kong Aircraft Engineering Company Limited For subscriptions and comments on HAECO Group e-newsletter, please contact us at: Tel: (852) Fax: (852) Disclaimer HAECO Group e-newsletter is a quarterly publication by Hong Kong Aircraft Engineering Company Limited (HAECO Group). It is only intended as an informative journal on the Group s business activities and issues related to the industry. All rights reserved. No part of this publication may be reproduced, duplicated, adapted or transmitted in any form by any means without prior authorisation of the Publisher. Hong Kong Aircraft Engineering Company Limited 香港飛機工程有限公司