mro industry investments,joint ventures,merger and acquisitions analysis
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TURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNIC
TURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNIC
MRO Investments,
Joint Ventures,Merger & Acquisitions
January 2014
www.reyyandemir.com
reyyandemir@gmail.com
www.linkedin.com/in/reyyandemir
+90 535 2346818
@reyyan_demir
TURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNIC
TURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNIC
Changing Relationships
Realtionships between airframe and component OEMs,airline MROs and independent MROs are evolving
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TURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNIC
MRO competitive landscape is evolving
TURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNIC
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Reasons for MRO Consolidation
Tough market environment
Decresing profit margin
Aircraft efficent life shortens
Engine & Component manufacturers tend to concentrate aftermarket capabilities
New AC generations requires new technical capabilities
Next –Gen Avionics Technology Costs
High investments needed in test,repair and inspection
OEM raises know how (IP) barrier
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TURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNIC
MRO related M&A Transactions are growing steadily
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MRO related M&A activities to continue over the
next years
TURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNIC
TURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNIC
Type of MRO Transactions
Traditionally defense-oriented companies have entered
into the mix to pursue more non-defense MRO plays.
Lockheed Martin acquired the Montreal, Quebec based engine MRO
business out of bankrupt Aveos, a portfolio company of KKR.
The companies with unique capabilities in areas with
high barriers to entry.
Engine components and avionics are two
examples of such niches.
Source:KippsDeSanto & Co.
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Type of MRO Transactions
Private equity firms have been extremely active in acquiring
MRO / logistics support companies.
Goldner Hawn Johnson & Morrison’s acquisition of Universal Turbine Parts, a
provider of aftermarket turboprop aircraft engine and engine parts.
PNC RiverArch Capital’s acquisition of Precision Aviation Group, a provider of
supply chain and Inventory Supported MRO services (ISMRO®) for instruments,
avionics, and accessories for a variety of fixed-wing and rotarywing
aircraft.
Source:KippsDeSanto & Co.
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TURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNIC
The table below summarizes some MRO occurred over the
past several months.
months.
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M&Q and investment activities
AAR has entered into an
agreement with Liebherr-
Aerospace to provide landing
gear MRO services for the
Embraer E-jet family.
9 Sep 2013
Abu Dhabi Aviation
agrees MRO joint
venture with
Agusta Westland
19 November 2011
Air China to merge
Ameco with in-
house MRO
Division
26 Sep 2013
AAR to add third
maintenance line at
Duluth. The hangar
was formerly used by ,
which was acquired by
, to maintain its Airbus
A320 aircraft.
27 Sep 2013
Aeroflot – Russian Airlines
will establish a joint venture
intended for providing
services in the area of
aircraft maintenance, repair
and overhaul with ST
Technics.
February 5, 2013
Bombardier has signed a letter
of intent with Ethiopian Airlines
to make the airline's technical
division an
authorised service facility for
Bombardier Dash 8 Q400
turboprops.
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TURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNICTURKISHTECHNIC
M&Q and investment activitiesCFM International has ruled
out a technology joint
venture with AVIC
Commercial Aircraft Engines
(ACAE) and
plans for a China-based
assembly line for the
company's Leap-1C engine
have effectively been placed
on hold. 24 Jul 2013
Delta Air Lines is to invest
$65 million in Aeromexico,
as the two SkyTeam airlines
reached a tentative
agreement for
a long-term exclusive
commercial alliance and a
new maintenance, repair and
overhaul joint venture
10 Aug 2011
Russia's Oboronprom has
signed an agreement with
South Africa's Denel to extend
the capabilities of the recently
opened maintenance, repair,
and overhaul (MRO) facilities
in South Africa, the company
announced at the Paris Air
Show on 17 June.
Comac has started
research on a 300-seat
widebody aircraft,
which could be jointly
developed with
Russia. The sources
add that Comac has
also started talks with
engine makers GE
Aviation, and Rolls
Royce, and is hoping
that a new and
improved powerplant
will be developed for
its new widebody.
27 Sep 2013
China has set a target to
complete the development
of a commercial powerplant
within a 10-year period, says
the chairman of an advisory
committee on the Comac
C919 aircraft programme.
13 Aug 2013
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M&Q and investment activities
Sagem and MTU Aero
Engines kicked off the air
show with the launch of a
50:50 joint venture, AES
Aerospace Embedded
Solutions, to provide safety-
critical software and
hardware such as full
authority digital
engine control (FADEC) and
systems to control landing
gear, braking, monitoring
and information systems.
7 Jul 2012
Execujet Aviation has Execujet Aviation has
entered into a joint
venture with Indonesia's
Dimitri Utama Abadi for
the management of
general aviation terminals
at 13 airports in Indonesia.
27 Sep 2012
US aftermarket support firm
GA Telesis has taken over
Finnair's engine overhaul
shop in Helsinki.
7 May 2013
GE Aviation and the HNA
Group today signed a
Memorandum of
Understanding (MOU) to
form a
joint venture to provide
maintenance, repair and
overhaul (MRO) services
for GE's CF34-10A and
CF34-10E engines.
16 November 2010
Guangzhou Aircraft
Maintenance and
Engineering Co ( ) is
developing plans to build a
third hangar at its
base near Airport, while
construction of its second
hangar continues.
GAMECO
Guangzhou Baiyun
International.
6 Sep 2012
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M&Q and investment activities
Gulf Technics outlines
expansion plans. The
business is still negotiating a
joint venture agreement to
run the new hangar with
SIA Engineering (SIAEC)
after signing a
memorandum of
understanding at the 2010
Bahrain show.
19 Jan 2012
SriLankan Airlines,
Lufthansa Technik enter
MRO joint venture at an
airport in Mattala.
13 Aug 2013
SR Technics, part of the
Mubadala Aerospace MRO
network, and France’s Aigle
Azur Airline will establish a
joint venture (JV) to provide
line and light maintenance
activities for the carrier’s
Airbus A320s
12 June 2013
SIA Engineering Co (SIAEC)
15 Feb 2012
SIA Engineering Co (SIAEC)
and Panasonic Avionics
have opened a facility for
their joint venture
Panasonic
Avionics Services Singapore
(PACSS) for the
maintenance, repair and
overhaul (MRO) of
Panasonic Avionics
systems.
15 Feb 2012
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