Maintenance and its Strategic Importance to Safety · EgyptAir Maintenance 35 Kenya 35 Uganda 28 Ethiopia 24 Seychelles 25 Mauritius 30-40 South Africa 30-40 Average 36 Average Europe

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7.11.2006 EGME / AFRA / 2006

Maintenance and its Strategic Importance to Safety

Maintenance and its Strategic

Importance to Safety

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Overview

I. Maintenance and Safety

II. Market Overview For Africa MROs

III. Egyptair M&E Progress

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Hull losses (per million departures) Regional Rates

Latin America/

Caribbean

2.6 Africa

9.2

Mid-East/North

Africa

3.8

Asia-Pacific

1.3

World 0.76 Hull losses per million departures for operators

based in the IATA region, western-built jets

2005

Europe

0.3

North

America

0.2

North Asia

0.0


As Per IATA Safety Report 2005

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Source: Boeing Statistical Summary Of Commercial Jet Airplanes – world wide operation 1959-2005


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As Per IATA Safety Report 2004

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Maintenance Factors Affecting Safety :

Organizational (Safety Management, Training Systems,

SOPs, Inaccurate Maintenance Data … etc..)

Technical (Engine/Structure/Hydraulic Failures,

Fire/Smok, Bogus Parts …. etc.)

Human (Pressure, Training, Fatigue, Deviation from

operator procedures, … etc..)


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II. Market Overview For Africa MROs

II. Market Overview For Africa

MROs

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MRO Profiling

• There are over 30 participants in Africa, consisting

primary of airline affiliates.

• There are only four independent MROs, three are based

in South Africa and one OEM supplier is based in

Morocco.


MROs

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Key Strengths of Africa as a MRO Centre

• Low-labor costs

• Close proximity to Europe and Middle East

• Significant experience and substantial competencies in old generation airframes


MROs

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Low-labor costs

Average Man Hour Costs (Africa) 2005 Man Hour Costs ($) Country

44-55 Morocco

48-53 Tunisia

35 EgyptAir Maintenance

35 Kenya

28 Uganda

24 Ethiopia

25 Seychelles

30-40 Mauritius

30-40 South Africa

36 Average

70 Average Europe


MROs

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• Limited competition in third party market

Key Weaknesses of Africa as a MRO Centre

• High maintenance costs


MROs

• Low added values within the MRO

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Limited competition in third party market

Company Market Share by Revenue (Africa) 2005

(%) Company

41% Africa MROs

59% Others

100% Total


MROs

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Limited competition in third party market

Share of Third Party Work (Africa) 2005

Third –party

(%)

Airline

Affiliate (%)

Company

25.0 75.0 South Africa Airways Technical

15.0 85.0 Royal Air Maroc Technical

15.0 85.0 Egyptair Maintenance

70.0 30.0 Snecam Morocco

50.0 50.0 Ethiopian Airlines Technical


MROs

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High Maintenance Costs

Maintenance costs are

generally higher for older

generation aircraft, as

they come closer to the

end of their useful life.


MROs

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High Maintenance Costs

Jet Aircraft Age (Africa) 2005

Percent Number Of A/C Age

13 78 0 to 5 Years

12 74 5 to 10 Years

16 98 10 to 15 Years

10 61 15 to 20 Years

16 93 20 to 25 Years

11 68 25 to 30 Years

21 125 Over 30 Years


MROs

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Firm infrastructure: Limited investment in new facilities and equipment

HR Management: High employee turnover and lack of skilled personnel.

Technology Development: Limited investment in R&D

Procurement: Long LT (no or infrequent connections with suppliers)

Inbound

Logistics

Extended LT

resulting

in longer

TAT and

AOG cases

Operations :

Services in

ad hoc basis

Outbound

Logistics:

TAT longer

than other

global

regions

Marketing &

Sales

Small

salesforce

and limited

marketing

campaigns

Service:

Do not provide

opportunities

for aftersales

MRO


MROs

Low added values within the MRO

Pri

mary

S

up

po

rt

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Strategic Opportunities of Africa MRO Market

Revenue Growth Rate

(%)

Revenues

($ Million)

Year

5,3 1,400,0 2005

4,4 1,461,0 2006

4.4 1,526,0 2007

4,7 1,598,0 2008

4,7 1,674,0 2009

6,9 1,790,0 2010

7,0 1,915,0 2011

7,0 2,050,0 2012

Compound Annual Growth Rate (2005-2012): 5,6%

The base year is 2005

Total Revenue Forecast (Africa) 2005-2012


MROs

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Strategic Opportunities of Africa MRO Market


MROs

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Market Challenges for Africa MROs Ranked in

2006-2012 Challenge Rank

High Retain Labour Cost Advantage 1

High Invest in New Maintenance

Capabilities

2

High Train and Provide Incentives for

Skilled Personnel

3

High Improve Brand Equity 4

Order of Impact (Africa) 2006-2012


MROs

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III. EgyptAir M&E Progress


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• During the year 2002 the Air Transportation industry experienced vast changes.

• To attain high performance and boost overall profits EgyptAir was converted into a holding company of seven subsidiary companies.

• The Technical division has become an independent company

**EgyptAir Maintenance and Engineering**

• EgyptAir M&E is configured to be customer oriented.

WHERE WE GO

Since 2002


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• Strategic decisions were taken to utilize the capacious premises & capabilities of the company through:

Improve the quality of the provided maintenance services.

Attract new customers (EASA Operators).

Increase the company’s revenue.

Technical

Economical Human

Regulatory

I.C.A.O.

QQ

WHERE WE GO

Since 2002


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• A decision was taken to obtain EASA Part

145 Approval

October 2002


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A. Organizational structure.

B. Personnel

C. Tools, equipment & GSE

D. Facilities

• To achieve the required improvement, the following

elements had to be tackled:

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A. Organization Structure Accountable Manager

Abdel Aziz FADEL

Human Resource Director

M. Adel GHORAB

Information Services Director

Yousri Abdel LATTIF

Planning and Contracting

Senior Director

Adel Hechima

Overhaul Workshops

Senior Director

Osama Abou El-Maaty

Aircraft Maintenance

Senior Director

Khalid Ahmed GABR

Material Director

Essam HANAFY

Engineering Director

Wagih Sobhy

Quality Assurance Director Hesham Nasser

Tools, Equipment & GSE Director

Ahmed Obaid


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• Two New Directorates Were Established Which are :

1. QA directorate consists of the following :

Audit Department

Technical Authorization Department

Quality Improvement Department

Safety Department

2. Tools, Equipment & GSE directorate consists of the following :

Logistic Department

Calibration follow up and record Department

Inspection Department 27


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• Customer Services Department

To be the focal point with the customers to determine

customers needs and coordinate with EgyptAir M&E

directorates to fulfill customer satisfaction.


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• All Personnel were subjected for intensive Different Type of

Training such as :

Technical Training

MOE Training

Human Factors Training

EASA Part 145 Training

Incoming Inspection Training

• Certifying Staff Files Preparation and Record Including

Monitoring Of :

Continuation Training

Preservation Of Skills

B. Personnel


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C. Tools, Equipment & GSE

• All tools, equipment & GSE to be used are:

Extracted from approved maintenance data.

Provisioned from approved suppliers / subcontractors .

Calibrated at approved ISO 17025 calibration lab.

Inspected by qualified tool inspectors.


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D. Facilities

• The facilities in which the maintenance services will be provided under EASA Part-145 approval has been identified.

• Huge work has been performed to upgrade the condition of the existing chosen facility up to EASA standards ( e.g. LM, Maintenance Hangars, Material Complex stores, Outstations….etc.).

• A plan has been set to upgrade the remaining facilities up to the EASA standard.


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Line Maintenance



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23

Maintenance Hangars


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IERA Shops


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Mechanical Units Shops


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Warehousing


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EgyptAir for Maintenance and Engineering EASA Part 145

approved Maintenance Organization under Approval No.

EASA.145.0290.

EASA Approval


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The following Outstations are Approved by EASA for line

maintenance activities :

• Sharm El-Shiekh

• Hurghada

• Dammam

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A330-243


Achievements in Dispatch Reliability

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A321



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A340-212



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• Egyptian Civil Aviation Authority Approval (ECAA) (Number

CAI EgyptAir / AS / 01 / 98).

EgyptAir M&E is proud to have the following approvals:

• European Aviation Safety Agency 0 (EASA) (Approval no.

EASA.145.0290).

• UAE General Civil Aviation Authority (GCAA) (Approval No. AMO /

181 / 06).

• Kuwait – Directorate General Civil Aviation (DGCA) (Certificate No.:

DGCA / AMO / 034).

• Oman – Directorate General Civil Aviation and Meteorology (DGCAM).

• Sudan – Sudan Civil Aviation Authority (SCAA) (Approval No. SCAA /

AD / 051 / 2006).


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Current Customers

• EGYPTAIR AIRLINE

• EGYPTAIR CARGO

• AIRCAIRO

• AERO SOVIT

• AIR ARABIA

• AIR AUSTRAL

• CORS AIR

• Jazziera Airways

• LIBYAN AIRLINES

• LIVINGSTON

• MIDDLEAST (MEA)

• SUDAN AIRWAYS

• SYRIANAIR

• IBAR WORLD

• KOREAN AIR

• Oman Air

• EUROCYPRIA AIRLINES


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EgyptAir M&E Future Plan until June 2007

1. Adding New Outstations on the EASA Part 145

approved outstations list such as Luxor, Alex.,

Burg ElArab and Jeddah

2. Adding The Boeing Fleet (B777, B737 new and old

generations) to Base Maintenance under EASA

Part 145.

3. Approve the Engine Workshop under EASA Part

145 for different types of Engines .

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THANK YOU

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Documents

Maintenance and its Strategic Importance to Safety · EgyptAir Maintenance 35 Kenya 35 Uganda 28 Ethiopia 24 Seychelles 25 Mauritius 30-40 South Africa 30-40 Average 36 Average Europe