Engine manufacturers and MRO companies each provide maintenance for propulsion systems. Bernie Baldwin reports on the processes which enable both competition and collaboration.

This article was originally published in the October/November 2024 edition of LARA. To receive articles and news directly to your inbox, apply for your complimentary subscription to LARA

This decade has been a truly challenging time for those manufacturing aircraft engines and those who maintain them.

Working through a pandemic the likes of which has never occurred in the lifetime of turbine-powered aircraft, and then experiencing supply chain difficulties in the years following it, has put intense pressure on companies across both those disciplines.

The aircraft OEMs (original equipment manufacturers) have well-filled order books right now, with delivery slots for some types unavailable until the end of the decade.

The supply chain challenge is therefore likely to remain for some time, so collaboration and co-operation between OEMs and MRO providers will be required to help each side deliver its products.

While OEMs do provide engine maintenance and support services for propulsion systems, they cannot be everywhere, so having an MRO company become an OEMs Authorised/Recognised Service Facility (ASF/RSF) is now a leading collaborative solution.

 

Supporting role Independent MROs in the OEM network 

Independent MRO company StandardAero is one such company, having authorisations from OEMs including CFM International, GE Aerospace, Honeywell, Pratt & Whitney Canada and Rolls-Royce.

Jeff Poirier, Vice-President/General Manager of the companys Turboprops & Fleets business unit (TPAF), explains the route to achieving that status including the capabilities, facilities and corporate culture that need to be met.

First off, an MRO will need to identify a requirement from the OEM to add a new Authorised/Recognised Service Facility,” he says.

OEMs give significant attention to ensuring that their customers are receiving sufficient support from the manufacturers service network, which may include both in-house OEM-run facilities and independent third-party facilities. Plus, on occasion, JVs [joint ventures] between the two.

If an OEM decides that they wish to add a new ASF/RSF to their network – either due to the growth of their installed base or perhaps to an existing facility exiting the network – they will issue an RFP [request for proposal] for bids from potential MRO providers.”

Poirier adds: In terms of capabilities, this will include the prospective MRO demonstrating that they have the ability and capacity to provide a sufficiently high level of service to the OEMs customers, with the MROs track record of supporting similar products providing a good indication of their suitability.

In terms of facilities, an OEM may have a specific requirement for the MRO to support a specific geographic region, which will therefore favour the presence of a facility on a particular continent.”

The VP points out that an OEM may also be keen to ensure that the MRO does not already support a competing product.

This is to avoid conflicts of interest, though this requirement varies from OEM to OEM. An MROs corporate culture will be very important to the OEM, since the MRO effectively becomes the face of the manufacturer to its customers, and it is therefore important that the MROs standards of quality, service and ethics meet the expectations of the OEM.

Finally, and again depending on the OEM, there may be a licence fee to be paid, the size of which will vary according to the term of the licence agreement. Some licence fees are specified by the OEM, while others are left to the MRO to bid for blind, meaning that the highest bidder is likely to secure the licence, assuming that all other criteria are satisfactorily met.”

OEM provider Pratt & Whitney's engine maintenance center facility

Pratt & Whitney’s Columbus Engine Center recently unveiled a new engine test cell, doubling the facility’s capacity.


Application process ASF/RSF requirements

AerFins Chief Operating Officer, Simon Bayliss, agrees that becoming an ASF/RSF is a complex process involving a number of stages.

First, you have to understand the OEM requirements and standards that are needed to gain approval,” he says.

Following this, you begin an application process expressing your interest, including sharing your business structure and capabilities.

This will normally lead to a first assessment by the OEM, reviewing your technical capabilities, personnel qualifications, quality management systems, and compliance with regulatory standards.

Internally you would then develop a compliance and implementation plan, to cover any gaps you have in your capabilities, facility or quality system.

Then comes an approval audit by the OEM, to verify that you have followed the requirements and have closed out any gaps that have been picked up during the compliance audit.

In terms of internal capabilities, facilities and quality requirements, you would need to ensure that there is the right skill set across your people, with the right depth of technical expertise, knowledge and experience, and that you have a robust continuous training plan on the OEM products, ensuring you keep yourselves current to the market, technologies and service procedures.

Regarding facilities, you need to consider your physical space is sufficient, with enough storage space for components awaiting work and for completed products, and also, if needed, room for any temperature controlled/monitored environments.

Next comes the quality system, what accreditations you have and what regulatory compliance you hold, such as from the CAA, EASA and FAA. Then you need the right processes to meet the required standard consistently when carrying out the work.”

Required attributes dont just extend to mechanical assets.

Culturally you will need a quality and safety mindset, with continuous improvement systems in place,” says Bayliss. Also required is a strong customer focus that prioritises customer satisfaction and responsiveness and encourages collaboration. And you must ensure that you work with integrity and transparency, adhering to regulatory and compliance standards.”

Global footprint OEM-supported MRO networks

On the OEM side of ASF/RSF partnerships, Marc Meredith, Vice-President, Commercial Aftermarket at Pratt & Whitney, says his company is constantly evaluating the size and shape of its MRO network to support the growing fleet and demand for aftermarket services globally.

As part of our ongoing analysis for the GTF engine, we compare our networks global footprint with GTF demand to determine the optimal strategy to meet customersneeds,” he says.

We have assembled the leading MRO providers to participate in the GTF MRO network, and their collective experience and expertise are invaluable in refining aftermarket support for our customers.”

The Pratt & Whitney GTF MRO network spans three continents, with 18 active locations worldwide. An additional facility is expected online by 2025.

Meredith adds: All engine maintenance centres within the network are qualified to perform disassembly, assembly and test (DAT) services on Pratt & Whitney GTF engines and are certified to support specific engine models.

The full extent of the DAT services offered by a specific shop is determined by several factors, including – but not limited to – demand in the region, the shops existing capabilities, and more.

In addition to the engine maintenance centres, we also have several repair stations within the network that serve as centres of excellence for certain piece part repairs.

We are focused on selecting world-class facilities that commit to the highest quality, delivery and service standards, and leveraging data analytics and intelligent systems to benefit from fleet-wide learnings.”

“As part of our ongoing analysis for the GTF engine, we compare our network’s global footprint with GTF demand to determine the optimal strategy to meet customers’ needs,”

 

Marc Meredith
Vice-President, Commercial Aftermarket at Pratt & Whitney

Consulting the manual MRO support and licensing 

For its service partners, CFMs open network provides access to the engine shop manual (ESM) and other inputs necessary to engage MRO.

This is unique to CFM and GE Aerospace,” says Gaël Méheust, CFMs President and CEO. There are several licences that MROMRO provider StandardAero's employees assisting OEM's providers can obtain and apply towards the capability of overhauling CFM engines.

CFM also selects a limited number of MRO shops that meet its criteria to become CFM-branded shops, so called CFM-branded service agreements (CBSAs). There are currently five CBSA-licensed shops for LEAP engine MRO: Air France Industries KLM Engineering & Maintenance, Delta TechOps, Lufthansa Technik, ST Engineering and StandardAero.

CFMs approach to MRO support and licensing enables competition among OEM, CBSA and independent shops, all for the benefit of CFM operators. This results in productivity, repair development, a used serviceable material (USM) market, and customer choice – all of which, again, are unique to CFM and GE Aerospace.”

Not being a CBSA does not preclude MROs from CFM and GE Aerospace assistance.

All MRO licences provide licensees access to the ESM, parts, and tooling required to participate in the LEAP aftermarket,” says Méheust.

This differentiates CFM and GE Aerospace from other engine OEMs that operate a closed MRO network. CBSA shops selected by CFM based on our criteria also make significant investments in OEM technology, repairs and customer support.

CFM is alone in the industry in that other MRO licensees are enabled to compete with their own value propositions.”

Pratt & Whitney also offers support beyond ASFs/RSFs, as Meredith explains.

As the OEM, customers look to us for the expertise, resources and engine maintenance in our GTF MRO network facilities which include our own shops, our engine programme partners, several airline MROs and third-party MROs.

The GTF MRO network is part of Pratt & Whitney EngineWise service portfolio, which provides engine operators with a variety of aftermarket services resulting in long-term, sustainable value.

Customers are not required to make a maintenance decision at the time of engine purchase and have a choice of aftermarket service offerings – full managed programmes, engine overhaul services and material solutions, all available through EngineWise.

With the large number of GTF engines being sold and the high level of interest in performing maintenance, other MRO providers may enter the market. It is possible that other shops may develop GTF MRO capability. No matter what the MRO choice is, Pratt & Whitney will support the GTF engine for all of our customers.”

Training and certification Support for MRO providers 

According to AerFins Bayliss, OEMs provide support in a number of ways, including access to OEM technical documents and manuals, and offering assistance from helpdesks and field services teams.

OEM provider Aerfinn employees working hard at their engine maintenance facility

AerFin COO Simon Bayliss says OEMs support independent MROs to ensure a broader network for their products. Image: AerFin

They also provide opportunities for OEM training/certification courses,” he says. These can sometimes be purchased prior to authorisation but used as a demonstration of competence during the application process.

Access to OEM parts ensures the MRO has the genuine parts needed for the maintenance and repair tasks. Finally, OEMs provide quality audits and regular facility audits to ensure work is being carried out to required standards.”

As noted, while supporting MRO companies, OEMs also offer their own services. The challenge, of course, is to find the right balance between competition or co-operation, particularly taking into account the (currently stretched) supply chains.

Bayliss is content with the mix and notes that the OEMs do support independent MROs to ensure a broader network for their products.

The current supply chain is indeed stretched,” he says. To alleviate this, OEMs have become more collaborative with MROs, helping them to plan to mitigate supply chain challenges, while also developing strategic partnerships providing access to OEM parts. There is also greater transparency on some supply chain issues, which gives independent MROs the ability to plan and manage their customers.”

Competition or co-operation  Balancing OEM and MRO relationships

The competition or co-operation question is one that StandardAeros Poirier believes will always be of great interest to MROs.

In general, OEMs avoid any potential conflict of interest between their own facilities and those of independent MROs by firewalling their in-house facilities from their programme and network management teams,” he says.

This approach is intended to ensure that the OEMs own facilities do not receive favoured status and, especially important, that there is no sharing of competitive information – for example, pricing data from independent MROs – with the in-house facilities.”

Overall, we have very strong relationships with all of our OEM partners, who recognise the genuine value that a professional independent MRO brings in terms of meeting the needs of the OEMs customer base.

Depending on the OEM, this relationship may also include independent MROs supporting the OEM through the processing of offloadwork, in addition to work secured directly from the customer via competitive bidding.

In terms of supply chains, the OEM always faces the dilemma of whether to prioritise their own production line or the MRO needs of their customer base, but this is something that we trust them to handle appropriately.

Finally, in terms of branding, the OEM will always have clear branding guidelines which independent MROs are required to follow, in order to protect the intangible value inherent in the brand.

While an MROs own brand may bring additional value – and customers – we are always careful to respect and protect the OEMs brand.”

For CFM, getting the mix right is not difficult, as Méheust notes.

All MRO licensees in the CFM open network are independent and compete against each other and CFM,” he says. That is a significant value driver in our open network. We fully meet our support obligations to all licensees while respecting the competitive nature of the open network. This approach maximises the value of competition for CFM operators.”

P&Ws Meredith emphasises that collaboration is well planned.

He says: The network was formulated in a manner to facilitate consistent communication from Pratt & Whitney to the shops and encourage enhanced co-operation between the shops, with a strong focus on improving the overall result for the customers.

“Examples of how this works in practice include providing direct access to P&W engineering services, embedding P&W personnel within each shop to support day-to-day operations, and holding regular meetings with shops to align on key objectives and performance.

“The shops are incentivised to provide quality work, develop innovative repair capabilities, and promote timely throughput – all of which enhance the customer experience.”