Its role is to ensure competitive support for the Air France and KLM Royal Dutch Airlines fleets, while operating as a leading MRO in its own market. The business operates in three major maintenance segments: airframe maintenance, engine maintenance and component support (electronic, mechanical, pneumatic, hydraulic, etc.). In 2014, consistent with the Transform 2015 objectives,
AFI KLM E&M continued the deployment of measures aimed at reinforcing
its competitiveness and reducing
the Group’s maintenance unit costs. Within the framework of the Perform 2020 plan, the Group now plans to consolidate its leadership position in the maintenance business while maintaining the imperatives of competitiveness and strict financial discipline.
A LEADER ON NEXT-GENERATION PRODUCTS
While Air France-KLM is preparing to receive
its first Boeing 787-9 in the autumn of 2015,
the Group’s maintenance business is already the leader in component support for this aircraft. It supports numerous airlines in this area, particularly Thai Airways International and Royal Air Maroc, who both recently entrusted the company with the component maintenance and overhaul on their Boeing 787s. Furthermore, in February 2015, the AFI KLM E&M engine workshop at Amsterdam-Schiphol carried out its first “Quick Turn” check on GE Aviation’s GEnx-1B, the engine selected to equip
the Group’s Boeing 787 aircraft. This first operation marked the initiation of an offering
on this next-generation engine which is set to see substantial growth over the next few years.
A RECORD YEAR FOR CONTRACTS
In 2014, the competitive environment became tougher for the maintenance business marked, notably, by the increased pressure from equipment manufacturers. Against this backdrop, AFI KLM E&M won a number of major global contracts. In April, the Group signed a formal agreement with Air China Technics, organizing support for the GE90 engines equipping the Chinese carrier’s Boeing 777 fleet. This contract, the largest in AFI KLM E&M’s history, binds the two parties exclusively over
the long-term. In another significant contract win, last November LATAM Airlines Group, the largest Latin American carrier, entrusted the Group with the component support on its Boeing aircraft. The agreement concerns the entire LATAM Airlines Group Boeing fleet, or a total
of 90 aircraft. These contracts contributed
to the significant growth in the order book with third-party clients in 2014 (+28% relative to 2013).
AFI KLM E&M is pursuing its development strategy in profitable markets and segments, backed by the power of its global logistics network. This growth guarantees AFI KLM E&M customers ready access to all the Group’s services, adapted solutions and local stocks of spare parts. The business is thus building its positioning in the United States. Having acquired the US company Barfield, specialized in component support in March 2014, in April 2015 AFI KLM E&M announced the purchase of a 50% stake in Tradewinds, a US company specialized in the trading of engine parts.