145 Magazine Vol. 6 Issue 5, October Issue

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THE145

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ONE FORTY FIVE MAGAZINE BY WWW.THE145.COM

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NAME

2019

TOP SHOPS

THAT AIRPORT

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WINNER

ILIFF AIRCRAFT REPAIR

AVIATION-

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A THRIVING INDUSTRY POISED FOR MORE GROWTH

AVIATION

TRENDS

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HEAD-UP DISPLAYS

OCT-2019

145 MAGAZINE

AIRWAY AEROSPACE

LIVING THE AMERICAN DREAM


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M A G A Z I N E

Contents AEROSPACE

26

AIRPORT?

NAME THAT

ILIFF

06

20

14

AMERICAN DREAM

LIVING THE

24

06

AVIATION TRENDS

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ARSA

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MAGAZINE

Oct Issue

THE145.COM

W E

A R E

T H E

M R O

E X P E R T S

26-31

06-12

Living The American Dream

Featured Selection

D A T A

AviationA Thriving Industry Poised for More Growth-ARSA

14-16

Iliff Aircraft Repair

20-21

Name That Airport

24-25

Aviation Trends

06

Living The American Dream

Airway Aerospace

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THE

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A DREAM BECOMES A GOAL WHEN ACTION IS TAKEN TOWARD ITS ACHIEVEMENT.

EDITOR’S

NOTE

Discover ASHLEY FOX

Magaz in e ed itor

Summer is slowly winding down and it’s almost time for hot chocolate by the fire and pumpkin spiced everything. I love this time of year. This issue we highlight a cover article from a few years ago, and see how Airway Aerospace has changed in the past few years. We also look at the work Iliff does as a Top Shop company, striving to be #1 in the #2 business.

We also have a nice feel-good story, as well as a look at some the trends and innovations in the industry. So sit back and enjoy this issue of 145 Magazine, and as always, if you know of a good story, drop us a line. We’d love to highlight all the good that’s happening in our industry.

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“OUR SUCCESS IS DRIVEN BY OUR TEAM.”

Living The American Dream B Y

J A C K I E

F E R R E R

Recently I was working on our payroll, and like every other payroll we were

Airway Aerospace was born 6 years ago. Through the blood, sweat,

working on computing the hours, over-time, PTO, bonus allotment, etc.

and tears that we poured in to the company and foundation itself,

I paused and took two seconds to stop and lift up my head from the

six years later, we are making headway in the MRO marketplace.

keyboard, realizing how far we had come. We have fifty employees, and

I think our success comes from two major contributors: (1) our

what used to take 30 minutes to work on and submit, was now a much

customers, those airlines/customers that gave us the opportunity

more lengthier process due to the amount of people for which we were

to support their repairs, and (2) our employees who work diligently

processing payroll. For two minutes I sat there in amazement at what

and focused each and every day. Without these two variables –

Airway Aerospace has become. Like a proud mama – I looked around and

Airway Aerospace would not have flourished to what it has become

realized, “Wow, we made it”.

today. THANK YOU to all that have helped, supported, and contributed to our company.

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So much has happened in the past 6 years to get us

Flash back to 2016, and Airway Aerospace was in

to where we are. We have expanded – with

“go-mode”. Joe and I were traveling more than

additional employees, additional customers,

ever to market our company, and we were

additions to our family, and additional locations. In

increasing our head-count to keep up with our

spite of this, we strive to stay grounded and

customers’ requirements and needs. We had a

remember our humble beginnings. When we were

new baby, which meant sleepless nights, while

interviewed for 145 Magazine back in April, 2016,

trying to keep operations moving efficiently

we were expecting our first child, our daughter

forward. Joe and I were exhausted all the time.

Savannah. Well, Savannah is now 3 and we have

I remember giving birth to Savannah and I was

another beautiful baby, Troy who brightens our

back in the office 12 days later shuffling around

days. I never thought the stresses involved with

the office working on status reports, assisting with

starting a business and managing it on a day to day

shipping units, and working on customer quotes.

basis would have their equal, but then we had

We had worked so hard to get our company to

children. They are so exhausting, but so much fun.

where it was, and neither Joe nor I wanted to let up and risk losing a customer, a product line, or fall short on our commitments. We were trying to push forward, but the sleepless nights were rough

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and wore on both of us heavily.

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BRINGING VALUE BACK TO AVIATION ONE CUSTOMER AT A TIME.

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In spite of all of the stress, I truly believe that starting Airway Aerospace was a test, before we ventured down the kid route. The milestones we had to overcome with Airway were very similar to raising and parenting a new born. I think we can both say that Airway Aerospace was our first child (and we love it dearly), and then we had Savannah and becoming a mom was the most wonderful accomplishment of my entire life. I was head over heels in love with our daughter, as well as my son,

Looking back at the evolution of Airway Aerospace, I can’t pin-point the exact

when he came.

recipe that we conjured to get to where we are today, but I can assure you some

In 2017 we decided to expand Airway Aerospace in to Georgia. We finally got our arms around our new baby, and Airway

of the ingredients were: being grateful for every single unit that hit our dock, treating our employees as family, and working harder and smarter than the previous day. Our success is driven by our team. Joe and I are still involved in

Aerospace in Miami, so we opted to take on another adventure and expand in to Georgia. We now have a 12,000 sq. ft. facility with a team that specializes in airframe and accessories twenty minutes from Atlanta, called AirGlobalNet, or AGN. Joe and I take turns traveling to and from this location to aid with the progress of this repair station. We are now fully

all the day-to-day objectives, shipments, receiving, payroll, quotes, inspections, AOG’s, etc. but we wouldn’t see half the success we see if it wasn’t for our phenomenal team who come to work every day. We lead by example and work Monday thru Saturday to show our team members and our customers that we are here to support them with whatever they may need.

equipped and rocking and rolling at this location. We hit the ground running. Our commitment to our customers was to never lose focus, or grow faster than we could handle. We feel a sense of respect and loyalty to those that gave us an opportunity, so Joe and I are not traveling the globe hunting down additional customers. We want to grow organically with our current customers. The customer feedback we receive is vital to our success as a company. One of the most rewarding feelings is when our customers ask me if we can support additional units, additional quantities, or partake on an upcoming RFP. I get so excited because asking this of us means they trust us and recognize the quality work we do. The best compliment Airway Aerospace can receive is additional business from a current customer. It makes me so proud. Joe and I continue to attend the major shows and conferences – and look forward to seeing those that gave us an opportunity 6 years ago. OCT-2019

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When Savannah was born, we set up a crib next to my desk upstairs and we brought her to work on Saturdays for the first year. Although I attempted to teach her how to create formal quotes, unfortunately, she was more focused on other activities like eating and sleeping. We spend a ton of time with our team members (typically more than they do with their own families) – and we can’t thank them enough for their continued support. Each year we have our holiday party, and a summer picnic, and it amazes me that when we perform our speech to our team, that we’re looking out over a group of 50+ employees and their families. It’s exciting, and scary at the same time. The 145 Magazine has been so amazing to work with. We got the opportunity to present our story in the 2016 cover story, which truly catapulted us. It marketed our name and story throughout the component maintenance industry, which is exactly what we needed. We still have people that read this article, and comment about it.

I recall a couple months ago, I was taking a shower and Joe was outside the shower and asked, “Can we do a quick status report meeting?” My eyes were covered in soap, which I washed off, and then stuck my head out of the

At the MRO this year, The145 Team interviewed us and asked me what is it

shower and said, “Noooooo.” I just wanted 5 minutes to unwind. But me

like to be a mom, entrepreneur, and wife – I paused. I never really slowed

being me, I eventually jumped out of the shower, put on my pajamas, and

down to think about these three different facets. I just go 110 MPH, each day,

plopped on to the couch and said “OK, I am ready now, what do we need to

365 days a year. When I put some thought to this, I realized the two words

go over?”

that came to mind were: exhausted, and proud. Exhausted because Airway Aerospace (thank goodness is growing), and we have two children now (under the ages of three) – and we literally never stop. Joe and I both have Type A personalities, and we are always moving – traveling to visit customers, attend conferences, visit our second location, attend to the kids (school, sports, doctor visits), spend time with family, try to go on a date here and there, while working at Airway Aerospace constantly, and I would not change this for the world. Joe and I have always worked really well together and being a husband/wife team – we had to kick it in to gear and work even better together. We both work in tandem all day – even when we get home we are moving parallel to each other… one is attending to the kids, while the other is doing laundry, feeding the dog, taking out the trash, etc. Working together, being married, and raising two kids can be challenging sometimes (thank goodness we have a boat that we can escape on and disconnect sometimes and get some fresh air). But, we have really expanded our knowledge on one another – to then determine how to make this all work – when to push each other, when to let up or walk away, when the other person needs help.

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We all work so hard EVERY day that I am proud to say we are Airway Aerospace, I am proud of our entire team, I am proud of Javier for sticking with us through thick and thin, I am proud of Yoslandy for the late nights working tirelessly to complete AOG’s that arose, I am proud of the customers we were able to capture and give us an opportunity, and I am especially proud of my husband JOE for never giving up, pushing forward when everything

Epilogue A Day in my Life I am literally blank for words when trying to explain how much we love, appreciate, and respect our company.

was pushing against us, and building Airway Aerospace to our mini-empire (in our own

I am not sure what we are more excited about, that we started this company from scratch six years

minds – ha ha). Like music artist Drake’s song

ago, or that we now employ 50+ employees and are assisting with jobs within our amazing

states: “Started from the bottom now were

community, or that we have built relationships with our customers that they allowed us to start

here”.

work with them – and we continue to support them still, today. Work is just a part of our lives. Joe is always on the phone (day and night), and I’m constantly on my computer, and now our daughter

Life is passing by so quickly, and between

carries her toy cell phone with her everywhere, and acts like she is making deals. She is trying to

being a mom, a wife, and business owner, there

mimic Joe, and it’s the cutest thing ever. She even says “Ok, got it; ok good. Bye”.

isn’t time for much. But I can say – I am truly blessed to be where I am today. It takes a lot of patience, and perseverance, EACH DAY to keep progressing, but that is what we all worked so hard for. So, to sum it up, over the last 6 years we have lived a whirlwind, a roller coaster of emotions and accomplishments with a dash of hardship, but this has been the best adventure ever. And the best part is there is more to come. So from our Family (The Ferrer Family and the Airway Aerospace Family) to yours, we thank those that have given us (and continue to give us) opportunities and we look forward to the next 5, 10 and 20 years. Hugs from Airway! Over and out.

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At Midnight I heard my daughter next to me start to gag. I quickly grabbed her and ran to the bathroom. I have heard that sound before, so I knew there was a small window to get her to the bathroom. She sat on my lap and she laid her little head and arms on her training toilet, and said “Mommy, I don’t feel good.” I just sat with her rubbing her back saying “It’s OK, mommy is here with you, always.” She eventually was able to relieve her tummy of what was bothering her and said, “Mommy, wait for me.” I changed her clothes, gave her Tylenol, and put her back in bed, where she tossed and turned with a fever until the Tylenol kicked in. She laid next to me, hugging me, There is so much that goes on in a day. I always tell my team I feel like we are on the New York Stock Exchange. The bell rings (in our case 8:30 AM), and everyone moves, moves, moves, to accomplish as much as we can. When the bell rings at 5:30 PM we all take a deep breath and sigh. Wheewww…. That was a wild day. I was talking with one of our team members the other night, when we were working late, and she said “Jackie, how do you and Joe do it all?” I responded, “When you have to make things work; YOU DO. You don’t take the time to contemplate, you use your best judgement and make it work. There is no one to go to for help, no one that is going to cover you or protect you – Joe and I have each other and that’s it. We must work together each day and figure it out. Each day is filled with issues, problems, and projects you were not anticipating on tackling when you woke up that morning, but as a business owner, you have to make it work. There is no other option. But, isn’t that challenge also part of the fun?

while she fell asleep. When all was said and done, and she sound sleep (at 2:45 AM), I started to hear Troy moving around. He was ready for his next feeding. At 3:00 AM I jumped up and went to the kitchen to prepare his milk. I returned to the room and fed him, and placed him back in his basinet around 3:45 AM. I fell asleep immediately. It felt like only a couple minutes before our morning alarm went off at 6:30 AM to start the day. I got out of bed and walked right in to the shower. What a night. I was exhausted

The other night, I got home and I was preparing the house with Joe: dinner for the kids, laundry, showers for everyone, getting organized for the following day, and at around 9:30 PM, we were all in bed. My daughter was watching Toy Story in between Joe and I, and Troy was in his basinet next to our bed, and I realized how blessed and lucky we are. LOVE is the only word I can think of in this scenario. I was hugging and kissing Savannah, and Troy was fast asleep. We turned off the TV and quickly dozed off.

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I finished my shower, got dressed and started to prepare the

We worked another wild and exciting day at Airway, and then I picked up Savannah from

kids for the day. I drove Savannah to school, dropped her off,

school at 5:30 PM. Savannah and I went back to Airway Aerospace, to work on a couple

and headed in to work. As I parked my car in our parking lot

more things. She walked in the shop and said hi to the technicians that were still there. She

at Airway, I had to get my act together and re-group. No time

always loves to say hi to “Pebo” (his real name is Pedro). The people at work are really just

to be tired. Need to step it up and lead our team for the day. I

our extended family, in fact, our first four technicians, Ryan, Digno, Pedro, and Ricky are still

walked in to the office, with a smile on my face, and said “Good

with us. At around 6:30 PM, we got in the car and headed home to Troy. We listened to the

Morning Everyone”. Little do they know I was up most of the

Disney Princess songs on the way home with the windows down. Even though I was tired

night, exhausted, and wanted to chug a gallon of coffee, but it’s

and drained from the daily work requirements, and about to start our second job at home

our duty (as the bosses) to ensure our team is led by Joe and I

(parenthood) – I absolutely love it. To all the moms and dads who juggle work and family, my

each day, as best as possible. It’s not always easy; believe me,

hat is off to you. Six years ago I never though I could manage a life as crazy as this. We are

but that is our responsibility to our team and our family.

so lucky to be where we are at.

AIRWAY

AEROSPACE

SUPPORT At Airway Aerospace Inc. - FAA-145/EASA Repair Station, we’ve built our livelihoods on creating value

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for our customers. From the simple components to complex units, we’ve experienced it all and we can

We are Airway Aerospace Inc, an FAA/EASA Repair Station located in South Florida. Our goal is to provide the aviation marketplace with superb support and value for each repair and overhaul requirement.

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help you every step of the way. No job is too small or too big for our knowledgeable team. We’ve happily done it for 20+ years.

Airway - here to help.

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C O M P O N E NT R E PA I R S A N ITAT I O N / B E S T L AVATO RY

2019 Top Shop Winner

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Iliff Aircraft Repair Iliff Aircraft, based in Tulsa, Oklahoma, has been around since 1964, focusing primarily on Waste & Water Components. Managed by Brent and Donna Wells, Iliff Aircraft has worked hard to earn their slogan, “#1 in the #2 business.” We sat down with Brent Wells to discuss the success of Iliff Aircraft Repair and their future plans. OCT-2019

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Brent and Donna took over the family business in 2011

It would seem that when you work in a

with the hopes of building up the company. Brent had

niche market that there would be very little

a background in technical parts and sales, working

room for growth, but in talking with Brent

with industrial supplies and the switchover to aircraft

you get the feeling that they are excited

was simple. Instead of spreading themselves too thin,

about growth opportunities and continually

the Wells’ decided to take a page out of Southwest

looking for ways to improve and increase

Airlines playbook and focus on one area and do it well.

their capabilities. Brent noted, “In the last

Iliff focuses almost exclusively on chapter 38,

year we’ve been fortunate enough to really

WATER / WASTE.

get a good relationship with the OEM’s. Yokohama, Albany, and the OEM

Brent said, “As far as a company who specializes in

Monogram Zodiac are the big three and we

waste and water, there are no other companies like us.

are an approved repair shop for them.

Other people include a number of products and have a division that does waste and water. As far as a company that specifically states their reputation and

Doing one thing and doing it well has paid off for Iliff. Brent added, “I got a call from a customer

all of their work on waste and water, there’s really only

that works with firefighting aircraft like DC-10’s that drop water and they had an old DC-10 that

us.”

had an ancient toilet. He sent us the toilet because he knew our reputation. We did the research, and since we specialize, we had the parts to repair the toilet and we fixed it and sent it back. The

He continued, “When the OEM’s get in a bind, they

customer said ‘I figured if anyone in the world could fix it, you could.’”

send their work to us. We are the go-to source for waste and water repairs.” Which really speaks volumes to our expertise.”

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Iliff isn’t resting on their laurels. Brent continued,

In conclusion, when asked if there was anything

“One of the business growth plans we have for 2019

else to add to really reflect Iliff as a company, Brent

is to start adding different capabilities for waste and

said, “The number one thing that everyone loves

water, if they make sense financially. We recently

about us is our 10 day or less average turn around

added a “waste vent fan”, used on aircraft, but

time. This is a big deal, especially when an aircraft

similar to the fan found in residential houses.

only has one toilet; they need that toilet back as

Airlines started asking us if we can do these fans for

fast as possible.”

them. So, we went out and bought one and brought in the component maintenance manual and we

Iliff really has done an exceptional job specializing

were able to add this to our capabilities. The thing

in one area of the industry, and definitely has made

is that this fan operates at 11,000 RPM. It’s like a

a name for themselves, and we are happy to

little mini jet fan. It’s amazing how efficiently these

highlight them as a 2019 Top Shop.

little sub-components works so you don’t have to smell anything you don’t want to smell.”

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www.FirstChoice.Aero OCT-2019

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Name That

AIRPORT L O V E

F I E L D

I N

D A L L A S ,

T E X A S .

Which Airport? Named for a person without any connections to the city or airport. Has had a history of legal restrictions on flights since 1973. Is located only 6 miles from a major metropolis.

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Located a mere 6 miles from the downtown high-rises of Dallas,

Through the years Love Field saw its fair share of historical events, being the

Texas, Love Field was the only airport servicing the Metro until

airport John F. Kennedy flew into hours before his assassination on November

1974, and remains a operating base for Southwest Airlines.

22, 1963, to the 1972 hijacking of Braniff Flight 38. In 1964 the FAA insisted

Established in 1917 by the United States Army as a camp to train

Dallas and Fort Worth share an airport to reduce funding to two separate

prospective pilots during World War I, Love Field was named in

airports. This led to the development of the DFW Airport which ultimately led

honor of Moss L. Love (from Virginia) who was killed during a

to the Wright Amendment, which restricted traffic into and out of Love Field so

training flight in San Diego, California a month prior. As the Army

as not to compete with the new airport. Led by Representative Jim Wright, the

began expanding and building new air facilities, they named the

Wright Amendment restricted passenger air traffic out of Love Field by stating

new flying fields after fallen aviators, and thus, Love Field was

that passenger service on regular and mid-sized aircraft could only be provided

named after Moss L. Love, a man with no connections to Texas.

from Love Field to locations in Texas and adjacent states.

Over the years this amendment has been relaxed with flights out of Love Field extending farther and farther across the United States, but the majority of Love Field flights are by Southwest Airlines. Love Field has been a staple in the middle of the United States for over 100 years and should continue for years to come.

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AVIATION

TRENDS

H E A D-U P D I S P L AY S Over the years we’ve grown accustomed to seeing head-up display (HUD) data and targeting on military aircraft during dog fights in the movies. We also have them on cars and some commercial airliners, with the 787 offering the HUD as standard equipment. The equipment needed to run an effective HUD has always been bulky, making it difficult to use on smaller aircraft. However, in the next few years HUD use is projected to increase exponentially in a variety of vehicles.

Manufacturers have been tinkering with HUD’s since the end of World

Over the years the information available to a pilot through the HUD has

War II, however the data that could be displayed was limited. HUD’s and

increased exponentially. Originally, a pilot could see airspeed, altitude,

helmet-mounted displays (HMD) have evolved over the years. HMD’s are

localizer and glideslope on their HUD. This was quickly joined by key

similar to what Luke Skywalker used in Star Wars to target the exhaust

derivative information on the energy status of the aircraft, flight-path

port on his way to destroying the Death Star, with the exception being that

markers, an airspeed trend vector, and angle-of-attack indication. Some

HMD’s are attached to the helmet. Either way, the principle is the same,

systems also use landing-flare cues, tail strike warning, unusual-attitude

with the goal being to provide the operator with the information they need

and wind shear detection and recovery guidance, and stall margin

without having to remove their focus from the field of vision.

indications. For the landing or rejected take off in low visibility, others include runway distance remaining and ground deceleration displays, which can be a crucial aid to preventing runway excursion.

The means by which a HUD works is brilliant but simple. The setup consists of a projector, a combiner, and some sort of computer to generate and display the video. The projector uses a device called a collimator which focuses light at “infinity”, which means you can stare through the glass at the scenery around you and have the projected data appear in focus without your eye having to switch focus back and forth between far and near. More advanced HUD’s attempt to calculate where the operator is looking and display the information relative to his or her line of sight.

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As with any new technology, there are potential cons to its inclusion. Two main areas of concern for HUD’s are: (1) Tunneling, or attention capture, where the pilot becomes focused on the display and ignores all data or potential events happening around the cockpit or outside the aircraft, on the periphery, and (2) critical information outside the aircraft being obscured, because too much data is displayed on the HUD, or the data is too vibrant. The first con is more difficult to fix and requires training and practice. The second con can be more easily fixed as HUD’s improve.

Other HUD units involve an LCD screen instead of a projector. This option provides better clarity, especially in high-light situations, along with using less electricity, making them a more cost effective option. Still, the majority of HUD’s still use a projector. Military applications tend to advance this technology. In some newer models which incorporate Enhanced Flight Vision Systems (EVS), a low-light or an infrared image is superimposed over the field of view on the HUD, giving the pilot a view of their surroundings during dark or low visibility conditions.

Head-Up Displays have been incorporated into more and more commercial aircraft in recent years as the technology is advancing and proving to be an asset to pilots. It will be exciting to see where we go as an industry in the next 5, 10, or 20 years with so much potential for HUD’s to make flying increasingly safer, from take-off to landing.

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Aviation –

A Thriving Industry Poised for More Growth

A

S T A T I S T I C A L

S N A P S H O T

O F

T H E

I N D U S T R Y

F O R

2 0 1 9

Back in May, the Aeronautical Repair Station Association (ARSA) published their data regarding the industry as a whole along with projections for the next 10 years. Here at the 145 Magazine, we wanted to highlight their findings and projections . . . . . The report consisted of data summarized from 86 different companies diversely spread throughout the industry based on specialty, location, and revenue. Several of the highlighted trends ARSA noted are:

Business activity is strong and there is confident about the future.

Nearly a quarter of respondents plan to seek new certifications from aviation authorities outside the United States in the next two years.

More than half of respondents reported doing business with some federal, state or legal entity in the United States or overseas,

including military contracts.

Technician Shortage is the biggest concern, costing the industry over $1 Billion per year.

As noted in the report, more than two-thirds of U.S. companies reported

With over $1.4 Billion dollars in lost revenue due to the technician

vacant technician positions, with the resulting consequences being an

shortage, ARSA is working to attract, retain, and train maintenance

increase in work time, an increase in overtime and training time and a

technicians through a technician workforce development grant program.

decrease in new business development.

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2019 STATS Alaska Alabama Arkansas Arizona California Colorado Connecticut Deleware Florida Georgia Guam Hawaii Iowa Idaho Illinois Indiana Kansas Kentucky Louisiana Massachusettes Maryland Maine Michigan Minnesota Missouri Mariana Islands Mississippi Montana North Carolina North Dakota Nebraska New Hampshire New Jersey New Mexico Nevada New York Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Virginia U.S. Virgin Islands Vermont Washington Wisconsin West Virginia Wyoming TOTAL

AVIATION MAINTENANCE INDUSTRY EMPLOYMENT MRO: FAA Repair Stations

Parts Man. & Dist.

Air Carrier

453 4,754 1,391 5,924 24,432 1,413 4,559 956 18,153 18,576 15 635 2,710 498 3,163 2,685 5,980 1,451 2,157 2,103 407 1,087 4,474 2,647 1,449 5 938 445 3,792 196 1,412 715 3,539 697 717 5,082 7,183 11,804 1,776 2,589 630 337 1,811 55 2,302 16,547 598 1,339 11 181 8,642 2,164 1,100 61

93 38 60 770 3,126 932 103 0 2,459 1,991 64 531 45 49 1,940 136 155 1,421 229 612 233 0 592 697 186 0 0 0 1,304 0 71 0 930 59 541 1,397 308 164 284 790 88 0 89 0 2,308 3,459 423 918 0 0 629 81 0 0

188,740

30,305

9 28 62 10,169 5,638 16 7,253 85 1,002 1,473 0 8 4,560 34 1,479 1,195 5,062 45 192 275 609 133 2,598 369 23 0 143 19 395 101 1,331 34 461 49 119 2,815 3,257 537 119 117 0 45 11 174 617 4,013 470 2,398 0 305 9,247 96 39 18 69,250

Total Employment 555 4,820 1,513 16,863 33,196 2,361 11,915 1,041 21,614 22,040 79 1,174 7,315 581 6,582 4,016 11,197 2,917 2,578 2,990 1,249 1,220 7,664 3,713 1,658 5 1,081 464 5,491 297 2,814 749 4,930 805 1,377 9,294 10,748 12,505 2,179 3,496 718 382 1,911 229 5,227 24,019 1,491 4,655 11 486 18,518 2,341 1,139 79 288,295

Source: Bureau of Labor Statistics, Bureau of Transportation Statistics, Federal Aviatio OCT-2019

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AVIATION MAINTENANCE INDUSTRY ECONOMIC ACTIVITY ($ M) MRO ($ M)

Parts Man. & Dist. $64 $559 $169 $781 $3,213 $273 $544 $111 $2,403 $2,398 $9 $136 $321 $64 $595 $329 $715 $335 $278 $317 $75 $127 $591 $390 $191 $1 $109 $52 $594 $23 $173 $83 $521 $88 $147 $755 $873 $1,395 $240 $394 $84 $39 $222 $6 $538 $2,333 $119 $263 $1 $21 $1,081 $262 $128 $7

$ 25,540

$3 $10 $22 $3,652 $2,025 $6 $2,605 $31 $360 $529 $0 $3 $1,637 $12 $531 $429 $1,818 $16 $69 $99 $219 $48 $933 $133 $8 $0 $52 $7 $142 $36 $478 $12 $166 $17 $43 $1,011 $1,170 $193 $43 $42 $0 $16 $4 $62 $222 $1,441 $169 $861 $0 $109 $3,320 $34 $14 $6 $ 24,867

Total ($ M) $67 $569 $192 $4,432 $5,238 $279 $3,148 $142 $2,763 $2,927 $9 $139 $1,959 $76 $1,126 $758 $2,533 $351 $347 $415 $293 $174 $1,524 $522 $199 $1 $161 $59 $736 $59 $651 $95 $687 $106 $189 $1,766 $2,043 $1,588 $283 $436 $84 $56 $225 $69 $759 $3,774 $288 $1,124 $1 $131 $4,401 $296 $142 $14 $ 50,407

on Authority, Oliver Wyman Analysis OCT-2019

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Future Projection According to the report, “The aviation industry and the businesses that support it are experiencing another year of unparalleled growth, thanks to an expansion in the global population able to afford air travel. Rising incomes and consumer spending are pushing passenger travel to record levels and fueling the largest year-over-year increase of the in-service fleet since 2008.” Over the next decade, an estimated 200 million people worldwide are

Airbus is working to ramp up operations to provide upwards of 75 A320s per

expected to enter the middle class across the world, with the two highest

month to the global fleet, which has proven to be a slight disruption to the supply

growth areas being China and India. At the time of the data being

chain flow. As is noted, “Late deliveries of fuselage components and engines

published there were 27,492 aircraft in operation throughout the world,

have caused OEM production delays and, in turn, late deliveries to airlines. The

with this number projected to increase to over 39,000 by 2029. However,

unfulfilled orders have prompted carriers to defer formal retirements and even

the report notes that the greatest growth in manufactured aircraft would

pull aircraft out of storage to keep up with the demand for air travel.” The use

be with narrowbody jets like the 737 Max, which have been put on hold

of, or removal from storage, of older aircraft has not been without its economic

following two crashes recently. Nonetheless, the trend is expected to go

impact. The newer aircraft are more fuel efficient, but with the continued use of

more towards narrowbody jets.

older aircraft, jet fuel consumption remains high at a time when jet fuel prices have also continued to remain high.

Source: Bureau of Labor Statistics, Bureau of Transportation Statistics, Federal Aviation Authority, Oliver Wyman Analysis

OCT-2019

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It is anticipated that by 2029, newer, more fuel efficient aircraft will make

As with an increase in passenger air travel, air cargo volume should follow suit.

up over 42% of the global fleet, producing between 15-20% fewer carbon

However, the introduction of Amazon to the equation, as well as the possibility

emissions. Unfortunately, this seems like it will be offset by the increase in

of Google joining with their own fleets, will act as a disruptive factor to those

travel demand as more people will be able to afford air travel. One other

delivery services already established. Amazon has already begun building a $1.5

bump in the road that was highlighted is the potential consequences of the

billion international air cargo hub in Cincinnati, Ohio, slated to be opened in 2021.

Brexit deal, primarily for the United Kingdom, as well as the potential for a number of European airlines to consolidate as happened in the United States a decade ago.

Source: Bureau of Labor Statistics, Bureau of Transportation Statistics, Federal Aviation Authority, Oliver Wyman Analysis

Regarding the MRO aspect, the report stated, “with the expansion of

In the coming decade, more of the world will open up to air travel and

business in the commercial aviation industry, the maintenance, repair, and

more of the population will have the ability to travel by air, and with that

overhaul market that supports it is also expected to grow. Total MRO spend

comes increases all around for the industry. As with any industry, there are

is expected to rise to $116 billion by 2029, up from $81.9 billion in 2019.

potential snags that are being addressed, and will need to continue to be

Aside from the growth in the fleet, the increase will be driven by more ex-

addressed as the years advance. All in all, this is a wonderful industry work

pensive maintenance visits and technology enhancements. The

in with so much potential.

annual average growth rate for the MRO market will be 3.5 percent over the decade.” Finally, as mentioned before, the largest growth worldwide will take place in China and India. The report noted, “By 2035, the Civil Aviation Administration of China projects, the number of airports in the nation will almost double, reflecting this spike in demand and the government’s big push to fund the necessary infrastructure.”

OCT-2019

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