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Once more VZM Management Services closed a year with positive results. 2017 turned out to be one of the five best years in the 21-year history of the company. The customer base expanded further with companies in Switzerland and Italy. Once more most of the services provided were interim-management support to airlines and MROs.
With much more attractive temperatures, the average score at the 2017 VZM Dutch Aviation Open golf tournament was the best we have seen in the last ten years. So it was no surprise that the winner, Steve Williams, broke the record with a score of 40 stableford points. For one year he is the happy owner of the Hans Minnee Challenge Trophy.
In March VZM published its 17th edition of the annual VZM Market Outlook for commercial aviation & maintenance. In it we looked back at recent developments and provided our thoughts regarding future developments. The document can be found at the the VZM Publication page, freely accessible for subscribers to the VZM Newsletter. Subscription is free of charge and without any obligations.
After having to play on the hottest second Tuesday of September last year, the participants were happy the temperatures were lower this time. With only a few minutes of light shower before the match started, September 12, 2017 turned out the be a near-perfect day for golf for the group of 45 participants of the 19th VZM Dutch Aviation Open golf tournament. This reflected itself in an average players’ score higher than any of the ten years before.
The number three of the day scored 36 stableford points, which often would be enough to win the tournament. Hower, this year the winner scored a record 40 points! Thus, at the end of the day a happy Steve Williams received the Hans Minnee Challenge Trophy, admitting he had played one of his best games ever.
Winner of the Nearest to the Centerline competition was Paul Chün, taking home a JSF model. While rookie Lars Jordahn showed his talent for golf by winning the Clinic competition.
Based on participant’s reactions, the tournament provided a pleasant opportunity for networking in a relaxing environment, and VZM looks forward to hosting the 20th edition of the Dutch Aviation Open on September 11, 2018.
Visit the Dutch Aviation Open page to view photos, find all scores and read more about this year's tournament.
Last month VZM contributed to the Aviation Maintenance article “European MRO: Challenges Mount But Opportunities Remain.” Following some excerpts from the article.
In its March 2017 market outlook report, Netherlands-based VZM Management Services underlines business risks, ranging from unpredictable behavior by the world’s major players to economic uncertainties created by Brexit and protectionist rhetoric. However, MRO globalization helps to mitigate those risks as well as to control costs and service far-flung customers.
Even Brexit has a silver lining. UK MROs have profited from the decreasing value of the pound after the referendum, explained Marcel Versteeg, VZM managing director. The effect of the UK’s exit from the European Union is expected to be bigger on airlines. Parts logistics, as well as the operations of English contractors in support of EU-based MROs, could become more complex, however.
Finding skilled workers is another issue. VZM often hears that western European maintenance organizations have trouble finding and keeping skilled technicians and specialists. …… Leaders also cite the decreasing popularity of technical skill training, demographics (ageing population), non-competitive salary levels, and the need for new skills to handle challenges such as big data, added Versteeg. What’s more, new engineers expect to be promoted to management positions within a few years rather than – as employers would prefer – stay in the engineering ranks long enough to be able to help develop repairs and process improvements.
VZM anticipates opportunities as MRO work is “reshored” to Europe and North America. This is expected to occur as Asia-Pacific fleet growth displaces some offshored European and U.S. wide-body base maintenance. But reshoring has not had much of an impact in Europe yet. When it happens, it’s “up to the MROs to take advantage of it by offering short, reliable turn times with flexibility and good aircraft reliability after the check, Versteeg advised. Quality of service will become a more important differentiator in this environment, as labor rate differentials decrease.”
The whole article can be read in the June/July 2017 edition of Aviation Maintenance at avm-mag.com.
We have embarked on an uncertain era as new leadership in Britain and the US is reassessing its role on the international stage. Despite a lackluster 2016 global economy, the airline industry continued to grow and airline profits remained at record levels thanks to low oil prices. For 2017 profitability is under threat from higher – but plateauing – oil prices and increased other operating costs.
In our VZM Market Outlook 2017 for commercial aviation & maintenance we look back at recent developments and provide our thoughts regarding future developments.
North America continues to be the best performing region in terms of profitability whereas traffic and capacity growth in the Middle East continues to outpace other parts of the globe. Questions arise whether the latter is sustainable as overcapacity looms driving margins for Gulf carriers down. Maintenance however, seems unaffected by economic uncertainties as further growth is predicted allowing new technologies to enter the workplace to improve the competitiveness of MRO organizations worldwide.
The 17th Outlook is freely accessible for all subscribers to the VZM site in PDF format through our VZM Publications page. Subscription is free of charge and without any obligations. To become a subscriber of the VZM site and to have access to our Outlook simply click the Subscribe-link.
A hard copy is available on request.
In a market with new technologies, increased dominance of OEMs in aftermarket and Big Data, how can airlines reduce and control their costs and how can suppliers help? This was the topic of the 12th Diversium organized by VZM on November 24, 2016. During this interactive workshop, senior leaders from the industry exchanged their experiences and challenge after an introduction by Heiko Helm, Technical Director of Wizz Air.
Go to VZM Publications for a summary of the discussions of the Diversium: Can airlines still be in control of their own maintenance costs?