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VZM: European MRO challenges and opportunities
August 2017

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. 

 

VZM 17th Market Outlook about aviation in a new and uncertain world
March 2017

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.

VZM Market Outlook: airline financial results 2012-2016

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.

 

VZM team expending in successful 2016
January 2017

In 2016 the VZM team was expanded with the start of Andreas Reichert in September. His 30-year hands-on experience in aircraft maintenance, holding positions like COO at Haitec Aircraft Maintenance GmbH and Director Maintenance at Air Berlin Luftfahrttechnik Düsseldorf makes him a valuable addition to the team.

The year proofed to be very successful with most of the turnover coming from interim assignments, with team members being active in countries like Belgium, France and Sweden.

Robert Rijnsburg won this year’s edition of the VZM Dutch Aviation Open golf tournament on the hottest day ever played in this event’s history. He took home the Hans Minnee Challenge Trophy until the next tournament in September 2017.

At the end of the year VZM organized its 12th Diversium on the topic “Can airlines still be in control of their own maintenance costs?” The introduction was done by Heiko Holm, Technical Director at Wizz Air. A summary of the discussions as well as the 2016 VZM Market Outlook can be found at the VZM Publication page, freely accessible for subscribers to the VZM Newsletter.

 

12th VZM Diversium on how airlines can control their maintenance costs
December 2016

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?

 

Robert Rijnsburger delighted to win the 2016 VZM tournament
October 2016

On September 13, 2016 once more contenders gathered at the Nunspeetse Golf & Country Club on the hottest second Tuesday in September ever recorded to compete at VZM’s Dutch Aviation Open. The maximum temperature measured that afternoon came close to the winning score of 34 as achieved by Robert Rijnsburger. He was delighted to win the Hans Minnee Challenge Trophy, so much so that he was speechless when it came to the winner’s speech at the prize winning ceremony.

This year also featured the Nearest to the Centerline competition. Leo van Rijn played a marvelous T-shot of over 150 meters which landed within one centimeter of the centerline, winning the JSF model.

The clinic hosted nine participants this year which is a promising sign for the future. Winner of this year’s clinic were Leo Staats and Vincent van Campen.

Overall, we can look back at another successful VZM Dutch Aviation Open: great weather, a challenging course, and good food created the perfect environment for meeting (old) acquaintances and making new contacts for all involved. We look forward to meeting many of you next year on Tuesday September 12th!

Visit the Dutch Aviation Open page to view photos, find all scores and read more about this year's tournament.