Maintenance business

Aircraft maintenance is the Air France-KLM group’s third business, generating third-party revenues of €1.2 billion, i.e. some 5% of the Group’s total revenues. These revenues generated with third-party customers account for approximately one third of total revenues for the maintenance business.

Business environment

An attractive market despite the growing constraints

The global MRO market which comprises the maintenance and modification spending by aircraft operators, either directly or through sub-contractors, is estimated to have been worth US$61 billion in 2013 (source: ICF SH&E).

Even fiercer competition

The crisis has modified the positioning of the players on this market. The portfolios of some competitors have been severely degraded by the downsizing of older-generation aircraft fleets, prompting them to reposition themselves on the sort of new-generation products for which AFI KLM E&M is particularly well-placed.

Affirming AFI KLM E&M’s position as a world leader

On the strength of its position as the second largest global multiproduct MRO by total revenue, AFI KLM E&M is pursuing its targeted development strategy based on its own specific features and the Group’s objectives. This strategy is two-pronged: cutting costs and maintaining a high level of quality and performance on the one hand, and growing the customer portfolio for high value-added products and services.

Contributing to flight safety programs and operational performance

AFI KLM E&M’s primary task is to guarantee the airworthiness of the Group’s fleet and ensure regulatory compliance. To this end, AFI KLM E&M oversees its technical data, implements the maintenance policies, and ensures the permanent availability of the required skilled staff and technical resources.

Component Support: a service activity par excellence

Maintenance_moteur

Component Support covers the repair of a broad technological spectrum of aircraft parts, the management of technical and reliability standards and, above all, the management of physical part flows to and from customers’operating bases. The growth opportunities for this product are located in far-flung markets. AFI KLM E&M’s customers are evolving towards service integration, requiring access to a spares pool. As a result, the Group is deploying appropriate support services worldwide, with local logistics facilities.

Engines: all eyes on the Very Big Engines (VBE)

The Engines business continued its growth in 2013. AFI KLM E&M’s customers benefit from one of the world’s largest Engine overhaul shops for General Electric and CFMI powerplants, divided between the Group’s two ultra-modern engine shops in Amsterdam and Paris.

AFI KLM E&M: an international network tailored to local requirements

AFI KLM E&M is pursuing its growth strategy on profitable markets and segments by deploying its network of subsidiaries (EPCOR, CRMA, KLM UK Engineering, AMG) and partnerships (AMES, ATI, Spairliners, MAX MRO Services, AAF Spares), and leveraging the power of its global logistics network. The development of this MRO network is one of the objectives of the Transform 2015 plan. It guarantees AFI KLM E&M customers local access to the Group’s full array of services, tailored solutions and local spare parts inventories. In 2013, AFI KLM E&M further developed this network with, in the engines segment, the acquisition of shareholdings in two Miami-based companies specialized in engine teardown and overhaul, in particular for the Pratt & Whitney PW4000-94 engine.

Sustainable development generating innovation and contributing to performance

AFI KLM E&M applies the Group’s four key Corporate Social and Societal Responsibility (CSR) policies to pursue a sustainable development programme that contributes to the performance of its maintenance operations. Maintenance projects are now progressively appraised from the sustainable development perspective to provide an overall view of their impacts, thereby ensuring that their implementation includes these performance-enhancing objectives.

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