A JV between China Southern Airlines & Hutchison Whampoa (China) Ltd.
50% 50%
Our Products: Heavy Maintenance, Line Maintenance, Component Repair, Engineering, Training, Ground Support, etc.
Our approvals: More than 20, including CAAC, FAA and EASA
Our Headcount: 5,000
Our Manhours: 4.8M in 2014
Our Customers: 50+, incl. CSN, FedEx, China Postal, Asiana and CQA
GAMECO Background – Fact Sheet
Passenger expecting better cabin
experience Airline profitability improves Cabin as a differentiator in the
airline business On-line purchasing Individual IFE Wellness (humidity, lighting) Shifting demand
First Class -> reduce or remove C-Class -> upgrade Premium Eco -> new segment Eco -> high density
Periodic – 6~8 years
Growing Demand for Interior Upgrade
Interior Upgrade – Market Development
Higher demand in WB segment – Driven by higher requirements for better
passenger experience in long range travel
~60% of global demand from airlines in APAC, ME, China & India,
Source: Aviation Week
Unit: USD ‘000
Interior Upgrade – Involvements
MRO Execution Interior Design
Regulatory Authorities
Interior / Component Manufacturer
Airline
Airline completes the upgrade itself, by contracting out the Interior Design,
Component Manufacturing, Certification and MRO Execution to partners.
Airline to coordinate partners to complete the upgrade on schedule
MRO – Evolution to Integrator
Integrator
MRO Execution
Interior Design
Regulatory Approval
Contract Out
Airline
Interior / Component Manufacturing
Contract Out
Airline expectations to Integrator: Cabin identity Design Passenger experience
TAT to match with fleet operation Certification Performance & reliability
MRO Add-On Value related to Cabin Interior
MRO as usual…
Quality, TAT, Cost
Maintenance and Repair
Small modifications
Overnight Cabin Action Items
Interior or cabin modification
Cabin overhauls and refurbishments
Capabilities in design, manufacturing, certification and maintenance, etc.
Regulatory approval
Prepare and obtain regulatory approvals after upgrade or change of NAA
Obtain FAR21 Design approval, develop related STCs
Major interior design changes, upgrades and floor plan changes
Design and engineering capabilities
Interior Mock-Up Center for integrated solutions
High-end quality in cabin workshops, installation, maintenance and cleaning
Cabin interior with high level of elegance is very demanding
Easy
Medium
Difficult
Advantages Close to airline customer Strong system engineering and on-
site support Cabin experience in daily fleet
operation Customer-oriented, especially for
core customers …
Disadvantages Less experience in cabin
engineering and design Less experience in cabin electronic
or component certification Limited supply-chain More technical perspective vs.
design aspects
MRO vs Design Company – Comparison
Advantages Latest in cabin design, combining
aspects of functionality and taste Familiar with STC process Mature supply-chain Sample selection and mock-up System for Manuals, SB / AD
establishment and update in place
Disadvantages More distant from customer Broad industry coverage = less
customer-orientation Strong in product sales, weak in
after market technical and on-site support
MRO Design Company
Interior Upgrade – Examples from GAMECO
GAMECO experience in cabin upgrade includes: China Southern B777-200
fleet – F/C/Y seat upgrade & galley reconfiguration
China Southern A330 fleet cabin upgrade – F/C/Y Class
Asiana A320/330 cabin repair and modification
China Southern WB & NB fleet Premium Economy Class installation
Air Icelandic B757 seat replacement and cabin refurbishment
China Southern F & C Class lighting MOD
…
Before After
Summary
Passenger demand for high-end air travel, especially in long range routes, as well as demand for fast changing cabin electronic, is driving airlines to update their cabins more frequently
Higher profitability of airlines in recent years, especially due to lower fuel prices, allow airlines to invest more into the upgrade of their cabin interior
Due to improvements in aviation technology and greater competition in MRO business, MROs focus more on new products around the cabin
MROs need to identify ways to develop the interior upgrade business – design, engineering, certification, manufacturing, installation, testing, supply chain, after market support etc., to build their capabilities.