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Aeroframe reports record sales for 2008, offers 2009 outlook.

13th January 2009 - 15:50 GMT | by The Shephard News Team


Aeroframe, an aircraft MRO specializing in Airbus airframe maintenance headquartered in Lake Charles, Louisiana finished 2008 with annual sales of $50 million, which represents a 25% increase over 2007 and a 50% compounded annual growth since it changed ownership in 2005.

The company also recorded its second consecutive year of profitability since that change of ownership.

CFO Mike Long offered the following, “We continued to make great strides in our productivity and cost reduction efforts. This is primarily due to our piece rate pay system for mechanics and substantial investment in capital and training over the last 3 years. This allowed us to reduce span times and keep costs down for us and our customers during this difficult economic period.”

“Like everyone else, we expect 2009 to be a difficult year. We are seeing airframe maintenance being discounted substantially from a year ago as MRO’s are trying to keep their workforces intact while hoping for a turnaround. For most MRO’s airframe maintenance is already a loss leader for other support services they offer.

Now those losses are being compounded. We expect that in 2009 we will see many companies exiting the MRO business or consolidating in response to the downturn in the airline industry. However, at Aeroframe, we have demonstrated you can provide airframe maintenance at a competitive price and still remain healthy.”

“For airlines, the discounts realized for airframe maintenance is a silver lining among otherwise bleak industry news. Many airlines are testing the waters for airframe maintenance and pleasantly surprised with the results. As a result, we arecautiously optimistic that we will expand our customer base in 2009 and possibly equal or better our 2008 sales numbers.”

Customers of Aeroframe include AirAsia, Frontier Airlines, JetBlue and Virgin America.

The Shephard News Team


The Shephard News Team

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