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 DoD has changed its structures and is been increasing efforts to facilitate access to loans by companies interested in working with artificial intelligence, advanced materials and semiconductors, biotechnology and quantum science.
India has approved millions of dollars in new military purchases, most of which will go to public sector companies.
The main obstacles to overcoming risks in the region are a lack of a strong cybersecurity culture and inadequate funds to invest in this domain given a widespread Chinese presence in the region.
MBDA is adapting to supply chain pressures as the Russian invasion of Ukraine leads to increased demand for armaments.
Despite the additional funding promised this week, the UK armed forces still look set to face cutbacks, and maintaining international commitments to AUKUS and GCAP may limit the options for other programmes.
This week on the Shephard Defence Podcast, senior naval reporter Harry Lye and military training & simulation reporter Norbert Neumann chat with Professor John Louth.
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