Volvo 1999 Annual Report Download - page 19

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17
Engine com ponents, spare parts
and m aintenance
The common characteristic of
Aero’s customers in the aviation
industry is that the focus is always on
safety and that “out-of-service” time is
minimized. It is therefore critically
important that aircraft engines are of high
quality and in good condition, and that no
unexpected defects occur. Volvo Aero,
which maintains both large and small
aircraft engines, offers aviation compa-
nies maintenance programs whereby
customers pay a fixed price for each hour
that an aircraft is in the air. The contract
is designed in such a way that both parties
have a common interest in preventing
aircraft from being affected by unplanned
“down” time.
Because customers in the aviation
industry are concentrating on their core
business to an ever greater extent, their
need to own aircraft and maintain a
supply of spare parts is decreasing. One
consequence is that various types of
financing and sales of new and used
spare parts for aircraft constitute a
growing business within Aero. More and
more aviation companies are also electing
to have an “outside” party assume full
responsibility for the engines, for the
overhaul of aircraft and for the purchase
of spare parts, etc. Volvo Aero offers these
services through its subsidiary, The AGES
Group, which also sells and leases aircraft
engines. In the military aircraft sector
Aero is responsible for maintenance of
Sweden’s Gripen and Viggen military
aircraft, among other operations.
Volvo Aero’s production of components
for the commercial aircraft industry is
focused on specialization in a few areas
involving advanced components for
aircraft engines. This activity is con-
ducted in various engine programs in
cooperation with large manufacturers:
General Electric, Pratt & Whitney, Rolls
Royce, Snecma and MTU. Components
made by Aero are used in more than 80
percent of all the world's commercial
aircraft with a capacity of more than 100
passengers. In the military aircraft sector,
Aero is responsible for supplying the
complete engine – RM12 – for the Gripen
and, within the framework of this
contract, for producing one third of the
components for the engine.
Volvo Aero's production of compo-
nents used in the space industry
comprises combustion chambers, nozzles
and turbines. Stationary gas turbines used
for the production of power and heat, as
well as in marine propulsion systems,
represent a growing business for Aero.
Com ponents for
the Ariane rockets
Aero