Air France 2007 Annual Report Download - page 40

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38
2006-07
Growth fuelled by component
and engine overhaul
In 2006-07, Air France Industries and KLM E&M saw
strong growth in their engine and component support
services for third-party customers as well as a high level
of airframe maintenance activity on the Group’s aircraft.
For the component support activity, the two companies
engaged in partnerships with OEMs such as Boeing
and Honeywell in order to strengthen their commercial
positioning and achieve economies of scale. Thus,
the number of Boeing B777s supported via the
partnership with Boeing grew by 30% to reach 115
aircraft. Similarly KLM E&M, through its EPCOR subsidiary,
is positioned in the APU overhaul market for the new
generation Boeing B737 NG, Airbus A330 and A340 and
Boeing B777 aircraft, in cooperation with APU
manufacturer Honeywell.
To support growth in its engine activity, the company
also established a strategic partnership with General
Electric with a view to developing overhaul capacity on
the GE90 engine, for which Air France Industries is one
of the first companies to undertake overhaul.
Integrated services, strategic availability of parts
inventories and the scale effects on flagship products
are also significant drivers of growth in services.
Component support activities saw strong growth
in full support contracts for the Boeing B777, Airbus A320,
A330 and A340 fleets. This market offers significant
growth potential due to the renewal and expansion of
customer aircraft fleets.
Renewed confidence in
the Group’s knowhow
In 2006-07, major A340 support
contracts were renewed for
Air France Industries with
Virgin Atlantic and on Air Mauritius’
Airbus A340s and A319s. KLM
strengthened its position in the
Boeing B747-400F support market
via large contracts signed with
Martinair and TNT.
Maintenance activity