Air France 2007 Annual Report Download - page 41

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39
A world-wide
logistics network
In order to ensure a local presence for customers, the
Group has established its logistics network in different
regions of the world, boosting local component repair
capabilities.
In North America, Aero Maintenance Group (AMG),
in which the Group acquired a 40% stake in 2005,
is specialized in equipment support and gives the Group
a presence in the American market. In 2006-07, the
company expanded its business with an acquisition in
Dallas giving it a position in the regional aircraft market
and with the establishment of a logistics center in Miami.
It also won two contracts with Lan Chile and Delta.
In China, Hangxin group, a component repair company
for new generation aircraft, enables the Group to benefit
from the strong growth rate in this market. Since the
Group took control in May 2002, Hangxin group has seen
annual growth of 20%. In 2006, the company continued
to develop the capacity of a new technical workshop in
Shanghai within the framework of a 3.5 million euro
investment program and the bringing on line of new
maintenance and avionics repair capacity.
This strategy of deploying integrated support services
in regions far from its home base has been well-received
by a number of low-cost Asian airlines.
In Bangkok, the new logistics center will handle the
airframe maintenance, engine and component support
on low-cost carrier Nok Air’s fleet of Boeing B737-400s,
which should grow to 14 aircraft by late 2008.
In India, InterGlobe Aviation Limited, “IndiGo”, a recently-
created Indian low-cost domestic airline based in Delhi,
signed a seven-year component support contract with
Air France Industries. The contract covers defined access
to the spare parts pool including repairs, a stock of parts
located in Delhi, as well as an integrated door-to-door
logistics service offering. At present nine aircraft are in
revenue service and Air France Industries will be providing
support for the entire fleet of 100 Airbus A320s as new
aircraft enter service.
KLM E&M has started Boeing B737NG support on behalf
of Spicejet, an Indian low-cost airline based in Delhi,
whose fleet will soon exceed 20 aircraft.
In Singapore, a new logistics center has been set up,
enabling the Group to meet demand in the high-growth
South-East Asian market.
2006-07