Air France 2008 Annual Report Download - page 48

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Maintenance activity
Component support: recognized expertise
AFI and KLM E&M are developing expertise that is
acclaimed by the market and its maintenance facilities
enjoy a reputation for state-of-the-art competence.
Geographical presence and customer proximity remain
key to the component support business. The deployment
of the Group’s logistics network has seen the opening of a
number of logistics centers in three main regions (South-
East Asia, China and the United States), where its
subsidiary AMG ensures localized logistics and the
development of component repair capabilities. Integrated
services, the strategic availability of parts inventories and
the scale effects on flagship products are also significant
drivers of competitiveness. The continuing trust and
satisfaction of customers was reflected, in 2007-08, in the
renewal of a number of major support contracts, such as
for Royal Jordanian’s Airbus A340s and A321s or BRA
Transportes’s Boeing B737 aircraft.
Partnerships with a number of OEMs strengthen the
commercial positioning of the Group while providing
economies of scale. Thus, the number of Boeing B777s
supported by the CSP (Component Support Program)
partnership between AFI and Boeing continued to grow
over the financial year to 124 aircraft. A similar partnership
has been developed between KLM E&M and Boeing for
the new-generation Boeing B737s. Subsidiary EPCOR,
specialized in APU (Auxiliary Power Unit) overhaul
supplements the multi-product offer on the Boeing B737
NG and B777 aircraft and the Airbus A330 and A340.
Engine support: scale effects
The development of the engine support business is
benefiting from the scale effect provided by the Group’s
fleet and from strategic partnerships with engine OEMs.
AFI is increasing its engine overhaul capacity on the GE90
and is preparing for the arrival of the GP7000 destined for
the Airbus A380. For its part, KLM E&M is developing its
position in CF6-80 E1 overhaul (the engine for the Group’s
A330s) and continues to ensure the maintenance checks
on General Electric’s CFM56-7 engine.
Third-party revenues continue to grow with customers
such as Pegasus Airlines choosing AFI KLM E&M for the
maintenance of their CFM56-7B engines.
The drive for innovation and high quality standards
AFI and KLM E&M combine technological innovation with
the drive for productivity. The aircraft painting system
developed by KLM E&M in 2007, for example, reduces
the amount of product used by 15% and thus the weight
of the aircraft, contributing to the reduction in fuel
consumption. In the spirit of sharing best practice, Air
France has adopted the hangar-based engine wash
system known as Water Wash developed by KLM E&M.
Innovation doesn’t just mean developing new
technologies but also the continuous improvement of
existing systems and processes. The two companies are
committed to a continuous drive for progress combining
in-house momentum with customer satisfaction and
improved business performance.
Thus, within the framework of its Quality Innovation
Program (QIP), AFI encourages all its employees to submit
innovative ideas known as QIPs and see them through to
their implementation.
In 2006, of the 5,700 QIPs put forward, 84 enabled cost
savings of some 4 million. In 2007-08 more than 7,100
ideas were submitted.