October 16, 2012
Air France Industries and KLM Engineering & Maintenance merged eight years ago to create what is now a global MRO powerhouse. Today, AFI-KLM E&M is mainly focused on expanding its engine and component business, which accounts for 10% of its growth. The company’s president, Franck Terner, discussed strategies with Aviation Week.
How will the AFI and KLM E&M MRO dual-profile continue to evolve?
Terner: We are already an integrated company. It’s not Air France Industries on one side and KLM Engineering & Maintenance on the other. It has been more than seven years since we merged, and we are one, single integrated company. Business at AFI-KLM E&M will continue to go on as it has for almost eight years.
From Day 1, the main topic of discussion was: “What can we get out of this merger?” It is difficult to say how long it took to get to this stage, probably years. The synergies between Air France and KLM are very aligned; there is no crossover in the products we share within our network.
Can you describe your “contract management flexibility” strategy?
It’s a simple strategy: organize ourselves to say ‘yes’ to the customer. Our main goal is to never say ‘no’ to a customer. Our first question to a customer is, ‘What do you need?’ Do you need components powered by the hour? Yes, we can. Do you need flexibility to just have us do the repair and you take care of your own asset? We can do that. Do you need engine spares? We can do that. The contract has to be adaptive to what the customer wants.
What are your performance goals for the aftermarket business?
We have a history of pretty nice growth, which is mainly focused on engines and components. Overall our business has grown 3%, but when it comes specifically to engines and components, it’s more like 10%. Our goal is to carry on that growth and we think the market is there, as long as we continue to deliver a high-quality service.