AeroDynamic Advisory is a boutique aerospace consulting firm specializing in aerospace strategy & growth, MRO, transaction support, customer satisfaction, and economic development.
We work with the world’s leading aviation and aerospace companies– from the very largest to small and mid-cap companies and consider ourselves as “part of the industry,” not “outside consultants.” While we bring an independent and objective perspective, we understand the aviation and aerospace industries and we contribute to the collective market understanding through conference presentations, focused surveys, and white papers.
Aerospace Industry Insights
Parker Aerospace earned high scores in customer satisfaction among aerospace MRO mechanical and electrical suppliers worldwide through an independent survey
CLEVELAND--(BUSINESS WIRE)--Parker Aerospace, a business segment of Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today announced that it has received the top score in airline customer survey satisfaction among maintenance, repair, and overhaul (MRO) mechanical and electrical suppliers worldwide. The findings come from the third annual Air Transport Aftermarket Customer Satisfaction Survey conducted by Inside MRO, Air Transport Works, and AeroDynamic Advisory.
Of the original equipment manufacturers (OEMs) ranked, only seven logged strong satisfaction scores. On a scale of 0-10, with 10 being the highest, those OEMs are:
- CFM (7.5)
- Airbus (7.3)
- Boeing (7.2)
- GE Aviation (engines, 7.1)
- Pratt & Whitney (APUs, 7.1)
- Parker Aerospace (7.0)
- BAE Systems (7.0)
This survey was conducted from mid-February to mid-May, with 185 qualified responses, including 62 unique airlines from around the world. OEMs were ranked in the following categories: ease of doing business, product reliability, technical support, parts cost, parts availability, aircraft-on-ground (AOG) support, OEM repair cost, OEM service center performance, overall satisfaction, and likelihood of recommending them to a peer or colleague.
Flying with empty middle seats means airlines will struggle to turn a profit, creating a dilemma for an industry desperate to revive itself
Claire Bushey in Chicago
Flying with empty middle seats means airlines will struggle to turn a profit, creating a dilemma for an industry desperate to revive itself while also reassuring passengers they are safe.
U.S. airlines saw some demand for travel return this summer, though it has stalled as new COVID-19 cases continue to rise in southern and western states.
American Airlines told passengers to expect fully booked planes on July 1, including middle seats. The company had previously attempted to leave some seats empty for social distancing.
Anthony Fauci, a leading member of the White House coronavirus task force, panned the decision. Oregon senator Jeff Merkley said he would introduce a bill to block the practice and celebrity cookbook author Chrissy Teigen garnered 88,000 likes for a tweet that said the airline “only cares about money.”
Selling more seats would help airlines stem their losses, which ranged from US$94 million to US$2.2 billion among major U.S. carriers in the first quarter. Delta Air Lines, the only U.S. airline so far to report second-quarter results, posted a US$7 billion pre-tax loss.
To break even on a flight, airlines need to sell about 75 per cent of a plane’s seating capacity. That is 8 percentage points higher than an aeroplane where every third seat is empty.
“If you leave the middle seat empty…you’re not going to make money,” said Kevin Michaels, managing director of AeroDynamic Advisory.
United Airlines is also allowing middle seats to be booked. Delta and Southwest airlines both plan to wait until autumn before they begin fully booking planes, while low-cost U.S. carriers are split evenly between the two stances.
Eric M. Johnson and Rebecca Spalding
SEATTLE/NEW YORK (Reuters) - Before the 737 MAX and COVID-19 crises rocked aviation, Boeing offered a major 737 supplier, Teledyne Controls, a take-it-or-leave-it deal.
If the Teledyne Technologies unit also wanted to be a top-tier supplier on the blockbuster 737 MAX program and a future jet codenamed NMA, it had to slash prices for its data systems, according to a person familiar with the situation.
It also needed to give Boeing a share of the higher-margin work for repairs.
Like hundreds of suppliers facing similar demands from Boeing and European rival Airbus , Teledyne agreed to sell its parts at razor-thin margins. In exchange, Teledyne and other U.S. suppliers thought they were guaranteed profits for 20 years, fueled by record output of Boeing 737s and Airbus A320s.
But the 15-month-old MAX grounding, prompted by two crashes, and now the COVID-19 pandemic have left the plans in tatters.
Already weakened by a decade of pressure from Boeing and Airbus to cut prices and invest in new technology, U.S. aerospace firms now face a wave of bankruptcies, restructurings, takeovers and mergers, industry sources and bankers say.
Teledyne Controls has laid off more than half of the 600 or so workers at its El Segundo, California factory, and closed its Seattle-area office, with more cuts expected, the person familiar with the situation said.
Triumph Group , which makes parts for Boeing's T-X training jet, is also planning a large layoff this summer and is studying selling off businesses and other options, according to another person familiar with the matter.
Teledyne and Triumph did not answer requests for comment.
Boeing declined to comment about individual suppliers.
The planemakers' strategy toward suppliers had already triggered consolidation as companies looked to bolster their negotiating power.
Now, Boeing and Airbus face a dilemma between letting industrial juggernauts like Raytheon Technologies , with a $95 billion market value, absorb smaller companies and boost their pricing power, or shelling out precious cash to bring technology in-house.
Teledyne joins Kansas-based Spirit AeroSystems , Britain's GKN [GKNHL.UL], Montreal-based Heroux-Devtek , and many others in shedding jobs.
The downturn has led to grumbling from some suppliers that Boeing is not pulling its weight.
Boeing argues it poured billions of dollars into the supply chain by producing 737 MAXs for months even after the jet was grounded in March 2019, people familiar with its thinking say.
Boeing, which has also invested heavily in its factory and hiring to prepare for higher output, bears more of the risk throughout multibillion-dollar programs, they add.
"There are so many mouths to feed and not enough food to go round," one supply chain source said.
In April, Boeing bypassed the government support it had initially lobbied for and raised $25 billion in debt, one of the largest investment-grade bond issues of all time.
At the time, Boeing said the sale would "keep liquidity flowing through our business and the 17,000 companies in our industry's supply chain." Boeing has also paid Spirit $225 million for fuselages it did not immediately need.
Now, industry sources say Boeing is putting pressure on its largest "tier 1" suppliers to flow money down to smaller "tier 3" and "tier 4" parts manufacturers, some of which have also applied for the COVID-related U.S. payroll protection program.
Kevin Michaels, managing director of AeroDynamic Advisory, said Boeing needed to do more, such as paying supplier invoices in 60 days instead of 90, and backing off on a campaign to bring in-house technology long-supplied by outside firms.
With failures likely, planemakers face potential parts and skill shortages, Michaels said.