Michael Denis provides reviews the trends in aviation IT - to include mobility, cloud 2.0 tying product and service lifecycle management via content lifecycle management and the rise of the Chief Digital Officer within organizations.

1. White Paper: Flatirons Solutions, 2MoRO Solutions, Holocentric Case Study: National Airways Corporation
Vendor Job Card: 2MoRO Solutions PLUS… How I see IT, News, Upcoming and Past Webinars, MRO Software Directory
V3.1 • MARCH/APRIL 2014
HOW YOU USE YOUR DATA
However collected, data improves
performance on all fronts
DOCUMENT MANAGEMENT
Who is adopting new standards and how are they fitting in
LEVERAGING CHANGE
If you’re going to upgrade, upgrade everything

2. Editor’s comment
MRO IT is about the latest technologies and solutions
leveraging value from the whole fleet, all the time
The first flight of the Boeing 737 MAX in 2017 will mark a significant aviation milestone. First
flown in 1967, this is no ‘legacy’ aircraft: the 737 MAX will illustrate that new technology
efficiency and established reliable success are far from mutually exclusive ideas. I mention
this because ability to span several generations of technological enhancement matters in
commercial aviation as it is and as it is likely to become.
Given the high cost of development, it is likely that future new designs will need to adapt
to changing requirements and possibilities over a production cycle spanning many decades.
Also, given the purchase price of new aircraft, owners (airlines and lessors) will want to
apply whatever technologies and processes can best ensure a long and productive life for
their investment. Most of these technologies and processes will be Aircraft IT or use IT for
their effectiveness.
There is an article in this issue from an airline using an engineering upgrade requirement
to leverage a whole lot more IT capability which will serve for many years to come. There’s also an article on the latest
information exchange standards, making documentation more useful and easier to use… and, at the same time, better
able to manage engineering, technology and IT changes emerging in future years. Efficient use of aircraft is a key
to business success for airlines; so the article on using data culled from experience to better plan maintenance and
forecast wear offers real value. Finally, an article on leveraging business value from an unavoidable process: compliance
generates lots of useful information; so use it profitably.
As always, you’ll learn what makes a key software vendor tick plus How Michael Denis sees IT. All wrapped with useful
news and information from your sector.
The Aircraft IT live demonstration webinars allow readers to research the software package most appropriate for their
needs and access past webinars with more focus than ever while, of course, future webinars are open for every reader
who registers.
Technology and IT solutions will continue to amaze us but they will have to be able to benefit existing as well as new
designs and processes to be economically acceptable to the market. At Aircraft IT MRO we aim to keep you up to date
on new ideas as well as the latest developments in established ideas and designs that work.
Aircraft IT MRO: what you need to know about what works in your world.
Ed Haskey
CLICK HERE: Send your feedback and
suggestions to AircraftIT MRO
CLICK HERE: Subscribe for freeAircraftIT MRO is published bi-monthly and is an affiliate of Aircraft Commerce
and part of the AviationNextGen Ltd group. The entire contents within this
publication © Copyright 2014 AviationNextGen Ltd an independent publication
and not affiliated with any of the IT vendors or suppliers. Content may not be
reproduced without the strict written agreement of the publisher.
The views and opinions expressed in this publication are the views of the
authors and do not necessarily reflect the views or policies of their companies
or of the publisher. The publisher does not guarantee the source, originality,
accuracy, completeness or reliability of any statement, information, data, finding,
interpretation, advice, opinion, or view presented.
AircraftIT MRO
Publisher/Editor: Ed Haskey
E-mail: ed.haskey@aircraftit.com
Telephone: +44 1273 454 235
Website: www.aircraftIT.com
Copy Editor/Contributor: John Hancock
E-mail: john@aircraftit.com
Magazine Production: Dean Cook
E-mail: deancook@magazineproduction.com
04 NEWS
There’s always a lot going on with Aircraft MRO IT which has to deliver ever more in the age of the connected aircraft.
MRO IT managers can follow developments on www.aircraftit.com/MRO and here in the Aircraft IT MRO e-journal.
18 CASE STUDY: STEPPING UP WITH MRO SOFTWARE
Rob Vogel, Senior Manager, National Airways Corporation
When National Airways Corporation (NAC) decided on a system, it had to achieve much more than a simple
engineering upgrade: read how the change was managed.
21 VENDOR JOB CARD: 2MoRO SOLUTIONS
Pierre Dagois reveals the principles and ethos which have made 2MoRO Solutions the success it is today
In this Job Card, Pierre Dagois, Chief Executive Officer of 2MoRO Solutions explains the philosophy and practice on
which 2MoRO has built its IT and business achievements
22 UPCOMING LIVE MRO SOFTWARE DEMONSTRATION WEBINARS
A preview of live MRO software demonstration webinars featuring AD Software on 20th February 2014 and Volartec
on 6th March 2014.
24 WHITE PAPER: EARLY ADOPTERS
David Boyer, VP of Aerospace Operations, and Tim Larson, Global Product Manager at Flatirons Solutions
This final article looks at how organizations in the civil aviation ecosystem are adopting best practices to support
iSpec 2200 and S1000D information exchange standards to accommodate both existing and new-generation fleets.
29 COLUMN: HOW I SEE IT
Michael Denis looks at the predictions for 2014
Who would have thought it? Michael Denis offers his as usually well-informed and succinct predictions for the year
ahead and they include some interesting thought provokers for MRO IT executives.
30 WHITE PAPER: USING DATA TO IMPROVE MRO SCHEDULE MANAGEMENT
A. Ben Zakour, Research and Development Engineer, 2MoRO Solutions
Applying intelligence and real in-service data to maintenance planning and wear/failure forecasting can make MRO
more efficient and more effective.
34 PAST WEBINARS: KNOWLEDGE TRANSFER AND ACCESS FOR INDUSTRY EXPERTS
View Video Recordings of our Past Live MRO Software Demonstration Webinars. See full information and view video
recordings of past Live MRO Software Demos, including: Lufthansa Technik AG, 2MoRO Solutions, AeroSoft Systems,
Aircraft Data Systems (ADS).
36 WHITE PAPER: STRONGER WHEN TACKLED TOGETHER
Geoff Zuber, Director, Holocentric
It’s all too easy to see regulatory compliance as a burden on the business when, in fact it can be leveraged and
arranged to deliver a range of real business benefits.
38 EVENT PREVIEW: AIRLINE & AEROSPACE MRO AND OPERATIONS IT CONFERENCE
43 MRO SOFTWARE DIRECTORY
A detailed look at the world’s leading MRO IT systems.

3. 24 | WHITE PAPER: FLATIRONS | AIRCRAFT IT MRO | MARCH/APRIL 2014
Bombardier, and other airframe manufacturers – that have identified
S1000D as the information standard for their new-generation programs.
Early adopters also include suppliers to the primary OEMs who provide
components and systems for new-generation aircraft. These OEMs are
creators of technical information and, as such, play a role early in the
lifecycle of an aircraft and the creation of its technical information.
In contrast, airline operators and their technicians are consumers of
technical information. Being further downstream in the introduction of
new aircraft, they have not been early adopters actively working with
S1000D content. This is largely because airline operators are just now
taking delivery of the Boeing 787 Dreamliner, while the Airbus A350 and
Bombardier CSeries aircraft are not yet in general production or in active
service.
Second, and more importantly for the purposes of this article, early
adoption applies to best practices being implemented by OEMs to supply
data in the S1000D standard while still supporting data standards for
existing aircraft programs. It is this second type of early adopter that is
setting the standard by which others in the civil aviation ecosystem will
measure their systems in the 21st century. Let’s take a closer look.
Best practice in a single system
Suppliers to primary airframe manufacturers are taking the lead as early
adopters of best practices to adopt systems that let them create and
manage S1000D-based information in a single system with iSpec 2200
data, while airline operators have largely stepped out of the conversations
determining how critical information technology that makes their
businesses run will impact them. All participants in the civil aviation
ecosystem are at a crossroads to identify what the adoption of new-
generation aircraft means across their organizations and determine how
they will equip themselves to compete in the 21st century.
Part 4: Early Adopters
Engine manufacturers, say David Boyer, VP of Aerospace Operations, and
Tim Larson, Global Product Manager at Flatirons Solutions, take the lead in
adopting best practices to support S1000D in a multi-spec world.
THE FOCUS OF this series is the emergence of
S1000D as the new information exchange
standard for civil aviation and the significant step-
change it represents in the way all participants in the
civil aviation ecosystem will create, manage, deliver,
access, and use information in the future. Along with
the gradual adoption of S1000D for new-generation
aircraft programs is the ongoing requirement to
simultaneously support iSpec 2200 standards for existing
programs.
When looking at early adopters, let’s start by
specifying what early adoption means in two respects.
First, early adoption applies to organizations that are
actively creating or working with S1000D content.
Early adopters in this sense are the primary original
equipment manufacturers (OEMs) – Airbus, Boeing,

4. MARCH/APRIL 2014 | AIRCRAFT IT MRO | WHITE PAPER: FLATIRONS | 25
ADOPTION OF S1000D: ENGINE MANUFACTURERS
TAKE AN EARLY LEAD
One segment of the civil aviation ecosystem that is actively adopting
S1000D as required by the primary OEMs, and tackling head-on the
challenges of supporting multiple specifications, is engine manufacturers.
Living in a multi-spec environment
Primary OEMs including Airbus, Boeing, and Bombardier are driving
adoption of S1000D across the civil aviation ecosystem by requiring
technical information in S1000D for new-generation aircraft. The primary
OEMs drive the information standard with which everyone else in the
ecosystem has to work. Other OEMs have to produce information for
Airbus, Boeing, Bombardier, etc., in both iSpec 2200 and S1000D, and
airline operators live in the middle of this multi-spec environment. OEMs
and airline operators need to figure out how to accommodate both sets of
standards and can adopt best emerging practices to mitigate the cost and
complexity of meeting evolving requirements.
Global manufacturers of aircraft engines face a dilemma common to
many OEMs — steadily rising costs to capture, manage, and distribute
technical information in multiple exchange standards for complex product
lines, global partnerships, and business process needs. Like other large
OEMs, in order to support their customers’ and suppliers’ requirements,
engine manufacturers must produce technical information in iSpec 2200
and now S1000D standards. New S1000D requirements have meant that
they faced the costly and complex possibility of developing multiple
systems. For some manufacturers, supporting S1000D also has meant the
possibility of adding systems not just within one business division but
across several divisions.
These large OEMS have recognized early on that adding a new technical
information management system to handle S1000D requirements in
parallel to their existing systems is not a sustainable approach. The resulting
complexity would be costly, time-consuming, and subject to error. At the
same time, they have recognized that cobbling together various applications
and databases over time to meet changing requirements is not an
alternative or feasible solution either.
What these large manufacturers have done is adopt a single solution
suited to their technical information requirements for the 21st century.
THE SOLUTION
Leading engine manufacturers are calling on technical information
management specialists with expertise specifically in aerospace and aviation
to develop best practices for next-generation systems. The technical
information management systems they are developing include key
functionalities as discussed in previous articles, including:
• A SINGLE SOURCE FOR REUSABLE CONTENT: A solution that
provides authors with a ‘one stop shop’ for all content (including XML/
SGML, 3D models, graphics, and metadata), which is stored centrally
in a Common Source Database (CSDB) for use by multiple sites and
business units.
• USER-FRIENDLY AND INTEGRATED XML EDITORS: XML editors
that reduce the learning curve for authors who are new to XML yet
provide the sophisticated XML functionality of traditional editors and
that are tightly integrated with other components of the larger system,
“…adding a new technical information management
system to handle S1000D requirements in parallel to
their existing systems is not a sustainable approach.
The resulting complexity would be costly, time-
consuming, and subject to error.”
CLICK HERE FOR FULL SOFTWARE DETAILS AND FOR A DEMO
The author view in TechSight/X Editor

5. 26 | WHITE PAPER: FLATIRONS | AIRCRAFT IT MRO | MARCH/APRIL 2014
• ON-DEMAND DATA TRANSFORMATION
VIA PUBLICATION MANAGEMENT: Powerful
publication management capabilities automate content
transforms for both in-bound technical information
(from supplier partners) and out-bound support and
maintenance content (for end-customers). This lets
OEMs take in, store, and publish out content for
both legacy iSpec 2200 and next-generation S1000D
fleets — without requiring the OEMs to alter or
abandon legacy document type definitions (DTDs).
By normalizing content through on-demand data
transformation, data can be presented to end users in
S1000D or iSpec 2200, PDF, and HTML publishing
options, providing the required level of flexibility
needed to support a wide array of spec-defined
programs and contractual commitments from within a
single publishing environment.
• INTEGRATION WITH CRITICAL ENTERPRISE
INFRASTRUCTURE: By providing not only a
content management capability but also a powerful
workflow engine capable of managing business
processes both within and outside the client
organization, the technical information management
solution is tightly integrated with the client enterprise
resource planning (ERP) and reporting infrastructure
to ensure that the solution’s capabilities are accessible
and quantified.
BEST PRACTICES: MODERN TECHNOLOGY
PLUS DOMAIN EXPERTISE
In addition to adopting modern technology that
underlies a single technical information management
system for both existing and new-generation fleets,
these early adopters are also doing something else
that is different. They are calling on vendors who are
experts specifically in aviation and aerospace. Many
of the components of an information management
solution are available from a variety of vendors that
serve a broad range of industries. However, a key
differentiator that allows OEMs to get the most benefit
out of advanced technology is working with aerospace
domain experts.
For example, while an organization can use a number
of generic XML editors, a CSDB, or integrations
between its technical information and other enterprise
systems, it can fall short of getting the full value of
the technology if not applied to its specific use cases.
OEMs that call on product-based solutions adapted
for the specific use of the aviation community show
marked added value in terms of time to deployment,
productivity, and lower overall cost. What’s more, these
early adopters have researched the time, effort, and
budget required to develop custom solutions based
on generic technology. They have made the wiser
decision to invest in providers with dedicated aerospace
solutions with roadmaps set to mature through time
based on the input of other aerospace customers.
RESULTS
These large OEMs are not going cold-turkey, jumping
quickly from their existing systems to the new technical
information management system. Rather, they are
making the transition to a new multi-spec system over
the course of multi-phase implementations in order to
minimize the cost and disruption of solution adoption.
The single system combined with the phased approach
has helped OEMs realize benefits that include:
• Through the consolidation of multiple platforms,
dramatic and quickly achieved reductions in content
conversion costs, IT maintenance and administration
costs, as well as lower training costs for end-users
previously charged with working in multiple
application platforms.
• Efficiency gains resulting from speedier review and
decision-making processes through the use of both
internal and external workflows to capture and
respond to business and technical requirements from
the manufacturer’s end customers.
• New revenue streams through improved business
flexibility to meet customer needs for custom
publications, automated delivery of content to
external portals or data stores, or other revenue-
generating customers or program-specific
requirements that were difficult to respond to using
legacy system capabilities.
• Lower cost per publication with improved support
for custom publications, distribution of updated
content to end-customer portal sites, and traditional
content delivery mechanisms.
• Improved content consistency and accuracy thanks
to increased re-use of material that is common across
multiple products, publication types, or business
units.
AIRLINE OPERATORS: PASSIVE PARTICIPANTS
IN A CHANGING INDUSTRY
While, on the OEM side, there are several early
adopters of single systems designed to handle multiple
specifications for existing and new-generation fleets, the
picture is much different on the airline operator side.
S1000D became the international exchange standard
in technical information for civil aviation in 2004.
As of mid October 2013, 40 Boeing 787 Dreamliners
had been delivered out of a total 131 orders1
. Orders
for the A350 stood at 7252
, and Bombardier had
received more than 170 orders for its CSeries aircraft3
.
Each aircraft program uses S1000D for the basis of its
technical information.
Nearly a decade has elapsed since S1000D entered into
civil aviation and the first new-generation aircraft began
rolling off the production lines. That decade saw airline
operators step back from conversations on information
exchange standards and the technology discussions that
will impact them for decades to come.
Northwest Airlines was the sole early adopter
such as TechSight/X® Editor based on Serna XML Editor from Flatirons Solutions (formerly
InfoTrust Group). It offers a word processor-like interface, instant XML validation, and
other user-friendly features that make the adoption of XML easier while providing advanced
capabilities experienced XML authors expect. Its integration with the TechSight/X CMS
(content management system) also facilitates content authoring and editing to increase
authors’ productivity and speed up the delivery of up-to-date information to end users.
The overview tab
in TechSight/X
CMS

6. MARCH/APRIL 2014 | AIRCRAFT IT MRO | WHITE PAPER: FLATIRONS | 27
supporting multiple specifications in a single system among airlines. Delta gains that benefit
through the merger of the two airlines. Outside of this, airlines have been slow in preparing for
this change in the industry. Since new-generation aircraft are just now entering service, this is
somewhat to be expected. However, because airline operators have removed themselves from
discussions in the S1000D User Group, the ATA e-Business Program’s Civil Aviation Working
Group, and other civil aviation conversations, they are not poised to scale their existing
technical information management systems to meet requirements of new-generation aircraft
programs.
Instead, the majority of airline operators are taking what’s coming to them from the primary
OEMs by default. Rather than making business decisions from an informed perspective, they
are now starting to live through the changes that are on their doorstep without knowing
what these changes mean. Absence from the conversations about information standards
and technology means airline operators are dependent on others to guide them through
this process. This can be a challenge for both the airline and the solution provider. Here the
solution provider needs to be able to share S1000D knowledge and provide training and
coaching as well as a product that aids the airline in producing, managing, and delivering
content in the multi-spec environment.
JOIN THE CONVERSATION, GET PREPARED
Rather than highlight early adopters among operators, then, here we recommend to airline
operators that they take proactive steps to learn about what new S1000D specifications mean
for their maintenance and engineering teams as well as their technicians. Get involved with
the ATA e-Business Program, attend the S1000D User Forum, discover training options
available today. Read the previous articles in this series about who is impacted by new
information standards and why; as well as options for charting an optimal course to meet
new requirements. Explore options available to you from vendors offering solutions, request
demonstrations, watch webinars.
Now is the time to start establishing plans. If you began making plans for a single authoring
tool and IETP (interactive electronic technical publication) in the past (as airline operators
started to do several years ago), dust them off and fill in the gaps. Start from this foundation
and build a plan that uses best practices so that you can fully understand the decisions you
need to make as you take delivery of new-generation aircraft. Transitioning from a legacy
system to one that will meet your needs for years to come should start now. Rather than
backing into decisions because you lack information, face the future and walk into it with
the right information so you can make the best decisions to support your business and your
customers.
TIM LARSON
CHIEF PRODUCT TECHSIGHT/X SUITE,
FLATIRONS SOLUTIONS
Tim Larson has more than 30 years’
experience in commercial aviation and
has played a key role in promoting
and developing the S1000D
specification in the ATA e-Business standards body. He
serves on the ATA e-Business Steering Group (ESG),
is a member of the ATA Civil Aviation Working Group
and the S1000D Steering Committee, and supported
the design and delivery of the first S1000D production
solution for a commercial carrier. Tim currently serves
as the chief product owner for InfoTrust Group’s
TechSight/X suite of products that support both ATA
iSpec 2200 and S1000D specifications.
DAVE BOYER
VP OF AEROSPACE OPERATIONS,
FLATIRONS SOLUTIONS
Dave Boyer is vice president of
Aerospace Operations for Flatirons
Solutions’TechSight/X suite of
products. He has more than 20
years of experience as an aircraft technician and
maintenance supervisor with the U.S. Air Force and
several commercial airlines, applying this experience
to help airlines, OEMs, and MROs increase productivity,
reduce costs, and achieve profitability.
INTERACTIVE
ASK THE AUTHOR A QUESTION
CLICK HERE TO LEAVE YOUR QUESTION
INTERACTIVE
JOIN THE DEBATE
CLICK HERE TO LEAVE YOUR FEEDBACK ABOUT THIS
ARTICLE AND START OR JOIN A DISCUSSION
FLATIRONS SOLUTIONS
Flatirons Solutions provides
information management consulting
services and solutions for Fortune
500 and other companies in the
aviation and aerospace, enterprise, government, high-tech, and publishing
and media industries — helping customers deliver the right information, at
the right time, to the right people.
The TechSight/X suite of products is an independent solution for
technical information management developed specifically for the
aerospace industry to create, manage, and deliver large volumes
technical information in support of the production, operation, and
maintenance of aircraft throughout their lifecycle.
Did you know?
The TechSight/X suite of products is today’s leading manufacturer-independent, technical
information management solution used by the world’s largest airlines and OEMs.
The TechSight/X OEM Edition helps OEMs support their customers and suppliers in the
production, ongoing revision, and automated distribution of aerospace technical information
specifically designed to support multiple formats and standards — like iSpec 2200 and S1000D
— with reusable, dynamic content to support a wide range of programs, specifications, and
delivery formats.
The TechSight/X Aircraft Maintenance Edition is designed for airline operators that have ordered
and are taking delivery of new-generation aircraft. It is a suite of applications for managing
maintenance and engineering information across both existing iSpec 2200 and new S1000D
program fleets — including the Airbus A350, the Boeing 787 Dreamliner, and others — so you
can accommodate both existing and new-generation aircraft programs in a single system.
The solution delivers the most current, accurate, and regulatory-compliant information for
all aircraft to technicians at the point of performance — and gives your airline control of your
technical documentation for all of your fleets in a single system — relieving pressures of technical
information management so you can retain your competitive advantages and focus on flying.
www.techsightx.com
Get Involved
Join the conversation on technical information standards for new-
generation aircraft programs.
• ATA e-Business Program Membership Information
www.ataebiz.org/meminfo/
• ATA e-Business Program, Civil Aviation Working Group (CAWG)
www.ataebiz.org/apps/group_public/
• ATA e-Business Forum and S1000D User Forum 2014
www.ataebiz.org/forum/
CONCLUSION: NEW-GENERATION TECHNOLOGY
FOR NEW-GENERATION AIRCRAFT
Stepping onto a Dreamliner or watching the test flights of the Airbus
A350 and Bombardier’s CSeries are tantalizing. These new-generation
aircraft are ushering in a drastically new era of civil aviation. The flying
public can see many of the differences that set new-generation aircraft apart
from their older kin. For those less-visible organizations that are building
the components and systems of these new-generation aircraft behind the
scenes, one cannot underestimate the urgency to adopt sustainable solutions
to support new-generation aircraft and your day-to-day operations. If you’re
an OEM or supplier struggling to meet multiple technical information
requirements for multiple customers, take a look at the technology and
solutions available today from aerospace specialists to help you meet head-
on the challenges of a multi-spec world. Learn from what early adopters
already have done and chart a course to support your business.
On the airline operator side, we eagerly await to see who the early
adopters of 21st century technical information management technology
will be. As operators take delivery of the 787 and eventually the A350
and other new-generation aircraft, unless they take proactive steps they
will have missed the opportunity to adopt solutions to keep their fleets
running smoothly without incurring exploding costs, a lag in delivery
of information to their technicians, increased risks of fines, and other
consequences. If operators don’t soon join the conversation on technical
information standards and technology, they’ll be in
a reactive position; and we have to hope that the
consequences won’t be negative for the flying public.
All players in the civil aviation ecosystem can reduce
the complexity they face in meeting new requirements
by adopting a single system that supports multiple
specs for technical information management for
existing and new-generation fleets. Leading OEMs
are making the business decision to consolidate their
technical information management systems into one
and are achieving tangible results. Airlines can plan
ahead and experience the same benefits. Get started
now to identify and develop your technical information
management solution for the 21st century. n
FOOTNOTES
1
http://active.boeing.com/commercial/orders/index.cfm
2
www.a350xwb.com/x-tra/od
3
www.bombardier.com/en/media-centre/commercial-aircraft-status-reports.html

7. INTERACTIVE: GET INVOLVED!
Why not get involved with the debate? Send
your comments or questions to Michael by clicking here.
How I see IT
Predictions for 2014
Michael Denis
New Year’s resolutions and annual predictions are likeearnings forecasts; the longevity of their accuracy is oftenshort lived. Although the lifespan of predictions may beshort, here are some of my predictions for the aerospace andaviation industries for 2014:
1. Most airlines reach sustainable profitability. Decades ofanalysis show a high correlation between country grossdomestic product and air travel, a trend we continue tosee in 2014 as the global economy continues to recoverfrom the financial meltdown of 2007.
2. Fuel prices will remain relatively low and stable. Fuelprices are not expected to increase . Of course, the problemis that the benefit of an improving global economy alsocauses increased demand for oil and raises jet fuel prices.3. The rosy future for operators overall does not necessarilytranslate into a rosy everywhere. Air carriers in Indiawill continue to suffer from the combination of a weakereconomy, too many carriers providing excess capacity, andlaws that increase costs while preventing direct foreigninvestment. Australia is another country where governmentregulations and over capacity are resulting in air carrierfinancial losses.
4. Merger mania is over. Mergers in the Americas seem tobe complete with the AA/US and LAN/TAM marriages.With the exception of Alitalia, Europe, too, seems to havefinalized its M&A consolidations. For the rest of theworld, consolidation and its associated capacity disciplineare unlikely, as carriers will be bolstered by good enoughfinancial returns to avoid bankruptcy but not good enoughto spur M&A.
5. The short-term outlook for providers of MRO servicesis positive. Forecasts of MRO spend, measured in laborhours, material and overhead, are strongly correlatedto increased asset utilization, labor and supply costs aswell as asset lifecycle stage. The continued introductionof new-generation aircraft will, however, put downward
pressures on the industry as demand wanes.
6. MRO skill shortages continue to increase. Technologicallyadvanced new-generation aircraft require higher skills inan industry already suffering from aging demographicsand geographic skills shortages. This trend, coupledwith the cost of ferrying aircraft, will level the offshoreoutsourcing playing field and, to some degree, result inrepatriation of work both on-shore and in-house.7. OEMs’ land grab for increased aftermarket revenueswill accelerate via control of IP. OEMs’ move in to themore lucrative aftermarket by bundling asset acquisition,financing, logistics and maintenance are commonplace.OEMs are now increasing the intensity of IP protectionsand IT mandates on new-generation aircraft. They arebetting on the long view that affordable bundling of assetacquisition, financing, logistics, and maintenance todaywill reap high margins in the coming decades and lock incash-strapped operators. The expansion of MRO Networksand OEMRO joint ventures continue to negatively impactfully independent, non-airline affiliated MROs.So what do these predictions mean for MRO IT in 2014?• Mobility solutions that increase labor productivity anddispatch punctuality will become ubiquitous.
• Service parts optimization technologies that improve partsdistribution, turn times, and pooling will continue to seeincreased usage.
• As OEMRO ventures expand, integration of Product andService Lifecycle Management technologies will increase.• Mergers are an impetus to replace mainframe legacysystems resulting in enterprise-wide IT modernizations.• B2B integration of MRO business networks will continueto increase demand for MRO IT networks with modernindustry data exchange standards (SPEC2000, S1000D,S5000F).
Or at least that’s how I see IT.
“This trend, coupled with the
cost of ferrying aircraft, will
level the offshore outsourcing
playing field and, to some degree,
result in repatriation of work
both on-shore and in-house.”