Aviation Week Show News - November 12, 2007 - (Page 16)

COMPLETIONS D U B A I 2 0 07 Widebody Completion? Get in Line “The market has exploded in the last year or so,” says Jeff Bosque, president of Dubai Aerospace Enterprise affiliate Associated Air Center, who’s booking ACJ and BBJ business for 2009 and even 2010 (DAE is at Stand C1000/1001). “All the shops are at maximum overdrive,” says Ken McAlpin, director of VIP and head of state completions, special programs, L-3 Communications (Stand E632). “The phone is ringing constantly. Relatively simple things are hard to get.” “Not much more work can be handled between 2009 and 2013,” remarks Walter Heerdt, svp sales and marketing at Lufthansa Technik (Stand C518), “and I see more than 15 widebodies being ordered for delivery in that time frame.” Heerdt says he questions whether new players can gain the engineering expertise to deal with widebodies in such a short time; and he cautions that while Lufthansa Technik can increase its capacity, it will not do so to meet an absolute peak in demand only to see that demand drop. Driving Heerdt’s concerns are the rumored three customers for VVIP A380s, as well as Boeing’s orders for four 747-8s and up to nine 787s for head of state and executive use. In addition, several orders are believed to be imminent for VVIP A330s and A340s. “A total of seven 787 VIP jets have been ordered Over the top? Perhaps, but this is one of Boeing’s interior designs suggested for a Boeing 747-8 VVIP jet. Boeing concept for a lounge and theater in the 747-8—note desk suitable for working! directly from Boeing,” the airframer said in publicizing the sale of a $153 million 787 to Hong Kong developer Joseph Lau in May. “We certainly would not mind talking to him,” says McAlpin of L-3. Jet Aviation Basel (Stand E546) said in August that it signed a letter of intent with a confidential client from the Gulf region for the VIP completions of a 787-9. The green aircraft will take 15 to 18 months to furnish following delivery to the Basel facility in 2011. “People are looking to buy slots and flip them,” 16 says AAC’s Bosque. San Antonio’s Gore Design Completions (at Stand E412) began completions of two green BBJs late last year, embarked on its first ACJ job late this past month, and is promoting capabilities for larger jets by both manufacturers. “Strong demand for the ACJ family means there is a shortage of cabin outfitting capacity in the market,” says Airbus A320 vp Alain Flourens. Airbus sold 17 corporate jets worth $1.1 billion—14 ACJs and three A340s—through May 2007, compared with 20 in the whole of 2006. Airbus’ answer is to establish a completions center of its own, regrouping EADS Sogerma employees and cabinoutfitting facilities in Toulouse. Capacity is three ACJs per year. Airbus is at Stand C220. Other Airbus-sanctioned completion centers include AAC, Gore, Jet Aviation Basel, and Lufthansa T echnik. Expanding capacity is not simple. It means investment in large hangars that could quickly become vast empty spaces if the market should turn down. L-3 is considering building a medium-size hangar for aircraft like the military’s P-3 Orion and C-130 Hercules turboprops, freeing up the space they’re in now for widebody work. L-3 could in this way handle as many as seven 747s at once. Airbus is careful to note that the EADS Sogerma employees in Toulouse have experience with ACJ completions, taking pains to list such specific customers as Aero Services Executive, National Air Services, the Venezuelan government and “undisclosed clients in the Middle East—as well as some VIP widebodies.” That’s because the completions business is strapped for personnel, a factor contributing to the big body bottleneck. “We believe we will have plenty of hangar space,” McAlpin says. “The real problem is getting the skilled, experienced people that you need.” “There’s a shortage of engineers out there,” continued on page 55 November 12, 2007 www.aviationweek.com/shownews http://www.aviationweek.com/shownews

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