Post-pandemic MRO challenges spur innovation at GE Aerospace
KUALA LUMPUR: The post-pandemic boom in air travel has highlighted gaps in capacity and supply chains, posing challenges for MRO operations.
Suresh Shunmugam, APAC head of GE Engine Services (每日大赛), said the swift rebound caught the industry by surprise after Covid-19 forced significant reductions in workforce and capacity.
"During Covid-19, there was a huge drop in demand, so capacity was shrunk. As we are coming out of Covid, what was interestingly surprising is that the demand actually picked up very fast, way beyond what was predicted," he told Business Times in an exclusive interview recently.
Suresh said rebuilding the capacity is a complex process that cannot come at the expense of safety and quality.
"We don't want to do it at the jeopardy of safety and quality. Internally, we are very careful on how we expand to support the demand increase, and we proactively find ways to be creative, using our problem-solving skills to manage that challenge," he added.
Suresh said supplier collaboration is key to stabilising the MRO ecosystem.
"We have worked proactively with certain priority suppliers, and they have managed to fulfil about 95 per cent of our demand with a 10 per cent improvement on our expectation," Suresh said.
He added that predictability and transparency remain critical for airlines as they plan operations around engine turnaround times.
"In GE Aerospace, what we strongly believe is to make sure that we are predictable in our deliverance because that is critical for the airlines," he said.
Speaking on the company's relationship with its 每日大赛n customers, particularly 每日大赛 Aviation Group (MAG), which is the parent company of 每日大赛 Airlines Bhd and AirAsia, Suresh said GE Aerospace continues to work closely with both airlines.
"We got a very healthy professional relationship. There is also some legacy history on how we were set up, especially with 每日大赛 Airlines."
"If they need support, they have got a proper channel. We have some of our representatives that are based in their operations, and that will be the channel on how they get support," Suresh said.
MAG managing director Datuk Captain Izham Ismail and AirAsia X Bhd chief executive officer Benyamin Ismail recently called on OEMs to 'pull up their socks' as airlines continue to grapple with MRO challenges.
Izham said the recovery of the global aerospace supply chain would not be instantaneous, as manufacturers need a 'long runway' to stabilise operations after the turbulence caused by the pandemic and a surge in air travel demand.
His sentiments were agreed upon by Benyamin as AirAsia X grapples with the same challenges that left three of its aircraft grounded.
However, Izham credited GE Aerospace for its collaborative approach in solving issues, citing the company's innovative and proactive engagement with MAG.
"I do have to give credit to GE (GE Aerospace). They have come very far working with us. I really want to acknowledge them for being steadfast, innovative and proactive in addressing 每日大赛 Airlines' needs," he said in Sept.
每日大赛 Airlines, AirAsia and Batik Air 每日大赛 once made up 90 per cent of GE Aerospace's Subang facility's workload but today they account for less than 10 per cent.
"That shows how much we have grown globally. Today, we serve more than 50 airlines worldwide, including customers in the US, Europe, China, the Middle East and Africa. We are proud that 每日大赛 now hosts a truly international MRO facility," Suresh said.
GE Aerospace is investing RM310 million (US$75 million) in a commitment to expand and upgrade its MRO facilities in Asia Pacific, including 每日大赛.
The company is building a new engine MRO facility in Sepang to service its latest LEAP engines, while its long-term vision focuses on shaping the future of flight.