Covid’s unwelcome role as a market circuit-breaker remains visible in the private aircraft completions and refurbishment sector in the wave of consolidation that has seen the number of service providers contract. At the same time, disruption to the supply of new-production jets and shifts in aircraft values have reshaped customer choices as a fresh generation of owners makes a welcome entry into the market.
Lufthansa Technik (LHT) specializes in VIP-outfitted narrow- and widebody airliners, with many head-of-state and government clients. Postponement of fleet replacement decisions in recent years has seen existing aircraft kept in service longer than anticipated, resulting in a flurry of demand for modernization work throughout cabins, including communications and entertainment systems, but also furniture and layouts.
Over the past 12 to 14 months, LHT has performed extensive refurbishment of aircraft owned by governments and wealthy families in the Middle East and Asia. But its biggest client is closer to home.
The Hamburg-based division of German flag carrier Lufthansa is about to deliver the second of three newly VIP-completed Airbus A350s to the Special Air Mission Wing of the country’s air force. A third is now in its hangar and expected to enter service in the fall. The aircraft are replacing a pair of aging A340s and are equipped to carry senior government leaders and trade missions deployed worldwide to boost Germany’s balance of trade.
At the same time, LHT is supporting newcomers to private aviation, and this trend has proved to be a welcome challenge for the company’s creativity and versatility. “The younger generation is now purchasing aircraft and they don’t want to wait for new models to be available, and so that means buying a used one,” explained Wieland Timm, head of VVIP sales and special aircraft services.
The company has worked on several Airbus and Boeing narrowbodies for Asian and African clients. These are low-hour aircraft—usually with less than 200 or 300 flight hours—and the designs feature new materials, colors, and electronic equipment. In several cases, the cabin designs include new elements, such as a lounge with a DJ booth for inflight parties, and seating giving passengers an unobstructed view of the pilots in the flight deck.
AMAC Looks To Boost Options and Value
In Basel, on the border between France and Switzerland, AMAC Aerospace prides itself on versatility and flexibility in helping customers make the most of their aircraft. Typical requests for upgrades include the latest satellite communications systems and even self-defense solutions to guard against security threats.
“With multiple supplemental type certificates, we can offer whatever the client wishes from our available catalogs or engineered solutions,” explained Kadri Muhiddin, the group’s executive chairman and CEO. “Although typically when an aircraft comes for maintenance, we often do an incoming inspection and highlight areas where the cabin can be refurbished during the same ground time as the maintenance projects, and we ensure the two packages of work marry up.”
According to AMAC, aircraft owners are becoming increasingly aware of different options for maximizing cabin space, such as dividing it into different zones, perhaps including an area for passengers wanting a quiet area. “We are being asked to engineer ways to store and deploy interfaces for inflight entertainment screens,” said Muhiddin. “We work with dedicated suppliers to make seating accommodation more useful yet remain timeless in design.”
Among other new technologies now in demand are humidification systems. AMAC's engineers have also been evaluating new Li-Fi wireless technology promising faster and more reliable alternatives to current Wi-Fi and 5G platforms. However, for now, the company does not feel this is viable for cabin connectivity.
In AMAC's experience, refurbishing older aircraft can be somewhat more straightforward and involve less downtime to install new equipment and features. When younger aircraft are being worked on, there can be a greater need to consider how this might impact newer materials and structures installed by the manufacturer in areas such as over the wing box or wherever aircraft systems have been installed.
“It goes without saying that a newly refurbished aircraft will be easier to sell than one that needs to be refurbished,” Muhiddin said. “In some instances, the refurbishment may not allow an increase in the price but will help accelerate the sale.”
Mindful of mounting concerns over the environmental impact of private aviation, AMAC is working to reduce carbon output and waste. Because its main facility at Basel Airport is located within the French borders, it is having to implement new EU requirements to reduce its carbon footprint and is investing in waste management related to kerosene use, paper, paint, and some metals.
The company considered installing solar panels at the site but found that this was not permitted due to its proximity to the runway. However, sister company JCB Aero, which specializes in composite manufacturing, is looking at this option and is also actively managing waste related to the glues, resins, paints, and solvents it uses.
Comlux Brings New ACJ TwoTwenty to Market
On the other side of the Atlantic, Comlux Completions in Indianapolis has been busy completing the first examples of 15 Airbus ACJ TwoTwenty aircraft for private buyers. With two twinjets now delivered, the third and fourth green aircraft are now in Comlux's outfitting hangar, having been delivered from Airbus’ assembly line in Montreal.
Using Comlux’s cabin configuration tool, customers can choose from more than 80 different interior options to install across the TwoTwenty’s six interior zones. For example, in the rear section, customers can opt for a full-size bed or a pair of couches facing each other. Overall floor space is 786 sq ft.
The first three TwoTwentys do not feature the auxiliary fuel tanks that support its maximum range of up to 5,650 nm. This feature is still being certified by Transport Canada and is expected to be standard equipment from the fourth aircraft onwards.
Comlux will retrofit the tanks to the earlier aircraft as it prepares to expand throughput in the Indianapolis completions center from three to four jets in 2025 to an eventual six units annually. The third aircraft is set to be delivered in this year's third quarter.
As a fully authorized service center for both the ACJ family of VIP narrowbodies and the rival Boeing Business Jets, Comlux also reserves one or two slots each year for converting and refurbishing preowned aircraft and sometimes new-production units.
Comlux chief designer Lauri Church has also seen shifts in interior preferences based on the cultural backgrounds and age of private aircraft buyers. “But we’ve also had quite elderly customers who want a contemporary feel,” she told AIN. “With the size of aircraft we work on, we can have quite a dark environment [in terms of colors] without making the cabin seem small. Multifunctional rooms are now very common, and we try to make all our interiors have a good balance for any function.”
The Comlux team in Indianapolis has also been responding to calls to reduce the environmental footprint of aircraft. Part of this response has been the increased use of paints in place of exotic veneers, as well as the use of reclaimed veneers and man-made materials, which can also reduce an aircraft's weight and, as a consequence, fuel burn.
At the same time, connectivity technology is getting ever more sophisticated. “It can create some challenges with installation such as new antennae, but it’s very good for business and we’re working with multiple suppliers,” explained Comlux head of engineering Anthony Burnett.
“What makes us different is that we’re a small privately-owned company and we haven’t lost the personal touch,” said Comlux Completions CEO Adam White, who previously held management positions with Bombardier, Gulfstream, and Jet Aviation. “I meet all our customers, and we’re the last true personalized completions center in the U.S., and there has been lots of consolidation in Europe.”
Comlux, which has a strong presence in Europe and the Middle East, also operates many of the aircraft its completions and refurbishment team work on. Through its management services, it can offer jets for charter to cover some of the owners’ costs.
Rising Costs and a Skills Shortage Pose Challenges
Among the challenges common to all completions houses are increased costs, supply chain disruption, and ensuring the availability of highly skilled employees. Both LHT and Comlux have tried new approaches to resolve these issues.
“It’s not just rising costs, but troubles with lead times as the delivery chain [for materials and parts] can be interrupted,” explained LHT’s Timm. He reported some supplier prices as having increased by as much as 60 percent and that labor costs are rising at the same time, with Covid having forced some suppliers out of business.
LHT benefits from the purchasing power of the wider Lufthansa group to make the best of a diminished supply chain. But it has also started manufacturing galleys in Hamburg, which has added more work in terms of tasks such as completing certification. “We have not seen the end of the increased costs in this industry,” he concluded. “We’re still just at the beginning of this trend.”
The German company—which also provides maintenance, repair, and overhaul for airlines—has its own training center. Last year, it recruited 900 new employees, including 40 to 50 who are being trained for the VIP aircraft business unit.
Comlux has also brought some production work in-house to circumvent supply-chain bottlenecks. It too has seen rising costs from raw materials, but White said it has achieved some savings from doing assembly work itself.
The company recently started a joint training program backed by the state of Ohio’s Economic Development Committee to recruit and train the next generation of completions specialists from trade schools. It isn’t only looking for A&P-qualified mechanics and is especially focusing on skills such as furniture making and upholstery.
AMAC sees the skills shortage in business aviation and is exploring new ways to attract recruits. At its locations in France, Switzerland, and Turkey, as well as in its sales offices in Saudi Arabia and Lebanon, the group has more than 40 different nationalities on its payroll.
The company has seen prices for some equipment, such as electronic devices, increase by as much as 30 percent. Its designers work closely with customers to carefully consider costs when finalizing the work packages.
“AMAC is not the most expensive, nor are we the cheapest, but we ensure that our clients get value for money and in turn satisfaction for placing their trust in us to carry out their wishes,” Muhiddin concluded.