Story ID: 607
Collins Aerospace Snags $1.5B in Maintenance Deals
By: Kerry Lynch
Caption: The agreements included a long-term $500 million program with Ethiopian Airlines.
Word Count: 483
Collins Aerospace has captured more than $1.5 billion in new maintenance, support, and parts agreements crossing multiple platforms and customers, the global supplier and MRO provider announced Tuesday at the Paris Air Show. This includes a $500 million, long-term deal with Ethiopian Airlines that expands its presence in Africa.

The 25-year agreement with Ethiopian Airlines enables the carrier to service components such as heat exchangers, air management systems, and fuel metering units on its fleet of 60 Q400 turboprops. While Collins Aerospace has long provided parts and components for Ethiopian Airlines aircraft, the agreement is the first such deal with the carrier. It also marks a strategic expansion in Africa.

“The announcement speaks very loudly to our commitment to Africa,” said Collins Aerospace aftermarket services president Ajay Agrawal. “It is a fast-growing market. Africa has the second-largest and youngest population, the company said, outlining its ambitions to expand its reach there.

In addition, Collins Aerospace (Chalet 344) has reached agreements to provide its FlightSense support programs with two Asia-Pacific airlines, including one with Japan Airlines. Under the multi-fleet agreement with Japan Airlines, Collins Aerospace will manage the MRO supply chain, providing onsite inventory. An undisclosed airline signed up for Collins’ FlightSense Predictable fixed-cost program, which includes advanced exchanges, for its Boeing 777 fleet.

The bulk of the deals—which combine to total $900 million, including options—involve new long-term FlightSense 787 and A320 nacelle support programs for multiple operators over the next 25 years.

For Collins, the combination of the $1.5 billion in agreements that have accumulated in the six months since UTC and Rockwell Collins merged is particularly satisfying. “When we launched Collins Aerospace, we set out with a strategy to clearly make customers our number-one priority,” Agrawal said, adding the $1.5 billion in new business underscores that commitment.

He also believes that the company’s flexible and tailored programs are helping drive that new business. The FlightSense programs are offered in three tiers that include FlightSense Repair pay-as-you-go program and FlightSense Available asset management programs, along with FlightSense Predictable.

The agreements come as Collins’ MRO business is experiencing significant growth as airlines continue to expand and with a number of key new airliners reaching the market. “We are working very actively to project the needs for parts and MRO,” Agrawal said, adding the growth has been global.

This has been fueled in part by a growing number of clients turning to the manufacturer for support. A key differentiator, he said, is the company’s ability to tap into vast data sources and extensive knowledge of the parts to develop a predictive approach to maintenance that reduces downtime and unforeseen events.

Powering this is a sizeable global network that has resulted from the Rockwell Collins and UTC merger, encompassing 78 MRO shops around the world, 35 distribution centers, six 24/7 response centers, and 10,000 customer-support professionals.