KLM UK Engineering Adapts To Shifting MRO, Fleet Trends

Norwich, ENGLAND— KLM UK Engineering is focused on reducing turnaround times to minimize the financial impact of aircraft downtime, but as customer fleets evolve, it also is preparing to adapt and potentially take on new clientele.

Several factors are specifically impacting the UK aircraft maintenance industry:  The need to manage increasing demand following the pandemic, to address ongoing workforce availability challenges and to adjust procurement and capacity planning strategies in response to evolving regulatory requirements because of Brexit.

KLM UK Engineering has seen operators plan their maintenance contracts further in advance due to capacity limitations. And, due to Brexit, more UK-based operators are prioritizing local MRO provision because of additional regulatory requirements.

"We've noticed that some UK operators now prefer to seek UK solutions, whereas before, they might have been more inclined to look further afield for those services,” Paul Conway, business development and sales director at KLM UK Engineering, tells Inside MRO.

Conway observes a shift where operators are purchasing and securing contracts for longer periods to ensure capacity. As an example, he points to airlines such as easyJet, which secured MRO capacity by acquiring parts of its supply chain (SR Technics in Malta).

Post-pandemic, Conway notes that winter months still see high demand, though availability is stabilizing with new MRO capacity entering the market, like that provided by Willis Lease in Teesside. Also, some concerns exist about overcapacity in the market, like past trends in cargo conversions.

FOCUS ON HEAVY MAINTENANCE

Hangar 9 is the newest facility at KLM UK Engineering, designed specifically for narrowbody aircraft. It is part of a series of hangars (7, 8 and 9) dedicated to performing heavy maintenance checks on Boeing 737s and Embraer E170s/190s.

Currently, Hangar 9 is dedicated to two KLM 737-800s, which the company says provides logistical efficiencies and allows for better team coordination. “KLM provides us with two 737 maintenance lines,” says Conway. KLM UK Engineering now handles all 737 maintenance within the group, a change implemented recently. Previously, the work was shared between facilities at Schiphol and Norwich.

The hangars specialize in airframe maintenance, including structural inspections, component changes and engine changes within the heavy maintenance scope. KLM’s 737 engine shop work and component overhauls are typically handled by the airline’s own facilities at Amsterdam Schiphol Airport, however, there is a dedicated engine test facility in Norwich.

“We are strictly airframe, so if it's an undercarriage, we'll change it, but we won't overhaul it. And we don't get into the component overhaul either,” Conway says. “I think for us, particularly with the group’s strengths and capabilities on components for engines, there is no justification for us to break into that.”

Around 80% of the company’s activities are performed on 737s and the remainder are mainly on the Embraer 170/190 and the odd Avro RJ that comes in for maintenance due to a long-standing agreement.

Conway says Transavia operates on a slightly different maintenance program which is a three-year cycle. “I believe they're starting to reevaluate that and perhaps come more frequently, but with a slightly revised work package,” he says.

KLM UK Engineering shifted from six maintenance lines to four to gain operational efficiencies, taking out 29 days of maintenance annually. “We took the conscious decision to focus on turnaround time (TAT) for customers, so we limited the lines that we've been operating,” says Conway. However, he emphasizes that the company continues to provide the same number of hours each year, albeit in a different manner, especially during the busy winter months.

"This is all we do—heavy base maintenance. So, through the winter, we wouldn’t really be interested in anything like an entry-into-service check, where you're just doing a cabin reconfiguration, because it wouldn’t allow us to utilize our resources efficiently,” he says.

Maintaining TAT guarantees is challenging given the current supply chain dilemmas, but Conway believes that the benefits of nose-to-tail solutions, for instance, and consolidating with a single supplier come with significant learning opportunities. “Our learnings have allowed us to pre-order structural items because we know with some level of confidence we're going to consume them,” he says.

Despite scattered industry reports suggesting that supply chains are easing, Conway reckons the issues persist, particularly for engine shops and less so in the airframe hangar. “When speaking to our procurement teams, we still see challenges in the supply chain procuring certain items,” he says.

REACTION TO FLEET CHANGES

Some of the longer-term winter customers like KLM and Transavia France both provide two lines of maintenance during the winter season. Considering their ongoing fleet transition from Boeing to Airbus, Conway says they might not need the same number of lines in 2026 as they do this year.

Consequently, KLM UK Engineering now plans to open a fifth line in November. “We've sold that fifth line. Even though we're at five lines, we may have a different blend of customers,” says Conway.

Conway believes the fifth line will not impact the TAT delivery that the company takes pride in, based on organic growth and the expected reduced 737 workload from KLM and Transavia over time. He anticipates that KLM's 737 maintenance will conclude around 2029, and possibly by 2030 for Transavia, which still leaves several years of work ahead—and he does not rule out the potential of adding Airbus A320neo capabilities either. Expanding capabilities for new aircraft types is a possibility, but Conway says Boeing maintenance remains a priority.

“We will start to see the blue 737s [KLM] start to reduce as the fleet change happens,” he says. “So, we will probably go to a single line in the next couple of years instead of a double.” He anticipates seeing some breaks in the summer lines, too, as the customer shifts from the Boeing fleet.

However, as Conway highlights, there are many variables to consider, such as whether the Airbus aircraft will arrive at the promised rate and if—or how long—engine issues will persist.

Since receiving its approvals on the 737 MAX a few years ago, Conway reports that KLM UK Engineering has conducted double-digit MAX maintenance inputs but sees limited market opportunities, at least for now. Notably, MAX maintenance demand is lower since major operators like Ryanair conduct their own maintenance. However, future demand is expected to grow as airlines transition from older 737NG models.

“We've been busy training our engineers [for the MAX], and we spent last summer adding more people through those courses,” Conway says.