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Bismillahhirahmanirahim
Assalamualaikum WarahmatuAllahi Wabarakatuh
Salam sejahtera kepada semua.
Yang Berhormat, Datuk Douglas Uggah Ambas, Timbalan Menteri Pengangkutan Malaysia Satu, Tan Sri Ahmad Johan, President PJSI, Tan Sri-Tan Sri, Anggota-Anggota Mass Media, para hadirin yang dihormati sekalian.
Yang Berhormat, Datuk Douglas Uggah Ambas, kami ucap selamat datang. I thank you for your kind presence here today despite the short notice given to you in the midst of your tight schedule. A very warm welcome to all our other guests also.
Today is the 3rd of January 2005, the first working day in the new year. Today sees the start of another significant milestone in the nation’s aspiration for the development of the aerospace industry and in particular the Ministry of Transport’s plans to promote Malaysia as the regional aviation hub for air travel and centre of excellence for aerospace engineering services. We have taken the initiative to answer the Government’s call to make Malaysia a regional centre for the Maintenance, Repair and Overhaul (MRO) of commercial aircraft because we know there is a global demand for MRO services as air traffic is predicted to positively grow demand for MRO services as air traffic is predicted to positively grow over the next two decades. Third party maintenance, repair and overhaul services are a growing business worldwide and currently accounts for one-third of the US$18 billion spent on commercial aircraft maintenance. It is set to grow significantly due to ever-increasing air traffic worldwide. The timely entry of an independent budget MRO into this line of business will capture part of the market share both from local operators and within the Asia Pacific region. God willing in just a few more minutes the Deputy Minister will launch the world’s first Budget MRO.
Additionally, in due course SME Aviation will venture into the passenger to freighter cargo conversion business due to predicted huge demand for converted freighter over the next 20 years. Discussions with recognized STC holders for collaborative partnership have already commenced and are showing strong interest and intent from the prospective partners. With the favorable conditions and infrastructure in Malaysia, we strongly believe that we can make an impact in the cargo conversion business too.
Yang Berhormat, please allow me to give you an overview of the concept of the independent budget
MRO.
Firstly why an Independent Budget MRO? There are three driving factors.
Firstly
The Government’s aspiration through the Malaysia Aerospace Council has decided to propel Malaysia to establish Third Party Commercial MRO Centre of Excellence.
Second
Market demand created by the significant growth of airline passengers together with Emergence of Low Cost Carries in Asia Pacific Region (LCC) will spur demand for third party MRO centers regionally.
Third
The future trend of the MRO Industry. We have learned the trend for MRO industry in the future will be for Independent MROs to adopt the same approach mastered by the LCC’s to improve on efficiency and also emphasizing on greater collaboration among MRO companies, Airlines and OEM’s.
The independent budget MRO will fully focus on providing MRO services to commercial aircraft operators at very competitive price through an innovative business strategy while maintaining the highest standard in terms of quality, timeliness and customer satisfaction. We are able to achieve this via a lean operation, where we solely concentrate on our core business competencies while strategically outsourcing other components to our key business partners. Basically, we operate in a similar fashion to the budget airlines that are growing in popularity worldwide.
What is an Independent Budget MRO?
Independent means the engineering service provider in independent of any airline or is not owned by it.
Budget means we are adopting the LCC (Low Cost Carrier’s) approach of reducing complexity in service variance. Operational cost will be kept to a minimum with low risk and no frills. The focus however will be on Quality and Engineering Excellence resulting in cost efficiency.
Due to the rising fuel cost, airlines and operators, especially LCCs, are hard pressed to check the rising operational cost. We believe that using the right strategy in the operations of the independent budget MRO, maintenance costs can be reduced which would be most welcomed by the operators.
The budget MRO will reduce operational cost by the following core principles :
Reduced Complexity in service variance.
The strategy would be to reduce the number of aircraft types to drive down infrastructure, equipment, training, maintenance, and repair and overhaul cost. The emphasis on “maintenance slot” throughput will increase efficiency and productivity.
Outsourcing
The strategy is to focus on our own core engineering competency and efficiency while outsourcing to service providers and partners who have established their own core competency and efficiency. The budget MRO will be kept lean in terms of manpower and through a collaborative partnership with AIROD, and other interested companies it will outsource engineering support services, thus driving down operational cost.
Performance Based Logistics (PBL)
PBL will optimized the total system’s availability while minimizing cost and reducing the effective logistics footprint. The strategy for logistic system support employs the purchase of support as an integrated, affordable performance packaged and designed to optimize the system readiness. The PBL concept utilized will be through a smart partnership with an efficient logistics chain with global outreach so that there is economy of scale for outsourcing thus providing the best performance at the best value.
Collaboration & Partnership
The industry for collaboration and partnership between MRO’s, Airlines and OEM’s can synergise to provide wider range of service. To effect the national aspiration SME Aviation shall adopt this strategy. At the national level collaboration between MRO’s will synergize the intergrated approach thus reduces protective cost barriers. The signing of the Bilateral Support agreement between Airod Sdn. Bhd. And SME Aviation Sdn Bhd is testimony to the collaborative approach.
Efficiency is created, making, SME Aviation the world’s first truly Independent Budget MRO. This will project and further enhance Malaysia’s standing in the international aerospace arena.
Before I end, I once again, thank Yang Berhormat Datuk Douglas Uggah Ambas, Timbalan Menteri Pengangkutan, for gracing this occasion.
Saya akhiri ucapan ini dengan mengucapkan terima kasih kepada semua. Salam sejahtera dan Wassalamualaikum WarahmatulAllahi Hiwabarakatuh.
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