LOGbook The Lufthansa Technik Logistik Magazine Contacts Lufthansa Technik Logistik GmbH Director Business Development & Sales Martin Schamberg Weg beim Jäger 193 22335 Hamburg Germany Phone: +49-40-5070-5332 Fax: +49-40-5070-5333 E-Mail: martin.schamberg@ltl.dlh.de Lufthansa Technik Logistik of America, LLC Managing Director Stephen Fondell 1640 Hempstead Turnpike East Meadow, NY 11554 USA Phone: +1-516-296-9429 Fax: +1-516-296-9532 E-Mail: stephen.fondell@ltl.dlh.de News & Contracts Logistics for Germanwings Innovations Development of airworthy RFID tag Services Logistics made in America Customer Relations Airfoil Services Malaysia Imprint LOGbook is a complimentary service for Lufthansa Publisher Editorial Production Technik Logistik's family and customers. To receive copies regularly, please send a fax or an e-mail with names and mailing addresses to: Lufthansa Technik Logistik GmbH Ms. Manuela Siewert Sales, HAM UH/X Phone: +49-40-5070-5331 Fax: +49-40-5070-5333 E-Mail: manuela.siewert@ltl.dlh.de Lufthansa Technik Logistik GmbH Stefanie Lübcke Marketing & Sales Weg beim Jäger 193 22335 Hamburg, Germany Phone: +49-40-5070-68124 Fax: +49-40-5070-5333 E-Mail: stefanie.luebcke@ltl.dlh.de Lufthansa Technik Logistik GmbH Editor: Stefanie Lübcke Flightlines Hamburg Photographs: Lufthansa Technik Logistik N3 Engine Overhaul Services GmbH/o.KG Thai Airways · Rolls-Royce plc Germanwings GmbH & Co. KG Airfoil Services Sdn. Bhd. Layout: Sylvia Jasmin Kraft 1.2010 Editorial 2 News & Contracts News & Contracts 3 Consumables & Expendables C&E logistics for SunExpress Lufthansa Technik Logistik has taken over the supply of consumables and expendables for the charter carrier SunExpress. This service covers not only standard consumable and expendable materials including engine oils, lubricants and chemicals as well as cabin supplies and special materials for maintenance operations, up to and including A-checks. The selection of materials is based on a detailed initial provisioning study that profited from Lufthansa Technik Logistik’s extensive experience of provisioning entire fleets. The study produced a detailed part number list containing up to 2,400 part numbers that aim to cover 90% of all of SunExpress’s consumables and expendable material requests. The remaining parts can be supplied by LTL on demand of the customer. Materials will be supplied to a consignment warehouse at SunExpress’s homebase in Antalya (AYT). This warehouse enables SunExpress to reduce its capital Dear Readers, Being the logistics specialist in the MRO-industry, LTL has continually enhanced its understanding of its customer’s special demands over the last years – the exceedingly diverse logistical requirements of aircraft maintenance and overhaul are just as familiar to us as the challenge of provisioning parts on time. The intimate knowledge of the multifaceted business of our customers has consequently been used by us to further develop in many fields: information technology, that is precisely tailored to the market requirements, the expansion of our international presence as well as continually optimized supply and transport networks are just a few examples for our market-oriented approach. This development is reflected in our new corporate slogan: “Smart moves.” It is a clear, memorable way of saying that we offer intelligent, modern logistics concepts which ensure that you always get the best solution. Not an off-the-shelf solution, but one that’s a perfect fit for your business model. For you, “Smart moves.” means above all else: mobility. We help you identify your requirements – your exact position – so that you can make smart decisions and put in place the ideal logistics set-up. A long-term solution that will help you execute your plans and follow the course your company has set. We very much hope you will discover this side of our company while reading this new issue of LOGbook. Kind regards, Martin Schamberg Director of Marketing & Sales SunExpress recently had one of its Boeing 737-800s painted by Lufthansa Technik with a special design to celebrate its 20th anniversary. The “Paint Book” livery is dedicated to the Turkish capital, Istanbul. This aircraft is unique: the design is the joint product of Turkish and German artists and underscores the importance of collaboration between different cultures. Logistics for Germanwings The power behind successful flight ops Behind any successful flight operator there is always an expert organization for the materials logistics. Logistics and transport services for the airline Germanwings are provided at its home airport Cologne/Bonn and at the Stuttgart hub by Lufthansa Technik Logistik. The two companies have now sealed their successful cooperation with a formal contract. Germanwings operates a fleet of 27 Airbus A319’s that connect to more than 70 destinations all over Europe. But flight operations can’t function smoothly unless all the necessary spare parts are in the right place at the right time. Lufthansa Technik Logistik is the com-pany responsible for Germanwings’ logistic processes at the German airports Cologne/ Bonn and Stuttgart. Among these services are incoming goods handling, including initial checks on materials received from other stations or suppliers; materials warehousing, up to and including entire auxiliary power units (APUs) and engines; checking materials out and – where appropriate – back in; and packaging and shipping, which includes handling hazardous goods. LTL’s warehouse is staffed and ready around the clock for Germanwings. When aircraft components are removed for repairs, the on-site staff at Lufthansa Technik Logistik coordinates, according to the specifications of the material department of Germanwings, the shipping of components to the appropriate repair workshops. Components may also be sent from Cologne and Stuttgart to other Germanwings stations as needed. Yet that’s not all: at Cologne/Bonn, Germanwings now relies on the support and experience of LTL’s logistics experts for the maintenance tool handling, too. Under the new contract they will set up and operate a tool crib for issuing tools and checking them back in. LTL will also coordinate the shipment of tools Lufthansa Technik Logistik LOGbook 1. 2010 for repair or calibration and deal with incoming deliveries of new tools. In addition to providing direct support at Germanwings’ locations, LTL also carries out national and international time definite transports (TDT) and Aircraft on Ground (AOG) shipments. The two companies plan to intensify their cooperation in these areas and in the area of engine transports – where LTL’s employees are already handling the loading of incoming and outgoing engines. Germanwings benefits from numerous synergetic effects resulting from the storage of its materials in LTL warehouses. At Cologne/Bonn, for example, the available resources and capacities are optimally utilized because LTL handles the logistics for a number of customers, including Lufthansa CityLine and Lufthansa Technik Maintenance Services in addition to Germanwings. At Stuttgart, LTL looks after Lufthansa Technik as well as Germanwings. But whatever the synergies, LTL always provides a customer-specific set-up and a logistics solution tailored to each individual customer, including the usage of the customers‘ IT system. Lufthansa Technik Logistik LOGbook 1. 2010 tie-up since the airline only pays for material when it is actually consumed. Furthermore, Lufthansa Technik Logistik will provide recommendations for material to be stored at the stations in Izmir (ADB) and Istanbul (SAW). Lufthansa Technik Logistik’s services also include a help desk available on a 24/7 basis, 365 days per year to source and provide non-routine C&E material that is not covered by the consignment. SunExpress was founded in October 1989 as a subsidiary company of Lufthansa and Turkish Airlines. Today the joint venture airline is the market leader in charter flights between Germany and Turkey as well as one of the largest scheduled carriers between Europe and southern Turkey. SunExpress launched regular daily connections between Frankfurt and Antalya in 2001, thus becoming the first private Turkish airline to offer international scheduled flights. 4 News & Contracts Innovations 5 Radio Frequency Identification (RFID) Transport Services Small device – big potential LOI with Thai Airways Thai Airways has signed a Letter of Intent (LOI) with Lufthansa Technik Logistik (LTL) covering the supply of extensive transport services to the airline’s Technical Department. Within the scope of the LOI, LTL will organize the transportation of aircraft spares from European suppliers and repair locations to Thai Airways’ facility in Bangkok. Under the agreed service package, LTL will be responsible for the transport, covering the entire import and export handling, as well as the coordination and control of the material flows of aircraft spares for Thai to and from Europe. The LTL transport concept in Europe is dovetailed to Thai Cargo’s “own services concept” under which the airline itself ensures the transport of the parts. In this connection transport spans the entire process chain from receipt of the parts at the relevant airport in Europe from Thai Cargo to handover to the recipient at the appropriate destination. In the other direction, LTL collects the shipment from the forwarder and delivers it to Thai Cargo. . LTL will oversee the flow management for Thai. This includes the proactive control, monitoring and management of the shipment flows. Furthermore, LTL will deliver daily status updates concerning the entire turnaround of the parts from “ready for carriage” up to delivery. In addition, LTL provides material support for the carrier by defining, measuring and controlling lead times. To ensure a perfect communication, a customer service desk at the airline’s location in Bangkok will be established. With support by Lufthansa Technik Logistik, Thai Airways expects firstly to reduce its turnaround times – amongst other things, due to shorter transport times in Europe – and secondly to achieve much better visibility of the shipment flow and proactive transport management. According to the LOI, the arrangements will initially be evaluated in a three-month test phase covering material flows from and to Germany. Subsequently, the service will be extended to transportation throughout the entire Europe region. Lufthansa Technik Logistik (LTL) has developed a unique RFID tag which fulfills the airworthiness requirements of the aviation industry. The particularly small and light transponder makes it possible to permanently tag components inside and outside the aircraft cabin – a field of application that is increasingly in demand in this industry. The use of RFID tags in logistics simplifies and speeds up processes and improves data quality. The RFID transponder is permanently attached to components, which can then be recognized and their details read by a reading device. LTL’s new RFID transponder was specifically developed to meet the needs of the aviation industry. The tag is only 11 x 41 x 5 millimeters in size with a weight of 3.2 grammes. It can store up to 512 bits of useful data and is compatible with the relevant RFID standards EPCglobal UHF Class 1 Gen 2 and ISO/IEC 18000-6C. The tag is extremely rugged and thus well suited for use under the extreme mechanical, chemical and thermal conditions encountered during flight and maintenance operations. It can withstand temperatures ranging from -65°C to +160°C and altitudes of up to 15,200 meters (50,000 feet). The newly developed RFID tag complies with regulations in being flame-resistant and insensitive to humidity, water pressure, dust, X-ray radiation and magnetic fields. Another special feature of the RFID transponder is the long range over which contactless remote transmission is possible – more than a meter (U.S.) and up to three meters (EU), depending on the frequency used. Components tagged in this way can be identified in logistics processes without direct contact, avoiding the time-consuming opening and unpacking of transport boxes. When a component is fitted with the device, its data can be read, amended and new data can even be written on the tag. If RFID gates are used, it is possible to read and gather data on over 100 transponders simultaneously. This facilitates tracking & tracing processes and improves data quality. The use of RFID technology is becoming steadily more important in the aircraft industry. The RFID tag can be used throughout the service life of an aircraft component, progressing from production at the OEM‘s to the aircraft manufacturer’s production logistics, to maintenance processes in MRO organizations. Airbus and Please continue on page 6 > Lufthansa Technik Logistik LOGbook 1. 2010 Lufthansa Technik Logistik LOGbook 1. 2010 6 Innovations Boeing are planning to use RFID tags in their future aircraft types which will be delivered with components that are fitted with RFID tags before leaving the factory. Thus, for example, Airbus is planning to fit several thousand A350 XWB components with passive RFID transponders: seats, entertainment systems, screens, life vests and oxygen bottles, also components in aircraft engines and wings. To this end Airbus has published a design specification for their manufacturers (OEMs) which summarizes the requirements and recommendations regarding the use of RFID tags on aircraft components. As the first manufacturer, Lufthansa Technik AG will use the tag on devices of its cabin management and in-flight entertainment system nice®. As the growing need for airworthy tags become apparent, Lufthansa Technik became involved in the development of these components early on, under the leadership of LTL. Development work on the tag began in September 2008 and it Customers Relations 7 is currently in the qualification and certification phase. LTL was supported in the development by project partners Lufthansa Systems, the Center of Intelligent Objects (ZIO) at the Fraunhofer Institute for Integrated Circuits (IIS) in Erlangen and Harting Mitronics AG of Biel in Switzerland. Tests conducted on the prototype in the laboratories of Lufthansa Technik and in independent laboratories have demonstrated its excellent qualities. Lufthansa Technik chaired the Steering Committee for the standardization of RFID tags for aviation. In the qualification process now under way Lufthansa Technik Logistik’s RFID tag will be certified to SAE Aerospace Standard 5678, RTCA Standard DO-160 and protection class IP 69K. Series production is due to commence at the end of July 2010. It will then be possible to acquire the transponder with an Authorized Release Certificate issued by the European Aviation Safety Agency (EASA Form 1). Airfoil Services Malaysia The tag underwent different tests to prove its ability to withstand extreme external influences. Quality on time Jointly owned by Lufthansa Technik and engine manufacturer MTU Aero Engines (50/50), Airfoil Services Sdn. Bhd. (ASSB) in Malaysia specializes in the repair of engine blades and vanes. Since 2006, Lufthansa Technik Logistik is responsible for handling the transport of these valuable parts from locations all over the world to ASSB and back to the customer. Initially a subsidiary of MTU Aero Engines, Airfoil Services Sdn.Bhd. (ASSB) has been an equal-share joint venture of Lufthansa Technik and MTU since 2003. At the company’s new factory in Kota Damansara in Malaysia’s State of Selangor, engine airfoils from major aircraft engine manufacturers are repaired in an innovative and efficient process. ASSB is what happens when two worldclass engine MRO providers combine their cutting-edge expertise: the company embodies the best of its “parents” with regard to processes, technologies and tools, including a strong focus on quality and efficiency. In addition, the Airfoil Services factory features the most modern equipment available, with several state-of-the-art machines and processes in place. The RFID tag can be used on various aircraft components. Lufthansa Technik Logistik LOGbook 1. 2010 Logistics guaranteed The goal of ASSB is clear: to redeliver engine parts to the customer within short turnaround times and with a technical Lufthansa Technik Logistik LOGbook 1.2010 quality equal to or higher than the standard embodied by the two German joint venture partners. A quality logistics system that mirrors the innovative approach of ASSB in every aspect was needed to ensure that the blades reach their destination at the right time. Here Lufthansa Technik Logistik came into play: after all, “achieving quality on time” is one of the company ’s goals. LTL was contracted in 2006 to manage and handle the transport of reparable and repaired blades to and from ASSB, connecting Singapore, New York, Frankfurt and, of course, Hamburg with the Malaysian facility on both a routine and ad-hoc basis. Performance parameters are guaranteed for critical elements of the supply chain. Among other measures, an LTL assigned implant at ASSB oversees the entire logistics process, being also responsible for performance reporting. A bright perspective The highly skilled workforce, the state-ofthe-art repair methods and the innovative flow line principle coupled with leading logistics support make Airfoil Services one of the world’s foremost centers of excellence in engine blade repair. At the same time, a variety of measures has been incorporated to make Airfoil Services a cost-effective facility over the long term. As part of MTU’s worldwide network of maintenance facilities and Lufthansa Technik’s EPAR (Engine Parts & Accessories Repair) product portfolio, this competence center will provide excellent services to both joint venture companies and other customers worldwide. Airfoil Services will continue to receive technical support from both MTU and Lufthansa Technik to maintain these and implement further high-technology processes at the top level of quality and efficiency. ASSB certificates: • FAA/USA • EASA/Europe • CAAC/China • CAAS/Singapore • DCA/Malaysia • DCA/Thailand 8 Services Services 9 Lufthansa Technik Logistik America Logistics made in America Looking back at ten years of business, Lufthansa Technik Logistik America (LTLA) confirms its position as the specialist for aviation logistics in the North American market. An extensive range of services and the continuous development of a network of strategically located branch offices at major U.S. airports are visible signs of this success. Maintaining close ties to its parent company, LTLA offers customers in America the highest quality standards and the support of a highly qualified and dedicated staff. When Lufthansa Technik Logistik America (LTLA) began operating in January 2000, the premise was more than just creating a spin-off of LTL Germany. The US logistics arm of the Lufthansa Technik Group was formed with the clear objective to become a competitive Lead Logistics Provider in the American Market while at the same time keeping one foot firmly planted in handling activities for Luft- hansa Technik and the Lufthansa Technik Logistik family. After one decade of experience, LTLA can affirm its success in achieving and maintaining both goals. “LTLA continues to serve as the lead logistics provider for Lufthansa Technik and group companies in North America,” emphasizes LTLA’s Managing Director Stephen Fondell. “At the same time, we are proud of our strong third-party customer portfolio and will continue to develop in both areas.” Complete portfolio in the U.S. Comparable to LTL as a whole, LTLA provides more than standard physical transport on a regional level. Its diverse portfolio of services has been developed to fulfill the specific requirements of its customers and the demands of the American market. It covers fast and reliable transport management, material sourcing, customs brokerage, organization and optimization of repair cycles, warehouse and distribution centers, and worldwide 24-hour service. LTLA’ s expertise in the MRO business enables the company to manage the supply chain of aircraft components through its entire life cycle, from production to teardown and scrapping. Today, the headquarter in East Meadow, New York, houses several of LTLA’s administrative functions including accounting and IT. Also operating from there is LTLA’s material sourcing department which serves as the purchasing arm of LHT in North America & supports the consumable/expendable product of LTL by dealing with customers and suppliers in the North American Market. The company’s range of services regarding transport management includes both routine and specialized transports. AOG consignments, cargo air charter and worldwide transport of aircraft spares – transports from a minute electrical switch to the largest of engines are just part of the day’s work. If necessary, a member of LTLA’s staff will personally accompany the necessary spare part to wherever it’s needed by serving as an onboard-courier and carrying the item personally. LTLA’s international network helps ensure efficient, economical materials management and spare parts provision that meets the highest standards of quality. This saves customers time and money, enabling them to concentrate entirely on their core competence, namely flight operations. Yet customer involvement in all the relevant processes guarantees that optimal solutions are developed from the outset through cooperation. New York – the gateway to the U.S. LTLA has been extending its network of branches in the USA continually in order to maximize proximity and availability to its customers and ensure that it can meet their demands. The first of today’s five airport branches was founded in 2000 at John F. Kennedy Airport in New York (JFK). All customs brokerage for the USA is handled at the JFK office; LTLA’s brokers specialize in aviation classifications. In addition, the JFK office is the major shipping and receiving hub for Lufthansa Technik’s customer material in and out of the USA. In the last decade, most of the company’s special transports have been handled from JFK, including 187 engine transports in 2009 alone. The warehouse at JFK, which was opened in 2005, is primarily used to hold parts and handle materials management 24/7 for Lufthansa Technik’s nearby customers, including Virgin America, Kalitta and Air Canada. Dallas/Fort Worth and Seattle – where the heartbeat is The Dallas/Fort Worth (DFW) location was jointly established in 2000 between LTLA and Lufthansa Technik Component Services (LTCS) as a storefront for LTCS’s U.S.-based customers. These customers send material for repair to DFW, where LTLA manages the repair cycle by consolidating shipments, sending them to Germany for repair, clearing them through U.S. customs once they re-enter the U.S., and returning them to customers. LTCS remains the Please continue on page 10 > Lufthansa Technik Logistik LOGbook 1. 2010 Lufthansa Technik Logistik LOGbook 1. 2010 Services 11 10 Services Florida to provide warehousing and distribution services and the supply of expendables to support Lufthansa Technik’s customer Spirit Airlines. Lufthansa Technik’s business in South Florida has since expanded to include several customers for its integrated Total Component Support (TCS®). The establishment of the San Francisco International Airport (SFO) branch was driven by Lufthansa Technik customer Virgin America, which relies to an even greater degree on the fully integrated material services of Total Material Operations (TMO®). LTLA began operations in SFO in July of 2007, providing the full scope of logistics services to Lufthansa Technik for its TMO® customers. In October 2009, LTLA expanded its line station support at another West Coast location, namely Los Angeles (LAX). largest customer of LTLA’s Dallas facility, but warehousing and distribution services are also provided for other customers, and in 2009, LTLA signed a transport management contract with composite repairs specialist Lufthansa Technik Tulsa to manage the shipping and customs brokerage of thrust reversers to and from Germany. In 2002, LTLA established its first presence on the West Coast in close proximity to Seattle-Tacoma International Airport (SEA). As a focal point for the aerospace industry, the Seattle region is an ideal location, offering LTLA the ability to improve service to its customers in Europe and especially in Asia. Fort Lauderdale and San Francisco – close to the customer LTLA’s two locations in Fort Lauderdale and San Francisco are a good example of its successful involvement in the product and customer structure – and therefore the regional development – of the Lufthansa Technik Group in North America. In the fall of 2004, LTLA opened the Fort Lauderdale (FLL) branch office in Tulsa – steering the future Last but not least, the sales and administrative office of LTLA is located in the heart of the USA at Tulsa, Oklahoma. This enables it to stand shoulder to shoulder with Lufthansa Technik and support its efforts in the North American market. LTLA’s strategic branch distribution and close connections to the Lufthansa Technik Group help the company ensure its competitiveness for both its American and its European and Asian customers. Its continually growing commitment is evidenced by the number of employees, which has steadily increased over recent years to the present total of nearly 70 highly qualified people. Together with its very high standards of quality and service, this enables LTLA to hold its own in the North American market. The introduction of the Airbus A380 to the Lufthansa fleet represents a special challenge for Lufthansa Technik Logistik: the exceptional size of the A380 engines means that extensive preparations are necessary to ensure that the logistics function smoothly. The Trent 900 engines used in the Airbus A380 are remarkable not only for their excellent in-flight performance, but also for their literally up to now unknown dimensions: when they are propped up on the All Purpose Stand (APS), a special stand for air transports, each one is 5.1 meters long, 3.43 meters wide and 3.11 meters high and weighs almost 12 tons (26,200 lbs). Prior to the engines’ introduction, LTL developed appropriate Aircraft on Ground (AOG) transport plans to ensure that these giants can be moved as quickly as possible to any of the A380’s flight destinations for the eventuality that an A380 is grounded and a spare engine is needed. Replacement engines from the manufacturer, Rolls-Royce, will be located at selected destinations in the Lufthansa route network around the world so that they can be made available immediately in the event of an AOG. To plan the air transport to Lufthansa’s destinations, LTL first identified the existing aircraft designs that are suitable for this load, and then contacted the air freight carriers who operate these aircraft to ask about the possibility of transporting Trent 900 engines. To ensure maximum flexibility, LTL considered not only Lufthansa flights but also those of other providers in its global transport network, since speed is the main priority for AOG transports once safety is ensured. As only two types of aircraft turned out to be suitable for the task, the flight schedules of airlines operating those types needed to be analyzed to set up an air freight network for the new engines. A380 engine transport Prepared to move For maximum flexibility, LTL also investigated the possibility of AOG engine transport flights from locations other than Lufthansa’s Frankfurt hub which involved fulfilling the necessary conditions for road transport. These transport set-ups are required for the transport within Germany to the overhaul workshop at Arnstadt in Thuringia as well as for the option of a multimodal transport via air and road. The requirements are considerable: for example, loads wider than 3 meters need special permits for excess width, and only specialized transport service providers have the necessary equipment. Even so, since the end of 2009, after auditing an additional provider for road transport of the Trent 900, LTL has a list with a number of qualified partners. Special processes for handling the giant engines were developed and coordinated with those responsible, and special equipment was acquired. A powerful crane is needed for loading – an ordinary forklift would not be able to handle the 12-ton load. Other technology needed for this task includes a heavy-duty dolly and extended forks for the 16-ton forklift truck. When a Trent 900 engine needs to be transported to a Lufthansa destination, it is also necessary to consider the handling options available once it arrives. The destinations that are currently under consideration for AOG services for the A380 are being investigated ahead of time to establish, for instance, whether mobile cranes would be available on the apron. Lufthansa Technik’s international maintenance teams are assisting LTL with their knowledge of the local infrastructure at relevant locations. With these measures in place, Lufthansa Technik Logistik is optimally prepared to transport a Trent 900 engine as fast as required to anywhere in the world at any time. Seattle New York San Francisco Tulsa Los Angeles Dallas Fort Lauderdale Whether overhaul shop or manufacturer – when it comes to transporting engines, LTLA’s customers rely on its high quality standards. With its leadingedge equipment and processes the company is optimally prepared for the diverse requirements of various engine types. The exceptional size of the A380 engines represent a challenge for the logistics processes. Lufthansa Technik Logistik LOGbook 1. 2010 Lufthansa Technik Logistik LOGbook 1. 2010