Memorandum from Vector Aerospace International
Limited
EXECUTIVE SUMMARY
1. The Vector Aerospace Corporation is a
maintenance, repair and overhaul business that serves the civil
and military aerospace market worldwide.
2. Vector Aerospace International Limited
(VAIL) has now been operating for just over 12 months in
the UK, since the acquisition on 1 April 2008 by the
Vector Aerospace Corporation, of the legacy Defence Aviation Repair
Agency (DARA) helicopter and components support businesses.
3. The three primary programmes undertaken
in the UK are in support of the Chinook, Lynx and Sea King fleets.
These are supported by Vector's Helicopter Services business at
Fleetlands, Gosport and its Component Services business at Almondbank,
Perth. Lynx support is contracted directly to Defence Equipment
& Support (DE&S), through their Lynx Project Team. Chinook
support is contracted through Boeing, under the Through Life Customer
Support (TLCS) Programme. Sea King support is contracted through
AgustaWestland, under the Sea King Integrated Operational Support
(SKIOS) Programme.
4. VAIL has achieved a successful first
year of operations, delivering against its commitments and being
awarded various accolades, including a commendation from the Commander
Joint Helicopter Command (JHC), in recognition of its partnered
support with Boeing to the Chinook fleet. Also, its Component
Services business was one of only three companies outside the
USA to receive the Boeing Gold Supplier Award for its performance
from September 2007 to September 2008.
5. VAIL is investing for the future, seeking
to grow its UK military business through partnered support solutions
with AgustaWestland and Boeing and other OEMs.
6. Vector Aerospace believes that it offers
some key benefits to the MoD in support of helicopter capability,
in terms of its:
(b) Retention of specialist maintenance facilities
that safeguards the skills and know-how to offer long-term, onshore
support for helicopters and their engines and components.
(c) Flexibility and agility to operate in different
support scenarios and geographic locations, for all of the UK
MoD helicopter types.
(d) Ability to draw on its global experience
of helicopter, components and engines maintenance.
INTRODUCTION
About Vector Aerospace
7. Vector Aerospace Corporation is an independent
provider of maintenance, repair and overhaul (MRO) services for
fixed-wing and rotary-wing aircraft operators around the globe.
Vector's service portfolio includes support for various types
of engines, dynamic components, structures and avionics. From
facilities in Canada, the United States, the United Kingdom and
South Africa, Vector's employees serve a global customer base
consisting of private and commercial operators, government agencies
and defence departments.
8. Vector holds approvals from some of the
world's leading OEMs, including Boeing, AgustaWestland, Sikorsky,
Rolls Royce, Eurocopter, Pratt & Whitney Canada, Bell Helicopters,
General Electric, Turbomeca, Sagem Avionics, Rockwell Collins
and many other manufacturers and suppliers.
Vector UK
9. Vector's first footprint in the UK was
in 1998, when Hunting Airmotive was acquired and subsequently
became Sigma Aerospace. When the MoD offered to sell the helicopter
and components deep repair elements of the former DARA, Vector
expressed an interest. After a prolonged period of down selection,
due diligence and negotiation, the sale to Vector of the helicopter
business at Fleetlands and the components business at Almondbank
was concluded on 1 April 2008. So, the Vector business in
the UK is now made up of the following physical locations:
Vector Aerospace Helicopter Services—Fleetlands
10. Situated in Gosport, Hampshire and employing
some 900 people. The three main programmes of work are:
(a) Chinook—The Through Life Customer Support
(TLCS) contract to Boeing for depth maintenance of the RAF Chinook
fleet.
(b) Lynx—An incentivised three-year contract
directly with DE&S, with the option to extend to out of service
date. This covers all marks of Lynx.
(c) Sea King—The Sea King Integrated Operational
Support (SKIOS) contract through AgustaWestland for depth maintenance
and support of all marks of Sea King.
Vector Aerospace Component Services—Almondbank
11. Situated close to Perth in Scotland
and employing some 300 people. The principal programmes of
work are:
(a) Chinook—Dynamic and hydraulic components
in support of the TLCS contract to Boeing, for depth maintenance
of the RAF Chinook fleet. In addition, work is carried out for
several Chinook international customers, through Boeing.
(b) Lynx—A contract with AgustaWestland
for deep maintenance of Lynx components. In addition, some Lynx
structural and hydraulic components are supported through a contract
directly with DE&S.
(c) Sea King—Dynamic and hydraulic components
are maintained in support of the SKIOS contract with AgustaWestland
for depth maintenance of the MoD Sea King fleet.
(d) Tornado—Support for Tornado gearboxes,
through Rolls Royce Deutschland and Tornado hydraulic components,
through BAE Systems and Claverham (Hamilton-Sundstrand).
12. These two legacy DARA businesses at
Fleetlands and Almondbank now comprise a UK business entity known
as Vector Aerospace International Limited (VAIL).
Vector Aerospace Engine Services—Croydon
& Fleetlands
13. This is the first of the Vector businesses
acquired in the UK and employs some 220 people. It conducts
deep maintenance for a number of Rolls Royce engine types, including
T56 (Hercules), Conway (VC10) and Dart. In addition, it supports
Honeywell ALF 502/507 (BAE 146, including No 32 "The
Royal Squadron") engines and Dowty and Hamilton Sundstrand
propellers. Full overhaul capability for the PW 307/308 engine
series is being established at the Fleetlands location. Vector's
UK engines business currently supports no helicopter engines,
but its well-established legacy of supporting MoD engines for
25 years has been of great "learning" benefit to
the wider Vector business in the UK.
BACKGROUND INFORMATION
First year of operation
14. In its first year of operation (1 April
2008-31 March 2009), VAIL has:
(b) Been awarded a commendation by the Commander
JHC, in recognition of excellence in Chinook support.
(c) Been awarded Boeing's Gold Supplier Award
for its Component Services performance from September 2007 to
September 2008.
(d) Invested in re-instating engines capability
at Fleetlands, which had been shut down by the MoD in 2007. The
Honeywell ALF 502/LF507 engine line is in operation and full
overhaul capability on the PW 307/308 engines will be achieved
by mid 2009. (Neither of these engine types is installed in helicopters,
but Vector does, subject to business case, intend to establish
capability for appropriate helicopter engines in due course.)
(e) Provided Contractors on Deployed Operations
(CONDO) support through Boeing, to RAF Chinook operations in Afghanistan;
this is an ongoing operation.
(f) Provided a number of working parties for
Sea King support, both overseas and in the UK.
(g) Completed the Lynx Defensive Aids Suite (DAS)
and Theatre Entry Level modification programme of 44 aircraft
in budget and within contracted time, in addition to routine deep
maintenance programme.
(h) Recruited 19 apprentices in 2008 and
is intending to recruit 19 this year.
(i) Continued to invest in developing its people
and will continue delivering the appropriate training necessary
to improve our standards of performance in Quality, Health and
Safety and Environment, all of which are key to the future success
of the business.
Key features of helicopter and components deep
support provided by VAIL
15. VAIL is a UK deep maintenance, repair
and overhaul provider. We can (and wish to) partner effectively
and efficiently with OEMs such as AgustaWestland, Boeing and Rolls
Royce, as we do not threaten their core manufacturing business.
This has been demonstrated in the Boeing TLCS and AW SKIOS programmes.
So whilst it is our strategic intention to strengthen our ties
with the respective OEMs, our independence provides an additional
level of safeguard to the MoD in terms of assuring an ongoing
and dependable alternative on-shore MRO provider for helicopter
deep support.
16. Our core business is depth maintenance
and upgrade of helicopters, components and engines, ie we are
different from the "managed service" manpower substitution
agencies that adapt their offering/price to suit specific customer
requirements, eg from grass cutting to equipment maintenance.
We are investing in the capability and know how needed to continue
offering a dependable, world class support service to the MoD.
We are committed to this business for the long term. We shall
continue to invest in the facilities and people, where there is
a good business case (eg engines at Fleetlands), but that this
relies on maintaining a critical mass of work.
17. Our future is only guaranteed by the
quality and cost effectiveness of our output and through our involvement
with a number of MoD programmes, we can allocate resources effectively
to absorb peaks and troughs in demand, and to surge when required.
We also have the ability to pursue international military and
civil work, which strengthens our position as an established employer
of skilled aerospace technicians.
18. We recognise the key dependency of an
assured pool of highly qualified and well motivated aerospace
technicians. To that end, we shall continue to invest in growing
our own talent and attracting the best we can, to maintain our
status. This is beneficial for the MoD and for the wider "UK
plc".
19. Although we operate primarily from three
sites in the UK, we are not constrained to these physical locations.
We are actively seeking new ways to support the MoD both in their
UK main operating bases and also now in theatre, with the first
CONDO deployment in support of RAF Chinook operations in Afghanistan
20. Finally, we have the capability to offer
a complete "one stop shop" service, including engine
deep maintenance.
PROPOSED RECOMMENDATIONS
21. At this relatively early stage in our
life, in support of UK MoD helicopters and components, Vector
has no recommendations to offer to the Inquiry.
14 April 2009
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