StandardAero has announced that it will cease
operations at the company’s LAX-based Business Aviation repair station by the
end of March, 2018.
However, the company will continue to maintain
mobile service capabilities in the Southern California region.
After fully evaluating its ability to sustain
LAX operations and in consultation with StandardAero’s owners, investors and
board of directors, the company reached a difficult decision to cease operations
at the facility. Primary reasons driving the decision included severe and
unexpected reductions in the number of worldwide TFE731 engine events and the
associated revenue and volume declines which have accompanied this trend along
with multiple, unsuccessful attempts to secure a long-term lease for the LAX
facility.
In addition, contributing factors to the
closure decision included the declining demand for scheduled airframe inspection
work at LAX and the desire for operators to utilize other, more convenient
business aviation airports in the area.
The decision was in no way a reflection on the
hard working employees or performance at the LAX facility. StandardAero is proud
of its dedicated workforce and the outstanding service provided to customers.
The decision was driven by high fixed operating costs and reduced future volumes
that make operating the facility no longer economically viable.
StandardAero leadership met face-to-face with
LAX employees on Monday (8th January) to communicate the decision and plans for
assisting the approximately 70 employees at the site to find open positions at
other StandardAero locations and providing a variety of company funded
redeployment and outplacement assistance and transition services. For those
employees who are not able to relocate, StandardAero will be working with other
MRO and aerospace companies to assist employees in the local area.
Until the end of March, the company will be
operating the LAX facility in a business as usual manner to complete obligations
for current projects and commitments to existing customers. As customer
obligations are completed, StandardAero will begin the transition of equipment,
tooling and inventories to its other primary Business Aviation locations.
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