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Aviation History
1995
1995 - 0029.PDF
power, Dermond says, and from die company's ability to offer new or overhauled parts, for purchase, exchange or lease. DRS, a Derco subsidiary, is a US Federal Aviation Administration-approved repair station able to overhaul some 1,200 items, 80% for the C-l 30 and 20% for several commercial-aircraft types. Dermond attributes 15-year-old Derco's success to competitive pricing, flexibility and responsiveness. The company guarantees a 21- day turn-around on overhauled parts and stocks kits of parts for major overhauls, includ ing ageing-aircraft upgrades, to minimise deliv ery times. Consignment inventories are located with major consumers in France, Malaysia, Portugal, Singapore, South Africa, Sweden and the UK, which are billed as parts are used. Dermond boasts that it is Derco's support which keeps early C-130As and Bs flying. The US Government's plans to dispose of 150 B- model Hercules to countries in South America, the Middle East and Eastern Europe are expected to increase support requirements. The company also intends to compete head-on with Lockheed to support the new C-130J. Many of the parts, and customers, are the same, Dermond notes and the company plans to sign agreements with new OEMs on the C-130J. Derco also plans to offer a similar total-sup port capability for the P-3, which again involves some of the same customers and OEMs. The company already has some P-3 business, but needs "a few large contracts" to make the investment in the required inventory worthwhile, Dermond says. Lockheed's answer to Derco's inroads into its C-130-support business came in 1994, when LASSC opened for business. The com pany was formed as an independent, wholly owned subsidiary of C-l30 manufacturer Lockheed Aeronautical Systems, to provide total support, ranging from spares supply to repair design. LASSC's initial focus is to pro vide support for more than 800 C-130s operat ed by commercial and foreign-military customers, excluding those which bought, and support, their aircraft through the US Government's Foreign Military Sales system. Lockheed faced a challenge in being com petitive, admits LASSC vice-president Jim Adams. The aircraft manufacturer could only supply new parts, but operators of older C-l30s wanted cheaper overhauled compo nents. The company had to become competi tive, selling new and overhauled parts and offering repair and exchange services, but could not do so under the manufacturer, because of its high overheads, he says. LOW-COST SUBSIDIARY The result was the formation of a low-cost sub sidiary, with "an order of magnitude reduction in overhead", says Adams. LASSC has its own board, employees and a separate payroll, to cre ate a "veil" between the support company and the aircraft manufacturer. The links remain strong, however — LASSC president John Gaffney is Lockheed Aeronautical System's director of product support — allowing the support company to claim the backing of the C-l30 manufacturer for everything it does. A key element in the formation of LASSC was the agreement with Certified Aircraft Parts, which gave the company access to a Derco extended its warehouse to house C-130 spares used-parts inventory and repair services. New parts are ordered from OEMs via the manufac turer's production-purchasing system, while overhauls and exchanges and handled via Certified, which is an FAA-approved repair station. The agreement also gives Certified access to Lockheed's pricing for new parts. "We had to do something," says Adams, acknowledging that Lockheed's product-support revenue was declining. "Customers wanted [to deal with] a single source: there were too many Lockheeds out there," he admits. LASSC describes itself as a "one-stop shop", a single point of contact for C-130 operators, its available services ranging from engineering to training. The company offers a range of upgrades developed by Lockheed and its customers. These include a tanker conversion; surveil lance and self-defence pods; improved colour weather-radar; electronic flight and engine instruments; and other system improvements developed over the years. Adams says that Marietta, Georgia-based LASSC has already made an impression in the marketplace. "We are walking, not running," he admits, but orders are coming in. Plans are being drawn up to locate consignment inven tories in Singapore, South America and the UK and the company is already looking at the P-3-support market, Adams reveals. Certified, meanwhile, continues to operate independently of LASSC, although more and more of its business is expected to be through Lockheed as the support company establishes itself. The company has been in the C-l30- support business for 25 years and was once a supplier to Derco. Certified claims already to have the largest inventory of C-l 30 spares and is expanding its warehousing. The company says that operators are readily accepting its link with LASSC, which its describes as "long overdue". The team's goal, Certified says, is to drive down the operating cost of the C-l30 and, for new customers, to reduce die start-up cost by including over hauled parts in die initial spares provisioning. • Tanker conversions L ockheed and Derco offer competing tanker/transport conversions for the C-l30. The LASSC offering is based on the existing KC-130 tanker, using two underwing l,1501itre/min (300USgaI/min) Cobham hose-and-drogue pods and a 13,6501itres roll- on/roll-off cargo-compartment fuel tank. After modification of the aircraft, installation or removal of the refuelling system can be accomplished within 6h, the company says. The kit adds a dry weight of 2,600kg to the aircraft. Derco and AEL have joined forces to market an alternative, low-cost, tanker conver sion. The major permanent change is a modification to the rear-loading ramp to provide a port for the single hose and drogue. The 7601itres/min hose reel and two 9,000litre fuel tanks are mounted on pallets which can be installed or removed in lh. Each of the dou ble-wall tanks weigh 550kg empty. The hose-reel pallet weighs 340kg. Derco says that it is talking to several potential launch customers for the tanker con version. The companies have drawn up a 20-month programme from contract award through development, fabrication, flight-test and installation. Options to be available include a 2,2501itres/min high-rate fuel-transfer system and a closed-circuit television system to monitor refuelling operations. FLIGHT INTERNATIONAL 4 - 10 January 1995
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