Company Will Maintain Mobile Service Capabilities In Southern California Region
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 yesterday 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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