1. Dr Aloysius Tay Jamaica Trade Counsel to Singapore / Transport Minister’s Envoy Chief Executive, Association of Aerospace Industries (Singapore) OPPORTUNITIES FOR AN AEROSPACE INDUSTRY IN JAMAICA

2. MAINTENANCE, REPAIR AND OVERHAUL (MRO) TRENDS The Global Aerospace Industry

3. Global MRO Industry North America has the highest Commercial MRO spend, accounting for US$15.4b, or 39% of Global Commercial MRO spend of US$40.8b in 2006. Engine overhaul is the largest driver of MRO spend and generates a third of all demand. This is forecast to grow the fastest at 4.5% per annum in the next few years.

4. Global MRO Industry Integrated solutions, particularly Asset Management Programs for components, continue to increase in popularity globally N. America: Growing interest in broad component support led by regionals and LCCs Europe: the “home” of broad support supply and demand Asia Pacific: rapid emergence of LCCs, plus airline cost pressures, increasing demand for broad support

5. Major Trends Driving Global MRO Growth Low Cost Carriers (LCCs) account for a significant proportion of orders – 30%-40% in North America and Europe, 21% in Asia Pacific. Typically, LCCs outsource most maintenance activity and require new maintenance support concepts.

6. MRO Outsourcing Set to Increase MRO outsourcing will increase from an overall 52% (US$19.3b) in 2006 to over 63% (US$33.9b) by 2016 due to: LCCs – a key growth sector, typically outsource most maintenance activity. For engines, establishing capability on new engine types has very high barriers to entry. For components, the increasing sophistication and technology of new generation aircraft raises the cost of test equipment. For airframe heavy maintenance, carriers will seek sources of low cost labour. For line maintenance, low cost labour will be tapped on airline networks.

7. WHAT ARE THE CHALLENGES? The Global Aerospace Industry

8. Challenges of the Global Aerospace Industry Regions boasting fastest air traffic growth – Asia Pacific, Middle East and Latin America – are where maintenance and customer support infrastructure are the thinnest. Worldwide shortage of aircraft engineers and technicians.

9. CAN JAMAICA BECOME AN AEROSPACE HUB? JAMAICA

10. Ideal Geographical Location Jamaica is the third largest Caribbean island and the largest English-speaking Caribbean island – Working language for Aviation. Jamaica is strategically located between the Jamaica Channel and the Cayman Trench — the main sea lanes for the Panama Canal. Jamaica is in close proximity to the main East-West shipping lanes between the Far East, Europe and Eastern North America, and trade and air routes to the Americas, Europe and the Caribbean, and has easy access to the Panama Canal.

11. Need for an Aerospace Hub in the Region Presently, a widening gap in the region for MROs to service wide-bodied aircrafts. Hence, aircrafts are presently being flown from North America to as far as Singapore for maintenance, due to the limited facilities in the region and also cost of MRO services in US / Europe.

12. Jamaica – Potential for an Aerospace Hub Worldwide need to create pool of well-trained engineers and technicians Need for more Part-147 certified organizations to provide hands-on training Need for a commercial MRO facility with first rate services like airframe, engine and APU maintenance; aircraft paint shop, engine repair and overhaul, passenger to freighter conversion, interior completions, avionic upgrades, hangars, aircraft component repairs and spares. MRO facility should support a wide variety of commercial aircraft including wide body aircraft certified to DGCA, FAA, and EASA standards.

13. Suggestion - Moving Forward……… 1 First move is to establish an Aviation Hub: Connectivity  Growth and strengthening of national carrier to sustain and bring in traffic  Importantly, connectivity stems from transfer passengers and freight that create the demand necessary to add secondary routes and high frequencies to the hub that would otherwise be unsustainable.  To enhance connectivity, the next point should be considered:

14. Moving forward …… 2 Liberal but competitive government policies  Air Services Agreements  Bridge between regions and other aviation hubs  it is critical to note that Jamaica doesn't trade away precious Fifth Freedom rights for anything less than equal value, let alone giving them away for nothing.  Facilitates Sea - Air – Sea Freight operations  Provision of Caribbean Air hub HQ status for airlines

15. Moving forward …… 3 Infrastructure Availabilities:  Airport Developments  Provide world class shopping and entertainment  Transit in sanitized area, eliminating need for visa  Establishment of a Economic Zone for Aerospace Maintenance, Repair & Overhaul Services  Establishment of Logistics hub to support freight operations  Establishment of Aerospace training facilities  Vernamfield is ideal for this setup

16. Moving forward …… 4 Establishment of Aviation and Aerospace support industries Aircraft Leasing Machine Shops Ground Equipment Entities Aviation School Aviation Catering Ground Support Staff etc….

17. Jamaica Can Be An Aerospace Hub THANK YOU