The role of Ukraine in titanium production

To understand the titanium shortage, it is essential to recognize Ukraine’s historical significance as one of the largest producers of titanium in the world. Ukraine’s rich titanium resources, particularly the deposits located in the Zaporizhia region, have played a crucial role in global supply. However, the annexation of Crimea by Russia and the war in Ukraine have disrupted this supply chain.

While Ukraine itself does not manufacture metallic titanium or its finished products, the country exports titanium concentrates, which are subsequently processed and utilized in various nations. Throughout the conflict, the Ukrainian state-owned United Mining and Chemical Company (UMCC Titanium) managed to export a substantial 82.2 thousand tons of titanium-containing ores between July 2022 and April 2023. Reports from KyivPost and other investigations carried out by Ukrainian and Western media outlined that a notable portion of these shipments ultimately reached Russia.

The world’s most significant titanium producer, the Russian VSMPO-Avisma Corporation, has historically depended on Ukrainian raw materials and continues to do so. Investigators have raised alarms, as VSMPO-Avisma’s products are widely used in global aerospace production.

Russia was a significant supplier of titanium to both Boeing and Airbus before the war. Boeing even had established a joint venture with VSMPO-AVISMA, a part of Rostec, a Russian government-owned industrial and defense conglomerate. As recently as November 2021, just three months before the war began, Boeing and VSMPO-AVISMA had extended and expanded their collaboration, with approximately one-third of Boeing’s titanium coming from Russia.

In Airbus’s case, their reliance on Russian titanium supplies was even more substantial. While they didn’t have a joint venture like Boeing, it’s estimated that they sourced about half of their required titanium from Russia. However, the war has brought about a significant change.

To illustrate the gravity of the titanium shortage issue, according to KPMG’s Aerospace & Defence Outlook 2023, titanium shortages have been identified as one of the top supply chain concerns in the aerospace industry. The Oliver Wyman Global Fleet and MRO Market Forecast Update 2022 report highlighted that the demand for titanium in aviation is expected to grow steadily, with no signs of slowing down.

Meanwhile, AviationPros reported that US aviation supply chain challenges, including parts shortages and rising costs, are partly attributed to the titanium shortage. Ukraine’s titanium production has been severely impacted by the Russian invasion leading to a decline in exports and a tightening of global titanium supply. This disruption has had far-reaching consequences, as titanium is a vital material in aerospace manufacturing, known for its exceptional strength-to-weight ratio, corrosion resistance, and high-temperature stability. As CFRP (Carbon Fiber Reinforced Plastic) is becoming more widely used in the production of airframe and engine components, global demand for titanium used in aerospace manufacturing is also rising as the metal is perfectly compatible with CFRP when it comes to coefficient of thermal expansion and even corrosiveness.

In addition to airframe components, titanium alloys find application in modern aircraft engines, including turbofan motors, which power the majority of the world’s most popular commercial aircraft. Titanium plays a critical role in the production of key engine components, such as the fan, compressor, combustion chamber, and turbine.

Ukraine’s titanium production has decreased significantly, contributing to a global titanium production decrease of approximately 12% over the last five years, as per the Oliver Wyman Global Fleet and MRO Market Forecast Update 2022. The shortage has led to a sharp increase in titanium prices. AviationPros puts down that rising costs are one of the factors pressuring the aviation supply chain, with titanium being a major contributor to these cost escalations.

Numerous indicators suggest that the biggest aerospace manufacturers, like Boeing, Airbus or Embraer were making earnest efforts to reduce its reliance on Russian suppliers ever since the invasion began and even before the majority of Western sanctions on Russian exports were applied. Nonetheless, as challenging as it was already, additional issues were piling up ever since. While Russia stands as the world’s third-largest titanium producer, lagging behind China and Japan in terms of material output, it had held the position of the primary supplier of aerospace-grade titanium, contributing to half of the world’s aerospace titanium prior to 2022.

Various strategies are being considered to address this issue. One possible solution is to procure titanium from China, which overtook Russia as the world’s foremost titanium producer many years ago. However, this approach still presents challenges, as China’s titanium production is steadily increasing, and it would essentially shift the West’s titanium dependency to another nation.

The shortage has resulted in delays and disruptions in the production of critical aerospace components, impacting aircraft manufacturing and maintenance schedules. 鈥楳ROs are experiencing resource crunches, with access to sufficient titanium materials becoming increasingly difficult. This directly affects their ability to repair and maintain aircraft.

Agile supply chain management as solutions for MROs

In the face of these challenges, MROs must adopt agile supply chain strategies to mitigate the impact of titanium shortages鈥� 鈥� explains Matutyt臈. Acknowledging the current state of the MRO industry, outlines the following strategies to offset supply chain risk in MRO.

1. Diversify Suppliers: Reduce dependence on a single source of afterparts by diversifying suppliers and exploring alternative sources. Collaboration with global suppliers is vital to ensure a stable supply of titanium parts.
2. Strategic Stockpiling: Maintain strategic stockpiles of critical titanium compounded materials and parts, to buffer against supply disruptions. This ensures a consistent flow of materials even during shortages.
3. Advanced Forecasting: Utilize advanced forecasting tools and data analytics to predict and plan for material shortages, enabling proactive responses rather than reactive measures.
4. Technology Adoption: Embrace innovative technologies, such as 3D printing and advanced composite materials, as potential substitutes for titanium in certain applications, reducing dependency on traditional materials.
5. Collaborative Partnerships: Foster collaborative partnerships within the aerospace and aviation industry to collectively address supply chain challenges and share best practices.

The titanium shortage, exacerbated by disruptions in Ukraine’s production, has presented a formidable challenge to the MRO sector and the broader aerospace and aviation industries. As highlighted by key statistics, the consequences of this shortage are far-reaching, impacting production, costs, and resource availability. Locatory.com as part of the Avia Solutions Group family, the world精东影业 largest ACMI (Aircraft, Crew, Maintenance, and Insurance) provider will continue to deliver solutions in the competitive aviation aftermarket landscape. To navigate this turbulent landscape, MROs must be agile in their supply chain management. Diversifying suppliers, stockpiling critical materials, and embracing innovative technologies are essential steps toward ensuring resilience in the face of ongoing titanium shortages. Collaborative efforts within the industry will play a pivotal role in finding sustainable solutions to this supply chain crisis. By doing so, the aviation industry can continue to soar, even in the face of titanium scarcity.

Titanium: How war has reshuffled supply of a key aerospace material聽

• Aviation Manufacturing
• War in Ukraine

byMiquel Ros

2023-07-29

The titanium supply chain crisis: how it began and what it means for aerospace

• Aviation Manufacturing

byValius Venckunas

2022-10-23

Having successfully supported the airline精东影业 operations at Bergen (BGO), Tromso (TOS), Kristiansand (KRS) airports since 2021 and Bardufoss (BDU) airport since 2020, Aviator will now provide full ground handling services to SAS at another 6 stations at Alesund (AES), Bodo (BOO), Haugesund (HAU), Kristiansund (KSU), Stavanger (SVG) and Trondheim (TRD) Airports.

Peter Stackeryd, Managing Director at Aviator Norway, shared his enthusiasm about the expanded partnership scope by stating, 鈥淥n behalf of my Team, I would like to express my sincere gratitude to SAS for the confidence in Aviator. We are dedicated to maintaining our commitment to delivering the highest quality of services to the airline. I firmly believe that our partnership, built on mutual trust and respect, will remain strong for many years to come.鈥�

The expansion of this agreement not only strengthens Aviator精东影业 partnership with SAS, which began in Sweden back in 2020 with ground-handling services at Landvetter and Malmo airports but also further broadens Aviator精东影业 presence as a leading ground-handling provider in the Nordic market.

Aviator Airport Alliance is part of Avia Solutions Group, the world精东影业 largest ACMI (aircraft, crew, maintenance, and insurance) provider, operating a fleet of 196 passenger and cargo aircraft worldwide. The group also provides various aviation services such as MRO, pilots and crew training, ground handling and other interconnected solutions.

Once the first stage of the development is finished, facilities will include five bays for base maintenance operations including a complex of full-fledged supporting shops. 

Including the hangar and bays facility of 20,000 sq. m, the total area of the new infrastructure will be 52,000 sq. m.  

It is estimated the construction process will take up to two years and marks FL Technics鈥� commitment to developing the existing global independent MRO network. 

already operates maintenance hangars at Vilnius Airport (VNO) and Kaunas Airport (KUN) in Lithuania, Stansted Airport (STN) and Prestwick Airport (PIK) in the United Kingdom, and Soekarno-Hatta Airport (CGK) in Jakarta, Indonesia.聽聽

With the new facility in the Dominican Republic included, FL Technics owned MRO hangar space will be totaling 86,000 sq. m.聽

With a physical MRO hub in the region FL Technics is aiming to support the growing fleet of narrow-body aircraft operated in the Americas, as the company will leverage its global expertise and Part-145 capabilities certified by the Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA).  

The company plans to provide both base and line maintenance services in the new hub. 

鈥淭his expansion is our first physical base maintenance foothold in the region, following the existing FL Technics operations in the Americas, including line maintenance network in Canada. It is a decisive investment as we aim to provide comprehensive MRO solutions to create long-term partnerships and a base for other future developments in the continent,鈥� Zilvinas Lapinskas, CEO of FL Technics, commented on the development. 

With further investments across the Americas in mind, the Punta Cana project itself is also set for future development.  

The infrastructure includes plans for an additional seven bays in the second phase totaling a hub of 12 bays, as a result 鈥� providing crucial addition to the capacity of base maintenance slots in the growing region. 

鈥淲e are pleased to announce our strategic alliance with FL Technics to offer world-class MRO services at Punta Cana International Airport and Punta Cana Free Trade Zone. With this strategic alliance, airport customers will have access to a wide range of aircraft maintenance and repair services, including scheduled inspections, component repairs, cabin modifications, and painting, among others,鈥� Giovanni Rainieri, airside operations director at Punta Cana Airport (PUJ), said. 

Saulius Bajarunas, COO of FL Technics, further commented on the project, as he emphasized the enormous potential the teams bring to the Americas: 鈥淪trategic and operational business development requires meticulous planning and evaluation, especially when it comes to complex projects in new markets. I trust this new infrastructure will become the foundation for future expansion of the new MRO hub, as the FL Technics team will apply best practices already proven successful in other continents.鈥� 

Such strategic developments are backed by Avia Solutions Group, parent company of FL Technics, which is one of the world精东影业 largest ACMI (aircraft, crew, maintenance, and insurance) providers with more than 180 aircraft in its fleet, operating in all continents in the world.聽聽

Outside the MRO and ACMI solutions, the group also provides various aviation services such as pilot and crew training, ground handling and other interconnected services.  

However, ACMI and MRO synergy is one of the key aspects driving growth and prospects in the Americas, as both businesses support each other by offering a range of flexible services for the partners inside and outside the region, with tailored solutions to meet the demands impacted and defined by diverse seasonality of cargo and commercial flight.聽

Chapman Freeborn announces Aviation Emergency Services

• Air Cargo

byAvia Solutions Group

2023-08-15

Vitalis Dudys, Head of Commerce at BGS, has commented: 鈥淲e are thrilled to welcome Scandinavian Airlines as our clients at Vilnius Airport. I am confident that over the upcoming 3 years, our team’s expertise in service quality and safety will become the foundation of a successful partnership. We look forward to a long and mutually beneficial partnership and are excited about the opportunities that lie ahead.鈥�

Tomas Holm, Head of Airport Operations at SAS has shared: 鈥淎t Scandinavian Airlines we always expect professionalism and strong industry knowledge from our partners, therefore we are delighted to start working with BGS. We believe that this partnership will bring significant benefits to both companies and allow us to better serve our customers.鈥�

BGS精东影业 sister company Aviator Airport Alliance, a full-range provider of aviation services at 15 airports across the Nordics, is also supporting SAS operations at 6 bases in Scandinavia.

BGS is one of the largest ground handling and fuelling providers at Vilnius airport, chosen by such well-known industry players like LOT, Finnair, DHL, Wizz Air and Ryanair. Beyond serving clients at Vilnius Airport, BGS operates at 9 more airports across Europe.

Pascal Picano has more than 25 years of successful experience in the aviation industry and has held leadership positions in some of the largest aviation capital and investment companies, raising capital and investments surrounding aircraft acquisition, leasing, and trading, as well as financing businesses related to the aviation sector.

Jonas Januk臈nas, the CEO of Avia Solutions Group and a member of the Board of Directors, said: 鈥淎via Solutions Group has ambitious development plans with continued expansion of aircraft fleet as its current focus. Pascal’s strong track record in the industry will be valuable for further growth of our group.鈥�

Pascal Picano, said: 鈥淚 am delighted to join Avia Solutions Group, a leader in the aviation industry, and am looking forward to working with such a professional team, helping to strengthen the group精东影业 position in the market.鈥�

Avia Solutions Group is the largest global ACMI (aircraft, crew, maintenance, and insurance) provider with more than 160 aircraft fleet, and a parent company of SmartLynx, Avion Express, BBN Airlines, Klasjet, Magma Aviation and more. The Group also provides various aviation services such as MRO (maintenance, repair, and overhaul), pilots and crew trainings, ground handling and other interconnected solutions. Avia Solutions Group聽is backed by over 10,000 highly skilled aviation professionals worldwide.

Since its launch in 2010, Locatory.com has become one of the most important premium aircraft parts marketplaces in the world, with its userbase growing by 20% each month.

鈥淲e have been seeing steady growth for a few years now,鈥� says Toma Matutyte, CEO of Locatory.com. 鈥淭his increase in clientele interest has been driven by the continuous expansion of our spare parts database. Each month it grows by 15% allowing for a wider variety of parts available. And with cost optimization and sustainability on everyone精东影业 mind, the secondary aviation parts market is becoming an increasingly attractive opportunity. In 2022, we have received five times more RFQs (Request for Quotes) when compared to last year, and we are expecting this trend to continue into the next year.鈥�

As a tool for simplified procurement of spare parts, Locatory.com is deeply invested in the digitalisation of the process.

鈥淥ur mission is to connect aircraft parts鈥� buyers and sellers, through seamless transactions via an innovative platform that enables our customers to find, buy, and sell aircraft parts or repair services in commercial, OEM, MRO, military, and general aviation segments across the globe,鈥� Matutyte explains.

鈥淲e are focusing on innovation and efficiency, therefore we have already successfully introduced a range of innovative features to our marketplace – Amber, the A.I.-based assistant, being one of them.鈥�

Running a well-oiled online marketplace is not an easy task and so having a strong team behind you is a must.

鈥淲e have a truly global team, with people from over 10 countries sharing ideas and expertise in improving the company. We have been steadily expanding by around 15 % each month and there are no plans to slow down.鈥�

By keeping innovation and optimisation as the main driving factors, Locatory.com is constantly working to maintain and surpass the ever-changing needs of the aviation industry.

鈥淚mproving spare aircraft parts procurement processes can positively impact the whole aviation industry and so we will continue to create tools to do this,鈥� says Matutyte.

An aircraft engine can cost anywhere from one to tens of millions of dollars, therefore ensuring their safety at any given time is of the most importance. Even the smallest damage to an engine can cost airlines, MROs, lessors, or traders not only huge sums of money required for repairs but also costly delays. To avoid that, experts advise using only high-quality certified engine stands, with all required inspections and checks completed, that can ensure the safety of such a valuable asset as an aircraft engine.

鈥淓ngine stands are most commonly used for engine storage, transportation, swap, inspection and maintenance,鈥� explains Hanna Lavinskaja, Chief Business Development Officer at Enginestands. 鈥淭here are original equipment manufacturer (OEM) approved and non-OEM approved engine stands. To get licenses to produce stands with OEM mark of approval, engine stands manufacturers have to ensure that their products qualify with Engine OEMs and meet all of the specific requirements of transportation, removal, installation, and other operations,鈥� Lavinskaja shares. 鈥淎dditionally, each stand has a very certain maintenance plan according to the manufacturer鈥榮 recommendations and every engine stand owner has to follow the plan in order to get its Certificate of Conformity (CoC) renewed every year as proof of proper maintenance and serviceability of an asset.鈥�

According to Hanna Lavinskaja, while most of MROs and Engine shops accept engines only on OEM-certified engine stands, some companies use noncertified stands in some specific situations, for example when sending an engine for a teardown or long-term storage. 鈥淭he main possible negative outcome of using a stand without certification is the damage to an engine and monetary issues arising from such issues. MRO or Engine shop refusal to accept an engine for planned tasks, that is loss of slot, is also a possible problem. While accidents can still happen when using an OEM approved engine stand, OEM mark of approval gives operators peace of mind knowing that an extremely valuable asset is being transported on a top-quality piece of equipment.鈥�

As an expert in the field, Enginestands use only certified engine stands. 鈥淚t is true that offering only certified engine stands and maintaining their quality is a difficult and expensive task but providing noncertified stands could have detrimental outcomes. Our clients trust in our ability to provide exceptional quality assets, thus ensuring the safety of their valued aircraft engines.鈥�

FlightAware data shows that airlines in the global commercial aviation sector experience up to 900 cancelled flights and over 6,300 delayed flights daily. The countercyclical effect of such conditions in commercial aviation is the increased demand for private-jet use, which has gone up by over 30% compared to the figures reported before the pandemic.

Unlike commercial flights, private flying allows passengers to travel on their own schedules without any delays. This means that air passengers can book a flight and depart from dedicated terminals at their selected time, eliminating the inconveniences caused by airline delays, flight cancellations, or other unexpected occurrences as with commercial flights.

Today, the private aviation segment is capitalizing on the airport chaos to attract more subscribers and generate more revenues by providing exclusive private flights to various global destinations. Approximately 52% of the new private jet subscriptions include passengers who have moved from commercial to private flying, primarily due to such issues as unexpected delays and inconveniencing flight cancelations.

For passengers who are yet to move to private flying, over 65% have noted airport chaos, flight disruptions, and poor airline service as critical reasons why they may shift to private travel in the near future.

Given the health safety risks imposed by the COVID-19 and their subsequent disruptions in the global commercial aviation sector, the private aviation segment has received a significant number of first-timers, many of whom have not indicated intentions to stop or move back to using commercial flights. Only a tiny fraction of the customers who had previously moved to private flying since the pandemic has retracted to commercial flights. However, those who have moved back to commercial flights have done so primarily for cost reasons.

In Europe alone, private carriers have reported a 30% increase in daily flights between 2019 and 2022. This has raised the figures to 179,000 private flights to various destinations since the pandemic. Major cities, including London, Amsterdam, Berlin, and Naples, have noted the greatest spiral in the number of commercial passengers who have moved to private flying from 2019 to date. In July 2022, London reported the highest number of private flights in Europe, with over 12,000 jets flying from dedicated airports to various destinations.

Many commercial airlines are also struggling with difficulties in sustaining the increasing seat demand, which has pushed the cost of traveling in the business class segments higher. For example, commercial airlines in the European region reported over 58% loss in seat capacity in 2020, a trend that has continued up to date. Under such circumstances, many passengers who frequent business class flights have moved to private flying, given that many of private jet providers are offering competitive prices, besides convenience and flexibility in air travel. 

From the vantage point of the KlasJet CEO, the level of activity in private aviation depends on an array of factors, one of them being events taking place in the commercial segment. Further, the KlasJet CEO notes that many business executives have moved to private flights to avoid the inconveniences caused by unexpected disruptions and cancellations, some of which can be attributed to staff shortage issues in general aviation airports.

A deeper look into the situation reveals that private aviation has not only gained appeal among business travelers but also leisure travelers, as evidenced by the increased number of private jets flying to popular vacation destinations like Ibiza, Paris, Swiss Alps, Acropolis of Athens, France, Greek Island of Mykonos, England and Spain.

A report by the Empresa Argentina de Navegacion Aerea (EANA) shows that Ibiza International Airport reported over 6,000 private jet landings between January 1st and June 30th 2022, which represents a 12.25% increase in the number of private jets that landed in the airport from the figures reported in the first six months of 2021. These figures point to increased activity levels in private aviation space as more and more passengers pull back from the plagued and intolerably chaotic commercial aviation services.

With commercial aviation becoming inordinately flawed and excessively muddled, the private aviation segment is winning over long-time business executives, celebrities, sports teams, rich personalities, and leisure travelers who now consider private flying the Hobson精东影业 choice and the only way to avoid inconveniencies while traveling to various destinations. Notwithstanding the high costs involved while flying privately, many passengers have flocked to private airlines to avoid the inconveniences, price upshots, and travel disruptions associated with the topsy-turvy commercial aviation.   

To meet the growing ACMI demand of more educated airlines after the Covid-19 pandemic, KlasJet, an EU-based private air charter company is joining its parent group Avia Solutions Group companies and expanding its service portfolio by adding passenger ACMI to its services list.

Avia Solutions Group, with its services, operations, and presence, covers all continents and for many years has been developing its relationships with airlines, ACMI operators, MRO and training services providers. This August, the group AOC jointly has 140 aircraft in service, by SmartLynx Airlines, Avion Express, Bluebird Nordic, and Magma Aviation. 

Several large legacy carriers in their updated strategic plans indicated that one of the tools to increase efficiency is to use third parties ACMI services to meet the seasonal demand, which allows to reduce capacity during non-peak seasons. Companies and consultants state that 1 aircraft, used as ACMI by a carrier, can generate from $1 M to $3 M per season, depending on the region, business model of airlines, and yields.

鈥淎fter covid, airlines鈥� creditors, shareholders, governments are seeking more efficiency from the operators. Historically airlines generated an average of 1.57 % profit per year over the last 19 years. So, there aren’t many opportunities to increase efficiency, except contracting ACMI for peak season. From educated customers, we see a huge demand for aircraft leasing with the crew, maintenance, and insurance (ACMI) included. Avia Solutions Group is the largest capacity sharer in the world, and we want to be part of ongoing growth,鈥� says Rita Domkute, CEO of KlasJet. 

According to her, the airline is planning to expand its current fleet by adding more next-generation Boeing 737. 鈥淲e plan to add 5 economy class Boeing aircraft with a capacity for 189 passengers to our fleet this year, and by the end of 2023, we should have 15 more aircraft for ACMI operations. This passenger aircraft type of aircraft wasn鈥檛 in our group ACMI companies fleet list till now. I trust that our VIP charter service experience together with the ACMI industry expertise of Avia Solutions Group companies will allow us to smoothly enter the ACMI market and offer high-quality services from the first moment,鈥� explains KlasJet精东影业 CEO. The company plans to start ACMI operations starting in autumn.

Even though KlasJet is embarking on this new ACMI journey, the company will continue providing exceptional private charter services to its loyal client base. The company currently operates VIP 7 aircraft and plans to expand its luxury fleet to 10 aircraft in 2023.

“The new configuration of LY-JMS will let us offer our services for a new type of customers from different markets,” said Rita Domkute, CEO of KlasJet. “I am sure, that the refined LY-JMS design will be valued by our clients. This year we鈥榲e already expanded our fleet and we鈥榬e not ready to stop. We are planning on soon releasing another exclusively designed business class aircraft.”

The upgraded 56-seat BOEING 737-500 (LY-JMS) has a classic design with black and cream dominating colors and quality materials creating a luxury feel. The new interior was designed to ensure the best customer experience and fit the needs of every passenger.

On Sunday the BOEING 737-500 made its first flight from Vilnius to Tel Aviv after the refurbishment.

The LY-JMS is one of the seven aircraft of KlasJet fleet. The company offers a variety of services and is oriented to special customer segments and groups such as sports clubs, show business, diplomatic flights, VIP flights, VIP tours, M.I.C.E. In early 2019, together with Captain精东影业 Choice, KlasJet offered a VIP sightseeing tour around Africa – from Cairo to Johannesburg.