KUALA LUMPUR: The local aerospace manufacturing sector has experienced a 30 per cent reduction in deliveries requirements for long-term contracts, resulted from the delay of aircraft deliveries in particularly among the airlines and lessors.
Market observers said the Movement Control Order (MCO), which was enforced from March 18 till May 3, had partially halted manufacturing activities in Malaysia.
However, the maintenance, repair and overhaul (MRO) services for both commercial and private jet continued to operate to support grounded aircraft, despite a similar 30 per cent contraction in the overall operations.
Malaysia Aerospace Industry Association (MAIA) president Naguib Mohd Nor said logistics and customs clearances had also been challenging for industry players, as it disrupted the flow of raw materials and spares into Malaysia as well as completed aircraft parts being shipped out to Europe for final assembly onto the aircraft.
"Adjustments have been automatically made by local aerospace players as soon as the risks associated with the Covid-19 pandemic emerged.
"Going forward, companies will continuously monitor the risks and adapt themselves to either greater or lesser manifestations of the risks as managed by the quality departments and top management," he told the New Straits Times recently.
He said the cost-related impacts had been optimised as part of the careful planning and adjustments to operating procedures to contain the outbreak at operators' premises.
"Aerospace companies are in full control of their processes and procedures.
"They are not just cut and paste without thorough ownership. This allows the companies to propose changes to their processes and procedures and come to agreement with the end clients on any adjustments necessary to manage risks and costs," he said.
Naguib said the aerospace industry would constantly change irrespective of events brought by Covid-19 with adjustments on stricter environmental requirements, which Malaysian aerospace companies had been at the forefront of.
"This is a self-regulating industry to the highest levels of standards and compliance and is poised to weather any challenges ahead. We (MAIA) hope that the industry can be a benchmark for Covid-19 pandemic management in collaboration with the International Trade and Industry Ministry and the National Safety Council," he said.
MAIA said there had been "zero" case related to the Covid-19 contamination in manufacturing and MRO premises locally since the MCO.
"The aerospace industry is regulated by international airworthiness and quality standards. Every aerospace manufacturing or MRO company in Malaysia is by this definition world class," he said, adding that the core of aerospace compliance was the risk management which required all players to be adhered in all procedures.
Citing an example, he said the AS9100 standard which governs manufacturing activities dictate that companies consider a range of risks from environmental to political. The standard was aimed at ensuring business continuity and the supply chain.
"Through any manifestation of risk, companies must demonstrate not only the containment of the risk but also the actions needed to manage the risk going forward based on any lessons learned.
"Without this mind-set the supply chain would not be able to ensure passenger safety as every part of the aircraft from the wing to the smallest screw is critical to flight. After all if something happens 30,000 feet in the sky parking to check under the hood is not an option," he said.
Naguib said local aerospace players had initiated stricter standard operating procedures (SOPs) at promises including temperature checks and provided sanitisers as well as regular medical check-up for employees.
"The longer contract periods for aerospace for both manufacturing and MRO allow the players to cope with such cost impacts. An aerospace company would not compromise on health and safety as it has direct impact to the aircraft safety," he said.
Naguib said personnel unfit for duty can jeopardise the integrity of the parts and components. Hence, the industry was highly emphasised on not only technical but the work quality, health and safety training of personnel.
"The local aerospace sector employs more than 95 per cent Malaysian workforce from the level of technician upwards. In most cases even the sanitation crews in factories and hangars are also Malaysian as they also need to be trained in complying with operating procedures," he said.
MAIA is an industry association for the commercial aerospace sector in Malaysia, represented by 90 major aerospace players comprising major Tier-1 and Tier-2 and small medium enterprises such as T7 Aerospace and Micron Concept.
Its members include Spirit AeroSystems Malaysia, Composites Technology Research Malaysia Sdn Bhd, Aerospace Composites Malaysia Sdn Bhd, Safran, UMW Aerospace, SME Aerospace and Senior-Upeca Aerotech.