The OEM ecosystem

Kriya Shortt, Senior Vice President, Textron Aviation, talks to Anthony Harrington 

AH: One of the themes we are seeing more frequently these days, is the OEMs looking to take back control of potential after-market revenues. How is this playing at Textron?

KS: The core of our approach at Textron Aviation has always been to provide support for our customer base, primarily on the Cessna side, via the Citation Service Centres in the U.S. About seven years ago, we decided to step up our support across our product lines for customers around the world where our customer base is substantial. We have been making those investments, with intent, over the past several years.

This is not to say that we do not still leverage our network of qualified, vetted, and very capable maintenance houses. The decision as to which companies we mandate in various regions around the world, depends very much on who has strong MRO capabilities for our aircraft models in those regions.

So, in Latin America, for example, and in Africa, we are still leveraging third-party relationships. This is also the case in parts of Asia Pacific. Within North America, however, we have been direct for quite some time on the jet side of the business. We still do have some third-party turboprop relationships here, and of course, within Asia Pacific as well.

AH: Clearly, setting up a new Textron support centre is a tremendous investment, both in parts and skilled personnel, as well as in the hangar and office space. How is all that to be recouped and is it worth it?

KS: We look very much at the whole ecosystem that goes with being an OEM. So for us, it was never just about selling the aircraft. It was always, also, about the customer’s experience throughout their ownership of the aircraft.

From the customer’s perspective, when they are looking to buy an aircraft, obviously they will look at their mission profile. But what figures very largely in their purchase decision, is the quality of the support services that our team provides to them, year in and year out. This is really what underpins the bond between the customer and us. It becomes much more of a partnership, ensuring that the aircraft that they have chosen continues to perform for them.

This is true whether the customer is a business, using the aircraft as a productivity tool, or whether they are a charter operator, or a customer flying for their own convenience.

So, we see the support function as very much part of the overall package that ensures the customer feels comfortable with the decision they made to choose one of our aircraft.

AH: How important a role do you think a first-class support environment plays into their next purchase decision, as opposed to what may be some eye-catching, fancy new offerings and models from OEMs across the sector?

KS: I think a strong support ecosystem absolutely plays into the customer’s decision with respect to their next aircraft. Naturally, when they are thinking of upgrading, one of the first questions they are going to ask themselves is: what has my experience been like with this present aircraft? Has it met my mission profile? Have I had a positive interaction and experience with the OEM and the brand? Did I feel valued and listened to? This is the same, in many respects, as the decision process all consumers go through when they renew their purchases with a particular brand.

AH: That is of course very true, but how much of a bite out of an OEM’s potential future sales can a rival OEM’s latest offering make, when it is in the right slot for the customer’s mission profile?

KS: I think we enjoy a very solid and loyal customer base. They hold us accountable, of course, and being accountable to them for the quality and breadth of our future designs and models, drives us onward to invest in new products. That way, we ensure that customers do not become twitchy—they can see an exciting roadmap ahead of them when they feel the time is approaching for them to upgrade.

For us, whether it is on the support side of the business, or the engineering and development side, we really do listen to the customers to make sure that what we are doing resonates with them.

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