Credit: Joramco
DAE-owned maintenance provider Joramco is set to increase its capacity by roughly 30% this month as its new hangar comes online.
Joramco has continued to grow quickly this year, posting a 29% rise in maintenance revenue to $119 million for the first six months.
The Amman, Jordan-based MRO company attributed the gain to higher billed labor hours on heavy maintenance checks, higher airframe material revenues and overall operational efficiencies.
“The story continues: The MRO market globally is still very robust, and revenue and profitability is at a record high as a consequence,” DAE CEO Firoz Tarapore said on an earnings call in early August.
He added that while the new hangar was a “little late,” it should become operational in August.
Joramco’s billable labor hours totaled 900,000 for the first six months, up from 800,000 in the prior-year period. Joramco has said it can offer 2 million labor hours per year and should get close to testing that limit once the busy winter maintenance period begins.
One of its big European customers during this period is Ryanair, which said in May that it would look for additional heavy maintenance slots from its external providers, including taking 10 lines at Joramco over the next few years. Joramco is well placed to provide this, as the new hangar is set to expand its aircraft lines from 17 to 22 in 2025.
Last year, Joramco performed more than 300 aircraft checks, resulting in more than 1.5 million billable labor hours.
Tarapore was asked how DAE Capital’s management splits its own time between its core aircraft leasing business and oversight of Joramco.
“We’re more hands-on on the capital side and on the engineering side we have a separate leader, so it’s more of a standalone entity,” he explained. “Because of its nature, the business is self-funding—the new hangar was paid for by proceeds from the business—so it’s not a drain from either a management time or a capital perspective.”
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