SAN ANTONIO, TX, February 1, 2006 – Standard Aero, a leading aerospace services company, intends to protect its rights while pursing legal options in regard to the decision by Kelly Aviation Center, LP (KAC) not to award contract extensions earned by Standard Aero beyond 2007. “We bid as a team, earned options as a team, and should be extended as a team,” said company President Paul Soubry Jr., referring to the partnership between Standard Aero and Lockheed Martin’s Kelly Aviation Center. KAC informed Standard Aero of its intent not to exercise further options on January 25, 2006.
Standard Aero teamed with Lockheed Martin to compete on the Propulsion Business Area (PBA) contract for the T56 and TF39 engine workload as part Kelly Air Force Base privatization. In 1999, the Air Force awarded the PBA contract, with Standard Aero as the exclusive T56 partner given the company’s expertise, track record, and best value offer to the government. Standard Aero began servicing the T56 in 1960 and is now the world’s leading provider of T56 maintenance. The T56 engine is used on the C-130 Hercules, P-3 Orion, and C-2 Greyhound aircraft.
As the prime contractor, KAC has been awarded option years at least through February 2009. These contractual extensions, due in large measure to the performance of Standard Aero, have been earned with T56 delivery performance recognized by the Air Force as outstanding and best ever. “We will protect our employee’s job security while ensuring the Air Force receives the quality work Standard Aero is known for, with no disruptions to the warfighter who depends on the T56,” added Mr. Soubry. The C-130 and P-3 are critical assets in the global war on terror, providing vital in-theater supply and multi-mission maritime patrol, and in the New Orleans and overseas relief efforts.
“We have invested heavily in our facility, people, and processes and are committed to protect our interests” said Harinder Grewal, Standard Aero San Antonio Vice President. Beyond what the Air Force funded for transition in 1998, Standard Aero invested millions in transforming the former Kelly Air Force Base operations. The company has proprietary repair processes and has developed unique reliability enhancements for the T56. Last November, Standard Aero filed and won in Texas state court a temporary restraining order against KAC for misappropriation of intellectual property, including passing trade secrets to Standard Aero’s competitor, Rolls-Royce. The company believes that these trade secrets may help KAC with its transition plans.
“Now, KAC is pursuing our talented workforce, all at Standard Aero’s expense and ultimately, San Antonio’s loss,” Mr. Grewal continued. KAC’s contract does not involve other workload from operators that Standard Aero has brought to San Antonio, including United States Navy, Department of Homeland Security, and various Allied countries. San Antonio is home to the company’s US headquarters, research and technology arm, and corporate university. Standard Aero is recognized as a Texas Workforce Commission Employer of Choice and is one of the few companies worldwide that have achieved ISO14001 certification for environmental management. The company is San Antonio’s second largest aerospace employer and largest US-Canada trading partner.
Standard Aero is one of the world’s largest independent providers of gas turbine maintenance, repair, and overhaul (MRO). The company services General Electric, Rolls-Royce, Honeywell, and Pratt & Whitney Canada engines used by regional airline, business aviation, helicopter, and military/government operators. Standard Aero employs specialized business process transformation and continuous process improvement practices, resulting in more efficient and effective business performance. Standard Aero has over 2,500 employees worldwide, including more than 700 in San Antonio, and achieved $793M in 2004 sales.