APELLA

The aviation maintenance, repair and overhaul (MRO) sector is witnessing a paradigm shift. The industry has been recalibrating its strategic focus post-COVID-19, and is focusing increasingly on strong partnerships with entities in the defence sector. Leading this wave of collaborative innovation is APELLA’s alliance with aerospace titan Lockheed Martin (NYSE: LMT)—a partnership that not only augments APELLA’s traditional service offerings but also positions it as an industry trailblazer.

Headquartered in Greece, APELLA is a venerable, family-owned MRO enterprise with a multifaceted service portfolio. Its offerings include on-aircraft maintenance, in-house component servicing, airframe assembly, specialised tooling manufacture and docking systems, all supported by a comprehensive suite of engineering solutions.

The company is a linchpin in the operations of premier Greek airlines such as Aegean, Olympic Air and Sky Express, offering them vital maintenance support. It also fulfils the logistical requirements of the Hellenic Armed Forces (HAF) through competitive tender processes.

However, APELLA’s collaboration with Lockheed Martin truly sets it apart. The firm is an approved vendor for Lockheed Martin and plays a pivotal role in the F-16 modernization efforts for the HAF. This includes the transition of the HAF fleet to the advanced F-16 Viper variant, all coordinated through the Hellenic Aerospace Industry (HAI) facility in Greece.

This partnership is more than just a transaction; it forms a cornerstone of APELLA’s ambitious growth strategy. The firm’s ultimate aim is to expand its existing maintenance capabilities to become the preferred MRO services provider across Southeast Europe. To achieve this vision, APELLA is establishing an in-country base maintenance facility. This strategic move is intended to meet the needs of regional customers and reinforce a certified defence maintenance network that is robust and reliable.

“Our goal is to deliver superior quality and ensure consistent execution with minimal turnaround times, leading to immediate cost savings for our customers,” says Dr Nikos Kontoyannis, CEO of APELLA.

As it broadens its service horizons, APELLA is not just transforming its own trajectory but is also contributing to the larger narrative of innovation and collaboration in the aviation MRO landscape.

Tracing Roots and Progress

APELLA’s journey began with a familial foundation rooted in aviation expertise and a deep commitment to service. In 1985, a pivotal moment occurred when the firm’s founder, a retired Lieutenant General from the HAF, decided to venture into the world of aviation maintenance and repair. His decision was driven by a desire to contribute his skills and expertise after a distinguished military career, a decision that marked the birth of APELLA. At that time, Greece’s aviation industry was tightly controlled, with the government-owned Olympic Airways monopolising the sector. Private companies had limited opportunities for involvement. But as the aviation landscape evolved, APELLA seized the moment, identifying a glaring gap in the market for reliable aviation support within the country.

APELLA embarked on its journey in 1987, initially specialising in wheels and brakes. The company swiftly obtained EASA Part-145 certification, marking the beginning of its commitment to high-quality services. Over the years, its offerings expanded to include batteries, pressurised bottles, non-destructive testing, and more.

The company’s impact extended beyond civil aviation. In 2010, APELLA expanded its scope to encompass support for the HAF. Initially serving as a supplier, it soon found itself in a subcontractor role to HAI, a state-owned organisation dedicated to supporting the military.

Around 2012, a pivotal shift occurred, propelling APELLA into broader aircraft support capabilities. Its technicians developed expertise in structural support, enabling them to handle complex tasks such as sheet metal work, structural modifications, and on-site repairs. This adaptability was vital in Greece, where numerous isolated island airports required rapid response support. APELLA’s commitment to speed, agility, and quality earned the trust of its customers.

One significant milestone was APELLA’s role in painting aircraft undergoing heavy maintenance for the HAF, a contract that ran from 2015 to 2019. The work garnered the attention of Lockheed Martin, a global leader in aerospace. This recognition led to APELLA becoming an approved vendor for Lockheed Martin, which opened doors to even more significant opportunities.

In 2019, APELLA secured a multi-year contract to support the upgrade of the HAF’s F-16 fleet to the F-16 Viper configuration, further solidifying its reputation as a top-tier aviation partner.

APELLA’s journey continued to soar in 2021 when the company was chosen to support the global production of the F-16 by Lockheed Martin, underlining its increasing significance on the world stage.

Today, APELLA stands as a multifaceted aviation services provider, offering component MRO services for civil aviation, engineering support and structural maintenance for defence, and global support for multiple programs. Its relentless pursuit of excellence and dedication to quality propelled it to its current position of prominence, and its journey continues as a testament to what can be achieved through vision, commitment, and a pursuit of excellence.

Thriving in a Challenging Aviation Landscape

APELLA understands that organisations are grappling with a plethora of challenges—supply chain interruptions, energy-related cost variances and even a mounting dearth of skilled technicians, to name a few. APELLA, isn’t just aware of these challenges; it has architected comprehensive strategies to counteract them.

Supply chain disruptions present an immediate concern for the aviation sector, especially when just-in-time inventories have become the norm. APELLA relies on its longstanding partnerships with original equipment manufacturers (OEMs) to mitigate such disruptions. A prime example is the company’s in-country exclusive distributorship of Goodyear Tires [NASDAQ: GT]. This strategic relationship enables APELLA to maintain robust inventory levels, facilitating rapid response to unforeseen supply chain challenges. Through proactive planning and alternative solutions, APELLA ensures that its clients remain agile without excessive inventory stocking or facing last-minute exigencies.

Another critical challenge plaguing the industry is the volatility in energy costs. APELLA is aware of the difficulties that come with sourcing materials from places with less stable energy supplies. The firm mitigates this risk by diligently working to optimise its supply chain, containing the upward cost pressures and delivering efficient and cost-effective services.

However, the most looming challenge is the growing shortage of skilled technicians—an issue that predated even the COVID-19 pandemic. Boeing’s [NYSE: BA] forecast that the industry will require an additional 400,000 technicians worldwide by 2030 brings the gravity of this challenge into sharp focus. To preempt this issue, APELLA has launched internal training initiatives aimed at upskilling its workforce to meet the evolving demands of the industry. While APELLA is taking commendable steps to close the technician gap, it acknowledges that solving this issue is not a solo endeavor but necessitates a collective, industry-wide effort.

Unlocking Client Success

“We believe in transparency, keeping our word and never changing the game without a clear purpose. We’d rather make five bucks less but maintain trust and consistency,” says Dr Kontoyannis.
APELLA, in its collaboration process, places a strong emphasis on open and effective communication as it builds relationships based on transparency and reliability. In every collaboration, the firm’s dedication to delivering services as promised makes it a dependable problem solver, valuing client trust over short-term gains.

The collaboration process is characterised by a structured workflow that ensures a smooth and successful partnership. It begins with a customer’s request, followed by a detailed proposal. Once the proposal is accepted, APELLA’s team proceeds with task execution and delivery while maintaining constant communication with the customer. This commitment to communication extends even to post-delivery customer support.

The firm adopts a project management-oriented approach, especially when it serves as the prime coordinator of a project. Its emphasis on specificity and detail in the early stages is instrumental in saving time and fostering efficiency. By arriving at the table well-prepared with precise requirements, it reduces the need for vague and general discussions, and maintains a sharp focus on delivering the desired solution promptly.

Since its inception, APELLA has formed and cultivated relationships with prominent OEMs of aviation material, such as Raytheon Technologies [NYSE: RTX] and Honeywell [NASDAQ: HON], to help its clients achieve their objectives.

One notable story involves APELLA’s support of the Lockheed Martin Hellenic Aerospace F-16 FMS production program. Initially tasked with supervisory and liaison roles, the firm swiftly adapted to meet evolving client needs. It deployed dedicated structural technician teams to the subcontractor site, which not only ensured the project’s success but also addressed long-term needs. The firm’s forward-thinking approach included establishing its own structural technician training program at no additional cost to the customer, further anticipating and addressing the program’s long-term demands. The infusion of skilled talent provided crucial relief to the delivery timeline, underscoring APELLA’s proactive project management approach.

In another instance, APELLA’s involvement in the F-16 modernisation program for the HAF demonstrated its agility and commitment to client success. When asked to take on additional responsibilities for flight line support to meet the delivery schedule, APELLA’s teams rose to the challenge. They successfully assumed the additional responsibilities while ensuring that the delivery schedule was properly met. Once again, the firm was praised for its versatility, willingness to respond swiftly and the quality of its work.

A testament to the problem-solving capabilities of APELLA is also its collaboration with DynCorp International in support of the Multi Sensor Aerial Intelligence Surveillance Reconnaissance (MAISR) Operations and Sustainment program of the US Army. The firm’s quick response and ability to provide Aircraft-On-the-Ground (AoG) emergency maintenance activities kept the aircraft in the theatre of operations. This prevented the costly and time-consuming return of the aircraft to the base MRO and safeguarded a high-priority intelligence-gathering asset.

People-Powered Progress

APELLA’s approach to team-building and its culture of growth, transparency and fairness are fundamental to its ability to provide high-quality work and deliver exceptional value to clients. The firm’s team-building strategy is distinctive, focusing not just on technical skills but also on character, personality and teamwork.

Like-minded individuals who are open to instructions work together and achieve remarkable results. Expertise is developed overtime, with high-performing team members advancing within the organisation.

The firm views mistakes as learning opportunities for learning rather than as reasons for termination. This culture fosters trust, making employees receptive to feedback and confident in expanding their knowledge—a crucial factor in aviation maintenance, where the end product is flight safety.

Forging ahead, APELLA, along with being focused on growth, is also taking deliberate strides in the pursuit of ISO 14,001 and 27,001 certifications, highlighting its dedication to sustainability and IT security.

Currently, it is expanding into Qatar through a joint venture with a UK company. APELLA recognises the immense potential in the region, especially in addressing the demanding aviation needs of major players like Qatar Airways.

Be it in commercial or military aviation, airline operators share a profound sense of amazement witnessing a MRO services provider consistently deliver high-grade and on-time services. In today’s aviation landscape, where the emphasis on modernisation and profitability can sometimes overshadow these foundational ideals, APELLA delivers it in spades.