2.1 INTRODUCTION

2.1.1 Marshall Aerospace (MA) is part of the Marshall Group of companies founded in 1909 byDavid Marshall. Currently led by the third generation of the Marshall family, the MarshallGroup has unrivalled expertise in road and air transport systems.

Cambridge Airport - The Home of Marshall Aerospace2.1.2 MA is the UK’s leading independent aerospace contractor with a worldwide reputation for

engineering excellence. Decades of experience in aircraft design, manufacture,maintenance, conversion, modification and logistic support are firmly backed up by adedicated team of over 1800 highly trained personnel and an exceptional range offacilities including 44000 square metres of hangar space. Based on its 325 hectare sitesince 1937, MA also operates a locally established and Marshall Group owned city airport.The operation of the aerospace business from Cambridge City Airport not only enablesaircraft to arrive for maintenance, but also offers a full complement of airport services forcommercial, charter, private and training purposes.

2.1.3 MA has all the capabilities of an Original Equipment Manufacturer (OEM), able to performwork on military, commercial and corporate aircraft. Within these three areas, the breadthof expertise and experience of MA enables the company to work on a large variety ofaircraft types and projects for its worldwide customer base, whilst also remaining flexible tofulfil the requirements of any customer, at any time or location.

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2 MARSHALL AEROSPACE COMPANY OVERVIEW

2.2 COMPANY CAPABILITIES

2.2.1 MA has a wealth of assets and resources that combine to make it one of the UK’s leadingaviation companies. MA utilises a team of highly skilled, experienced and motivatedemployees with a vast range of skills and experience. An overview of the MA workforcebreakdown is given below.

2.2.2 The MA workforce is strategically proportioned to optimise complete aircraft maintenance,modification and support packages for its customers. However, MA retains the flexibility toadjust the workforce to meet the demands of emerging work.

2.2.3 MMaaiinntteennaannccee,, RReeppaaiirr aanndd OOvveerrhhaauull ((MMRROO)) MA utilises seven aircraft hangars at theCambridge site dedicated to the maintenance, repair, conversion and overhaul of aircraftThese hangars vary in size, with the largest (14400 square metres) capable ofaccommodating a number of wide body aircraft along with an external docking facility toallow for major or minor interior modification programmes.

2.2.4 MA offers total aircraft support including; depth maintenance, technical services, thedevelopment of maintenance schedules and records control, together with inventory androtables management. MA’s capability to conduct upgrades, modification andmaintenance of multiple aircraft types, provides a complete service to operators throughoutthe world. Across the whole spectrum of aircraft support MA has a proven track recordand a host of satisfied customers.

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AircraftTechnicians (140)

AircraftFitters (295)

Manufacturing (174)

SupportStaff (588)

Technical SupportStaff (156)

Design(477)

Aircraft in MA’s Largest Hangar

2.2.5 MA also offers a comprehensive aircraft paint capability within a dedicated paint hangarcapable of accommodating two C-130 aircraft simultaneously; in the larger hangar anarea can be cordoned off to accept aircraft up to the size of Airbus 300 or equivalent. Bothfacilities are environmentally controlled and monitored and comply with all UK and EUregulations.

2.2.6 A C-130 Heavy C Check requires the aircraft paint to be stripped to the bare metal, toallow for a visual inspection as a means of detecting corrosion or other potentially hiddendefects. There is a regular flow of aircraft into the Paint Bay at the completion of eachHeavy C Check to repaint the aircraft in accordance with the requirements of individualcustomers. MA is also able to quickly repaint an aircraft due to a change of role oroperational location, through the stripping of the surface coat of paint, which leaves theundercoat intact, which then facilitates a swift reapplication of the required paint scheme.MA has experience of the necessary preparations and requirements associated with thepainting of composite structures.

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C-130 Aircraft in Paint Facilities

2.2.7 DDeessiiggnn MA’s highly qualified, experienced and adaptable Aircraft Design Office (ADO)comprises over 450 specialists, which provides the capability to design, plan and producemodifications, and aerostructures with the authority equivalent to that of an OEM. Thisunique capability has seen MA receive accreditation from the UK MoD to perform the roleof Sister Design Authority for the RAF C-130K Hercules and UK Design Authority for the L-1011 TriStar aircraft.

2.2.8 The design capability is augmentedby work groups, which specialise ina range of disciplines from:structural and avionic design;certification and testing; fluidsystems; stress analysis; flightdynamics and softwareengineering. These work groupsare co-ordinated by dedicateddesign programme managers toprovide an effective and fluidconcurrent design process.

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2.2.9 The MA ADO is centred at the Cambridge facility, however a number of satellite designoffices in Australia, Canada, and the Netherlands are operated to support the globalcustomer base. This flexible, adaptable and dynamic capability enables MA to provide thecapacity to support several programmes concurrently, of varying urgency, to meet customerneeds.

2.2.10 TTeesstt SSeerrvviicceess MA Test Services provide customised test solutions, which cover design andmanufacture through to analysis and reporting. Located in a purpose-built hangar, the MATest Services facility is equipped with specialised rigs for component and equipment testing,

which ranges from proof loading and environmental testing to non-destructive testing andaircraft calibration. MA is the only company outside the USA, which, in conjunction withLockheed Martin, fatigue tests the C-130 airframe. The Test Facility houses a full scale C-130K fuselage which is subjected to forces applied by servo-hydraulic controlledactuators, programmed to simulate actual loads experienced during taxi, take-off and flightconditions. An additionalpressurisation system is also usedwithin the test programme alongsidea full scale C-130J Wing Fatigue Testrig. The data collected is used tosupport MA’s world-wide C-130 customers.

2.2.11 FFlliigghhtt TTeesstt && SSuuppppoorrtt SSeerrvviicceess MA isapproved to conduct flight tests tomeet both military (UK MoD andmany foreign Air Forces) and civil (UK

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CAA, EASA, FAA) requirements and employs qualified test pilots and flight engineers.Cambridge City Airport is fully licensed and supports virtually all testing, which is carriedout under the auspices of the MoD AvP67 approval. This, combined with support from theADO provides a capability that allows a wide range of flight tests to be conducted, frompost-maintenance checks to the development or certification of aerodynamic, structural,avionics or systems modifications to aircraft.

2.2.12 MA also owns and operates a number of aircraft that can be used to support day-to daybusiness. For example, the aircraft can be made available for the transportation of ferrycrews, as well as the collection and delivery of spares or components to meet urgentoperational requirements or AOGs.

2.2.13 MMaannuuffaaccttuurriinngg The MAManufacturing Department servesa wide range of internationalcustomers. Machining andassembly shops are supported byspecialised equipment, includingComputerised Numerical Control(CNC) machining centres, metalforming, welding and treatmentfacilities. The Department has allthe in-house resources, backedup by a team of Quality personnelusing the latest technologyinspection equipment necessary tomake and supply components tosupport aircraft production activitiesworld-wide.

2.2.14 MA can demonstrate a proventrack record of successfullymachining, fabricating andassembling a wide range ofaerospace projects for manyinternational aircraftcompanies. The ManufacturingDepartment holds approvalswith the MoD, CAA, FAA andBAe Systems, as well as SAEAS9100.

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Airbus Wing Spar in manufacture

DMU100 5 Axis Machine

2.2.15 PPuurrcchhaassiinngg The Purchasing function at MA has three branches; Supplier Management,Purchasing & Logistics and Stores Management:

l Supplier Management has a strategic remit, to concentrate on Company purchasingdirection; the control of major Company expenditure; the identification, control and/orelimination of risks, both commercial and project, through the negotiation andapplication of tailored terms and conditions. Supplier Management is tasked with thecontinuous improvement of professional good practice in all purchasing within theCompany, to increase the value obtained through such activity.

l The Purchasing & Logistics department is principally concerned with support tocompany MRO and manufacturing activities and covers all activities necessary toconvert a demand to a stores issue, which satisfies that demand. This includes thecomputerised purchase order system, stock management, administration, import &export, logistics, transport and all purchasing activity in support of production.

l MA holds an on-site inventory in excess of 30000 lines, which is sufficient to supportthe maintenance of aircraft in work, in addition to support modification programmesand Urgent Operational Requirements. The inventory is currently held in a number oftemperature controlled and bonded facilities, which are co-located with major aircraftengineering maintenance work, and subject to restricted access controls. Thedepartment provides secure storage for equipment up to Security ClassificationRESTRICTED. Equipment categorised above RESTRICTED is controlled by the MASecurity Department and held in MoD approved storage cabinets.

2.2.16 TTrraaiinniinngg DDeeppaarrttmmeenntt MA runs and operates its own Training Centre which consists of aTechnical Training Department alongside an Apprentice and Adult Training Department.The former provides a centre of excellence for aircraft systems training and holds the EASAPart 147 approval. The latter provides various training programmes available across awide age spectrum for people of all ages, from apprenticeships and graduate schemesthrough to adult re-training programmes.

2.2.17 The Technical Training department can provide basic JAR Part 66 modular revision trainingand Part 147 B1/B2 approved courses on amongst others the Airbus A320 series ofaircraft. The department can also provide military courses (all trades) on the LockheedMartin C-130K/J aircraft.

2.2.18 AAeerrooppeeooppllee LLiimmiitteedd Aeropeople is a wholly owned subsidiary of MA which specialises inthe recruitment and supply of contract and permanent personnel to the global aviationindustry. Aeropeople are experts in the selection of the best personnel to assist customersmeet a variety of needs, from major modifications through to AOG situations, by drawingfrom a pool appropriately qualified, authorised and experienced staff. Aeropeople has aworldwide customer base and operates within the bounds of FAR and EASA legislation.

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2.3 MARSHALL AEROSPACE EXPERIENCE

2.3.1 Throughout many decades of aviation experience MA has supported a vast number ofaircraft types. A summary of MA’s experience is provided below, commencing with a currentprogramme of major importance.

2.4 MILITARY PROGRAMMES

2.4.1 AA440000MM EEnnggiinnee FFllyyiinngg TTeesstt BBeedd In December 2004, MA was awarded a contract by AMSLto operate a Flying Test Bed (FTB) to record up to 700 operating parameters associated withthe TP400-D6 engine, as will be fitted to the A400M. To meet this requirement, MApurchased and converted a retired C-130 aircraft from the MoD fleet, which MA hadpreviously converted in 1975 for use as a meteorological research platform.

2.4.2 A TP400-D6 Turboprop engine and FADEC supplied by Europrop International with a Ratier-Figeac propeller is currently being fitted to the FTB. The FTB will be flown by joint MA/AirbusFlight Test crews to examine and record the new engine in-flight characteristics. Based ondata supplied by AMSL, MA Design Engineers were responsible for the technicalspecification for the installation of the engine onto the C-130 test bed. The TP400-D6 isthe largest turboprop engine ever manufactured in the West, and as such posed manytechnical issues which had to be addressed by MA design engineers as part of theirmodification proposal. The high performance of the engine required considerable technicalanalysis to ensure that the final approved modification would be operable on the C-130,meeting all flight safety considerations and yet be fully capable of fulfilling the flight testprogramme required by AMSL. All of these pre-conditions have been successfully achieved.MA, working in association with Airbus engineers in Toulouse and Madrid, is responsible forthe logging of all test data, collation of this information for onward supply to AMSL foranalysis.

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A400M engine installation on flying test bed (Artist Impression)

2.4.3 RRooyyaall AAiirr FFoorrccee TTrriiSSttaarr MA expanded its long association with Lockheed Martin inNovember 1982, when the UK MoD selected the company to implement the conversion ofsix L-1011 TriStar aircraft into multi-role tanker/freighter aircraft for the RAF.

2.4.4 MA was responsible for the complete design, manufacture, installation, fuel systemintegration and certification of the tanker/freighter conversion including all necessaryground and flight trials.

2.4.5 Following the successful conversion of all aircraft to the tanker/freighter role, MA wasappointed the UK Design Authority to support the RAF TriStar fleet, a role that MA continuesto this day.

2.4.6 MA is currently engaged in a programme to upgrade the entire RAF TriStar fleet with anavionic suite that will allow the aircraft to operate in line with the foreseen CNS/ATMrequirements through to the proposed aircraft out of service date of 2015. MA isresponsible for the design, procurement, installation and testing of this package, whichtakes a range of digital avionic suite components and integrates them onto the aircraft inline with the operator’s specifications.

2.4.7 OOvveerrsseeaass AAiirr FFoorrcceess MA has long standing relationships with a number of overseas airforces. In particular, the Swedish Air Force has always contracted MA to carry out depthmaintenance on C-130 aircraft, due to MA’s quality workmanship and ability to deliveraircraft on time and to budget.

2.4.8 MA is contracted to provide varying levels of support to the air forces of Norway, Denmark,Canada and Australia. In Australia, MA supports Qantas Defence Services (QDS), throughthe provision of technical services to the RAAF, at the C-130 MOB, RAAF Richmond. MAhas for many years maintained a team in Australia to carry out this task. The supportprovided to QDS demonstrates MA’s ability to act as a key supplier to a Prime Contractor,in support of a major maintenance and logistics programme.

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2.4.9 Furthermore, MA’s strategic vision is to grow the international dimension of the businessand is pursuing a wide range of opportunities. As part of this strategy, MA has experienceof accepting both direct and semi-direct Offset obligations for export markets and employsa dedicated Offset Manager within its core commercial department to arrange andmanage such arrangements.

2.5 HERCULES INTEGRATED OPERATIONAL SUPPORT

2.5.1 RRooyyaall AAiirr FFoorrccee HHeerrccuulleess CC--113300 On 31st May 2006 MA was awarded the contract for allmaintenance and logistic support of the RAF Hercules C-130K/J fleet. Known as theHercules Integrated Operational Support (HIOS) programme, the contract covers theperiod from 1st June 2006 to the 31st March 2030 and is the RAF’s only truly integratedsupport solution for air transport aircraft.

2.5.2 The HIOS partnership comprises MA as the prime contractor and integrator, in associationwith the Hercules IPT and Forward Support Wing based at RAF Lyneham, and LockheedMartin and Rolls Royce as sub primes.

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Swedish C-130’s in MRO

CC--113300 SSppeecciiaall FFiinniisshh ttoo cceelleebbrraattee tthhee HHIIOOSS CCoonnttrraacctt

2.5.3 These partners work together, to deliver a fully integrated solution for C-130 support, whichis co-ordinated and managed by MA at RAF Lyneham; this encompasses engineeringsupport, technical services, supply chain and stores management. In addition, MA is ableto draw upon significant resources at MA’s Cambridge site, which reduces the time requiredfor technical decisions and the bureaucracy generated through task sharing. HIOS isoutput based and focuses on the delivery of Fit-For-Purpose aircraft to the front line atcontractually agreed levels of availability, together with simulator and spares support. After40 years of supporting the Royal Air Force’s fleet of C-130 aircraft, MA is proud to beinvolved in such a ground-breaking integrated solution. The success of HIOS wasapplauded by the MoD Hercules IPT Leader who said:

“The HIOS contract is at the forefront of the new partnered incentivised availability contractsbeing entered into by the MoD. The past 16 months have been challenging but thepartnership has proven strong, delivering in a time of high operational tempo. I amdelighted that we feel confident enough to move into the incentivised “Availability” phasetwo months early. This is a noteworthy achievement and one that brings significant benefitto the warfighter.”

2.6 SPECIAL PROGRAMMES

2.6.1 RRNNLLAAFF FFlleeeett MMooddeerrnniissaattiioonn.. Current major design and modification work on the C-130Hercules platform undertaken by MA includes the fleet expansion and modernisation forthe Royal Netherlands Air Force (RNLAF).

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2.6.2 This programme involves the recovery of two ex-United States Navy C-130 aircraft, andenhancement to meet modern operational requirements. This includes the installation ofmodern smoke detection systems, night vision capability, self protection system and FlightDeck Recorder and Cockpit Voice Recorder.

2.7 CIVIL PROGRAMMES

2.7.1 AAiirrbbuuss AAiirrccrraafftt Over many years, MA has provided maintenance services for Airbus A320series aircraft. These have ranged from A and C checks for customers such as SingaporeAircraft Leasing, Air 2000, FlyNiki, Transaero and Aer Turas. MA has supported BritishAirways A320s and was contracted by Lufthansa to install a series of aircraft upgrades,including rear spar modifications to their A320 fleet. MA’s ability to work effectively as acivil aircraft MRO is positive proof that it fully understands the need to deliver a product tomeet a customer’s requirements, at an acceptable cost, with all work carried out toschedule and budget.

2.7.2 BBuussiinneessss AAvviiaattiioonn MA operates a Business Aviation MRO service from the CambridgeAirport facility. This business element operates from a dedicated hangar which facilitatesall levels of maintenance, repairs, upgrades and modification on propeller and jet poweredaircraft, primarily focussed on the corporate business market. Business Aviation serves awide range of customers, most notably Netjets Europe, a division of the world’s largestbusiness jet fractional ownership company, for whom a complete MRO capability is

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delivered, in line with the reliable and cost effective service that is vital to a business of thistype.

2.7.3 MA plans for the expansion of this business with a 100% increase in aircraft capacity atCambridge with the construction of new service facility. In addition, this division hasrecently opened a new Business Aviation Centre at Robin Hood Airport in the north ofEngland. This new centre will provide additional MRO capacity for the complete range ofcorporate jets operated by Netjets, including Gulfstream 550 aircraft. Robin Hood Airportis also home to a newly opened Training Centre, which builds on the capabilities alreadyin existence at Cambridge to provide a centre of excellence for the instruction of aircrewand ground technicians.

2.7.4 MA consistently demonstrates the ability to respond to the requirements and demandingtime schedules of Business Aviation customers, its understanding of the competitive marketplace, and the need to deliver a quality product on time at the right price.

2.8 APPROACH TO QUALITY MANAGEMENT

2.8.1 MA’s vast experience in aircraft design, manufacture, and maintenance is underpinned bya well established Quality Management System (QMS), which complies with therequirements of EASA Part 145. The management and personnel of MA are committed toensuring that safety standards, customer satisfaction and adherence to procedures andpractices are upheld at all times. This is achieved through a range of initiatives:

• The implementation of a proactive approach to the identification and management ofrisk, which ensures that the products and services supplied present the lowest practicablerisk of hazard to operators and the environment;

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• Ensuring that the highest possibleflight safety standards in design,products, services, reliability andoperations are maintained and safetyis recognised as a primeconsideration at all times.

• The creation and maintenance of aquality culture and awarenessprogramme, which recognises thatcompliance with procedures andquality standards is the duty of allpersonnel.

2.8.2 In addition to the key elements of the QMS, a commitment to a programme of ContinuousImprovement is actively pursued. The programme identifies methods which continuallymonitor and improve systems and processes to enhance product quality, reduce thepotential for error and reduce costs.

2.8.3 MA holds and maintains a wide ranging set of approvals (copies enclosed) including thefollowing:

2.8.4 In addition, MA has approvals from over twenty national aviation authorities and majoraerospace companies world-wide and has applied to the UK MoD to achieve MAOS MilPart 145 certification

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• EASA Part 145 Approval Reference: UK.145.00031

• EASA Part 21G Production Organisation Reference: UK.21G.2078

• EASA Part 21 J Design Organisation Reference: EASA.21J.181

• EASA Part 147 Training Organisation Reference: UK.147.0022

• FAR Part 145 Approval Reference: N01Y355K

• Airbus UK – Process Approvals Reference: AUK/SA/10088

2.9 SUMMARY

2.9.1 MA has an extensive and proven portfolio of capabilities, capacities and skills. This, alongwith years of providing a high quality service to customers, has allowed it to remain theUK’s leading independent aviation company.

2.9.2 MA offers total aircraft support and commitment to its customer’s world wide. MA is a trulysingle point of contact for aviation Design, Manufacturing, MRO, Test and Logistic Supportlocated in the heart of the UK on its wholly owned airport.

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