Aircraft Maintenance Technology - 25

2018, Magnetic was acquired by Hangxin Aviation
Technology and at the beginning of 2019, Magnetic
acquired a Dutch-based line maintenance company
called Direct Maintenance with several locations
in Europe and East Africa. Also in 2019, Magnetic
opened spare parts trading expansions in Kuala
Lumpur, Malaysia and expanded operations in Vilnius,
Lithuania, as well as establishing a logistics location
in Warsaw.
"All these changes, integrations, expansions, setting
up of new businesses and related processes have been
keeping us busy and our hands full with many positive
challenges," said Kotka.
Like many throughout the aviation industry,
Magnetic MRO is feeling the weight of the COVID19 pandemic.
"Rarely there will be an industry or region that
will be untouched from COVID-19. Several industries, including aviation, were the very first ones to
get impacted and very directly," said Kotka. "Looking
every day at aircrafts standing parked at Tallinn
Airport and listening to the unusual silence of an
airport describes the situation in aviation.
"Luckily our business is quite diversified, we have
more than 15 different business areas and have work

"We don't stop to look back and
enjoy the fruits of our hard work.
We get our thrill from moving
forward and writing our story."
locations and maintenance stations in Europe and
Africa, but also directly and through our owners in
Asia. Many areas are negatively hit already; however,
the main business areas are still running, although
on a lower scale. However, some business areas are
continuing to run on the same level and one even
making all-time records. All in all, in our worst-case
scenario, we are considering almost half less business
revenue than estimated, which means that the year
will be tough and downscaling of business and cost
will be needed at least for this year."
Kotka continued, saying the crisis will show if
Magnetic MROs business model has been "well chosen" and if the company's "heavy work" has paid off,
adding he believes their diversification will act as a
risk mitigation.
"COVID-19 has impacted us immediately," Kotka
continued. "There is work still available in hangars;

however, we see reductions from April through
May onwards and summer looks really soft. Also,
as airlines already sense the need to accumulate
fewer flight hours this season, then we do expect
clear reductions in demand towards year end as
well, although probably more busy than the summer period. This crisis will challenge us and other
companies, and industries, by hitting the work the
same time and in similarly heavy scale, so a really
heavy trial for all."
Once the crisis has passed, though, Kotka said
Magnetic MRO's future plans are simple: "To keep
growing and expanding our business, to keep shaping
the industry with our innovation, to keep offering
our customers the best total technical care service
that they can find on the market, and - most importantly - to keep loving what we do.
"We don't stop to look back and enjoy the fruits
of our hard work. We get our thrill from moving forward and writing our story. All of our engines are
still running. Economic cycles are natural, although
this crisis is special, hitting the world all at the same
time and bring our volumes down and it postpones
our planned growth, hence it will not change our
bigger plan, developments and overall growth plans."
It's the same attitude that has helped Magnetic
MRO from a maintenance department into a global
entity.
"We have built up to our customer base with the
strong and well-known, which has taken more than
10 years of hard work, commitment and reliable service, showing that an Estonian-based company can
keep up and beat the global competition. That's the
biggest thanks and acknowledgement to our efforts
and developments," said Kotka.

Throughout its history,
Magnetic MRO has
remained a peoplefirst company.
MAGNETIC MRO

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Aircraft Maintenance Technology

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