Pentagon Begins Rollout for F-35 Logistics System Hated by Maintainers

Last month U.S. Marine Corps Air Station Yuma in Arizona became the first unit to receive parts of a new logistics system that will replace the bugged system in the next two years.

The F-35B squadron received the initial round of hardware to operate the Operational Data Integrated Network (ODIN), which is set to replace Lockheed Martin's troubled Autonomic Logistics Information System (ALIS)  according to the F-35 Joint Program Office.

F-35 Demo Team pilot prepares for takeoff at Hill Air Force Base, Utah.

By December 2022, all F-35 units will have both the new hardware and accompanying software for ODIN, which will allow them to track and order spare parts, conduct repairs, support mission planning and training, store technical data, and perform other functions previously conducted by ALIS.

ALIS was “designed to bring efficiency to maintenance and flight operations, but it does not yet perform as intended,” wrote Director of Operational Test and Evaluation Robert Behler in January 2019.

The system is notoriously hated by maintainers for impeding their ability to keep the joint strike fighters mission-ready with data gaps and bugs that persisted even after years of updates and improvements. It's technology is outdated and slow by current standards as it was developed at the same time as the F-35 aircraft in the early 2000s. 

These problems have caused the military to ground aircraft that are erroneously described by ALIS as not mission capable, slowed down a squadron’s ability to start flying after being deployed, and created a bigger workload for maintainers.

To their relief, the F-35 Joint Program Office reported the new ODIN hardware is demonstrating performance gains. Tests have shown an improvement in the speed of the ALIS software due to the new hardware, with processing times taking roughly half the time it took the legacy hardware.

Maintainers in the Marine Fighter Attack Squadron 211 or 122 conducted five test flights on Sept. 29-30 and are set to conduct more.

In addition to functional advantages, the new system hardware is much smaller than the previous servers supporting ALIS, which can weigh more than 800 pounds.

The ODIN hardware includes only “two transportable cases roughly the size of two pieces of carry-on luggage,” each weighing less than 70 pounds, according to the program office release.

The system is being designed to decrease maintainer workload and increase mission capability rates, according to the program office release.

“The biggest different between ALIS and ODIN is that … the government is leading the ODIN development effort, leveraging the capabilities and the contributions of organizations like Kessel Run, Lockheed Martin, the 309th [Software Engineering Group] out at Hill [Air Force Base in Utah] and others, bringing them together to deliver the apps and the infrastructure and the underlying data architecture that’s required to execute the program,” Lt. Gen. Eric Fick, the government’s program executive officer for the F-35, said in March.

One by one, other squadrons will receive the new ODIN hardware and with a new cloud-native system with applications that can be regularly updated based on user feedback, this system should truly benefit more maintainers than before.

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Engine Manufacturers, MROs see fall in demand amid global pandemic

By now we're all pretty familiar with the challenges airlines are facing amid the COIVD-19 pandemic, and as the lull in airline travel continues, related industries are struggling to find other avenues to recuperate revenue, weaknesses in their business models are coming to light.

Engine maintenance providers - both manufacturers and third-party MROs - have seen a sharp fall in demand for as airlines reduce their activity amid the pandemic, which as exposing a weakness in the industry's overall business strategy.

Maintenance is a key revenue source for manufacturers. Engines are usually sold with substantial discounts through aircraft deals, and they depend on aftermarket services - like overhauls and engine maintenance - to recover the development and production costs.

Long-term, flight-hour-based service agreements are usually arranged with flat-rate fees to manufacturers for engine support, whether action is required or not. In return, the manufacturers support the financial risk in the case of an engine failure. When a failure occurs, the OEM must provide a spare, get the aircraft back in the air, and repair the engine.

As more airliners are parking their aircraft amid the pandemic, engine makers’ aftermarket business has also stopped short.

Cirium data shows daily flight-hours were down 51% for narrow-bodied aircraft and 71% for widebodies on September 30 compared to the year before.

For the flights they do operate, airlines are using their latest, most fuel-efficient aircraft to save money. Most of these aircraft engines are covered inder long-term service agreements with OEMs, so shop visits have dropped.

Cirium reports that work volume at a major European engine overhaul facility has shrunk by 75 percent, and another third-party overhaul shop lost virtually all its scheduled appointments within weeks. 

MROs similarly depend on engine overhauls, as they rank among the most profitable services in that business sector.

Roland Gerhards, chief executive of German aviation research centre ZAL, said the competitive MRO environment will “definitely change”, partly because low aircraft utilisation has put manufacturers and their hour-based service agreements in a “weak” position.

“The engine manufacturers really stand with their back against the wall and are in a bad negotiating position,” Gerhards says.

OEMs are keen on renegotiating the service agreements that mainly work in airlines' favor, based on the hours actually flown. The airlines however, since they are struggling to survive with less flights and fewer flight hours, are in no position to pay higher maintenance fees.

This was made increasingly clear by Rolls-Royce's announcement on October 1 to raise £3 billion ($34.9 billion) of capital through new shares and a bond offering. However, it will not make a fundamental review of its hour-based aftermarket services.

Rolls-Royce told Cirium: “We continue to believe in the benefits our TotalCare agreements offer our customers and we have no plans to change the shape of our service contracts. Rolls-Royce has pioneered long-term service agreements under the power-by-the-hour model in civil aerospace since the late 1990s and it remains very popular today – around 90% of our customers have chosen TotalCare coverage on new to mid-life engine programmes.”

The UK-based manufacturer said on October 1 that it was “re-phasing” investment in its UltraFan future engine program – which involves a geared-fan architecture and new materials. 

Many manufacturers need  investments to develop new technology for future aircraft generations, and with this drop in crucial aftermarket revenue, the timeline for full- or hybrid-electric or hydrogen-fueled power systems has been lengthened.

For now, MROs can count on a significant change in industry business practice.