Opening keynotes, MRO Latin America, January 13-14, 2015, Hilton, Buenos Aires, Argentina.

1. How Aerolíneas Argentinas maximizes on their MRO capabilities
to remain successful in Latin America and globally
MRO LATIN AMERICA
January 13-14, 2015
Hilton Buenos Aires, Buenos Aires, Argentina
Eng. Marcelo Ariel González Kiryczun
Manager of Training, Certifications and Qualifications
Aerolíneas Argentinas S.A.

2. 2
Aerolíneas Argentinas presentation

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• Commercial air transport operator (RAAC Part 121 & 135) & its own MRO (RAAC/FAR Part 145)
• Created on December 7th, 1950 through Decree Nbr. 26,099 (Argentine state owned)
• Born from the merger of 4 airlines: Aeroposta, Zonda, Fama & Alfa (May 3rd, 1949)
• Skyteam member since August 29th, 2012
• Current “in service fleet” of 69 aircraft (73 aircraft projected IAW our business plan)
• Own simulators training center (CEFEPRA), 4 full flight simulators: Airbus A330/A340 (1), Boeing 737-
700/-800 (2) and Embraer ERJ 190 (1)
• The business group is made up of 5 companies: Aerolineas, Austral, Aerohandling, JetPaq & Optar
Aerolíneas Argentinas S.A. air carrier & MRO

4. Air carrier curren fleet
Consist of 69 aircrafts, we expect to reach a total of
73 units soon, in accordance with our business plan
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• Airbus A340-200/-300, from 1999 to 2015
International flights fleet
7 units
• Airbus A330-200, from 2013 to 2015
International flights fleet
4 units
• Boeing 737-700/-800, from 2009 to 2015
Domestic & regional flights fleet
36 units
• Embraer E190, from 2010 to 2015
Domestic flights fleet
22 units

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Aviation industry forecast and Argentine MROs

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ICAO “Global & Regional 20-Year Forecast” (Passenger & Freighter)
Source: Global and Regional 20-year Forecast, ICAO Doc 9956
Total of 22,260 in 2010
Total of 40,923 in 2030
Only passenger and
freighter fleets considered

7. 7
ICAO “Global & Regional 20-Year Forecast” (Passenger & Freighter)
GROWTH
Source: Global and Regional 20-year Forecast, ICAO Doc 9956
Passenger & Freighter fleet (2010-2030)
Compound Annual Growth Rate "CAGR"
1,2%
4,0%
4,0%
3,5%
6,3%
3,1%
North America
Latin America
Africa
Europe
Middle East
Asia & Pacific
Passenger & Freighter fleet (2010-2030)
20 years total growth rate
28%
121%
121%
99%
237%
84%
North America
Latin America
Africa
Europe
Middle East
Asia & Pacific
2nd position
annual growth
(CAGR) 2nd position in
global growth

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OEMs Latin America & the Caribbean Forecasts (2014 to 2033)

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Latin America & the Caribbean forecast |(2014 to 2033)
Source: Previous sources average
Annual growth rate average: 4.4%

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• 171 Approved MROs worldwide
• 119 National MROs (Argentine)
• 52 Foreign MROs (5 regions)
Argentine Civil Aviation National Administration approved MROs
Source: www.anac.gov.ar (december 28, 2014)

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Argentine territory ANAC approved MROs
Source: www.anac.gov.ar (december 28, 2014)
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5
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15
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Aerolíneas Argentinas and Austral MROs

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Maintenance Repair & Overhaul organizations
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Aeronautical Repair Shop
ANAC approved (1B-114)
Under RAAC Part 145
Foreign Repair Station
FAA approved (AISY117C)
Under FAR Part 145
Aeronautic Maintenance
Organization for the Defense
Air Force approved (DIGAMC)
Under Military Regulations
Aeronautical Repair Shop
ANAC approved (1C-005)
Under RAAC Part 145
Foreign Repair Station
FAA approved (ASTY739M)
Under FAR Part 145
2 Main Stations (Ezeiza & Aeroparque airport)
1 Main Station (Aeroparque airport)

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Maintenance Repair & Overhaul organization
Our facilities are based on two main stations located at Ezeiza & Aeroparque Airport
Population of 1,600 maintenance people working for the MRO & air carrier
Ezeiza airport station:
• 3 Hangars, 17 component shops, laboratories, warehouses and support offices
• A total surface of 17,173 m2
• 2 hangars dedicated to heavy maintenance (wide & narrow body fleet)
• 1 hangar dedicated for line & minor maintenance (wide & narrow body fleet)
Aeroparque airport station:
• 1 Hangar, warehouses and support offices
• A total of 10,650 m2
• Dedicated for minor and heavy maintenance (narrow body fleet)
Population of 520 maintenance people working for the MRO & air carrier
Aeroparque airport station:
• 3 Hangars, component shops, warehouse and support offices
• A total surface of 10,500 m2
• Dedicated to minor and heavy maintenance (Embrarer ERJ 190 fleet)

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Ezeiza airport station (17,173 m2)

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MRO Component shops & laboratories
• Aircraft structures shop
• Avionics shop
• Chemical / metallographic laboratory
• Composite material shop
• Electric components shop
• Emergency equipment shop
• Engine accessories shop
• Engine repair shop
• Engines parts chemical processing
• Engines shop
• Flight controls shop
• Hydro-Pneumatic components shop
• Landing gear shop
• Metal fabrication shop
• Metrology
• Non-destructive test laboratory
• Oxygen & gaseous systems shop
• Seats / Slides shop
• Seat / miscellaneous shop
• Upholstery shop
• Wheels & brakes shop
We divide our shops into 6 main departments: Avionics, Hydraulics & pneumatics,
Repairs, Electroplating, System components and Engines & accessories

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Aerolíneas Argentinas business plan and MRO strategies

18. In 2009 our management developed a new business plan based on market diagnostics,
aviation industry forecasts & company status
Domestic & regional market diagnostic & Forecasts:
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Aerolíneas Argentinas S.A. Business Plan (2010-2014)
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Growth of Argentine air transport expected demand was based on:
1) Argentina and region expected economic growth
2) The recovery of the global air transport market
3) Total of passengers to be transported in Argentina with an annual increase of CAGR = 9,2%
4) Passengers to be transported by Aerolíneas with an annual increase of CAGR = 10,4%
6,4 7,5 8,1 8,7
9,6
15,1
16,5
18,1
19,7
21,5
0,0
5,0
10,0
15,0
20,0
25,0
2010 2011 2012 2013 2014
MillionsofPassengers
Total of Passengers vs Aerolineas Argentinas Passenger forecast
Aerolineas Argentinas Passengers Total of Passengers
Source: MIDT, Oliver Wyman

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Aerolíneas Argentinas S.A. Business Plan (2010-2014)
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• Our target segment was domestic & regional air traffic market
• Market was described as “competitive and not monopolistic”
• With an estimated total growth of 50% for the next 5 years
• Aerolineas Argentinas main competitors in 2009 were:
LAN, TAM, GOL, Andes, SOL, Pluna, Aerosur and others
• Aerolineas Argentinas market share increment was predicted
from 42% in 2010 to 46% in 2014
• 21.1 million of passengers to be transported in Argentina in
2015
• Latin America & the caribbean air traffic growth was predicted
• Latin America & the caribbean fleet growth was predicted
• Jet fuel price future increments were predicted as well
Source: MIDT, Oliver Wyman

20. Company status at the end of 2009:
• Aerolineas had the 42% of the domestic and regional market share
• In service fleet average age was about 19,4 years old (more than the region average)
• High maintenance & operational costs
• Highly diversified fleet and configurations, at least 7 different fleets
• High percentage of the company fleet was not in service, because of no previous investment
New business plan was based in the following strategic and tactic objectives
Strategic Objectives:
• Grow in our operation
• Achieve efficiency in our costs structure
• Improve our product
Tactic Objectives:
• Reduce fuel and maintenance costs
• Improve aircrafts technical reliability levels
• Reach a bigger number of airports (domestic, regional & international)
• Reduce average age of our fleet
• Increase our commercial competitiveness
• Gain a bigger market share and better strategic position
• Place our brand at a higher level
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Aerolíneas Argentinas S.A. Business Plan (2010-2014)
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Based on business plan, new company mission, vision and values were reformulated
in order to adapt our business to the needs of our country and to the region:
Our mission
“To connect Argentine people and contribute to the country integration and economic
and social development, promoting our national territory as tourist, cultural and
business destination”
Our vision
“To be pride and symbol company of the Argentine Republic, famous for Its efficient
and transparent public management”
Our values
“Dynamics: permanent movement and continuous improvement”
“Commitment: to everyone, inward and outward”
“Closeness: feeling at home, everywhere”
Aerolíneas Argentinas S.A. Group Business Plan Mission & Vision

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In order to remain successful in Latin America and globally, our company adopted the
following strategies:
• Renew our capabilities and approval certificates based on the needs of our air carrier
business plan
• keep previous capabilities and certificates during the fleet renewal process, and
surrender not necessary ones after fleet renovation accomplishment
• Take advantage of some of our previous capabilities, approvals (those from our
previous in service fleet), experience & knowhow in order to develop new business
• Increase our maintenance & training services offer for other customers in the region,
based on the market, air traffic and fleet growth; and our global position
• Increase our customers portfolio through sales promotion
• Generate strategic partnerships with others air carriers, MROs & training organization
• Improve our air carrier and MRO approved training program and maintenance training
offer in order to adapt this to our business plan needs
• Reorganize our organizational structure & personnel
Aerolíneas Argentinas S.A. & Austral MRO strategies

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• Improve our MRO operations, processes and administrative control through the
implementation of a robust system of maintenance, engineering and financial
management
• Implement an aggressive investment plan in order to improve our facilities, tools,
equipment and to achieve new scopes and capabilities, oriented towards the
business growth. We can mention the following:
1) A new hangar for MRO located at Aeroparque airport
2) A new heavy maintenance hangar for MRO located at Ezeiza airport
3) Engines & components shop restoration in order to achieve new scopes and
capabilities
4) A new training & simulators center (CEFEPRA)
5) A new composite shop
6) Wheels and Brakes shop restoration
7) Surface treatment and electroplast shop restoration
8) NDT and inspection shop restoration (specialized equipment)
9) Achievement of Embraer ERJ 190 basic check approval (ANAC & FAA)
10) Achievement of Airbus A330-200/300 line and base maintenance approval (ANAC &
FAA)
11) ETOPS certification approval (ANAC) through an implementation plan
Aerolíneas Argentinas S.A. & Austral MRO strategies

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Fleet renewal plan and process

25. ToFrom
Approval “Part 145” & “Parts 121 & 135”
RAAC - FAR - EASA - DIGAMCE
Business fleet renewal plan
Plan objective was “turn an ancient highly diversified fleet into a more modern, more
consistent one, keeping our MROs capabilities during this process”
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RAAC

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Renewal fleet plan & its process description
The renewal of the fleet is in process and this plan was implemented in order to
increase the number of aircrafts and to achieve standardization
Through out this process, our company has operated & maintained several aircraft
types, keeping their capabilities including engines, APUs & components
As part of our strategies we took advance of our previous capabilities in order to offer
maintenance and training services to other carriers in the region

27. 27272010 2011 2012 2013 2014
3 certificates 3 certificates 3 certificates 3 certificates
Business fleet renewal plan and process (in service fleet)
How we kept certificates & A/C types capabilities during fleet renewal process
3 certificates
7 types (53 units) 6 types (57 units) 6 types (57 units) 5 types (66 units) 7 types (69 units)
ANAC
FAA
EASA DIGAMC
ANAC
FAA
EASA
ANAC
FAA
EASA
ANAC
FAA
EASA
ANAC
FAA
Our customers
Tame, BoA &
Presidence

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Take advantage of some of our previous capabilities
We maximized our maintenance & training services offer during fleet renewal &
incorporation process for the following:
• Aircraft types: Airbus, Boeing, Embraer & Mc Donnell Douglas models
• Engines types: General Electric, Pratt & Whitney & CFM International models
• APUs: Honeywell, Pratt & Whitney Canada & Hamilton Sundstrand
• Our aircrafts fleet components: pneumatics, hydraulics, mechanics, electrics & avionics

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Current MROs operations specifications and capabilities
Rating Manufacturer Make/Model Limitation Agency MRO
Airframe Boeing B737‐200 Line & Base Maintenance FAA, ANAC AR
Boeing B737‐500 Line & Base Maintenance FAA, ANAC,
DIGAMC
AR
Boeing B737‐700/800 Line & Base Maintenance FAA, ANAC AR
Mc Donell Douglas MD‐80 Series Line & Base Maintenance FAA, ANAC AR
Airbus A340‐200/300 Line & Base Maintenance FAA, ANAC AR
Airbus A330‐200/300 Line & Base Maintenance ANAC AR
Airbus A318/A319/A320 Line Maintenance ANAC AR
Embraer ERJ‐190 Line & Base (Basic Check) FAA, ANAC AU
Power Plant Pratt & Whitney JT8D‐7 thru ‐17R Overhaul level 3 FAA, ANAC AR
Pratt & Whitney JT8D‐200 Series Overhaul level 3 FAA, ANAC AR
General Electric CF34‐10E Line Maintenance FAA, ANAC AU
CFM International CFM56‐3 Specialized techniques &
Modules Maintenance
FAA, ANAC AR
CFM International CFM56‐7B Specialized techniques FAA, ANAC AR
Modules Install & Removal ANAC AR
CFM International CFM56‐5C Specialized techniques FAA AR
Modules Install & Removal FAA, ANAC AR
APU Allied Signal GTCP85 Up to overhaul ANAC AR
Honeywell 131‐9 Limited Maintenance ANAC AR
Honeywell 331‐350 Limited Maintenance ANAC AR
Hamilton Sundstrand APS 2300 Limited Maintenance ANAC AU
NDT Magnetic Particle FAA, ANAC AR
Eddy Current FAA, ANAC AR
Radiographic FAA, ANAC AR
Liquid Particle FAA, ANAC AR
Ultrasonic FAA, ANAC AR
Instruments Capability List AR & AU FAA, ANAC AR, AU
Altimeter Testing Capability List AR & AU FAA, ANAC AR, AU
Radio Capability List AR & AU FAA, ANAC AR, AU
Transponder Testing Capability List AR & AU FAA, ANAC AR, AU
Accesories Capability List AR & AU FAA, ANAC AR, AU
Landing Gear Capability List AR FAA, ANAC AR
Emargency Equipment Capability List AR FAA, ANAC AR
Capability List AU ANAC AU
Specialized Aerospace Welding ANAC AR
services Cylinder requalification facility US DOT &
ANAC
AR

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MRO heavy maintenance activity
Fleet heavy maintenance activity during last 5 years for: heavy checks, main repairs
and new aircrafts fleet incorporation maintenance works
• C: heavy maintenance checks (AR narrow & wide body fleet)
• C1, C2: basic check 1 or basic check 2 (AU Embraer 190 fleet)
• R: main repairs (AR narrow & wide body fleet)
• E: maintenance works for new aircrafts incorporation (all fleet)

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MRO processed components
Components check, repair and overhaul during 2010 to 2013 period per every shop
main department:
• Aircraft structures shop
• Avionics shop
• Chemical / metallographic laboratory
• Composite material shop
• Electric components shop
• Emergency equipment shop
• Engine accessories shop
• Engine repair shop
• Engines parts chemical processing
• Engines shop
• Flight controls shop
• Hydro-Pneumatic components shop
• Landing gear shop
• Metal fabrication shop
• Metrology
• Non-destructive test laboratory
• Oxygen & gaseous systems shop
• Seats / Slides shop
• Seat / miscellaneous shop
• Upholstery shop
• Wheels & brakes shop

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MRO approved training program courses
New Airbus A330
certification
Airbus A340 to
Airbus A330
differences
courses
Less training hours needed because of fleet standardization (renewal plan)

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Airbus A330 training program strategic plan
ESTACION PAIS FLOTA 1RA 2DA 1RA 2DA 1RA 2DA 1RA 2DA 1RA 2DA 1RA 2DA 1RA 2DA 1RA 2DA 1RA 2DA 1RA 2DA 1RA 2DA 1RA 2DA
INSTRUCTORES (CTyH) ARGENTINA A330 (PW/GE)
BASE (EZE) ARGENTINA A330 (PW)
BASE (EZE) ARGENTINA A330 (GE)
SAN PABLO (GRU) BRASIL A330 (PW) 6
LIMA (LIM) PERU A330 (PW) 1
STA CRUZ SIERRA (SRZ) BOLIVIA A330 (PW) 1
USHUAIA (USH) ARGENTINA A330 (PW) 2
RIO DE JANEIRO (GIG) BRASIL A330 (PW) 3
CARACAS (CCS) VENEZUELA A330 (PW) 3
MIAMI (MIA) EEUU A330 (PW) 7
BOGOTA (BOG) COLOMBIA A330 (PW) 5
IGUAZU (IGR) ARGENTINA A330 (PW) 2 1
RIO GALLEGOS (RGL) ARGENTINA A330 (PW) 1 2
CORDOBA (COR) ARGENTINA A330 (PW) 1 1 1
BARILOCHE (BRC) ARGENTINA A330 (PW) 1 1
SANTIAGO (SCL) CHILE A330 (PW) 2 2
MONTEVIDEO (MVD) URUGUAY A330 (PW) 2
EL CALAFATE (FTE) ARGENTINA A330 (PW) 1
CANCUN (CUN) ARGENTINA A330 (PW) 3
NUEVA YORK (JFK) EEUU A330 (PW/GE) 6
DICMES-QUINCENA ENE
9 (2 cursos)
AGO SEP OCT NOVFEB MAR ABR
147 (7 Cursos)
286 (14 Cursos)
MAY JUN JUL
1 2
1
2
We established two main objectives and their time frame goal:
Domestic/Regional operation: Base + GRU, LIM, SRZ, USH, GIG (before August 2013)
Regional/International operation: To fly from Buenos Aires to New York in december 15th, 2013

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New MRO maintenance, engineering and financial control software
In order to improve our MRO management & financial control system, we adopted
AMOS and SAP systems:
AMOS System:
• Powerful integrated software that permits to carry out maintenance, engineering &
logistics processes
• This system will let us improve our MRO operations and processes control
• At present we are in the implementation phase (next 8 months)
SAP System:
• We implemented Enterprise Resource Planning “ERP” system for MRO & air carrier
• It will improve our administrative and financial control & operations
• 22 month were needed in order to implement the system
• 150 people were involved in this project
• This implementation was part of Aeroíneas Argentinas investment program directed
to company software renewal plan (11 million dollars of investment)

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MRO maintenance services for other customers
During past 5 years period, we provided maintenance & training services to several
air carriers and MROs of the region:
Our offer is based on:
• Our global strategic location (South America)
• Availability of our facilities for operators (hangars at both Buenos Aires main airports)
• Previous achieved capabilities (IAW fleet renewal plan)
• Air carriers of the region needs
• Our certificates and approvals
• Our Maintenance Training Center & qualified instructors
• Our maintenance personnel experience and knowhow
• Our simulator training center (4 full flight simulators)
• Our partnerships and commercial alliances (present and futures)

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At present our company is going through an aggressive investment process,
oriented towards the business growth and market opportunities in our
country and region

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New hangar for MRO located at Aeroparque station
A new hangar and shops were built in Aeroparque station in order to support and
maintain Embraer 190 fleet (22 airplanes) and offer third party maintenance services
• Built and restored in 2011 year
• More than 1.16 million dollars of investment
• 2200 m2 of total surface
• 44 meters length and 50 meters wide
• Wheels & brakes shop
• Oxygen & gaseous systems shop
• Main & emergency batteries shop
• Composite materials shop
• Cleaning area

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Embraer 190 Basic Checks approval
As part of capabilities maximization we achieved “E190 Basic Checks” certification
Investment:
• 2.5 million dollars invested for specialized tools & equipment
• 1.8 million dollars invested for assumed spares and aeronautics materials
• 54 thousand dollars for in order to improve and adapt facilities
• 2,100 training hours & 200 maintenance professionals involved in the process
Expected Profits:
•100 thousand dollars of economic saving for each in company Basic Check
• First Embraer 190 Basic Check: February 2013
• Maintenance services are offered to other air carriers of the region and the world

39. In order to increase our scope, capability and maintenance services offer; we have started
the construction of a new hangar at our Ezeiza airport MRO station
• Under construction since May 13th, 2014
• To be finished in no more than 18 months (before August 2015)
• Whole investment of more than 50 million dollars
• 20,000 m2 of total surface
• Designed with room enough to easily accommodate one Airbus A380 aircraft
• 6,000 m2 destined for an robotic automated warehouse
• Conditioned air heating system designed to minimize environmental impact
• Five tons capacity cranes, support shops and tooling,
• Technical library and Maintenance records warehouse
• Dining room, offices and meeting rooms
• New training classrooms
3939
New heavy maintenance hangar in building process (New hangar 5)

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New heavy maintenance hangar in building process (New hangar 5)

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It easily accommodates one Airbus A380 aircraft (New hangar 5)

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Robotic automated warehouse (New hangar 5)

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New training classrooms (New hangar 5)

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Engine shop restoration
• Engine shop restoration in process
• 2.2 million dollars of investment
• Consisting of shop refurbishment, tools &
specialized equipment incorporation
• 5 bays for engine maintenance
• To extend scope for our engines and
APUs maintenance capability
• Maintenance services offered
• In strategic partnership with other MROs
P&W JT8D-200 Series
P&W JT8D Old series
MD-80 & Boeing 737-200
CFMI CFM56-3
Boeing 737-300/400/500
CFMI CFM56-7B
Boeing 737-700/800
CFMI CFM56-5C
Airbus A340-200/300
In order to increase our scope, capability and maintenance services offer
We have started our engine shop restoration:
GE CF34
Embraer ERJ 190

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Non destructive test, surface treatments, composite & wheels/Brakes shops
Looking forward in our investment plan & MRO capabilities maximization process we
restored following shops:
• MRO Ezeiza airport station
• 2.7 million dollars of investment
• In order to process our fleet parts &
increase our scope and capabilities
• Implementation of new equipment for
Electroplate processes
• New NDT Inspection tools & equipment
• Stands, benches, cranes, offices &
environmental system
• Composite clear room & equipment

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Questions?

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Eng. Marcelo Ariel González kiryczun
Manager of Training, Certifications & Qualifications
Aerolíneas Argentinas S.A.
(54-11) 4480-5146/5012
mgonzaki@aerolineas.com.ar
www.aerolineas.com.ar