A paper examining the development and growth in the demand for third party maintenance in the airline industry.
Written in 2009; 1,820 words; 10 sources; APA; $ 58.95
Paper Summary:
This paper contends that the demand for third party maintenance within the airline industry is accelerating given the rapidly increasing cost of airliners, cost of fuel and the increasingly complex and costly regulatory environment. The paper also states that these factors are making maintenance, repair and overhaul (MRO) the central focus on third party maintenance in the airline industry globally. In this paper, the author examines the factors leading to the rise in third party maintenance, criteria for choosing maintenance providers and the framework for evaluating MRO strategies. The paper contains a diagram and a tabe.
Outline:
Introduction
Significant Change in Progress in MRO Providers' Business Models
Considerations and Benchmarks for Selecting Maintenance Providers
Framework for Evaluating MRO Strategies
Summary
From the Paper:
"The use of Service Level Agreements (SLAs) to assure airline operators that their MRO measures of performance are attained, in conjunction with the development of dashboards and scorecards that can provide real-time access to data typify the highest performing airline operators. Contracts are typically thirty six months in duration and all have a specific clause that defines the minimum level of performance by each specific key performance indicator or metric. Airline operators are also increasingly relying on MRO services to increase their potential revenue streams, as Lufthansa is doing for example with Boeing engines. The transition of MRO providers into taking on more third party programs including Asset Management, surpassing their traditional role as components fix-and-replace service companies is now in full force. The many cost factors that are forcing airline operators to focus on MRO partnerships at a more fundamental and strategic level is completely re-ordering the relationship of airline operators, service providers, and components contractors. As the costs associated with operating an airline increase so will the reliance continue on MRO as a strategic alternative."
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