Explain how can airline maintenance organisation contribute in cost saving

 

World economic situation as set a tough environment to many organizations around the world. Aviation is one of those impacted market by the global economic crises. Those crises have enforced taking extreme measures budget control and management. With the current airline approach towards restructuring and saving costs, technical organization can play a vital in costs reduction. According to  Statistics, maintenance costs takes a large proportion out of the operation costs by operators. Technical (maintenance and engineering) organization costs play a vital rule in any of nowadays airlines budget.

This research paper proposal looks into how can technical department (in my current airline and similar middle east airlines) help to generate extra value to the airline.

The main areas of research will discuss the many different solutions may the engineering and maintenance organization utilize to aid the airline to reduce costs.

This project is derived from my current exposure to airline technical field by working as a Development Engineer in Oman Air. This project is not aimed to be a technical informational research paper; however, it represents the interface section between the technical and other airline departments. As ATM student, I will utilize my study area to shape my technical understanding into the cost and finance, sales, marketing point of view. Focusing towards cost control, Oman air decided to split the airline into different profitable units which includes; Maintenance and Repair Organization (MRO), Cargo handling company, Ground handling company in addition to the core airline.

Project conclusion aimed:

With high trend towards splitting the airline into individual business units and individual technical unit ex.MRO. Is moving towards having an individual MRO is more beneficial to the airline putting in mind the value do the technical team adds to airline.

The area of study will take place in Oman Air and Similar sized fleet in middle east.

Proposed Chapters:

 

 

Chapter One: Introduction

Chapter Two: Lean and efficient operations.

Chapter Three:  Fuel saving programs

  • APU fuel saving.
  • Taxi fuel saving.

Chapter Four: ETOPS Operations

Chapter Five: PMA Parts

Chapter Six: MRO, Third Party Business

Chapter Seven: Workshop Capability Business

Chapter Eight: Technical Advisory

Chapter Nine: Fleet Optimization Program.

Chapter Ten: Summary & Conclusion.

 

 

 

 

 

 

Project Discussion and Conclusion ideas

 

Chapter One: Introduction

A general introduction to the research discussing main ideas.

Chapter Two: Lean and efficient operations.

This chapter will study the how the system works in the maintenance organization. In this chapter I will discuss the administrative and operation procedures inside the organization that will help the organization to be lean and efficient.

Objective 1: what does the efficient system looks like?

Chapter Three:  Fuel saving programs

  • APU fuel saving.
  • Taxi fuel saving.

This chapter gives statistics of fuel saving program in terms of annual expenditures on fuel usage and how can the program propose annual savings.

Chapter Four: ETOPS Operations

This brief discussion on how ETOPS can also save fuel costs, however, establishing and maintaining ETOPS can incur high costs. This chapter will discuss in what cases will ETOPS help in cost saving or not.

Objective 2: I would like to provide statistics on how can those two programs be beneficial to Oman Air or any other airline.

 

Chapter Five: PMA Parts

A very technical topic will be discussed in terms of cost statistics and how can PMA parts save 30% on spare part costs.

Objective 3: looking into different factors like lease agreements, contracts and current regulations are PMA parts feasible to Oman Air?

 

 

Chapter Six: MRO, Third Party Business.

Being profitable as an organization is by covering the outstations costs by establishing third party business, or providing services to others as an MRO.

 

Chapter Seven: Workshop Capability Business

Enhancing the technical capability will reduce contracting costs, how can it be done?

Objective 4: how can technical team be a profit generating unit?

Chapter Eight: Technical Advisory.

I am intending to discuss the importance of Technical advisory to the higher management in terms of fleer purchase, components modifications and product development. When the technical perspective disagrees with the marketing perspective how can the technical advice shape the strategy of business development of airline?

A new CEO want new flat beds getting rid of the existing seats to target new type of customer, is that decision is feasible in terms of already purchased parts?

 

Chapter Nine: Fleet Optimization Program.

Marketing and sales team requires high range fleet from narrow to wide body, Flight Ops would prefer Boeing over Airbus, Board Members and politics has different point of view. How can the technical team give the proper advice in terms of the proper fleet to serve the airline? . This chapter will discuss briefly the costs of uneven fleet.

Objective 5: Can the organization survive without having specialized technical team?

 

Chapter Ten: Summary & Conclusion.

 


 

 

Referencing:

 

Since the topic is quit broad and has many discussion points, I am planning to use following references as source of information ;

  1. Articles from flightglobal.com
  2. Articles from iata.com
  3. ICOW annexes
  4. FAA regulations
  5. Aviation Maintenance Management Book by Harry Kinnison ISBN-13: 978-0071805025

 

In addition, all the other articles and books which might be found applicable to the discussion ideas.

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