Aircraft Operational Costs
Benefits
Effective management of Aircraft Operational costs can:
- Reduce Operational Cost
- Reduce labour cost by developing efficiencies in working practices
- Reduce waste through a climate of cost awareness
Aim
The direct maintenance costs associated with aircraft are typically a high proportion of the overall expense of operation. Focus on cost management and reduction is therefore essential to ongoing profitability. The costs can comprise of the following;
- Part exchange programs
- Engine care and maintenance plans
- Component repair and overhaul
- Rotable, consumable and tooling purchase
- In-house and outsourced maintenance
- Major modifications
- Regulatory charges
- Management of continued airworthiness
- Maintenance reserves
Tasks
- Evaluate the content of spares agreements and the development of procedures
- Review of engine maintenance plans and the criteria required for entry and compliance
- Negotiation of Vendor contracts that deliver quality and best value -repair, overhaul or purchases
- Examination of the maintenance costs associated with Base and Line maintenance activities
- Establishment of a review process for modifications and service bulletins that examines applicability, reliability and cost benefit
- Identification of fees applicable to regulatory issues
- Understanding the costs apportioned to the management of continued airworthiness including the use of any software systems
- Provisioning for the cost of major maintenance visits and component repair/overhaul
- Production of accurate budgets that cover all maintenance related activities including a review process
Vector Experience
The team at Vector have been responsible for the production, development and control of a maintenance budget totalling £4.5 M. Year on year budget targets have been met resulting in growing profitability. Individual budgets for purchasing and introducing 25 aircraft into service have also been produced with actual costs achieved, being below budget with on time delivery.
