High aircraft utilization targets that are built into networks and schedules require the support of effective maintenance.
• Indian airlines need to work strategically with third party Indian maintenance, repair and overhaul to ensure availability of mature maintenance capacity in the country to deliver cost and efficiency benefits
A crucial link between the timely performance of airlines and the required maintenance support of aircraft is missing, aviation consulting firm CAPA India said in a recent webinar on airline maintenance and engineering.
"High aircraft utilization targets that are built into networks and schedules require the support of effective maintenance. If not managed well schedule integrity can be affected," CAPA India has said.
CAPA India said Indian airlines need to work strategically with third-party Indian Maintenance, Repair and Overhaul (MROs) to ensure availability of "mature" maintenance capacity to deliver cost and efficiency benefits in the country .
“Airlines should carefully compare OEM maintenance contracts with independent contracts. Independent contracts provide flexibility and competitiveness.'
"The CFO needs to bring a financial lens to complement the technical perspective - to ensure that asset values are safe and costs are minimized," said CAPA India.
Procurement of maintenance requires specialist skills as it can save maintenance cost by 2-3% and allows airlines not to overlook maintenance planning with respect to people, resources, infrastructure, regulation, compliance, inventory levels and warranties Should do
Since the 1990s, Indian carriers have experienced a significant negative impact due to poor maintenance practices, to the extent of contributing to airline failures, CAPA said, making the true cost of maintenance one of the highest cost items for Indian carriers. which ranges from 10-20% of the total cost, with the median 15%. True cost includes provision for amortization on lease returns, maintenance stores, stores and spares, bulk checks.
The airline may also incur significant costs related to passenger compensation and re-accommodation if a flight is delayed due to technical issues and cancellations can be avoided. Not to mention the negative impact on customer experience and reputation.
During FY16-FY20, the three largest Indian MROs, AIESL, AirWorks and GMRAeroTechnic, nearly doubled their revenues, but accounted for only about 16% of the total maintenance expenses outsourced by Indian carriers. Most of the business still went to foreign MROs.
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