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AvecoTEC puts 21st century commercial airline maintenance practices into plain view for all to see.  As the aviation industry faces intense challenges from economic, environmental, and regulatory forces, it's critical that safety continues to be the focal point of this profession.

AvecoTEC stresses the requirement of transparency in maintenance organizations in the U.S. and abroad in an effort to cultivate an effective, efficient and compliant industry.

Outsourcing vs. In House Maintenance

Click the graph below to enlarge

As a forerunner in global expansion, the commercial aviation industry has for decades operated in every corner of the world.  The resulting environment has evolved into a state where companies that operate aircraft to transport passengers and cargo have routinely relied on bi-lateral agreements to secure overseas support for normal everyday aircraft maintenance tasks.  This has afforded operators the ability to leverage the expertise of technical and engineering resources across a large spectrum of operators, OEMs (original equipment manufacturers) and MRO (maintenance repair and overhaul) organizations.  The net effect will continue to be the case far into the future, because a single operator cannot be at all places at all times; it's not practical or economical.  Airlines will continue to outsource to a larger scale. 

That said, it's apparent by studying the chart above that "line maintenance" is the area where outsourcing is least expected to grow.  I'll mention a term here that we will cover in more detail later, but remember MAGSA - Mutual Assistance Ground Service Agreement.  The MAGSA rate list is published by IATA and reflects  the rates which airlines charge one another for services rendered, including ground handling and maintenance services.  These agreements are handled by a standard cookie cutter agreement called the SGHA (Standard Ground Handling Agreement).  The SGHA includes the "Main Agreement", "Annex A" and "Annex B".  AHM 810 is the IATA Standard Ground Handling Agreement.  The IATA SGHA contracts have a very specific filing and numbering system by which they are kept up to date.  SGHA's can typically be cancelled by a 30 day notification letter to the providing supplier at which time the services and payments will cease.  IATA SGHA AHM 810 is updated every 5 years by the IATA organization.  For more information or to get a copy of the actual standard agreements please visit www.iata.org.  There is also a training manual that instructs on the usage of the IATA agreements available from the IATA website.

Only 10 - 15% of line maintenance is outsourced because:

  • LMS is seen as critical to on-time departures, therefore it's considered part of the core business
  • Affordability and availability of suppliers and vendors at airports is difficult to find
  • In many cases, the supplier would tap the same labor pool, which depreciates the value of using a supplier

Maintenance Sectors by MRO Annual Spend

Click the graph below to enlarge

The chart at left demonstrates the overall MRO spend each year on airline commercial maintenance.  This is the spend on approximately 19,000 commercial airliners comprised of Airbus, Boeing, Bombardier, Embraer and a few small others.

The chart does not include general aviation, military or business jets that are in service for private purposes.

North America and Europe maintain 66% of the commercial fleet with Asia operating 20% of these 19,000 aircraft.

As you can see from the pie chart above, the various major sectors of aircraft maintenance are broken down into:

  • Engines
  • Line maintenance
  • Components
  • Airframe
  • Modifications

 

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