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Aircraft Maintenance Management Module Aircraft Maintenance Introduction

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General definition
 Maintenance cost is broadly defined as the sum of

incurred labour, material costs and various overheads otherwise known as indirect maintenance costs. The labour is normally a process time controlled and productivity related where certain tools such as lean processes or “Six sigma” can be employed to enhance productivity and consequently improve consumed labour.  The material element is dependant on negotiated supplier’s contracts and products reliability programs.
12/30/2013 Aircraft Maintenance Module 2

1. Aircraft Maintenance Cost Philosophies & Economics
 The maintenance costs represent 10-20% of the

worldwide airlines direct operating costs. These costs are growing in view of introduction of new more

expensive

material,

highly

sophisticated

repair

schemes especially those associated with structural parts and core Engine parts, and increasing labour costs.
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Airlines influence costs of its operations and maintenance support practices. similarly component Manufactures reliability. 12/30/2013 Aircraft Maintenance Module 4 influence product support and . Environment and Age. Boeing suggests that there are many other influencing factors to the maintenance costs such as Aircraft utilisation. Furthermore.

The controllable cost element is further split into contractual and non contractual costs. 12/30/2013 Aircraft Maintenance Module 5 . The contractual cost elements are either outsourced or accomplished In-house depending on potential benefits or savings in the short or long runs. The Airlines overall maintenance costs are categorised as Controllable and Non Controllable Costs.

 Thus it is of extreme importance to understand all elements of airlines maintenance costs and contain such costs where practicable through introduction of processes and manpower improvements. 12/30/2013 Aircraft Maintenance Module 6 . enhanced training and optimisation of maintenance interval requirement for both ON/OFF aircraft maintenance in liaison with the OEMs.

12/30/2013 Aircraft Maintenance Module 7 . The Airline industry currently under tremendous pressure in light of the current downturn reducing demand especially on premium cabin. hence the competition which resulted in fares reduction and subsequently low yields than breakeven costs.

Direct Maintenance comprises the following.Airframe. Material and Outside repair Where. Maintenance Costs (Direct /Indirect) Breakdown  The Maintenance costs are the sums of total costs pertain to Direct and Indirect Maintenance. by Cost segment:  . And by cost element: Labour. Engines and component maintenance.2. Per IATA. Indirect Maintenance includes the Overheads costs. 12/30/2013 Aircraft Maintenance Module 8 .

inspection. the direct airframe and Engine maintenance which consist of the labour and material required to perform service.Direct Maintenance Cost is. test. Boeing elaborates on these definitions further as follows: . 12/30/2013 Aircraft Maintenance Module 9 . restoration. and troubleshooting tasks during on-airplane and shop maintenance activities. modification. repair.

maintenance training. Maintenance Overhead consists of maintenance supervision. unallocated labour costs. 12/30/2013 Aircraft Maintenance Module 10 . maintenance planning. rentals and Utilities.

The breakdown of these costs is:  2.1 Direct maintenance costs  2.2 Indirect maintenance costs 12/30/2013 Aircraft Maintenance Module 11 . We have to understand the elements that comprise the Direct Maintenance Cost (DMC) and Indirect Maintenance Cost (IMC).

fittings and minor structural parts.1 ON aircraft maintenance  This type of maintenance is normally carried out during the scheduled aircraft checks as defined by the Manufacturer’s MPD documents where an extensive part of Labour Man-hours is expended as compared to materials consumed such as filters.2. oil. 12/30/2013 Aircraft Maintenance Module 12 . greases.1.

 Additionally. 12/30/2013 Aircraft Maintenance Module 13 . minor airframe corrections and components removals which are due for routine maintenance. IATA as shown in Figure (1) below refer to this maintenance category as 1st Level Maintenance costs segments that include Airframe and Engines Labour. inspection. materials and subcontracted work. allotted portion of check time is dedicated to tests.

.routine .modifications .ETT .1. Material .MTBUR .Repair Cost .Cost .. Maintenance Cost Breakdown 1.MSN ..cabin .Material .Quantity ..Quantity .Labor .Material . 7 Maintenance Cost Task Force 2009 12/30/2013 Aircraft Maintenance Module 14 ..Subcontracted .Repair Cost .Labor .Labor .. Per Remove .. Detailed listing .Direct Maintenance Cost Airframe / Engine Component / Overview On Aircraft Off Aircraft .Subcontracted 1st Level : Total Cost during period 2nd Level : Cost per Maintenance Event Labor (MH) .non routine .Subcontracted .Material .P/N .P/N ..

Cranfield University . Confidential and proprietary document.A. Disposal cost Indirect operating cost Passenger services Marketing and sales Indirect maintenance cost Other Direct maintenance cost Landing & Navigation fees Fuel and oil Cash operating cost Aircraft Maintenance Costs .Guest Lecture .Aircraft Maintenance Costs in Perspective Life cycle cost Total operating cost Direct operating cost Financial Insurance Crew © AIRBUS S. All rights reserved.CSMAM . D09005085 Issue 1 12/30/2013 Aircraft Maintenance Module 15 .March 2009 .Ref.S.

2.  The above two categories are generally split as per below percentages. testing and modifications. material.1.2 OFF Aircraft Maintenance  This is normally carried out away from aircraft on Engines and components in either In house or outsourced overhaul shops as these costs comprise expended labour. 12/30/2013 Aircraft Maintenance Module 16 .

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Also aircraft Log books will be reviewed to clear or defer all recorded snags. Aircraft Transit checks. The ON aircraft Maintenance checks are further summarised as follows: 1.this is a normal minor check that occurs every flight where walk around is conducted by the Engineers to detect any obvious damage and/or discrepancy which my obstruct aircraft despatch or serviceability for further flights. 12/30/2013 Aircraft Maintenance Module 18 .

This check is a little more extensive hours are expended in general visual inspections and overall Aircraft condition. Minor modification (Engineering Orders) can be conducted and additional defects clearances which require extended times can be accomplished during this check. 12/30/2013 Aircraft Maintenance Module 19 . Aircraft Service or Weekly checks.1.

Few access panels. 12/30/2013 Aircraft Maintenance Module 20 . Aircraft “A” checks.This is a routine MPD check that occurred almost every three months or 500 flight hours with various tasks scheduled for accomplishment.1. Engine cowlings and other doors will be opened to perform certain visual inspections and rectifications.

As majority of access panels are opened. 12/30/2013 Aircraft Maintenance Module 21 . a detailed visual inspection will be carried out on airframes linkages. hydraulic and fuel) functional or leak checks and major components defect rectification.within this check the aircraft is grounded for an extended time where many routine MPD tasks will be carried out. structural fittings and main systems (such as oil.1. The interior cabin such as seats will be removed fro refurbishment. Galleys and toils will receive servicing and repairs. Aircraft “C” checks.

floor panels and seat main frames. Within the cabin the primary structural parts removed for corrosion treatment especially galleys. 12/30/2013 Aircraft Maintenance Module 22 . Heavy Aircraft checks or “D” checks as some airlines call it.1. The aircraft will undergo a detailed visual inspection almost in every area including main structure where a NDT and application of special die pent rants will be carried out to detect possible skin cracks.

OFF Aircraft Maintenance  The OFF aircraft Maintenance are further summarised as follows: a) Engine Repair and Overhaul Maintenance – during aircraft operations. Engine internal parts especially turbine and combustion chambers are manufactured from special materials in order to withstand the high temperatures and pressure put on the engine during operations. Engines parts rotate at a very high speed with thrust causing certain wear to such parts at an accelerated pace. The Engines are the most stressed items where every time the aircraft takes off. 12/30/2013 Aircraft Maintenance Module 23 .

the maintenance is often significant and expensive and that is the reason where majority of airlines outsource engine maintenance to OEMs/MROs to alleviate the burden off airlines from investment in development of such highly sophisticated overhaul shops with special required repairs. Hence.  Normally the Engine initial shop visits expenses from Aircraft induction to maturity is relatively less expensive than aging Engine maintenance as main LLP parts requires replacement then and such parts impose a high cost to the Engine Maintenance. 12/30/2013 Aircraft Maintenance Module 24 .

the difference between engine and airframe maintenance is that Engine material costs will exceed 80% of the total maintenance while airframe maintenance will equally share labour and material by 50/50%.In general terms. The Engine performance maintenance costs optimisation is measured by the time it stays on wing as achieved by the continuous OEM development causing less removals and subsequently lower maintenance costs. 12/30/2013 Aircraft Maintenance Module 25 .

12/30/2013 Aircraft Maintenance Module 26 . The parts are often categorised into rotables. and Replacements  This maintenance includes normal scheduled and unscheduled components repairs to restore its serviceable condition.1. Component Repairs. This decision highly depends on two factors. the Turn around time and the Warranty aspect.  The maintenance costs associated with this part depend significantly on whether these can be repaired In house or outsourced. Modifications. repairable and expendables whereby a multiple number of repairs/resets is possible to rotables parts and considered as assets for the airline.

then it is quite sensible to despatch such components for repairs outside under warranty without spending much hassle to develop such capability and waste Engineers energy on warranted components especially during the initial five years from Aircraft induction.e.i. if the OEM TAT is reasonable. In other words. Where the Repair cost exceeds the 65% threshold of the unit cost 12/30/2013 Aircraft Maintenance Module 27 . There are occasions where rotables or repairable parts are scrapped due to economic conditions BER .

The elements of IMC include the overhead costs of but not limited to. 12/30/2013 Aircraft Maintenance Module 28 .2 Indirect Maintenance Costs  The Indirect maintenance cost or otherwise known as Overhead cost is defined as the sum of all labour and material costs for support services which add to the total maintenance of the aircraft. administration. Engineering technical services. Facilities.In-Direct Maintenance Costs  2. Equipment. Materials management and Engg training. Stores.

 Therefore The IMC costs fall within the category of controllable airline maintenance costs but this factor cannot be controlled nor quantified by Aircraft manufacturers. 12/30/2013 Aircraft Maintenance Module 29 . The IMC costs vary significantly amongst airlines subject together with organisational structure and the level of In/outsourcing plus work efficiencies.

drastically reduce the labour requirement and size of these support services departments and subsequently slash the IMC costs.  Therefore. the IMC costs overheads need to be reviewed frequently to envisage possibility of introducing processes improvements. The use of automation and sophisticated control system especially in the tech records. 12/30/2013 Aircraft Maintenance Module 30 . planning and materials management.

12/30/2013 Aircraft Maintenance Module 31 . then propose solutions for the purpose of working smarter and cut inefficiencies (Turner 2005). The ideal tool for this exercise would be Six Sigma which looks at the work environment to analyse the adopted processes.

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Operating Cost Breakdown Total Operating Cost (TOC) Airplane Related Operating Cost (AROC) Payload Related Operating Cost System Related Operating Cost Cash Airplane Related Operating Cost (CAROC) • • • • • • • Fuel Cockpit crew Cabin crew Maintenance Landing Navigation Ground handling 12/30/2013 Ownership Cost • Depreciation • Financing (airplane and introductory investment) • Operating lease cost • Hull insurance • • • • Passenger Related 10% Cost - Cargo Related 25% Cost • Handling • Commissions • Reservations and sales • Advertising System Related Cost • Airplane general and administrative • Passenger general and administrative • Cargo general and administrative 33 Food In flight services Handling Baggage handling • Commissions • Reservations and sales Aircraft Maintenance Module • Advertising .