SBE727
Posts: 384
Joined: Wed Sep 26, 2001 10:38 pm

Maintenence Costs

Tue Nov 02, 2004 8:09 am

HI THERE,

Can anyone tell me anything about maintenence contracts and costs... i know this will vary from aircraft to aircraft and company to company...but if anyone has any info...much appreciated,

many thx

sbe727
 
ANA
Posts: 291
Joined: Wed Feb 04, 2004 10:05 pm

RE: Maintenence Costs

Tue Nov 02, 2004 5:55 pm

look at http://www.lufthansatechnik.com for some information.
 
saintsman
Posts: 2037
Joined: Fri Mar 15, 2002 12:34 am

RE: Maintenence Costs

Wed Nov 03, 2004 4:40 am

Maintenance costs do indeed vary and it is a very cut throat business with the airlines calling the shots. It may interest you to know that the average motor dealer charges significantly more per hour in their workshops than a MRO (maintenance & repair organisation).

A lot of the Western European companies are struggling to compete with the growth of the EU and the proliferation of East European companies who's wage costs bring down their hourly manhour rates. At the end of the day a maintenance check will take a certain amount of hours to complete. Those that have the lowest manhour rate will attract the business, regardless of the fact that they probably don't have the quality and safety systems in place that are considered standard practices in most Western Countries.

I know of one company that has imported Filipino and Rumanian workers at half the UK rates. The same company also offered one of the low cost airlines reduced rates to have their aircraft serviced in the hope of a long term contract. Once they had their aircraft serviced on the cheap they just said goodbye. As I said, cut throat.

There are also big penalties if you don't get the aircraft out on time. If its not in service the aircraft is not making any money so the MRO has to be on the ball.

I'm sure others can tell you more.
 
320tech
Posts: 489
Joined: Mon May 17, 2004 11:38 am

RE: Maintenence Costs

Wed Nov 03, 2004 1:41 pm

I am aware of some of our competitors in the A320 maintenance business who are charging $45 - $55 US per manhour. I would like to emphasize that this doesn't include the company for which I work.

There is a base rate for the check - price varies considerably depending on the type of check. There will be additional charges if the customer wants mods or other additional work - the shop rate will come into play here.

Snags are charged at the shop rate based on the manhours required to rectify them.

And all of this goes out the window if the AMO wants the work badly enough to undercut their competitors. Special deals will be worked out for good customers.
The primary function of the design engineer is to make things difficult for the manufacturer and impossible for the AME.
 
Whiskeyflyer
Posts: 223
Joined: Mon May 13, 2002 3:07 pm

RE: Maintenance Costs

Thu Nov 04, 2004 8:35 pm

Aviation is dollar based so some countries trade using their low value to dollar to their advantage (with the sliding dollar now most countries currencies are getting stronger to the dollar) however Indonesia currency sliding and they are coming in at $30-35 an hour (for mechanics, its more for NDT and avionics guys but most of your hours for a heavy check are mechanics) and they have got contracts from the likes of Air France etc.... The hangars are full there. European countries cannot compete against that. To be honest the charge per man hour does not necessarily reflect the quality of work carried out (I have got some bad work out of the US from very respectable engine shops but if I could afford it all my work would go to Lufthansa controlled/trained facility).
Cost of living determines mechanics pay and on top of that are government charges (e.g. social benefits, taxes etc) and European countries cannot compete against low cost countries with low relative costs of living (and in addition the strong euro does not help)
It is a cut throat industry.

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