Airlines by their very nature combine huge, perpetual fixed costs with fickle demand.
This makes them extremely vulnerable to any kind of disturbance. With so little buffer against future shocks it is more important than ever to look at every cost area in detail.
Airlines currently spend over $18bn on parts annually. According to IATA’s Maintenance Cost Task Force; the direct maintenance cost per flight hour varies from an average of $682 per flight hour for narrow bodies to $1,430 per flight hour for wide body aircraft. 90% of maintenance cost (excluding staff) is parts spend.
To save money many airlines are either deferring maintenance or short building engines. Both of these routes are a false economy. It is far better to reduce the cost of purchasing parts by using PMA parts.
PMA parts can offer savings of up to 40% over OEM. Using PMA parts could offer airlines a saving of $572 per flight hour or a staggering $7bn per annum. A single airline in the US
has documented $40 million in material cost savings per year due to an aggressive PMA approval program that covers airframes, engines, and components.
The International PMA Summit is the first PMA conference based in Europe. This comprehensive, independent event is designed to give delegates a clear insight into the opportunities and benefits of using PMA.
The conference programme will cover the following issues:
• Pricing Issues: Bottom up or OEM down?
• When to select PMA products over OEM
• The bottom line: what could you save?
• Stock Cost: order quantities, Inventory levels & speed of delivery issues
• Life-cycle cost savings – cost of parts, ease of fit, durability & repair or replace
• Opportunities for customised parts & improvements over known service issues.
• Leasing & PMA
• Certification: Navigating the regulatory maze.
• FAA & EASA approval
• New legislation and guidelines
• Guaranteeing airworthiness
For more information please contact Mina Booth +44 20 8870 6730