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 COST AWARENESS IN THE AIRLINE MAINTENANCE ENVIRONMENT COST AWARENESS IN THE AIRLINE MAINTENANCE ENVIRONMENT Join the IATA Maintenance Cost Task Force (MCTF)!  Join the IATA Maintenance Cost Task Force (MCTF)!  Mission of MCTF Mission of MCTF To become the focal point on commercial airline Maintenance Costs, including MRO (Maintenance, Repair and Overhaul) cost strategies To become the focal point on commercial airline Maintenance Costs, including MRO (Maintenance, Repair and Overhaul) cost strategies Objectives of MCTF Objectives of MCTF  Define and standardize the reporting of commercial airline maintenance costs  Define and standardize the reporting of commercial airline maintenance costs  Benchmark with own airline’s historical data and compare with industry best practices  Benchmark with own airline’s historical data and compare with industry best practices  Identify high cost drivers and target areas for Maintenance Cost reduction as individual operator or as a group  Identify high cost drivers and target areas for Maintenance Cost reduction as individual operator or as a group  Collaborate with OEMs and other suppliers to define and implement Aircraft Maintenance Cost Reduction initiatives  Collaborate with OEMs and other suppliers to define and implement Aircraft Maintenance Cost Reduction initiatives  Provide a forum for airlines to exchange/share knowledge, best practices and industry know-how (Lean Six Sigma, outsourcing trends, etc.) and network in the maintenance area  Provide a forum for airlines to exchange/share knowledge, best practices and industry know-how (Lean Six Sigma, outsourcing trends, etc.) and network in the maintenance area Benchmark example from the IATA Airline Maintenance Cost Report  Benchmark example from the IATA Airline Maintenance Cost Report  Outsource Cost Trends for Individual Airlines Benchmark example from the IATA Airline Maintenance Cost Report  Benchmark example from the IATA Airline Maintenance Cost Report  History and Status History and Status MCTF started in 1959 as Production Performance Measurement Working Group (PPMWG). It is the only airline volunteer group that gathers and analyzes maintenance cost information MCTF started in 1959 as Production Performance Measurement Working Group (PPMWG). It is the only airline volunteer group that gathers and analyzes maintenance cost information Fleet Distribution for Selected Markets  The MCTF is run by its Steering Committee (Airlines, IATA, and Participating Member OEMs)  The MCTF is run by its Steering Committee (Airlines, IATA, and Participating Member OEMs)  Up to 12 Airlines can have seats on the Steering Committee  Up to 12 Airlines can have seats on the Steering Committee  Airframe and engine OEMs are key supporters of the data collection and reporting process  Airframe and engine OEMs are key supporters of the data collection and reporting process  Airbus, Boeing and an engine OEM representative (Snecma) are active participants of the Steering Committee;  Airbus, Boeing and an engine OEM representative (Snecma) are active participants of the Steering Committee;  The committee meets twice a year, holds monthly conference calls and organizes the agenda for the Annual Maintenance Cost Conference (MCC)  The committee meets twice a year, holds monthly conference calls and organizes the agenda for the Annual Maintenance Cost Conference (MCC)  Once a year, airlines worldwide submit maintenance related information  Once a year, airlines worldwide submit maintenance related information  IATA produces an e-toolset containing all the maintenance cost data (e-MCR) and also the annual Airline Maintenance Cost Report (AMCR), an analysis of cost indicators and cost drivers in the airline maintenance area  IATA produces an e-toolset containing all the maintenance cost data (e-MCR) and also the annual Airline Maintenance Cost Report (AMCR), an analysis of cost indicators and cost drivers in the airline maintenance area Disclaimer: Data shown is for illustrative purposes only  Published by: IATA - International Air Transportation Association  800 Place Victoria, P.O. Box 113, Montreal, Quebec, H4Z 1M1, CANADA www.iata.org/workgroups/mctf  April 2010 Visit at www.iata.org/workgroups/mctf - Contact us at [email protected] 

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COST AWARENESS IN THE AIRLINE MAINTENANCE ENVIRONMENT

COST AWARENESS IN THE AIRLINE MAINTENANCE ENVIRONMENT

Join the IATA Maintenance Cost Task Force (MCTF)!  Join the IATA Maintenance Cost Task Force (MCTF)!  

Mission of MCTFMission of MCTF

To become the focal point on commercial airlineMaintenance Costs, including MRO (Maintenance,Repair and Overhaul) cost strategies

To become the focal point on commercial airlineMaintenance Costs, including MRO (Maintenance,Repair and Overhaul) cost strategies

Objectives of MCTF Objectives of MCTF 

 Define and standardize the reporting of commercialairline maintenance costs

 Define and standardize the reporting of commercialairline maintenance costs

 Benchmark with own airline’s historical data andcompare with industry best practices

 Benchmark with own airline’s historical data andcompare with industry best practices

 Identify high cost drivers and target areas forMaintenance Cost reduction as individual operator oras a group

 Identify high cost drivers and target areas forMaintenance Cost reduction as individual operator oras a group

 Collaborate with OEMs and other suppliers to defineand implement Aircraft Maintenance Cost Reductioninitiatives

 Collaborate with OEMs and other suppliers to defineand implement Aircraft Maintenance Cost Reductioninitiatives

 Provide a forum for airlines to exchange/shareknowledge, best practices and industry know-how(Lean Six Sigma, outsourcing trends, etc.) andnetwork in the maintenance area

 Provide a forum for airlines to exchange/shareknowledge, best practices and industry know-how(Lean Six Sigma, outsourcing trends, etc.) andnetwork in the maintenance area

Benchmark example from the IATA Airline Maintenance Cost Report  Benchmark example from the IATA Airline Maintenance Cost Report  

Outsource Cost Trends forIndividual Airlines

Benchmark example from the IATA Airline Maintenance Cost Report  Benchmark example from the IATA Airline Maintenance Cost Report  

History and StatusHistory and Status

 MCTF started in 1959 as Production PerformanceMeasurement Working Group (PPMWG). It is the onlyairline volunteer group that gathers and analyzesmaintenance cost information

 MCTF started in 1959 as Production PerformanceMeasurement Working Group (PPMWG). It is the onlyairline volunteer group that gathers and analyzesmaintenance cost information

Fleet Distribution for Selected Markets

 The MCTF is run by its Steering Committee (Airlines,IATA, and Participating Member OEMs)

 The MCTF is run by its Steering Committee (Airlines,IATA, and Participating Member OEMs)

 Up to 12 Airlines can have seats on the SteeringCommittee

 Up to 12 Airlines can have seats on the SteeringCommittee

 Airframe and engine OEMs are key supporters of thedata collection and reporting process

 Airframe and engine OEMs are key supporters of thedata collection and reporting process

 Airbus, Boeing and an engine OEM representative(Snecma) are active participants of the SteeringCommittee;

 Airbus, Boeing and an engine OEM representative(Snecma) are active participants of the SteeringCommittee;

 The committee meets twice a year, holds monthly

conference calls and organizes the agenda for theAnnual Maintenance Cost Conference (MCC)

 The committee meets twice a year, holds monthly

conference calls and organizes the agenda for theAnnual Maintenance Cost Conference (MCC) Once a year, airlines worldwide submit maintenance

related information Once a year, airlines worldwide submit maintenance

related information IATA produces an e-toolset containing all the

maintenance cost data (e-MCR) and also the annualAirline Maintenance Cost Report (AMCR), an analysisof cost indicators and cost drivers in the airlinemaintenance area

 IATA produces an e-toolset containing all themaintenance cost data (e-MCR) and also the annualAirline Maintenance Cost Report (AMCR), an analysisof cost indicators and cost drivers in the airlinemaintenance area

Disclaimer: Data shown is for illustrative purposes only

 Published by: IATA - International Air Transportation Association 800 Place Victoria, P.O. Box 113, Montreal, Quebec, H4Z 1M1, CANADA

www.iata.org/workgroups/mctf 

April 2010

Visit at www.iata.org/workgroups/mctf - Contact us at [email protected] 

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Product and ConfidentialityProduct and Confidentiality

 The MCTF has developed unique data collection,analysis and reporting toolsets; definitions and

toolsets have been debated and approved byrepresentatives of the airline industry

 The MCTF has developed unique data collection,analysis and reporting toolsets; definitions and

toolsets have been debated and approved byrepresentatives of the airline industry

 Toolsets are available electronically to all interestedairlines through IATA

 Toolsets are available electronically to all interestedairlines through IATA

 Toolsets are user friendly; basic skills ofMS-Office are required

 Toolsets are user friendly; basic skills ofMS-Office are required

 IATA guarantees the confidentiality of airlineinformation

 IATA guarantees the confidentiality of airlineinformationo  Identification characteristics of airlines providing

data can be protected upon request o  Identification characteristics of airlines providing

data can be protected upon request o Historical Maintenance Cost Data available only

to continuous participants o Historical Maintenance Cost Data available only

to continuous participants o Occasional participants receive only the current

year’s informationo Occasional participants receive only the current

year’s information The final report, data and information are available to

MCTF Participating Members. This is to encourageairline participation and to foster the benefitsstemming from the reports and the data analysis

 The final report, data and information are available to

MCTF Participating Members. This is to encourageairline participation and to foster the benefitsstemming from the reports and the data analysis

Benchmark example from the IATA Airline Maintenance Cost Report  Benchmark example from the IATA Airline Maintenance Cost Report  

Participation Participation 

 MCTF is open to all airlines and OEMs MCTF is open to all airlines and OEMs The Annual Maintenance Cost Conference is open to

all interested parties The Annual Maintenance Cost Conference is open to

all interested parties The IATA Airline Maintenance Cost Report is

available exclusively to MCTF participating airlines The IATA Airline Maintenance Cost Report is

available exclusively to MCTF participating airlines Supporting OEMs are key participants in the

collection, analysis and reporting of information anddata

 Supporting OEMs are key participants in thecollection, analysis and reporting of information anddata

2010 Timeline 2010 Timeline Maintenance Cost per Flight Hourfor various Narrow Body Aircraft

 31st July: Deadline 31st July: Deadline for MCTF data collection August – September: Data analysis October – November:

o Maintenance Cost Conference (MCC)o e-MCR toolseto Airline Maintenance Cost Report (AMCR)

DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Data Collection

Your Input

DEADLINE

June 30th!Data Analysis

MCC 2010

Maintenance Cost Conference 2010MCR 2010 (2009 data)

DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Data Collection

Your Input

DEADLINE

June 30th!Data Analysis

MCC 2010

Maintenance Cost Conference 2010MCR 2010 (2009 data) 

Contact Information

Chris MARKOU, Ph.D.Assistant Director,IATA Operations

Tel: +1 514 874 0202x3527

[email protected] 

Tiymor KALIMATChairman, MaintenanceCost Task Force (MCTF)

Royal JordanianTel: +962 6 479 [email protected] 

Published by: IATA - International Air Transportation Association 800 Place Victoria, P.O. Box 113, Montreal, Quebec, H4Z 1M1, CANADA

www.iata.org/workgroups/mctf 

April 2010