GERALDINE CROSManager, Operational Cost Management ‐ IATA 

Maintenance Cost Task Force (MCTF)FY2014 Data Preliminary Analysis

FY2014 Data Preliminary Analysis

MCTF Data Collection & Analysis

World Fleet & MRO Spend

MCTF Fleet & Costs Analysis

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MCTF Data Collection & Analysis (1/2) Historically, a collaboration between airlines, MCTF & selected OEMs

(Airbus for ‘input tool’, Boeing for ‘output tool’).

Now, IATA has ownership of input/output tools & processes.

Input toolset is an XLS spreadsheet.

Toolset is ready to collect data by tail number & ATA chapter.

Customized reports are available upon airline request.

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MCTF Data Collection & Analysis (2/2) Data is collected from a managerial accounting point of view.

Forex is provided by each airline.

Data is de-identified and airline names are coded.

Data is validated with airlines, not normalized for reports.

Data is not distributed to non MCTF participants.

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World Fleet: 24,597 Aircraft (FY2014) By Aircraft Category

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By Manufacturer

Source: ACAS 3.0 – April 2015

World Fleet: 24,597 Aircraft (FY2014) By Region

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Most Popular Aircraft Families

Source: ACAS 3.0 – April 2015

Airlines Expenses: $699 Bill. (FY2014)

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Sources: IATA Economics (June 2015); Airline Cost Management Group (2015)

World MRO Market: $62.1 Bill. (FY2014) By Segment

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By Element 10-year Forecast

Source: ICF International – Jan 2015

MCTF Fleet: 4,125 Aircraft (FY2014) 50 airlines!

16 airlines operate both pax and freighter aircraft 1 airline operate freighters only

MCTF: 4,125 aircraft ~17% of world fleet

MCTF airlines by Region By number of aircraft

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REGIONS AS DEFINED BY IATA:Africa: Sub-Saharan Africa ASPAC: Asia PacificMENA: Middle East & North Africa

Americas: North & South America Europe: includes CISN. Asia: China, Hong Kong, Macao, Taiwan, Mongolia

MCTF Fleet: 4,125 Aircraft (FY2014) By Aircraft Category

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By Manufacturer

MCTF Fleet: 4,125 Aircraft (FY2014)

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Top 10 A/C Families*

with 5+ A/C and 3+ operators

By Segment

MCTF Spend (FY2014) Direct Maintenance Costs* (Line/Base/Component/Engine)

$14.41Bill. (23% of World MRO Spend)

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* Direct cost only, excluding Overhead

By Element

Main KPIs Operational Data:

3,267 FH/AC 1,337 FC/AC Avg Age: 9.4yrs Avg Utilization: 9.0hrs/day FH/FC: 2.44hrs

Average Unit Costs (DMC*) Average Cost per Flight Hour*: $1,077/FH Average Cost per Departure*: $2,637/FC Average Cost per Aircraft*: $3.53M/AC

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* Direct cost only, excluding Overhead

Unit Costs by Aircraft Family Top 10 A/C Families*

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with 5+ A/C and 3+ operators

DMC are only the tip of the iceberg

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FY2014 – 49 airlines

DMC*: $14.41 Bill.

MR: $503 Mill.

OH: $1.76 Bill.

Spares & Inventory: $10.66 Bill.

* Direct cost only, excluding Overhead

Spares & Inventory Averages: $2.6Mill./AC ; $296Mill./AL For every $1 spent for Maintenance, $1.1 locked in Spares!

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36 Airlines

Aircraft Leasing & Maintenance Reserves 41% of total MCTF fleet is under operating lease

World average is 39%

72% of MCTF airlines pay MRs

Total MRs: $503 Mill.

Engines (incl. LLPs) = 74% of MRs

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46 MCTF airlines - 1,680 aircraft under operating lease

Technical Division Costs Direct Mtc $ (85%) + Overhead $ (15%)

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Average = 15%

Personnel & Overhead Direct vs Indirect Labor:

27,311 mechanics 16,914 staff

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39 MCTF airlines

Direct Labor vs %DMC Outsourced 12 mechanics/AC vs. 69% Outsourced

Personnel & Overhead Average Number of Staff per Aircraft

935 mechanics/airline

12 mechanics/AC

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434 OH Staff/AC

5 OH Staff/AC

Summary Engine maintenance: 40% of DMC Airlines subcontract 69% of their maintenance activities For $1 spent for maintenance, airlines hold $1.1 of inventory 74% of Maintenance Reserves are for engines (including

LLPs) Overhead: 15% of total Technical Division costs 12 mechanics/AC

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Any Questions?

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