Insights into the Maintenance, Repair and Overhaul Configurations of European Airlines

Hamed Al-kaabi · Andrew T. Potter · Mohamed Mohamed Naim

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Aviation Industry Analysis and Trends Outsourcing and Supply Chain Management Aerospace Engineering and Applications

Abstract

We determine the significant variables that impact on European airlines’ decisions to outsource their maintenance, repair and overhaul (MRO) function. We establish the relationship between the variables, the degree of outsourcing, and the impact these variables have on two criteria; MRO costs and airline punctuality. Analysis indicates that fleet size, fleet mix, percentage of leased aircraft and the airline business model impact decision making. Generally, Line Maintenance is retained as a critical in-house activity, while Engine Maintenance and Spares and Rotables are outsourced. While relative costs of the MRO activity will increase, this is outweighed by improvements in technical punctuality.

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