Our services solution has given airlines and leasing companies the freedom to keep their eyes on the skies, confident that Aviation Management is scrutinizing the bottom line costs of their engine maintenance program.
For optimum aero engine performance, safety, and financial control, Aviation Management is rapidly becoming the world’s first choice in aviation consulting.
Good contract negotiations are the best way to reduce costs.
Effective negotiations on price, rates, warranties and guarantees at the start of a contract, will deliver savings throughout the life of the engine contract. A reduction of just $1/hr in a Power By The Hour rate or labor rate has the potential to save $100,000’s over the life of a fleet.
Aviation Management will use its experience and knowledge to help negotiate the following:
New Engine / Aircraft Negotiations
Aviation Management reviews warranties and guarantees offered by the original equipment manufacturers and provide a written report with cost savings recommendations.
In addition, costs can include a technical comparison of each of the engines under consideration, with a financial model predicting the costs per hour of each engine within each proposed application.
Maintenance/ Repair Organization Contract NegotiationsAviation Management will provide comparisons of rates, guarantees and warranties offered by the original engine manufacturers, complete with recommendations.
Power By The Hour Contracts
Our reports will include a financial model to reflect the true costs based on any contractual exclusion, draw down facilities, etc. at the end of the contract period.
Our close monitoring of engine conditions, through trend reviews and bore scopes will help to prevent more serious problems from arising. Early trouble-shooting keep costs down and can help avoid costly unscheduled engine removals.
Engine Condition Monitoring
Engines are principally removed for three reasons: Performance trend monitoring, borescope rejection and time expiry of life-limited parts. Many AOGs, ‘Aircraft on Ground’ situations can be avoided through close monitoring of these conditions.
By using the latest diagnostic equipment, and analyzing and addressing changes such as: sudden increased exhaust gas temperature, fuel flow, shaft speeds and oil consumption all help to ensure that the engine operates to optimally.
Monitoring the routine loss of exhaust gas temperature margin, allows engine removals to be planned should the likelihood of exceedance occur.
Aviation Management is able to provide a trend monitoring service. The information received is reviewed on a 24/7 basis and the appropriate personnel informed immediately of any adverse trends.
If left without management, engines deteriorate at similar rates and therefore require removal at the same time; this is accentuated if more than one aircraft is delivered within a shop period.
An operator in this situation has two options, a managed removal program or lease additional spare engines to support the multiple removals.
A managed removal program, taking into account aircraft ground time and prearranged induction dates at the shop, will minimize the time from removal to installation.
This in conjunction with a back-to-back removal program, this minimizes the need for spare engines. Lease engines can cost in excess of $500,000/ year represent a sizable expense. Reducing the requirement by just one can make a significant impact on profits.
Engine SV Cost Modeling Management
Costs can only be managed and controlled if they are precisely defined. Aviation Management produces a life cost model, which takes into account the predicted engine removal dates, workscope and the cost of shop visits.
Since the history of the engine influences the costs and levels of future workscopes, Aviation Management’s cost models take into account any previous visits and any contractual conditions. Effective management of shop visits can reduce costs and make a substantial difference to the bottom line cost of running an engine. The true savings benefit for these Services is maximizing the hours on-wing and consequently reducing the $/hour cost.
Engine Removal Forecasting
Increasing the predictability of scheduled engine removals reduces ground time as well as manpower and operational costs. Planning the removal of engines to coincide with scheduled aircraft checks also reduces waiting time. Cost saving for these programs can be in the millions if customers inaccurately predict and schedule their engine shop visits.
Aviation Management provides valuations and performs engine inspections on all commercial aircraft engines. Engine inspections include borescope inspections, general condition reviews as well as trend and records reviews. All records and documentation can be maintained by Aviation Management and allow our customers to focus on their strengths...flying aircrafts.
Aviation Management plans redeliveries several months in advance. Contractual delivery requirements and records are checked against the condition of the engines and any potential issues discussed immediately.
Should an engine subsequently require a hand-back shop visit to address an issue, there is then time to do so, without any impact on the redelivery of the aircraft.
Effective management of shop visits can reduce costs and make a substantial difference to the bottom line cost of running an engine. Aviation Management conducts more than 75+ shop visits each year – the fee associated with the management of these shop visits is generally more than paid for in the savings provided to clients.
Aviation Management acts as an important interface between the lessor or operator and the various overhaul shops. Aviation Management facilitates the process from the induction of the engine, to production, including negotiating agreement of workscope, and will minimize an engine’s turn around time and total cost of an engine shop visit, until the engine’s final redelivery. Workscopes
When Aviation Management undertakes a detailed workscope, we take into account the history and condition of an engine, and any future requirements and contractual conditions that might influence the workscope for an engine shop visit. Aviation Management utilizes its knowledge and accumulated historical data to write a workscope best suited to fulfill the needs of the customer in the most efficient and cost effective manner.
Lessors typically want to see their engines built for longevity, such that the engine remains an attractive proposition for the next Lessee.
A current lessee will typically build an engine to meet the minimum contractual redelivery conditions. In many circumstances Aviation Management will work closely with both parties to deliver a mutually beneficial ‘cost-sharing’ approach to a workscope, optimizing the life of the engine and resulting in lower cost per flight hour.
Used, serviceable material for almost all engine types, particularly from Life Limited Parts can be used without detriment to the subsequent life or value of the engine.
Savings can amount to as much as 20%-30% per item. Aviation Management, in conjunction with our parent company (JT Power) will source such materials in advance of a shop visit and ensure that they await the engine at the shop, along with full records.
Aviation Management will also inspect ‘as removed condition’ materials and ensure they are repaired and/or recertified before these components are required at engine assembly.
INVOICE / SCRAP REVIEW PROGRAMS
Due to the sheer scale of parts removed and replaced, innocent errors are frequently made within invoices. Aviation Management will conduct a complete invoice and scrap review following a shop visit to confirm reasons for rejections and to ensure parts are genuinely beyond repair. All invoices are checked against scrap, workscope and shop visit reports. Several scrap management programs are in place with Aviation Managements larger customers, saving them thousands, even millions per year.
WARRANTY & FOD GUARANTEE MANAGEMENT
Aviation Management will use our extensive experience in warranties and Foreign Object Damage (FOD) claims to ensure that a claim for an engine under investigation receives careful management. A detailed investigation will ascertain the reason for the incident and the extent of damage caused. It will also ensure that costs are apportioned correctly. This informative investigative report will ensure quick insurance / warranty collection by Aviation Managements customers.
Aviation Management delivers a thorough administrative and monitoring service for warranties and guarantees. Aviation Managements monitors shop visit rates, In Flight Shut Down (IFSD) rates, and all costs associated with a shop visit. All events have to be reported in a timely manner to the OEM. Typically, after a period of time specified in most OEM engine contracts, a claim must be made to the OEM, with any exceedances. If this timeframe has been missed than those warranty costs can not be claimed.
ENGINE MANAGEMENT PROCESS REVIEW
Although Aviation Management will assist with all levels of engine management and cost control, we recognize that some customers prefer to undertake some of these functions in-house.
In such an event Aviation Management can perform a management process review to identify where savings can be made. This might include contract negotiations, overhauls and redeliveries. The ensuing report identifies areas where opportunities to cut costs may be missed. This is a stand-alone service and will always pay for itself in customer savings.
OVERHAUL SHOP DESIGN
The design and delivery of commercial engine overhaul shops is a service unique to Aviation Management. A team of skilled and experienced engineers will advise on complete shop layout and design or review an existing shop and make recommendations for improving efficiency.
Aviation Management will also advise on the value of the vast array of tools recommended by engine manufacturers and suggest recommendations for alternative sources or options. This can provide a considerable savings on set-up costs.
Aviation Management also provides an ongoing support service through the production of Quality Assurance procedures, Designated Engineering Repair (DER) approval and general technical support.