THE CUSTOMER PROBLEM
An airline needed to understand its options for outsourcing engine maintenance. A market strategy, fleet analysis and a sourcing process that would deliver a new maintenance agreement was required. Options including comparing maintenance by the flight hour and by the time and materials per shop overhaul were important. The objective was to leverage its position as a top tier operator with a large un-contracted engine fleet to secure a quality maintenance provider contract on favorable terms.
THE CUSTOMER BENEFIT
- A supplier shortlist was developed based on rigorous, objective criteria aligned with business and operational objectives.
- A defined process to clarify and produce best and final offers was established to promote fair and transparent competition and enabled an informed decision by the airline.
- Modeling the life of the fleet provided new insights into the maintenance periods, necessary lease return conditions, most advantageous contract duration, and impact on life limited parts residual life planning for fleet retirement.
THE SEATEC SOLUTION
A SeaTec team experienced in engine maintenance at FAR 121 and FAR 145 facilities and risk transfer arrangements and a client working team of Finance, Legal, Procurement, and Engineering was assembled.
Stakeholders were engaged in determining primary goals and to map the culture, goals, organizational structure, business plan, and operational plan to the requirements for a new engine contract.
A market strategy, fleet analysis and maintenance agreement sourcing process was formulated
A life cycle model cost for the engine fleet was developed, factoring in airline-specific operating parameters, expected service of life and SeaTec experience.
Using model results and detailed scoring of competitive supplier proposals the working team reduced the number of suppliers to a short list. With SeaTec’s help, the airline ran the remaining suppliers through clarifying questions and a Best and Final Offer process. The final selection was then made by the airline.