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Old 15th May 2001, 17:06
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Blacksheep
Cunning Artificer
 
Join Date: Jun 2001
Location: The spiritual home of DeHavilland
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We negotiated deals for a guaranteed maintenance cost per operating cycle for our engines with the engine manufacturers. We also negotiated guaranteed maintenance cost per flight hour for a number of other major components such as IDGs and hydraulic pumps. We are doing a deal on guaranteed cost per landing for carbon brakes; the deal will go through, we are still arguing about the price.

In these contracts the OEM guarantees a maximum maintenance cost per operating factor. If the cost in service exceeds the guarantee, the manufacturer swallows the excess. If he beats the deal price, he makes more profit. There is an off-balance sheet benefit to the airline - the incentive to beat the guarantee and make more profit induces the manufacturer to strive for higher reliability. Then the airline makes more profit and the pilots can claim a higher salary. See what we engineers do for you?

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