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Old 17th March 2010 | 13:39
  #12 (permalink)  
Malcom
 
Joined: Feb 2007
Posts: 132
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From: UK
The standard Annual for a SEP is about 40 hours.

That's about 1 man-week.

This is normally charged out at £2500+VAT.

The cost of employing the bloke for that week is about £500.

So the maintenance company should be making loads of £££££.

If you can get say four planes in your hangar, that's £8000 of contribution towards your fixed costs, per week.

Yet most aren't (or apparently aren't). Why aren't they?

Is it because many/most are disorganised and spent too much time waiting for parts, with the plane sitting in their hangar? (IOW, under-utilisation of assets resulting from poor project management.)

In some cases it may be due to non-chargeable work but, from what I have seen, all extras go on top of the 2.5k under the heading of "defects and ADs". This should be minimal on a new plane but on a 30 year old one it could add a few k.
I think the answer lies within your business plan, if I read it correctly. I expect the bloke doing 4 annuals a week and being paid £500 is in hospital suffering physical & mental exhaustion and thus not raking it in any more .
4 Annuals - 4 x 40 hours = 160 hours. (7x 24 hour day = 168 hours).
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