Aircraft maintenance outsourcing

Challenge

A low-cost airline, undergoing explosive growth, believed it had outgrown the capabilities of its outsourced maintenance provider. Faced with the imminent arrival of 100 new planes, top management sought to understand best practices around strategic provider management. Convinced that better results could be achieved, the client then requested assistance with a strategic sourcing process for aircraft maintenance services.

Approach

• Best practices: Researched and distilled lessons learned from the outsourcing of major activities by companies in a range of industries and different geographies.
• Strategic sourcing: Designed and led a comprehensive sourcing process aimed at encouraging viable competitors for this crucial business.
• Provider selection: Developed an innovative method to compare providers’ value-added due to both cost savings and aircraft uptime; also considering ability to continue to grow with the airline.

Results

• Top management developed a more comprehensive view of the keys to developing and maintaining a sound relationship with a strategic services provider.
• A comprehensive and transparent sourcing process was introduced, yielding strong results and a template for further sourcing efforts by the client.
• A new agreement was crafted and executed, placing outsourced maintenance on a more responsive, efficient and effective footing for the airline.