MRO Business summary
Week 1
Lecture 1.1: Gasturbine maintenance (KLM)
Continuous Airworthiness Maintenance Program (CAMP):
- All maintenance is based on the CAMP, this program defines per aircraft the
maintenance requirements
- References such as Part-M, Part-145 etc…
- The maintenance organisation is described in the Maintenance Organization
Exposition (MOE)
- For KLM several authorities are important (EASA, FAA, CAA,….)
- Training of staff is performed in accordance with EASA Part-66 for certifying staff
- Quality Assurance and Control organization provides independent supervision and
monitoring of quality control, recognition and authorizations
Maintenance concepts:
- On condition
o Monitoring the aircraft and engine performance at regular intervals and
determining when and which maintenance is required based on the condition
o Engine inspections include: borescope gas path, oil checks, visual
inspections, functional checks
- Hard time
o Base on predetermined hard times to remove components (scheduled
maintenance)
• Objective: minimize any operational disruption
o Disadvantage: loss of any usable operational remaining life
- Thresholds: counters to determine a required step in maintenance (expressed in FH,
FC)
Engine shop maintenance:
- Engine shop maintenance is described in Workscope Planning Guide (WPG)
- Engine removal reasons:
o Replacements of hard time components (LLPs)
o Performance deterioration (EGT margin)
o Oil leakage
o Damage to gas path
o Other findings during regular (visual) inspections
- After engine removal:
Incoming inspection → determining workscope → meeting to discuss/finalize workscope
→ bill of work is finalized, agreed and released → engine is inducted in the disassembly
process
- Workscope:
o Hospital repairs (repair workscope)
o Shopvisit workscope levels:
• Overhaul
• Performance
• Minimum
- After engine removal, an immediate replacement engine is required, a/c is not put on
hold for engine repair!
, MRO Business summary
Reliability metrics
- Expressed in:
o Shopvisit rate (n.o. of shopvisits per 1000 engine FH)
o In Flight shutdown rate (n.o. of engine shutdown per 1000 FH)
o Aborted T.O. rate (n.o. of aborted take offs per 1000 departures)
- Key performance indicators
o Turn Around Time (TAT of engine shopvisit)
o Maintenance costs
o Quality
Lecture 1.2: Leasing and contracts
Contract: a formal agreement between 2 or more parties which are written and enforceable
by law
- The existence of a contract requires: an offer, acceptance of that offer, promise to
adhere to the terms, payment consideration, a fixed time, terms and condition for
failures & audit
Types of lease:
- Dry lease
o Lessor provides an a/c to the lessee (airline) without insurance, crew etc.
o Aircraft mist be registered under the airline’s Air Operator Certificate (AOC)
- Wet lease
o Lessor provides an aircraft to lessee complete with insurance (ACMI), crew,
maintenance etc.
o Generally shorter durations
- Damp(moist) lease
o Short term legal contractual arrangement where the lessor provides the
aircraft, cockpit crew, maintenance engineer for CRS, without cabin crew
- Financial lease
o Business form of leasing whereby the lessor retains the asset, thus leaving
the lesse with capital (for other investments)
o At the end-of-lease, the aircraft and ownership stays with the lessee
- Operational lease
o Lessee just pay a monthly rental plus maintenance reserves (for scheduled
maintenance) based upon operational usage
o Lessor keeps the aircraft on their balance sheet
ADVANTAGES DISADVANTAGES
BUY Asset control Investment requirements
Acquires equity Residual value risk
Tax benefits Loan covenants
Financial attractive Less fleet flexibility
LEASE Reduced investment Lease rate fluctuations
Fleet flexibility Lease contract constraints
No asset risk Other lease costs/taxes
Minimal financial impact No equity for airline
Week 1
Lecture 1.1: Gasturbine maintenance (KLM)
Continuous Airworthiness Maintenance Program (CAMP):
- All maintenance is based on the CAMP, this program defines per aircraft the
maintenance requirements
- References such as Part-M, Part-145 etc…
- The maintenance organisation is described in the Maintenance Organization
Exposition (MOE)
- For KLM several authorities are important (EASA, FAA, CAA,….)
- Training of staff is performed in accordance with EASA Part-66 for certifying staff
- Quality Assurance and Control organization provides independent supervision and
monitoring of quality control, recognition and authorizations
Maintenance concepts:
- On condition
o Monitoring the aircraft and engine performance at regular intervals and
determining when and which maintenance is required based on the condition
o Engine inspections include: borescope gas path, oil checks, visual
inspections, functional checks
- Hard time
o Base on predetermined hard times to remove components (scheduled
maintenance)
• Objective: minimize any operational disruption
o Disadvantage: loss of any usable operational remaining life
- Thresholds: counters to determine a required step in maintenance (expressed in FH,
FC)
Engine shop maintenance:
- Engine shop maintenance is described in Workscope Planning Guide (WPG)
- Engine removal reasons:
o Replacements of hard time components (LLPs)
o Performance deterioration (EGT margin)
o Oil leakage
o Damage to gas path
o Other findings during regular (visual) inspections
- After engine removal:
Incoming inspection → determining workscope → meeting to discuss/finalize workscope
→ bill of work is finalized, agreed and released → engine is inducted in the disassembly
process
- Workscope:
o Hospital repairs (repair workscope)
o Shopvisit workscope levels:
• Overhaul
• Performance
• Minimum
- After engine removal, an immediate replacement engine is required, a/c is not put on
hold for engine repair!
, MRO Business summary
Reliability metrics
- Expressed in:
o Shopvisit rate (n.o. of shopvisits per 1000 engine FH)
o In Flight shutdown rate (n.o. of engine shutdown per 1000 FH)
o Aborted T.O. rate (n.o. of aborted take offs per 1000 departures)
- Key performance indicators
o Turn Around Time (TAT of engine shopvisit)
o Maintenance costs
o Quality
Lecture 1.2: Leasing and contracts
Contract: a formal agreement between 2 or more parties which are written and enforceable
by law
- The existence of a contract requires: an offer, acceptance of that offer, promise to
adhere to the terms, payment consideration, a fixed time, terms and condition for
failures & audit
Types of lease:
- Dry lease
o Lessor provides an a/c to the lessee (airline) without insurance, crew etc.
o Aircraft mist be registered under the airline’s Air Operator Certificate (AOC)
- Wet lease
o Lessor provides an aircraft to lessee complete with insurance (ACMI), crew,
maintenance etc.
o Generally shorter durations
- Damp(moist) lease
o Short term legal contractual arrangement where the lessor provides the
aircraft, cockpit crew, maintenance engineer for CRS, without cabin crew
- Financial lease
o Business form of leasing whereby the lessor retains the asset, thus leaving
the lesse with capital (for other investments)
o At the end-of-lease, the aircraft and ownership stays with the lessee
- Operational lease
o Lessee just pay a monthly rental plus maintenance reserves (for scheduled
maintenance) based upon operational usage
o Lessor keeps the aircraft on their balance sheet
ADVANTAGES DISADVANTAGES
BUY Asset control Investment requirements
Acquires equity Residual value risk
Tax benefits Loan covenants
Financial attractive Less fleet flexibility
LEASE Reduced investment Lease rate fluctuations
Fleet flexibility Lease contract constraints
No asset risk Other lease costs/taxes
Minimal financial impact No equity for airline
