AOG Version Eight

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MIT Sloan School of Management

Time-Critical Management of AOG
(Airline on Ground) at Latin Airlines by Maria Soledad Jeria and Robert M. Freund
AOG
It is now 19:30 hours on Tuesday, January 13. The AOG (Airline on Ground) desk of the
Santiago Maintenance Center at Latin Airlines has just been informed that the aircraft CML19 has been designated AOG due to a thrust reverser failure. (The thrust reverser is comprised of two components: the support assembly and the transcowl, see Figure 1.) The support assembly of the thrust reverser on the left engine on the CML19 has failed, causing the AOG.

Support
Assembly

Transcowl

Figure 1: Pylon and Nacelle System

Aircraft CML19 is part of Latin Airlines’ fleet of Boeing 767
The passenger 767s average 4,500 to 5,000 hours of flight-time per aircraft per year. The average flight leg time (from takeoff to landing) of the passenger 767s is 5.1

hours. A 767 passenger aircraft normally burns 1,669 GA/FT (GA= gallons; FT= Flying Time) of jet fuel. The price of jet fuel at this point in time is \$3.00/GA.
The CML19 intended flight schedule for the week is shown in Exhibit 2.
Exhibit 2: CML19 Flight Schedule
Date
Departure City/Time th Monday 12
Miami 20:30
Tuesday 13th
Santiago 21:55 th Wednesday 14
Miami 20:30
Thursday 15th
Santiago 21:55
Friday 16th
Miami 20:30 th Saturday 17
No flight
Sunday 18th
Santiago 21:55

Arrival City/Time
Santiago 6:55
Miami 4:20
Santiago 6:55
Miami 4:20
Santiago 6:55
No flight
Miami 4:20

Flight
MIA-SCL 063
SCL-MIA 067
MIA-SCL 063
SCL-MIA 067
MIA-SCL 063
No flight
SCL-MIA 067

LAC has two daily flights from Santiago to Miami: SCL-MIA 067 departs at 21:55 and SCLMIA 077 departs at 23:00. Both aircraft return from Miami the following night and arrive in
Santiago the following morning, with the same time difference. LAC’s current key competitor on this route is American Airlines, which flies two similar aircraft daily to Miami at approximately the same time.
AOG Passenger Costs
An aircraft AOG means that all flights assigned to the aircraft are cancelled until the AOG has been lifted. LAC must re-book all passengers on all flights covered by the affected aircraft either on other LAC