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Aviation Industry

Decent Essays

PRINCIPLES OF AIRCRAFT IN-SERVICE PRODUCT SUPPORT & CONTRACTS MANAGEMENT

Mar 2013

a) Aircraft Product Support

The product support is defined as a set of aftermarket services, processes and procedures established by the aircraft manufacturers to assist the airline operations and to ensure that the aircraft and its components remain functional during the life time of the aircraft.
In order to achieve this sustainable support, the aircraft Manufacturers produce tri-partite Agreement with Airlines and suppliers to define all the terms and conditions that govern such in service support.

The main aspect of product support revolves around materials and airline inventory cost optimisation. In the next few paragraphs, …show more content…

A2) Support Materials Cost reductions- Warranty claims
The warranty terms and related contractual remedies are considered for the airline, one of the main sources maintenance costs reduction in case of reported failures. The warranty effect normally extends 48 months out of Aircraft age. The airline incurs only routine maintenance costs during this period if they have introduced efficient processes to capture all warranty opportunities. Some airlines with MRO attachment can also generate some profits from the warranty business where they recover the costs plus a certain margin they made out of manpower either from their own airline or a third party airline customer.
The Introduction of new aircraft received with a comprehensive warranty support normally during the first years of aircraft age hence contributing significantly to maintenance cost reduction. The guarantees last for much longer normally ten years of Aircraft age. It is anticipated that during this period and in case of reliability issues, OEMs will intervene and offer product support which includes free repairs/loaner and modification.

Furthermore, the OEMs provide below remedies under the PSA terms:
- Free of charge repairs/replacements for parts.
- Materials and Labour reimbursement cost for defect corrections.
- No charge replacement parts for rogue parts.
- Labour reimbursement

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