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KLM UK Engineering has changed strategies to prioritize quicker turnaround times for maintenance lines.
Aftermarket service providers faced with increased demand for flexibility in bespoke maintenance offerings are focusing on careful planning to satisfy their customers. But some challenges, such as labor and supply chain hurdles, remain difficult to solve even with the most detailed preparation.
Many MROs acknowledge operators are looking for more flexibility with custom maintenance solutions—especially those with rapidly growing fleets or struggling with new-aircraft delivery delays.
KLM UK Engineering has operators requesting a blend of bespoke offerings with routine maintenance to allow for greater fleet availability. The company anticipated that delivery delays would change customers' needs and adapted accordingly.
“We have made the bold move to implement a four-line strategy as we approach the winter season, despite being a six-bay facility,” says Wayne Easlea, managing director at KLM UK Engineering. “This is to prioritize shortened [turnaround times] over each line of activity. This strategy change will allow us to deliver condensed, bespoke programs that result in greater fleet availability for our customers.”
The strategy is yielding positive results, Easlea says. During the coming winter season, he expects one of KLM UK Engineering’s nose-to-tail customers to gain 29 days of operation due to the changes in line activity.
“This brings huge benefits to the customer, but also puts us in a great position because we are raising the bar for MROs,” he says.
AJW Group has seen more operators looking for tailored maintenance services, especially within large-scale, power-by-the-hour (PBH) agreements.
AJW Group Chief Commercial Officer Scott Symington says tailored maintenance services, such as its PBH contracts, allow operators to optimize maintenance programs to fit unique operational needs and preferences. This can lead to improved efficiency, reduced downtime and enhanced overall performance of their assets.
“Our service offers operators greater flexibility in terms of contract terms, pricing structures and service levels, and the flexibility within the offering enables operators to align their maintenance agreements more closely with their business objectives and financial constraints, ultimately maximizing the value they derive from their service providers,” says Symington.
A more bespoke approach to services enables AJW’s teams to help operators mitigate risks associated with unexpected maintenance events or changes in operational requirements, Symington says. “By customizing their plans and service levels, operators can anticipate and address potential challenges, minimizing disruptions to their operations and reducing the likelihood of costly downtime,” he says.
DELIVERING POWER
Offering variability through custom MRO plans was MTU Maintenance’s main reason for setting up MTUPlus Intelligent Solutions, says SVP MRO Programs Martin Friis-Petersen. “We can build in all the flexibility that the customer requires,” he adds.
The program is split up into four distinct maintenance strategies, depending on the engine fleet's age and how the assets are used. “In any case, these strategies aim to either fully optimize the value of the assets for owners or minimize operational costs for operators,” says Friis-Petersen.
One strategy, aimed at achieving more flight hours at a lower cost over an operational lifetime, is suited to incoming younger engines. For older engines, MTU has developed a strategy to optimize the costs associated with operating an aging fleet. When the need arises to transfer asset ownership, Friis-Petersen says MTU offers lessors and owners a portable MRO solution that mitigates the risks while increasing revenues.
Although packaged for specific purposes, these services come as ad-hoc elements, too, says Friis-Petersen. “We always work closely with our customers in order to put together an MRO strategy that is tailor-made to their needs,” he says.
PLANNING IS KEY
Supply chain issues for serviceable parts and ongoing labor shortages are industry-wide headaches, so Friis-Petersen says MTU searches for the solution best suited to changing market dynamics.
“We aim to offer as much flexibility with our MRO services and contract types as possible so that we can adapt to market conditions whenever necessary,” he says. For instance, this includes leveraging all available capacity across its locations—typically, with a minimum of two MTU sites available per engine type—and their individual capabilities. This includes innovative repairs, engine exchanges, leasing options and parts supply via asset managers at MTU Maintenance Lease Services.
Friis-Petersen also highlights the advantages of using digital tools for engine fleet management services.
“The size of a customer’s engine fleet is directly proportionate to the complexity of a tailor-made MRO strategy,” he says.
KLM UK Engineering’s Easlea points out that providing tailored maintenance services also comes with its own set of specific complexities. Offering a smooth, effective solution is vital to the success of any strategy.
“We are also looking ahead at what challenges we may face, or continue to face, later down the line,” he says. For example, the company hopes to minimize the challenges caused by labor shortages by ushering in new talent via its apprenticeship scheme. “People want to enter our industry—they just need a way in," says Easlea. 'We have 12 spaces on our apprenticeship scheme this year, but we received 300 applications.”
AJW’s Symington believes delivering a tailored maintenance program in a high-demand environment will require meticulous planning, especially considering labor and supply chain-related headwinds. To understand customers’ needs, he says AJW teams collaborate with them closely to identify their priorities and operational constraints.
Symington says AJW has mitigated supply chain disruptions by investing in and maintaining high inventory levels. “We drive a sophisticated, global pooling strategy for our 450,000 line items of inventory valued at $500 million, so it is our highest priority to efficiently manage this stock to best meet our service liable commitments,” he says.
PROBLEM SOLVING
As with any service provision, problems occasionally arise. Symington says there is no “one-size-fits-all” option, noting that tailored maintenance solutions require more effort. “We impose no restrictions or limitations, no matter the fleet size, which means our teams must be nimble, efficient and have a strong customer focus,” he says.
“The lack of capacity in the market continues to be a major challenge for MROs,” says UK KLM Engineering’s Easlea, adding that it would be easy to overpromise and under-deliver, especially when working with a tailored solution.
Chronic labor shortages could see a steady manpower dilution across lines of activity become an industry norm, Easlea suggests.
Friis-Petersen sees no nominal difference in costs between bespoke programs and standard MRO contracts.
“A shop visit for a given work scope for a specific engine will cost the same, whether it is part of a greater bespoke MRO strategy for a fleet or not,” he says. “The benefit of tailor-made services is that we can optimize that timing for a shop visit much better or avoid it altogether through alternatives.”
