European Operators in general and Eastern European Operators in particular have been hard hit by the recession which is now about to enter its 5th year.
IATA predicts a net loss approaching 1 billion euros across the European Industry.
However these figures mask a reality where some operators and maintainers are doing a lot better than the average and are on target to show a profit for fiscal 2012.
Air transport is driven by economic growth and with European growth at best hovering around 1% compared to 7% for example for India and China it provides a significant challenge for the European Industry going forward.
The growth over the next decade or so will be Asia centric and this will tend to have a marginalizing effect on European operators.
Not only is Europe experiencing below average growth rates, It is loosing market share, a trend that is likely to continue with a further reduction expected over the next 10 to 15 years of 25%. This is a significant and challenging issue.
The European Aviation Industry has grown significantly over the last 2 decades in fact it has more than doubled in size, however most of this growth may be attributable to low cost carriers.
One of the biggest challenges facing all European operators is the necessity to reduce wherever possible the cost base. With many regions of the world not only managing with a lower cost structure but also offering in some cases a better product or service.
European Airlines continue to retire older aircraft, and reduce wherever possible the maintenance overhead, sometimes this is by deferring or cancelling non essential maintenance or for example leaving engines on wing for longer periods. Of course there is a balance and if we get it wrong we will not profit from this exercise simply we are pushing back real and significant expenditure which is currently off the balance sheet.
What can be done.
With real Maintenance costs taking up to 15% of the airlines budget, significant savings are available, but they have to be fought for.
Many airlines do not seek to optimize maintenance processes for the maximum cost effectiveness of operation, sometimes with excessive spares holdings, or with un economical service bulletin and modification embodiment policies or a failure you use the Reliability Program as an opportunity to optimize the maintenance program.
Returning to Istanbul for the second year in a row, the Airline Engineering and Maintenance Central and Eastern Europe Conference November 20 -22 offers answers to following questions and more.
An insight into airline maintenance strategy in Central and Eastern Europe. Considering the merits of in-housing and outsourcing aircraft and engine maintenance in the region and adapting your service solution to meet the requirements of customers outside the European region.
Networking is an opportunity to make connections which will support you in the business.
Sofema Aviation Services www.sassofia.com is focused on the needs of the Eastern European and CIS regions Airline Operators and Maintenance organisations supplying EASA Compliant consulting and training.
Tags:
Airline Engineering and Maintenance, EASA compliant, EASA Compliant consulting, EASA Compliant training, Eastern European and CIS region, Eastern European Operators, European Aviation Industry, Maintenance, Maintenance costs
