A good material game plan will have you reaping the rewards. Here’s how…
The average Boeing 737 c-check costs $32.18 per flight hour, according to Aviation Week benchmarks.
Keep in mind; there’s a wide cost range between models. Older models are nearly double the costs at $52.82 per flight hour.
With an average annual aircraft utilization of 2,742, the math is simple.
But I’m confident you've done a cost-benefit analysis and determined newer isn’t always better…at least for your operation. Or vice versa.
As we see it, components have the highest MRO demand for 2018.
When analyzed against line maintenance and airframe heavy maintenance, components require 61% of the world MRO demand.
Line maintenance is 32% while airframe heavy maintenance is 7% of the total MRO demand for 2018.
We work with many operators and aircraft MROs from around the world, and this falls closely in line with what we see on the material side.
But how can we make this more specific to your operation?
Let’s break it down by flight hour and diagnose some ways you can reduce these material costs.
It costs a Boeing 737 a maximum of $52.82 per flight hour for a c-check.
Aircraft over 17 years of age skew the data as they require “more work.”
The aircraft coming in at $52.82 per flight hour is the good ole B737-3/4/500. The active and popular B737-6/7/8/900 averages $27.84 per flight hour.
As I see it, the older you get, the more work you’ll need to maintain in tip-top shape.
But these costs are minute if you’re leveraging a strong material strategy.
To push back your c-check costs, build a strong material strategy without investing millions of dollars in inventory.
You need stock. Sure. That’s inevitable.
Some might even be attracted towards a pooling program. Great for some and terrible for others.
After speaking with several large operators, the views of a PBH material model is varied. Most think it’s incredibly expensive and inflexible. But the benefit of not investing capital in inventory with guaranteed delivery times is a savior.
If that’s the case, the cost is no longer an issue.
The best material strategy you can take is to determine how can you tie up less capital in inventory and delegate those responsibilities to a trusted material partner.
For you, the money should be invested elsewhere.
Pooling works, but it’s not your only option.
And this isn’t a pooling post, so the question is…
How can you reduce your c-check costs without having to invest in an expensive program or idle inventory?
One of the best ways is to go into your c-check with a plan. Yes, I know, this is a no-brainer, but you’d be surprised.
Often, the aircraft hit the hangar, and everyone scrambles to get the material they need to keep the maintenance project moving forward and on-time.
To avoid this, you’ll know what task cards are being done and what items are likely needed. This is your pre-draw material. A list of material you know you’ll need.
Send the list to your preferred material adviser to quote.
At Skylink, we build custom kits from pre-draw material as well as any other material that’s needed at the time of the c-check.
You simply repeat this process as you find out more material is needed.
Build your requirement lists, send it to your material partner, review quote, and order.
By using kits, you dramatically reduce sourcing, processing and shipping costs.
You work with a complicated supply chain. At any given moment you’re sending hundreds of RFQs, ordering dozens of parts, from a handful of companies all over the world.
The risk of order cancellation, no stock, customs delays, expired material and issues arising is considerable. I’m sure you’re in the middle of resolving a problem right now.
The key to custom maintenance check kits is cut unnecessary sourcing, processing and chasing tasks.
You go from looking like this…
It becomes a lot more efficient as it pertains to your c-check.
This won’t directly impact your direct c-check costs, but it will affect every indirect cost that surrounds your material needs.
This is all taking into consideration you’re paying the same price for material everywhere. Sure there’s a ton of option. A ton of choices. And that’s why it’s become more complicated.
As you consolidate and take receipt of your kits, you’ll remove inefficient hidden costs.
This will help your operation reap the rewards of a better total cost structure.
Boeing c-checks vary depending on the model, but it’s in your direct control to lower your total material costs through a streamlined and efficient plan.