Maintaining Leased Engines Through Their Entire Life Cycle

Maintaining leased engines can be stressful, confusing and will ruin a relationship faster than you can say relationship. It’s not just your interests at play.

aircraft engine lease

From MROs, OEMs, airlines and lessors a lot of people have their hands in the aircraft engine lease arena.

Communication is paramount and strong relationships are far from a prerequisite, they're a necessity. [TWEET THIS]

But that’s only the beginning.

Lessors and Lessees have different agendas

Although the names sound similar, you know as much as I do they're two totally different operations.

A lessor will look at the life time of the engine in its portfolio and think of it based on its residual value.

All the while a lessee will only consider the lease period and the bare minimum return conditions. They're not concerned about the asset value at the end of the lease term.

This creates problems.

One, the lessor is focused on maintaining a healthy engine through its entire life, while the other, the lessee, is trying to get through maintaining the engine at the lowest cost to them.

Build relationships

When 2 parties are joined through an aircraft engine lease and each has different objectives, things get messy.

This is why lessors need to build a long-term approach with MROs and aftermarket suppliers to ensure quality service. Having consecutive shop visits MROs and suppliers are able to balance the lessor and lessee interests. They build history and experience working on an engine they've seen through its entire life-cycle.

By retaining a single MRO and supplier for an aircraft engine throughout multiple lessees, the engine will have better value preservation.

From life limited parts planning and used material to customized workshop planning and end-of-life ownership solutions. There are many influences that effect marketability of an engine.

When utilizing single sources, value is created for the lessor because there's no redundant activities or separate maintenance practices and policies.

Do you use single sources for maintaining your aircraft engine lease? Comment below.

Optimizing Boeing Maintenance Intervals

The more often your fleet of aircraft is on the ground, the less profitable you are. It doesn't take an engineer or genius to realize this.

Boeing-Maintenance

When your system isn't optimized it’s leaking efficiency, just like an oxygen mask with a hole. [TWEET THIS]

Dangerous.

The trick is to structure your Boeing maintenance intervals to reduce downtime and increase up-time.

How do you go about this? What you're doing might be “working” but are you optimizing the system to take advantage of your Boeing maintenance intervals?

Where you are now

Line and base maintenance for your fleet is a standard practice. Each airline is different so I’ll spare you the additional reading.

When your fleet of aircraft is parked for their scheduled checks you pay for man hours, parts, and lost revenue potential.

On average it costs you $15.12 per flight hour for an A check, $32.92 for a C check and $22.87 for a D check.

In a typical 24 year life cycle you will accrue 24 D checks, 67.2 C checks and 48.7 A checks.

We’ll use the C check as a base line here. A C check interval is 6,000 FHRS, that’s $197,520 for every C check, per aircraft.

When your aircraft arrives early you incur unnecessary costs for no faults found, but when it arrives too late there's a high probability for unscheduled maintenance.

Optimizing the maintenance interval ensures you’re getting the biggest bang for your buck. Increased utilization.

Where you want to be

Your Boeing maintenance strategy is one that will continually need improvement.

We've talked about lean six sigma before.

However, the road to get there isn't always easy or straightforward. Statistical analysis is great but other factors are always welcome. The Bottom-Up and the Top-Down Approach, Maintenance Task Packages, and Boeing Maintenance Checks can be grouped into maintenance clusters.

By utilizing this simulation you fulfill 4  purposes:

1) You simulate the aircraft utilization 2) You calculate when a maintenance item turns due 3) You will fit each Boeing maintenance item into clusters 4) You generate maintenance clusters

Clustering is one of hundreds of optimization strategies you can be taking advantage of.

Whatever strategy you take, optimizing it to reduce your total cost of maintenance is the goal. There's no room for complacency.

According to Boeing SASMO application, through optimization you can save $500,000 over a 10 year period.

Now, I don't know about you but I would start optimizing your Boeing maintenance intervals today.

Want more information on your Boeing maintenance checks? Click here.

Stop Losing Money To Freight Forwarders

You have an urgent requirement for an over-sized shipment. You need it shipped urgently but over-sized freight doesn't move like small parcel.

A phone call is made to your freight forwarder.

Skylink Freight

It takes them 24 hours to get you a quote and when you decide to schedule for pick-up it takes another day to get the package.

Not to mention the SLI, power of attorney, invoices and the hundred other documents supposedly needed.

Dealing with Freight Forwarders is painful.

Full of excuses

90% of all freight forwarders are designed and raised to make excuses.

Trust me, I’ve dealt with all of them.

You may have had an experience like this:

We needed to arrange the transport of a life raft that was HAZMAT. It was AOG and our customer needed it NOW. We gave a Freight Forwarder the details that morning and they said, “not a problem, we can manage this. "

We provided all the documents and arranged the pick-up. At the end of the day they proceeded to call us and say “Sorry for the inconvenience but because this is HAZMAT we don’t want to arrange the transport.”

Wait, what? Because it involves a little more effort they didn't want to manage the transport?

Ridiculous, but very true.

Build a strong relationship

We've dated and broken up with at least 10 Freight Forwarders over the past 10 years. They lie, cheat, cancel and make excuses better than most.

But don’t be a heartbreaker and end things at the sign of trouble. If you feel you have a competent well established company on the other line, nurture the relationship.

Take advantage of these simple tips to ensure the relationship with your Freight Forwarder is maximized.

Tip #1: Make sure they have history transporting aircraft material.

Tip # 2: If they don’t know what AOG is, end the relationship.

Tip # 3: Signing documents doesn't have to take longer than the transport of your material. You don't have to sign your life away on every shipment.

Tip # 4: Ensure they have offices at origin and destination. This results in better communication during quoting and transport.

Tip # 5: Deal with one account manager. Build a relationship. They should know all about your needs and wants.

Tip # 6: Your account manager should be able to email you back after hours.

Tip # 7: They should be able to accommodate special services like HAZMAT & Engine transport.

Having a strong relationship with a Freight Forwarder or a vendor who has a strong relationship with a Freight Forwarder is crucial.

For large freight they are the connection between the material you need and the destination you need it at.

They are the link between you and the world.

 Do you have a strong relationship with a freight forwarder? Or maybe you’ve had a bad experience. Comment

5 Reasons Your Phone Etiquette Is Terrible

Whether it’s you, an aircraft parts vendor, an MRO or someone entirely different,  having good phone skills is crucial in an international environment.

But sadly this is far from what we experience in the aviation industry. It’s tragic.

Skylink

When I approach a vendor for procurement purposes, my eyes are set on the end result; a successful purchase in time for my requisition requirements.

But sadly I end up making contact with someone that has as much energy as a snail. Slow moving and couldn't care less about my needs.

When I reach a sales manager often times I’ll get the “I’ll call you back in an hour.”  When that hour arrives and I don’t hear from them, I call them back. You would be surprised how often I get, “He’s out to lunch for an hour, can I take a message?”

First who takes an hour lunch and second who tells someone they’ll call them back during the time they know they're going to lunch?

It makes no sense.

Or how about this one. People ask you to email them and they never acknowledge, respond or cater toward your email. So why did they tell you to email them in the first place?

Bad phone etiquette

There are some fundamental truths when talking on the phone. One is  to greet the other person with respect. “Good afternoon Skylink” or “It was nice talking with you ___, take care.”  Simple yet respectful.

The next fundamental truth is to follow up on your commitments. If you tell someone you're going to do something, then do it. Plain and simple. If I tell you I’m going to email you in an hour, I’m going to email you in an hour. If I don’t, I’m going to tell you why my email is going to be delayed.

It’s about communication fundamentals.

If you make these 5 mistakes, your phone etiquette is terrible:

  • You say, I’ll call you back in 15 minutes and never do.
  • You say, send me an email and never do anything when the email is received.
  • You yell something to your coworker, or even worse, you have a full conversation with them.
  • You answer, “HELLO."
  • You’re monotone.

Follow these 5 rules instead to make sure you're doing it right:

  1. Greet with energy - nobody wants to talk to a sourpuss.
  2. Do what you say you're going to do - don’t say one thing and do another.
  3. Avoid the hold button - people hate being put on hold.
  4. Listen and learn - don’t interrupt or talk to your co-worker.
  5. Smile - don't’ be so serious or dry.

Practicing good phone etiquette should be on everyone's mind. I don’t care if you're an airline, MRO, supplier or freight forwarder.

Having good communication skills is a necessity to build lasting relationships that you can count on. [TWEET THIS]

Have you had an experience where the person on the other line was disconnected? Comment below.

Excuse Epidemic: Are You a Culprit or Victim?

Whether you like it or not, you’re very much a part of the excuse epidemic. Airlines, OEMs, aftermarket suppliers and especially MROs have been affected by this plague.

Excuse-Epidemic

You hear it day in and day out. Maybe your MRO provider called you and said “sorry to inform you but the average overhaul we quoted was actually under quoted by a $1,000. The OEM raised their price.”

All you will probably get is “Sorry for the inconvenience.”

No plans to make things right, no sincere apology and a possible solution. Just a requote and a “Sorry for the inconvenience.

Why the excuse epidemic exists

The excuse epidemic exists for one inherent reason. People are selfish.

I know that may be a little harsh but it’s true.

Excuses are born by people wanting the easy way out. I’m sure you’ve dealt with this on many occasions.

People would rather point the finger at a problem than take ownership that the problem was created by them.

Excuses come from laziness to correct an issue.

We all make mistakes but it’s how we try to overcome them that makes a difference.

What we can do to resolve this

Things happen. No matter who you are, where you’re from or what industry you deal with. Problems will always occur.

Plain and simple.

But do we make an excuse of why this issue occurred or do we report the problem with possible solutions? I’ll take the latter rather than the former.

Instead of making excuses, a conscious effort needs to be made to find solutions to the current issue.  [TWEET THIS]

Making an excuse is the easy way out. Finding a solution is a win / win strategy.

We've all been a culprit and a victim of the excuse epidemic. Whether you’re an airline, aftermarket supplier, OEM or MRO you've been on both sides.

I challenge you today to make a conscious effort to not be and not tolerate excuse makers. 

Find solutions.

Have you been the victim of the excuse epidemic? Comment below.

10 Truths About Stress for Aviation Professionals

The aircraft maintenance and engineering department is stressful. You know it, I know it, we all know it.

Billions of dollars have been invested into new software and now what?

You have access to better probability distributions, decision analysis, and forecasting through time series and smoothing methods. Or maybe you have better linear programming applications for financial planning and production scheduling.

Aviation Professionals

And if that wasn't enough you now have inventory models through economic order quantity and inventory simulation.

But what does this all mean?

It still means that you have to rely on a human at the other end of the world to do something you can't.

This may be the supply of an aircraft part stored in Florida, a fresh test cell for your CFM56 in Europe, or the ferry transport of your B747-400 to Asia.

You see no matter what programs are available, humans are still at the forefront of every decision.

And this is when the problems occur (software isn't perfect either).

With all of the noise happening around you, plans change things happen and contingency plans are inevitable. During these times the term stress is an understatement.

The 10 Truths About Stress

Stress is bad news.

I know exactly how it feels and one thing I've promised to myself is to make sure that I control it at ALL times. As an aviation professional have you made the same promise to yourself?

Here are 10 truths about stress you may not have known:

  1. Stress has been called “the silent killer” and can lead to heart disease, high blood pressure, chest pain, and an irregular heartbeat.
  2. Stress is linked to the six leading causes of death: heart disease, cancer, lung ailments, accidents, liver cirrhosis, and suicide.
  3. Chronic stress floods the brain with powerful hormones that are meant for short-term emergency situations. Chronic exposure can damage, shrink, and kill brain cells.
  4. Stress makes the blood “stickier,” in preparation for an injury. Such a reaction, however, also increases the probability of developing a blood clot.
  5. Chronic stress increases cytokines, which produce inflammation. Exposure to constant inflammation can damage arteries and other organs.
  6. Chronic stress worsens irritable bowel syndrome (IBS), a condition that irritates the large intestine and causes constipation, cramping, and bloating.
  7. Chronic stress decreases the body’s immune system’s response to infection and can affect a person’s response to immunizations.
  8. Stress can result in more headaches as a result of the body rerouting blood flow to other parts of the body.
  9. The hyper-arousal of the body’s stress response system can lead to chronic insomnia.
  10. When cells shrink due to exposure to stress hormones, they disconnect from each other, which contributes to depression.

*Reference

With all you know now, is stress worth it? Not a chance.

But you're human and it's inevitable. Life and work pressures will always push your limit. You must be proactive and regulate how much you let it affect you.

Aviation professionals need to manage their stress

The primary reason to manage stress is for your health. Let's just get that clear. This is the single most important reason you should get it under control.

But there's more to stress than just your health. When you're highly stressed you're more likely to make mistakes. [TWEET THIS]

Maybe it's purchasing a wrong part or forgetting to follow-up with a vendor. Whatever it is, you have a much greater chance of screwing up then when you're level headed.

[dropshadowbox align="none" effect="lifted-both" width="autopx" height="" background_color="#f09825" border_width="1" border_color="#dddddd" ]Stress also makes you tired and your energy level sinks. This not only affects your productivity but you become a tyrant to work with.[/dropshadowbox]

When you sit back in your chair, really think hard. Think about when you're stressed and your energy level drops. How much does the lower productivity and mistakes cost?

Whatever the number is, it's still greater than if you were thinking clearly.

As an aviation professional stress is an epidemic. Did you know pilots are rated with having one of the most stressful jobs in the world?

In my opinion. I think many aviation maintenance and engineering departments have one of the most stressful jobs in the world.

Wouldn't you agree?

The point here is to manage your stress. You'll not only be more productive and increase the bottom line, you'll also be a healthier you.

As an aviation professional are you stressed? Comment below.

What A Small Burger Joint Can Teach Aviation Professionals

I’m just going to throw this out there and you tell me if I’m wrong. Good customer service in the aviation world is often times…nonexistent.

customer service

Most companies worry about the sale and couldn't care less about your needs, wants, stresses or the 1,000 other things you have going on.

Don’t get me wrong sales is still important, otherwise how would anyone survive? Too much attention goes into the sale and not enough focus on the human behind the purchase.

You know what I’m talking about don’t you?

Well, I love great customer service and I’m sure you’re no different.

My burger joint experience

Just recently I decided to try a new local restaurant called BurgerFi.

It’s a nice little restaurant where the atmosphere is casual and the air smells like grease. Yum!

But of course eating like this is on occasion, right?

I go up to the counter and order 3 traditional burgers (of course not all of them are for me) and proceed to pay. They give me a gadget that vibrates when your meal is ready and we go sit down.

About 10 minutes later the little gadget still hasn't gone off. This is annoying and way too long for 3 simple burgers.

I go to the register and see my order sitting on the counter. Visibly frustrated I direct my attention to the manager. I told him that their little gadget didn't go off and there's only 2 burgers on the tray and I ordered 3.

I pull out the receipt to show him that as a customer I’m always right. But only 2 burgers were on the ticket. Yikes! Now at this point he probably thinks I’m full of you know what but I told him ordered 3. There must have been a miscommunication.

Obviously, right?

He said he’ll take care of it and had another burger tossed on the grill. I went to the register to pay and not shortly after he handed me the missing burger.

He said not to worry about paying. The burger was on the house.

Now, you may be thinking it’s only a $4.49 burger but it's MUCH more than that.

Regardless if I was lying or not he was willing to listen to his customer and make things right.

By this simple, low cost gesture he acquired a lifelong customer / advocate (as long as they don’t ruin it).

Lesson to be learned

You see, the story above isn't about how I got a burger for free. It’s about how great this small burger joint, BurgerFi made me feel.

In that moment I felt special, cared about and genuinely appreciated.

As aviation professionals, many of whom you deal with go about their day, they often forget that it’s the small things that matter most to you.

Now, it may be nice but you're not looking to be given a $25,000 actuator to “make things right.” But you would appreciate someone who cares about you as a person. Someone who listens, takes notes and makes things right.

I know this because I’m that person as well.

If we can learn one thing from my friends at BurgerFi, it’s to make people who you work with feel special, because they are.

If you’re dealing with someone who doesn't care, fire them.

You deserve a cooperative relationship so don’t settle for less.

Have you had a positive customer service experience? Comment below. It doesn't have to be an aviation experience.

6 Ways To Reduce Stress Without Leaving Your Desk

Your face begins to get red, steam is coming out of your head and you feel as though you're going to explode. Sound familiar?

Reduce stress with infinity sign

Well, you're not alone. My head steams, I get red and I feel like I’m going to explode on a frequent basis.

But I’m going to be honest, this is never a good feeling.

You live and breathe the aviation world and stress is going to be a frequent inhabitant in your life. Stress isn't always a bad thing but once it gets out of control in can end a good day fast.

So I want to share a few little secrets with you. These secrets are what I do to reduce stress and the best part is, I don’t have to leave my desk.

In this crazy world we call aviation, you should try anything to limit the stress you encounter.

Am I right?

 6 ways to reduce stress without leaving your desk

1) Get a live plant - By putting a couple live plants in your office you’ll create a soothing atmosphere that reduces airborne mold and bacteria by 50-60%. An increase in your comfort level means a decrease in your stress levels.

2) Infinity method - With your finger draw an infinity sign. This is a figure eight on its side. Make sure to draw it big and to continue this motion. As you draw, follow the path with your eyes. By doing this you force your brain to switch between left and right side thinking. This type of analytical switch disrupts focus and reduces stress.

 3) Reach for the sky - While sitting in your chair clasp your hands together. Then reach for the sky as high as you can. Once you feel the stretch and slight backwards bend in your spine, lean left and then lean right. This little tip opens up your entire upper torso. What a relief.

4) Breathe - Breathing is a great way to reduce stress. Breathe in through your nose, feel your diaphragm expand, count to 5 and release through your mouth. As you release, feel your diaphragm begin to cave. Count to 5 on the exhale. Repeat 10 times. Close your eyes if that relaxes you even more.

5) Sit on a stability ball - This little technique makes you focus on your posture which allows for better blood flow. Once you begin to hunch, you restrict your blood flow making you tired, grumpy and on edge. See me on my stability ball by clicking here.

6) Get a stress ball or desk punching bag - Get yourself a stress ball or if you really feel up for it, get a desk punching bag. Although violence isn’t acceptable these are GREAT tools to relieve stress.

That's it. If you use any of these tips you’ll feel much better when your stress level begins to rise.

Start being proactive and reduce your stress before it gets out of control.

Do you have trouble dealing with stress? Comment below.

Understanding Spare Parts Provisioning With Mr. Dawit Zeleke

We're back at it again. Just today we received a comment stating "Thank you for the Q&A. The content is very interesting for my job."  We were also told that "I very much enjoyed this Q&A."

This is GREAT and we are so happy that this can be of value to you. If you have any recommendations, or suggestions about the Q&A, email us. We would love to hear your suggestions.

Okay, now were on with the Q&A. This week we bring you yet another interview that is short but sweet. It comes to you from the country of Ethiopia. The unique operating practices of an airlines wholly owned by the government is unique, but still has the same problems when it comes to provisioning.

Let's take a look with what Mr. Dawit Zeleke has to say.

Skylink

What are your biggest frustrations when it comes to aircraft spare parts provisioning?

Response:

The biggest frustrations are receiving parts without the appropriate documentation.

Is it difficult to adapt to these situations?

Response:

No.

What are the reoccurring problems you face in the general terms of maintenance?

Response:

We will procure a part with the designated part number requested our maintenance head; however the part will be wrong despite having the same part number. Various parts with the same part number can cause procurement issues.

How could your vendor's best service you during these problems?

Response:

They can send a replacement part which will solve the problem prior to the aircraft reaching AOG status.

Now let's talk about vendors. Aside from price and quality of parts, what are the biggest issues you encounter with your vendors? Maybe it's a lack of caring, or their hard to get a hold of. Think more in terms of personality, than service.

Response:

Some vendors have low prices, but the part is not acceptable at our end after we've received it.

What would you like your vendors to focus on more to make you feel most satisfied?

Response:

Parts must be accompanied with an FAA 8130-3 and / or an EASA Form 1. Also the best price is a big factor.

In terms of MROs, what are your biggest complaints when dealing with repair shops?

Response:

We are constantly frustrated with our current repair shops and will source out the best one on the next maintenance project.

How would you like them to act towards you?

Response:

More than price we want high quality of the parts and to ensure functionality without fail. But as a buyer, price also plays a factor.

If you could choose one thing, what would you like to see most in your aircraft spare parts vendor?

Response:

Quality

Short but effective! We can all see the reoccurrence that yes price plays a heavy part in provisioning, but quality and the attitude of the vendor also plays a heavy part.

What do you think? Aside from price, what obstacles do you run in to? We want to hear from you.

Click here and tell us what's on your mind.

 

[dropshadowbox align="none" effect="lifted-both" width="autopx" height="" background_color="#f5a230" border_width="1" border_color="#dddddd" ]Bio:

Mr. Dawit Zeleke has been with Ethiopian Airlines for the last 18 years in multiple departments of the company. He is currently the purchaser for avionics and instruments. He is also a father of two daughters and has a lovely wife. [/dropshadowbox]

The Truth About Aircraft Engine Transport

If you lived in a world where turbine engines grew on trees, aircraft engine transport would be irrelevant. Unfortunately this is not the case.

Aircraft Engine

Moving engines is a task all airlines will experience at some point. You may even experience it several times a year depending on your fleet size.

You put trust into the companies you designate to organize the logistics of its transport. And trust is important.

These are machines that can cost as little as $250,000 and skyrocket to multi-million dollar assets. There’s no room for error and we see constant mistakes from our experiences with freight forwarders who have moved our engines.

When you’re shipping your engine keep this in mind.

Be Prepared For The Unexpected

Rarely do things go according to plan 100% of the time. There may be schedule changes, import issues, improper documents, mother nature, or many other things

When it comes to aircraft engine transport, the number one delay is cargo carriers bumping the freight. When and if you decide to ship your engine air freight allocate time for delays.

Delays are common and unavoidable and will undoubtedly occur. Whether it's a flat tire during land transport, loading issues, lazy freight forwarders or the 1,000 other things, delays are certain. Adding an additional 7 days to your transport time is ideal.

Unless you’re AOG in which the higher fees will ensure expedited shipment.

Another common problem with engine transport is unclassified HAZMAT. You will be shocked at how many shippers and freight forwarders don’t think engines are HAZMAT. It is ideal to tell your shipper that your engine is hazardous material from the beginning. This will avoid last minute DG documentation and the proper process for dangerous goods export.

Aircraft Engine Transport Reliability

Moving your valuable assets is important and we live in a world where international transport is required.

Just as you would when you choose an aircraft spare parts vendor, you must choose a partner or freight forwarder who can manage your shipment properly.

Without choosing the right partner your engine will experience significant delays, transport issues and even damage.

When there is communication through the entire logistics process, you’ll be less stressed, your asset will be in good condition and your life will be much easier.

Do you have issues with engine transport? Are you looking for a transport partner? Click here and we can help.