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An outsourcing decision model for airlines' MRO activities

Al-Kaabi, Hamad, Potter, Andrew Thomas and Naim, Mohamed Mohamed 2007. An outsourcing decision model for airlines' MRO activities. Journal of Quality in Maintenance Engineering 13 (3) , pp. 217-227. 10.1108/13552510710780258

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Abstract

Purpose – This paper aims to evaluate the main business models used for airlines' maintenance, repair and overhaul (MRO) activities and determine the activities to which these relate. Design/methodology/approach – A critical literature review is used to develop a conceptual model of MRO activities. This is evaluated through a SWOT analysis before an exploratory study of eight airlines is used to confirm the applicability of the conceptual model. Findings – Four levels of MRO outsourcing are identified; from fully outsourced to fully in-sourced. From the exploratory study it is shown that critical MRO activities such as line maintenance are frequently in-sourced, while activities with low demand at an airline level such as engine maintenance are often outsourced. Practical implications – MRO represent around 10-15 per cent of an airline's operational costs. By identifying the strength and weaknesses of different MRO models, it is possible to evaluate alternative MRO strategies. Originality/value – Unlike other research in maintenance which was aimed mainly at the manufacturing sectors, this research provides insights into the maintenance practises in a service sector. In particular this research studies the different outsourcing levels existing in airlines' MRO. The knowledge gained by understanding the mechanism of outsourcing in airlines' MRO can be further extended to other industries and help in best configuring their maintenance units.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
H Social Sciences > HE Transportation and Communications
Uncontrolled Keywords: Air transport; Airlines; Corporate strategy; Maintenance; Outsourcing
Publisher: Emerald
ISSN: 1355-2511
Related URLs:
Last Modified: 04 Jun 2017 04:25
URI: http://orca.cf.ac.uk/id/eprint/38612

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