Topic:Singapore Aero Engine Services
Subject:Other
Type: Essay
Volume: 5 pages
Format: APA
Description
A report on the company. The goal is for you to critically analyze an Mainteance,Repair, and Overhaul (MRO) organization and comprehend the business functions of an MRO. Analyze the MRO type and target market, operating location(s), regulatory oversight, and the company’s organizational structure.
Why outsource?
The ability to control the cost of maintenance is a huge motivator for airlines to seek outsourcing their maintenance. For example, take wages and benefits that an airline would have to pay their employees would become too costly for the company to maintain. Therefore, these costs fall on the contractor eliminating cost for the client.
The outsourced MRO would be fully staffed and experienced when it comes to their services. This goes back to cost control, there is no need to invest time and money into hiring employees.
Personnel Issues would fall on the contractor as well with issues such as disciplinary actions, scheduling, and etc.
Tools, equipment and technology would all be provided and applied towards the fleet of the airline. There would be no need to invest in tools and equipment for heavy maintenance.
This leaves the mission that airlines want to accomplish, keeping their planes in the air. The airlines won’t have to worry about maintenance issues so they can worry about making their flights on time.
Negatives of outsourcing
Some negatives of outsourcing are loss of control, staff turnover, and inefficiency in response time.
Once the contract has been set in place, the control of maintenance is handed over to the contractor. The airline loses its ability to directly manage and instruct the workforce. The management style may conflict with what the clients may agree with which generally leads to conflict.
When it comes to in-house employees, they are more likely to be loyal to the company and generally keep their experience there whereas outsourced MRO places may have less. The lack of knowledge may pose a problem to the client.
Lastly, response time is an issue. In-house problems are easier to handle than having to call an offside vendor. MRO services are a business as well and have their own priorities whereas airlines only worry about their aircraft.
One risk would be not having the facility being tightly regulated and inspected by the Federal Aviation Administration (FAA). “Foreign maintenance allows companies to forgo employee background checks, no drug testing, aircraft mechanics do not have to be licensed only supervisors are required to be licensed mechanics, and FAA inspectors are forbidden from making spot checks and surprise inspections a common occurrence at U.S. overhaul bases.” (Douglas, 2012).
Singapore aero engine services
• Incorporated initially in 1999 as part of the first ever order by Singapore Airlines for Rolls-Royce engines
• Expanded four times
• Employ more than 1,000 employees
• Serviced more than 2,300 engines
• Supports more than 26 customers globally
Partnership with Rolls-Royce
• Singapore Aero Engine Services(SAESL) one of the biggest companies in Asia in conjunction with Singapore Airlines SIA Engineering holds a 50 percent stake in Rolls-Royce.
• Rolls-Royce’s Trent-family turbofan engines are repaired in Singapore and is able to provide services to all Trent family engines globally.
In Singapore, they have created an in-line gantry system for engine strip assembly which is the first in it’s region. Also they have a fully automated engine parts cleaning line which is the first of its kind in the world
References:
Asia Aviation. (2011, December 6). Engine maintenance in Asia big business. Retrieved from http://www.asianaviation.com/articles/201/Engine-maintenance-in-Asia-big-business
Broderick, S. (2018, February) BRIC MRO Outlook Mixed Over Next Decade. Retrieved from http://www.mro-network.com/maintenance-repair-overhaul/bric-mro-outlook-mixed-over- next-decade
Douglas, J. (2012, September 16). American Airlines to Outsource Aircraft Maintenance to China. Retrieved from http://avstop.com/september_2012/american_airlines_to_outsource_aircraft_maintenance_to _china.htm
Johnston, M. (2014, May) The Pros & Cons of Outsourced vs In-House Maintenance. Retrieved From http://us.tacook.com/fileadmin/files/5_Press/In_the_press/TACook_ThePros_ConsOfO utsourced_ChemInfo_05_2014.pdf?tracked=1
Harrison, M. (2016, September). MRO Forecast and Market Trends. Retrieved from https://www.iata.org/whatwedo/workgroups/Documents/MCC-2016-BKK/D1-1000-1030-mro- forecast-icf.pdf
