Posted on: 13 July 2016 by Mark Howells
Boeing Commercial Aviation Services (CAS) been taking costs out of the business – approximately $400 million a year – to pass on to its customers, according to Stan Deal, the division’s senior vice-president.
“I expect that trend to develop,” Deal remarked, providing a key example of the results of that process. “We opened the show with the largest service order in our history with Norwegian – the launch of GoldCare service for the 737 MAX. Norwegian been delighted with our services thus far and has therefore extended our co-operation.”
“We using Lean, more automation and many other process to decrease costs,” Deal continued. “Some of the inventorying techniques help cut costs too. We recently lowered the price on 24,000 parts,which is something we can do because of our size and position.”
Deal also noted the launch of a new product line – the 737 MAX Component Services Programme which has TUI as its launch customer. “With the MAX coming along we’re expanding what we did on the 737. We’re working with KLM Engineering & Maintenance on the development of that,” explained Mike Fleming, VP fleet and 787 services, CAS.
The collaboration with KLM E&M underlined a Deal’s response to a question regarding OEMs getting into MRO. “Strategically, we don’t want to be the largest single MRO in the world. That’s why we’re going to have to build partnerships,” he stated. “Because not all the work is done by Boeing. Quite a lot of the time, we do the STC and then the actual work is done with a partner.”
Richard Anderson, VP sales and marketing for CAS, emphasised that developments are also arising in the area of efficiency solutions. These data-led products received orders at the show too with six customers signing up, including Pobeda and Gol in the low-fare airline arena.
GOL is to use the Engine Fleet Planning and Costing (EFPAC) tool, which reduces operating costs by determining specific engine management practices over the life span and enabling better decision making.
Pobeda is adopting CAS’s fuel dashboard services across its fleet of 737s. Deal explained that this brings fuel costs savings between 2% and 7%. “That range is because it deals not just with the flight regime, but where you fuel and who you buy from.”
The tool has been further developed since its creator ETS Aviation was acquired by Boeing in 2014. Moreover, Boeing has increased its usage in those two years by over 67%, as it is currently used on more than 1,000 commercial aircraft around the world, compared with 600 at the time acquisition.
Deal stressed that the data products can be used by airlines whether or not they operate Boeing aircraft. “These solutions are aircraft agnostic,” he confirmed.
Summing up, Deal declared that the portfolio is robust. “We have the flight services business (including pilot and maintenance training); the fleet business (conversions, updates to interiors, avionics upgrades, GoldCare and so on); the digital portfolio (products from Jeppesen, aircraft health monitoring, the fuel dashboard) and our parts business.” That, he believes, will make Boeing a major player in a market valued at $2.8 trillion over the next 20 years.
Photo shows (l-r): Stan Deal, SVP Boeing Commercial Aviation Services and Richard Anderson, VP sales and marketing for Boeing Commercial Aviation Services.
Bernie Baldwin, editor, Low-Fare & Regional Airlines/laranews.net