Here’s How Airlines Can Prevent Millions of Dollars in Losses

Want to read a brief overview of Continuing Airworthiness Management Organisations (CAMOs) first? Check out the 5 Basics You Should Know About CAMOs, or read Part 1 of this article here!


Airline Losses


When we think of airline losses, we might think of low load factor, unprofitable routes, or even failed marketing campaigns. What would rarely come to mind is Continuing Airworthiness Management – which is actually a major factor in incurring losses for an airline, if not handled correctly.

This is where a good Continuing Airworthiness Management Organisation (CAMO) comes into play. How can a CAMO prevent losses for an airline? Should airlines outsource their CAMO? Read on to find out!


What are Some Current Issues Many Operators Face?


Oftentimes, operators will not know what has hit them – operationally and financially – until it’s too late. While fixing the aircraft and performing routine maintenance will get the aircraft up in the air again, the aircraft is not necessarily airworthy. Typically, this non-airworthy state will only be discovered before returning the aircraft at the end-of-lease, or when the aircraft changes hands (when the aircraft is bought over by a different owner).

Quite often, the non-airworthy state of the aircraft is discovered only during audits by the regulatory authorities. In cases as such, operators should expect a lengthy period during which the aircraft is grounded. This leads to loss in revenue generation and up to tens of millions in spending on rectification works to restore the aircraft to an airworthy state.


What Happens When Airlines Have Poor Continuing Airworthiness Management?


With poor Continuing Airworthiness Management, operators are bound to face high cost of operations, poor On-Time-Performance (OTP), low reliability and low asset value of the aircraft.

Believe it or not, airlines can incur millions of dollars in losses. These losses can occur when returning aircraft to their lessors, as a result of poor reliability studies. Reliability studies, which come under the reliability program, help provide significant and timely technical information to aid in improving aircraft reliability. Data collected from reliability programs may result in changes made to the maintenance program so that maintenance tasks can be escalated, de-escalated, removed, added or varied, to improve the effectiveness of the program. A good reliability program leads to high levels of aircraft reliability, systems reliability, component reliability and power plant reliability, among other benefits. Thus, with poor reliability studies (as a result of a poor reliability program), airlines could incur losses.


What Can Be Done to Ensure Good Continuing Airworthiness Management?


Dviation, through its CAMO unit, is able to provide cost savings with a business model that is based on volume (from many operators), enabling shared services in many of the activities that performed. With a collective experience of over 70 years in Continuing Airworthiness Management, Dviation ensures that the aircraft is airworthy at all times, until the aircraft changes hands. With Dviation, operators will realize optimum aircraft availability, OTP, reliability and lower operating cost. Thus, they can focus on their core business of running the airline (i.e., flying from point A to B, maintaining profitability, ensuring passenger comfort), while Dviation handles the Continuing Airworthiness Management aspect of the airline.

As an independent CAMO, Dviation can provide professional, high-quality and cost-effective Continuing Airworthiness Management to aircraft operators. Find out more here!



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