Study to Determine the Aircraft on Ground (AOG) Cost of the Boeing 777 Fleet at X Airline

  • Basem Badkook Eng.Basem Badkook, King Abdul Aziz University, Jeddah 21231, Saudi Arabia
Keywords: Aircraft Maintenance, AOG, ABC Analysis, ATA Chapter.

Abstract

A research was conducted to study and investigate AOG events and cost in X Airline B777 fleet. AOG data was gathered for one year; this set demonstrated that the X Airline B777 fleet experienced 146 AOG events during this period. The critical parts that where causing AOG where distinguished out of this set; 115 parts were causing the AOGs. ABC Analysis was conducted to this set considering three dimensions; Aircraft, part number, and ATA chapter. Regarding first dimension, this analysis shows that the critical AOG Aircraft are 7 aircrafts out of 28 which represented 25% of the number of Aircraft that experienced AOG events had 45% of total AOG occurrences. Regarding ATA chapter, the full set of AOG was sorted by ATA chapters and this analysis showed that 7 chapters out of 26 which represented 27% of the chapters had 50% of total AOG occurrences. As for ABC analysis for part numbers, this analysis revealed that 25 parts were causing 91% of the AOGs cost. A second ABC analysis was led on 25 parts set revealed that 7 parts were the most important that where causing 54% of the AOGs occurrences. All critical part numbers consider as Rotable material. After analysis the data, the average replenishment cost for AOG situations were estimated around $8,785.36 and the average flight delay cost is $22753.53. This research was let to comparing X Airline results with other Airlines and tries to know the common and different elements between X Airline and other Airlines in Middle East by sending questionnaire to the Middle East Airlines. The main factors that affect AOG cost were determined and ranked by using AHP (Analytic Hierarchy Process) to reduce AOG cost. It was applied based on the method of decision support and questionnaires answered by experts.

References

[1] Azizah Aisati, Wakhid Ahmed Jauhari and Cucuk Nur Rosyidi. “Determination Inventory Level for Aircraft Spare Parts Using Continuous Review Model”, International Journal of Business Research and Management (IJBRM), Volume (4) : Issue (1) , 2013
[2] Seraj Yousef Abed. “Development of New System for Spare Parts Repair to Reduce AOG Situation in Saudia Special Flight Services Division”, Wseas Transactions On Business And Economics, ISSN: 1109-9526, Issue 8, Volume 5, August. 2008.
[3] T-Rad , and Wahab, M. I. M. Wahab. “Classification of Critical Spares for Aircraft Maintenance”, Service Sytem and Service Management (ICSSMM), vol. 8: 1-6, 2011
[4] Kara, Abdul Qadar and Ferguson ,John . “Estimating Domestic U.S. Airline Cost of delay based on European Model”, International Journal of Industrial Organization, vol. 23(7-8), 2008
[5] Bacchetti1, F. Plebani1, and Saccani ,N. and Syntetos , A.A. “Spare Parts Classification And Inventory Management": A Case Study, Manchester: University of Salford Manchester.” , 2010
[6] Aisyati, Azizah , Jauhari ,Wakhid and Rosyidi, Cucuk. “Determination Inventory Level for Aircraft Spare Parts Using Continuous Review Model”. International Journal of Business Research and Management (IJBRM),Vol. 4:1, 2013
[7] MacDonnel , Michael. “Aircraft Rotable Inventory Optimization”, Ph.D. Thesis, Aston University, Birmingham, 2008
[8] Tedone, Mark J. “Repairable Part Management”, institute of operations research and the management sciences, vol.19: 61, 1989
[9] Moreira, Michelle. “The Main Cost-Related Factors in Airlines Management”, Journal of Transport Literature, Vol. 8, n. 1, pp. 8-23, 2014
[10] Baluch, Azim and Sobry Abdullah, Che and Mohtar, Shahimi. “Effective Spare-parts Inventory Management for Equipment Reliability in Manufacturing Industries”, European Journal of Business and Management, vol. 5: 69, 2013
[11] Klipi , Jani. “Sourcing of availability services Case aircraft component support”, The Journal of the Operational Research Society, vol. 59: 437, 2008
[12] Van Duren ,Jeroen . “Differentiated spare parts management: an application in the aircraft industry”. Master of Science in Operations Management and Logistics , TUE University, Eindhoven, 2011
Published
2016-09-20
Section
Articles