HEAVY ENGINE OVERHAULS CAN COST from hundreds of thousands to several million dollars depending upon engine and workscope. The major cost elements are time off-wingsince spare engines must be bought or leasedparts, labor and overhead, including interest on inventory. Part costs can be controlled by smart acquisition or workscoping. The other elements are reduced chiefly by getting engines overhauled faster with more efficient processes and fewer errors. Through Lean and other techniques, engine shops are pursuing these goals aggressively.
Smart airframe maintenance is seldom subject to big changes. Rather it requires careful choices and small tradeoffs, weighing in-house against outsource options, balancing downtime costs with favorable rates, seeking efficiency through long-term contracts or exploiting inexpensive short-term deals. These kinds of balances can be different for each airline and, of course, are constantly changing.
Southwest Airlines is moving full speed ahead to improve its Required Navigation Performance capabilities. In December, the carrier selected Boeing to integrate RNP components in the cockpits of both 737 Classics and 737NGs and selected GE Aviation to provide large area display suites for the Classics.