Saudi Arabian Airlines Aircraft Maintenance - Research Paper Example

? Saudi Arabian Airlines Aircraft Maintenance Saudi Arabian Airlines Aircraft Maintenance Introduction Saudi Arabian Airlines is Saudi Arabia’s flag carrier airline. The airline was established in 1945, following a meeting between the founder of the Saudi Arabian kingdom, King Abdul Aziz Bin Abdul Rahman Al Saud, and Franklin D. Roosevelt, the then president of the United States. President Roosevelt gave the Saudi Arabian King a present of Douglas DC-3 Dakota, which the king turned into a national carrier. After realizing the need for the growth of economy and transportation of people and goods, the king decided to purchase more carriers. The base of the popular airline is in Jeddah. The airline operated both international and domestic flights to more than ninety destinations in North America, Africa, Middle East, Europe and Asia. The international and domestic flights are mainly operated during the Hajj and Ramadan season. The major operation base of the airline is at the JED (Jeddah-King Abdulaziz Airport). The Dammam airport, one of the major hubs of the airline was established for commercial use in the year 1999. During the time of Dammam establishment, Dhahran International Airport was in use, but has since been turned into a military base. The airline is a recognized Arab Air Carriers Organization member. It was at one time the regions largest carrier, but following the establishment and development of some other airlines and airports, it has moved down to be the third largest since the year 2006, behind Etihad Airways and the Emirates. Function of Aircraft maintenance in the Airline The department of aircraft maintenance in the airlines helps in supporting naval operations by the conservation of aircraft and the associated SE to the delegated maintenance level. Since all the activities of maintenance have similarities in administration, operation and mission, we find that these sections have standardized administration and organization (Mirghani, 1996). The department of maintenance helps to improve: Training and performance of maintenance personnel; maintenance efficiency and integrity for all material; equipment, system readiness and aircraft; safety; planning and scheduling of maintenance work; materials and maintenance manpower usage; end product’s end quality; Accomplishment and maintenance of combat readiness; and consistency in case of personnel or aircraft transfer between commands. All the stakeholders or parties involved in the tasks of maintenance work toward a common goal; that is ensuring that the above areas are achieved. They work under the process of management control used in the department of aircraft maintenance organization. Saudi Arabian Airlines has vowed to maintain high standards of performance in all of its Saudi Airlines have endeavoured to maintain high performance standards in all features of its operation all through the year. The prompt or on-time index of performance is a key criteria of the industry that airlines strive to raise, and the Saudi Arabian Airlines usually struggles to meet the standard. Within the 1993 to 2002 period, about eight hundred and nine thousand, six hundred and twenty six flights operated successfully with an average time departure of about 90%. The airlines currently own 139 aircrafts. This includes the most advanced and latest large jets that are available in the market. Aircraft service and maintenance, punctuality and safety, are the airline’s top priority (Mirghani, 1996). The airlines utilize Information Systems to promote efficiency and productivity. Since it is the Middle East’s largest carrier for cargo and passengers, the airlines is also the oldest in the region. Undertake of base and line maintenance The Civil Aviation Kingdom of Saudi Arabia General Authority approved the PIA Maintenance and Engineering to carryout the line maintenance and base maintenance of the Saudi Arabian Airlines (PIA to undertake maintenance of Saudi Airlines aircraft, 2011). The activities involved include repair or structures and major change of component. The organization also accommodates bigger tasks of scheduled maintenance like repairs, Hanger A checks, modification and changes of engine and/or landing gear that are beyond the capability of many organizations that deal in base maintenance and line maintenance. Budgeting system method There are some factors that the Saudi Arabian Aircraft take into consideration in the establishment of a baseline for the costs of aircraft maintenance. Fair market value of efficient and substantial maintenance: Economic fluctuations during the last few years forced the airline to expect lower costs of maintenance for its carriers. When in negotiations with the service provider on a maintenance budget, the company discloses the costs or out-the-door inspections and history from a number of past service providers (Mirghani, 1996). Comparison between the out-the-door costs and the quoted costs: A quote by the service provider should be reasonable anticipation for what the costs of out-the-door will be. Formless quotes would not show the services that are included in the cost, and are not closed invitations for extra, undocumented charges. However, if a price quote appears to be reasonable, the company asks for the costs of out-the-door on the same projects. Evaluation of quality of the hourly labor rates: The company is always cautious about low rates of labor, as they demonstrate lack of sufficient experience. New technicians usually take longer before completing a work that the experienced ones and any savings made on the initial cost can always be lost in the extra time required for the completion of a difficult matter (Mirghani, 1996). The airlines chooses a highly experienced service center, whereby even though there are high labor rates, efficiency is much better and lead to better quality and saving. Cut costs in the appropriate places: The company schedules inspections in advance prior to the due time so as to help in saving labor costs, at times by as much as twenty percent. This also helps in securing labor for its aircrafts. Upsides and downfalls of Aircraft Maintenance Over the past 15 years, many airlines have shut their own centers of repair and rendered many mechanics jobless in favor of the outsourcing of the repair, overhaul and maintenance task to third-party stations of repair in order to cut down costs. It is cheaper to outsource because the unionization of their own workers, whereas third-party workers are not union and have competitive pricing. The clients do not have much worry as their planes cannot be affected by possible strikes. Airlines are slowly accepting the outsourced line maintenance (Mirghani, 1996). Currently, carriers are using third-party organizations for specific line maintenance works at non-center airports. These airlines also save substantially on cost due to the fact that they do not have to keep their own spare parts. Before the touching on a ground at a center of repair, a crucial check list of repair is normally established. With this critical checklist, the worker always has the parts readily available or even on order. Nevertheless, with this style of outside maintenance steadily growing, commercial aircraft maintenance, overhaul and repair will continue growing in the future at a fast rate. Nonetheless, location is the most difficult obstacle to entry into this lucrative industry in the region of Pacific Northwest. Majority of the carriers are based on the gulf coast and east and with the increasing cost of jet fuel, most airlines prefer to send their carriers to centers of repair that are closer to their main bases. The value of the thirty nine billion dollars global jet transport overhaul, repair and maintenance market is projected to grow at five percent yearly in the coming ten years as a past fall in the rates of labor bottoms out and costs of engine overhaul continue going up. The global market of MRO will be approximately forty nine billion dollars by the year 2010 and sixty one billion by the year 2016. It should be expected that a few more centers of repair will enter this industry. Different from other industries whereby the organization has to invest in a new equipment and building, the biggest obstacle to entry into this industry if finance (Herman, 1968). Conclusion The Saudi Arabian Airlines has proved to be one of the largest and most successful airlines in the world, and should be imitated by many. Its world class management has enabled it to establish itself as the pride of Asia. The company has laid down very good strategies, such as approach to maintenance services, which has propelled it to greater heights. References Herman L. (1968). An Investigation into the Use of Labor and Capital for Aircraft Maintenance in the Military and Commercial Sectors, USAFA TR 69-2, USAF Academy. Mirghani, M. A. (1996). “Aircraft maintenance budgetary and costing systems at the Saudi Arabian airlines an integrated business approach.” Journal of Quality in Maintenance Engineering, 2(4), 32-32-47. Retrieved from: http://ezproxy.libproxy.db.erau.edu/login?url=http://search.proquest.com/docview/215555310?accountid=27203. “PIA to undertake maintenance of Saudi Airlines aircraft.” (2011, Jun 04). Financial Post, pp. n/a. 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