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Economic Advantages and Disadvantages: Aviation Maintenance and Repair Industry

The three leading corporations in the commercial aviation, maintenance, and repair industry are Goodrich Aviation Technical Services, Pemco Aviation, and Singapore Technologies. Although Goodrich is the largest third-party repair station in the world, all three corporations have their economic advantages and disadvantages, both internally and externally.

Over the last fifteen years, airlines have closed their own repair centers and laid off excess mechanics in favor of outsourcing their maintenance, repair, and overhaul work to third-party repair stations to reduce costs. The reason it is more cost effective to outsource maintenance is because their own workers are unionized, while third-party vendors have competitive pricing and are typically not union. The customers have no reason to worry if their planes will be left not serviceable due to a potential strike.

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The three leading corporations in the commercial aviation, maintenance, and repair industry are Goodrich Aviation Technical Services, Pemco Aviation, and Singapore Technologies. Although Goodrich is the largest third-party repair station in the world, all three corporations have their economic advantages and disadvantages, both internally and externally.

Over the last fifteen years, airlines have closed their own repair centers and laid off excess mechanics in favor of outsourcing their maintenance, repair, and overhaul work to third-party repair stations to reduce costs. The reason it is more cost effective to outsource maintenance is because their own workers are unionized, while third-party vendors have competitive pricing and are typically not union. The customers have no reason to worry if their planes will be left not serviceable due to a potential strike. Typically, this is incorporated into a contract agreement between the airline and the vendor. According to Lori Ranson, “Carriers are slowly embracing the idea of outsourced line maintenance, results of a recent maintenance, repair and overhaul market study by Mercer Management Consulting show with airlines noting they expect a 3% boost of line maintenance outsourced by 2009. Right now, airlines are using some third-party companies for selected line maintenance tasks at non-hub airports” (4).

The airlines also save on costs by not having to store their own spare parts. A basic check list of repairs is usually established before an aircraft touches ground at a repair center. With this basic checklist, the vendor usually has the parts already there or on order. With this trend for outside maintenance growing, commercial aviation maintenance, repair, and overhaul will continue to grow in the future at a rapid pace. According to Michael Zubovic, Vice President of Finance for Goodrich Aviation Technical Services, “The most difficult barrier to entry into this industry in the Pacific Northwest is location. Most of the airlines are based on the east and gulf coast and with the rising price of jet fuel, many airlines are opting to send their planes to repair centers closer to their main quarters.”

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  1. Liane Schmidt

    On October 15, 2008 at 2:24 pm


    Dear Chris,

    This is a wonderfully written, informative great article – It is clear to see why it receives such an extraordinary level of viewership. All your articles will begin to receive this level of popularity (+ endless limits) – believe it with everything in your heart. You can and WILL make your living from your writing. I am blessed beyond words by your kind gesture.

    Best wishes & blessings to you, always.

    Sincerely,

    -Liane Schmidt.

  2. Chris Stonecipher

    On November 5, 2008 at 7:28 pm


    Liane,
    Thank you for your kind words and support! Blessings to you!
    Sincerely,
    Chris

  3. Lauren Axelrod

    On November 9, 2008 at 12:34 pm


    Wow Chris, this article is rich with great content. I need to feature this one on the blog.

  4. Shawna Thom

    On November 10, 2008 at 9:45 pm


    Chris, i am amazed by your article. Your detail brought the topic to life. I appreciate your writing style; easy to comprehend at any level.
    Best wishes to you Chris.

    Shawna Thom

  5. Chris Stonecipher

    On November 10, 2008 at 11:29 pm


    Thanks Shawna! I am humbled by your wonderful comment. Blessings to you!

  6. Chris Stonecipher

    On November 11, 2008 at 10:57 am


    Thanks Lauren for featuring this one on your blog!

  7. yang

    On November 28, 2008 at 12:57 am


    wow

  8. Chris Stonecipher

    On November 28, 2008 at 1:07 am


    Thanks Yang! Are you a triond writer? If not where did you find my article. Thanks for your kind comment.
    Chris

  9. goodselfme

    On November 30, 2008 at 8:21 pm


    So well done with great information and precise detail.

  10. Bozsi Rose

    On December 3, 2008 at 9:02 pm


    This is so well researched! I hope you get a ton of hits.

  11. Chris Stonecipher

    On December 3, 2008 at 9:31 pm


    Thank you goodselfme!
    Thank you Bozsi for stumbling my article. Blessings always to both of you.
    Chris

  12. eddiego65

    On December 13, 2008 at 9:48 am


    It must have taken a lot of effort to write such a well-researched article. Great work.

  13. Virginia Wolfe

    On December 29, 2008 at 8:56 am


    this is a great piece. well written and very informative. giving it a thumb on stumble

  14. Chris Stonecipher

    On December 29, 2008 at 12:17 pm


    Eddie,
    Thank you for your comment and support.
    Virginia,
    Thank you for your comment and thumb on stumble.
    Happy New Year,
    Chris

  15. Unofre Pili

    On February 13, 2009 at 5:56 am


    A well-considered writing

  16. Blue Buttefly

    On February 13, 2009 at 11:49 am


    Well researched and well presented!

  17. Lost in Arizona

    On February 16, 2009 at 9:16 am


    Your articles are always well presented, well written, and informative. It still peeves me to this day that you have not been on the supposed “Hot Content” list when your articles are so much more richer in content than most articles featured. But I won’t rant, I just want to praise you. :)

  18. Chris Stonecipher

    On February 16, 2009 at 12:43 pm


    Thank you MJPatrick for your kind comment and stumbling my article.

  19. Chris Stonecipher

    On February 16, 2009 at 12:46 pm


    Thank you Lost in Arizona for your kind comments and praise. This article was a result of an economic research paper I did in my second year of college. I saved it because I thought I could do something special with it.

  20. Mystical Whitewolf

    On February 24, 2009 at 12:00 pm


    Get article well written………I stumbled this so others could enjoy it too.

  21. catlord

    On March 4, 2009 at 9:51 pm


    -I’m not worthy! I’m not worthy! :-D

    GREAT article, concise, well-written. Very much out of my league. :-o

    SU

  22. Jo Oliver

    On April 20, 2009 at 2:22 am


    Great read Chris. You never fail to amaze me.

  23. Glynis Smy

    On April 20, 2009 at 12:08 pm


    I ditto all of the above, great work.

  24. Chris Stonecipher

    On April 20, 2009 at 2:27 pm


    Thank you thestickman, Jo, and Glynis for all the support and great comments.

  25. ZuzannaM

    On August 29, 2009 at 11:25 pm


    Hello, Chris

    Excellent and insightful article about aviation.
    Much enjoyed reading.

    Thank you,
    Zuzanna

  26. Chris Stonecipher

    On August 30, 2009 at 5:50 pm


    Thank you Zuzanna. This was one research paper I enjoyed writing for school.

  27. Source_invalid

    On March 3, 2010 at 8:13 pm


    Posted ATS article long after it was sold to a P-E firm in 2007? Goodrich didn’t own it any more in Jan ‘08,

  28. Chris Stonecipher

    On March 3, 2010 at 10:29 pm


    Source_invalid
    You are correct that Goodrich did not own it in 2008. I should know I worked there. The article was actually written in 2006 but I chose to publish it in 2008. The article is more about owning an aviation repair center so the publication date is quite ill relevant.

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