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Wednesday, April 30, 2008

Media Spotlight I

U.S. airlines flock to foreign repair shops (International)
Carriers cut costs as they outsource repairs and inspections.

Southwest airlines changed it's mind about outsourcing some of its maintenance to a Salvadoran repair shop called Aeroman. Aeroman does not mind though there have alreasy been other airlines who jumped on the opportunity to save up to 25% on labor and maintanace fees.
It is not surprising. The airlin industry is alreasy dealing with high fuel prices in the United States and then there is the post 911 security costs.
MRO (for maintenance, repair and overhaul) is expected to reach nearly $41 billion in the next decade. When your spending that much money as a business the 25% starts to look very appealing.
The airline industry already outsources half of its MRO costs, so it should not come as a shock to anyone.

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