Elements of Aircraft Maintenance Reserve Development Maintenance Cost Conference Presented By: Shannon Ackert Shannon Ackert Vice President, Capital Markets October 20th, 2010 Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 1 Elements of Aircraft Maintenance Reserve Development J k Jackson Square Aviation, LLC Overview S A i i LLC O i Jackson Square Aviation is a global commercial aircraft lessor headquartered i l i ft l h d t d in San Francisco, California Current Current satellite offices : London, Seattle, Miami & Buenos Aires. satellite offices : London Seattle Miami & Buenos Aires Opening Asia office in 2010. The company has a $500 million commitment from Oaktree Capital which has financed the management team since the Capital, which has financed the management team since the mid 1990’s with a high degree of success. Jackson Square Aviation is focused on acquiring – primarily through Sale & Leaseback (SLB) : h h l b k( ) ¾ Narrowbody & widebody ¾ Passenger & freighter Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 2 Elements of Aircraft Maintenance Reserve Development Agenda d 1. 2 2. 3. 4 4. Significant Maintenance Events M i Maintenance Reserve Parameters R P Maintenance Reserve Development PMA Parts PMA Parts I. II. Appendix A – Maintenance Reserve Information Resources Appendix B – d Maintenance Costs & Reserve Rates & Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 3 Elements of Aircraft Maintenance Reserve Development 1 0 Significant Maintenance Events 1.0 – Si ifi M i E Jackson Square Aviation Equipment Mtx Events Mtx Interval Process Airframe • Heavy Structural H St t l Inspection (HSI) • C‐Checks H d Ti Hard‐Time Components • APU Restoration • Landing Gear L di G Overhaul Condition‐Monitored Hard Time Hard‐Time Engine • Performance Rest • LLP Replacement Condition‐Monitored Hard‐Time IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 4 Elements of Aircraft Maintenance Reserve Development 2 0 Maintenance Reserve Parameters 2.0 – M i R P Reserve Equation Fixed Cost Fixed FC Interval Variable Cost Fixed Interval Variable Cost Variable FH Interval Jackson Square Aviation Event Application Comments Engine LLP Replacement • Predictable, very little P di t bl littl variability in both costs and time on‐wing Airframe HSI Landing Gear Ovhl • Variability in costs, which can be difficult to predict if equipment is new or ageing Engine Module & APU Restoration • Variability in both costs and time on‐wing • Often difficult to quantify if Often difficult to quantify if equipment is new or ageing • Time on‐wing heavily y p influenced by operation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 5 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l I. Airframe Heavy Structural Inspection ¾ Costs Factors Costs Factors I. Airframe Age (First, Mature, & Ageing Runs) • • Costs are escalated to account for airframe ageing, which results in higher non‐routine tasks. Newness General “non‐routine” factor < 6 Years escalations: 10% ‐ 15% per phase. Non Routine II. Aging > 15 Years Maturity 6 – 15 Yrs Non Routine i Non Routine Flight Cycles Flight Cycles • Cost may be increased to account for high cycle operation. Jackson Square Aviation Routine Routine Routine IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 6 Elements of Aircraft Maintenance Reserve Development 3 0 Maintenance Reserve Development 3.0 – M i R D l I. Airframe Heavy Structural Inspection ¾ Costs Costs Factors Factors ‐ continued III. Scope of Work 9 Not driven by the aircraft operation, instead 9 Policy established by Lessor 9 Generally Falls Under Two Structures: Structure A ‐ Scope of work includes reimbursement for material and routine & non‐routine labor for systems, structural & zonal tasks. Structure B ‐ Scope of work includes reimbursement for material and routine & non‐routine labor for structural & zonal tasks. Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 7 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l I. Airframe Heavy Structural Inspection ¾ Interval Factors Two Types of Calendar Interval Structures: Structure A : Calendar interval based off the OEM generic and/or sample block program. • Example Generic Block : A320 / A330 Family : 4C/6Yr & 8C/12Y S 8C/12Yr Structural Inspection Checks @ 6 & 12 Yr Intervals, lI i Ch k @ 6 & 12 Y I l • Example Sample Block : 737NG Family : @ 8 Yr Intervals Structure B : Calendar interval based on timing of majority of zonal / Structure B : Calendar interval based on timing of majority of zonal / structural tasks. Reflective of a customized maintenance program. • Example : 737NG Family – 8, 10, & 12 Year Intervals • Example : 747 Example : 747‐8 8 Family Family – 8 Year Intervals 8 Year Intervals Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 8 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l I. Airframe Heavy Structural Inspection ¾ Example : A330‐300 HSI Costs p Scope of work assumption: includes routine & non‐ routine labor for systems, structural & zonal tasks, and material. A. First‐Run Phase ‐ New ‐ 6 Yr • 4C/6Yr SI Cost : $1.75M • 8C/6Yr SI Cost : $1.50M B. Mature‐Run Phase ‐ 6 Yr ‐ 12 Yr • 4C/6Yr SI Cost : $2.01M • 8C/6Yr SI Cost : $1.50M 4C/6YR Check Escalated 15% off First‐Run Costs C. Ageing‐Run Phase ‐ > 12 Yr • 4C/6Yr SI Cost : $2.20M • 8C/6Yr SI Cost : $1 65M 8C/6Yr SI Cost : $1.65M Both 4C/6YR & 8C/12YR Checks Escalated 10% off Mature‐Run Costs Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 9 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l II. Landing Gear Overhaul ¾ Cost Factors ‐ generally impacted by: • Supply & demand of exchange unit cost plus removal and installation labor costs installation labor costs. ¾ Interval Factors Interval Factors – generally consisting of two limiter: generally consisting of two limiter: I. Calendar time (i.e. 10 years) II Flight cycles (i.e. 20,000 flight cycles) II. Flight cycles (i e 20 000 flight cycles) Timing of event: “whichever is more limiting”. Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 10 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l II. Landing Gear Overhaul Notes: • • In cases where there is a calendar limiter, this establishes the minimum monthly rate required. Some models have different limiters for main and nose gear assemblies. ¾ Example : 737NG Landing Gear Reserve Exchange Cost Assumption : $320,000 Exchange Cost Assumption : $320 000 Limiters: 10 Years / 18,000 FC Scenario 1 ‐ Annual FC = 1,250 FC Scenario 1 Annual FC = 1 250 FC Scenario 2 ‐ Annual FC = 2,250 FC Scenario 2 Annual FC = 2 250 FC Cyclic limiter = 16 Yr(18,000/1,250) TOW Limiter = 10 Yr = 120 Mo Mo Rate :(320,000/ 120) = $ 2,666 Cyclic limiter = 8 Yr (18,000/2,250) TOW Limiter = 8 Yr = 96 Mo Mo Rate: (320,000/ 96) = $ 3,333 Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 11 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l III. Auxiliary Power Unit (APU) Restoration ¾ Cost Factors Cost Factors • • Material driven – 70% ‐ 80% of cost is material, Little variance between first & mature‐run costs. ¾ Time On‐Wing Factors OEM Published Mean‐Time Between Unscheduled Removal (MTBUR) Mean n‐Time Between n Removals • Jackson Square Aviation 12‐Mo Rolling Averages 6,450 FH ‐ , MTBCR 5,945 FH ‐ MTBUR 5,495 FH ‐ MTBR IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 12 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l III. Auxiliary Power Unit (APU) Restoration ¾ Example : 737‐800 APU (GTCP 131‐9B) Example : 737 800 APU (GTCP 131 9B) • • • MTBUR = 6,500 APU FH Average Cost = $235,000 APU Reserve Rate = $36 / APU FH Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 13 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l IV. Engine Performance Restoration ¾ Cost Factors Cost Factors I. Engine Build Goals ‐ Tend be influenced by business decisions, and based on: and based on: a) Maximizing usage of LLP hardware, which often leads to lower shop visit costs but higher DMC ($ / FH), or b) Building for minimum number of shop visits, which allows one Building for minimum number of shop visits which allows one to achieve lower shop DMC ($ / FH) but higher shop visit costs. Notes • Many lessors are now imposing “minimum build goals” in their leases to prevent short building. Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 14 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l IV. Engine Performance Restoration ¾ Cost Influencing Factors – Cost Influencing Factors continued II. Age As Engine Ages 20,000 FH Hardware Deterioration Rate Increases 1st SV 16,000 FH 15,000 FH 2nd SV 3rd SV Higher Maintenance Costs Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 15 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l IV. Engine Performance Restoration ¾ Time On‐Wing Factors Time On Wing Factors I. Engine Thrust Rating ‐ Increasing Thrust > Higher EGT Deterioration > Lower Time On‐Wing Same Engine Goes Into Shop Same Engine Goes Into Shop EGT Limit EGT Limit EGT EGT Margin Margin Loss Loss (˚C ) EGT Limit EGT Limit 8,000 FC 10,000 FC Time On-Wing – High Thrust Rating Time On‐Wing High Thrust 2,000 4,000 6,000 Flight Cycles Flight Cycles8,000 Flight Cycles Jackson Square Aviation Time On-Wing – Low Thrust Rating Time On‐Wing Low Thrust 10,000 2,000 4,000 6,000 8,000 Flight Cycles Flight Cycles 10,000 Flight Cycles IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 16 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l IV. Engine Performance Restoration ¾ Time On‐Wing Factors ‐ Time On Wing Factors continued II. Engine Flight Leg Increasing Flight Leg Lowers EGT Deterioration Lowers EGT Deterioration Higher Time On‐Wing and Lower Cost $ / FH Cost $ / F Cost $ / FH H Increasing Flight Leg Greater Greater Flight Leg Flight Leg Greater Flight Leg Lower Lower DMC DMC Higher Time On-Wing Jackson Square Aviation Flight Leg (Hours) Flight Leg (Hours) IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 17 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l IV. Engine Performance Restoration ¾ Time On Time On‐Wing Wing Factors Factors ‐ continued III. Engine Derate Increasing Derate Lowers Thrust and Lowers Thrust & EGT Deterioration EGT Deterioration Higher Time On‐Wing and Lower Cost $ / FH Cost $ / FH Cost $ / FH Increasing Derate Increasing Derate = Lower Thrust Increasing Derate = Lower Thrust 5% Derate 10%0%Derate 10% Derate 10% 15% Derate 20% Higher Time On-Wing Jackson Square Aviation 1.0 1.5 2.0 2.5 3.0 Flight Leg (Hours) Flight Leg (Hours) 3.5 4.0 IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 18 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l IV. Engine Performance Restoration ¾ Time On‐Wing Factors ‐ Time On Wing Factors continued IV. Environment ‐ Engines operated in dusty, sandy and/or erosive‐corrosive erosive corrosive environments are exposed to higher blade environments are exposed to higher blade distress and thus greater performance deterioration. Notes: • Lessors are now adjusting their reserve rates to account for region of operation. • Generally applies to narrow‐body aircraft operating within distressed environments. Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 19 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l IV. Engine Performance Restoration ¾ Time On‐Wing Factors ‐ Time On Wing Factors continued Engine ‐ Environmental Distress Chart Lowest Medium / Low / Medium High Highest Colors highlight severity and rate of occurrence of d t f f distress Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 20 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l IV. Engine Performance Restoration ¾ Example – Example Severity Curve Severity Curve Severity Facto or 2.2 Base Flight Leg (2.0) Base Rate = $80 / FH 1.7 10 1.0 1.0 $194 1.5 $150 2.0 $88 2.5 $86 3.0 $84 10% Matrix = $176 $136 $80 $78 $76 15% Matrix = $158 15% Matrix = $122 $72 $70 $68 5% Matrix = Jackson Square Aviation 5% Derate 5% Derate 10% Derate 15% Derate Flight Leg IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 21 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l IV. Engine Performance Restoration ¾ Example – Example CFM56‐7B26 Restoration Calculation CFM56 7B26 Restoration Calculation Base Operation : 2.0 Flight Leg / 10% Derate / Temperate Region Base Rate : $80 / FH Operating Scenario 1: 1.5 FL / 10% Derate / Temperate FL Factor 1 7 FL Factor = 1.7 Derate Factor = 1.0 Region Factor = 1.0 Composite Factor = 1.7 Composite Factor 1.7*1.0*1.0 1.0 1.0 Composite Factor = 1.70 Adjusted Rate = 80 *1.70 Adjusted Rate = $136 / FH Jackson Square Aviation Operating Scenario 2: 2.5 FL / 5% Derate / Hot‐Dry FL Factor 0 98 FL Factor = 0.98 Derate Factor = 1.1 Region Factor = 1.2 Composite Factor = 0.98 Composite Factor 0.98*1.1*1.2 1.1 1.2 Composite Factor = 1.30 Adjusted Rate = 80 *1.30 Adjusted Rate = $104 / FH IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 22 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l V. Engine Life Limited Parts (LLP) Replacement ¾ Cost Factors Cost Factors • OEM piece part escalation – OEM i t l ti currently averaging over 5% per year. tl i 5% g p • Inclusion of Static LLPs ‐ Although these parts are not classified to be critical they do fall under the category of parts whose failure could create a hazard to the aircraft i.e. shrouds and frames. Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 23 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l V. Engine Life Limited Parts (LLP) Replacement ¾ Piece Part Life‐Limit Factors Piece Part Life Limit Factors Life limits tend to range between 15,000 – 30,000 flight cycles, however 9 LLPs can have shorter lives imposed on them by airworthiness LLPs can have shorter lives imposed on them by airworthiness directives (ADs). Lessor imposed stub factor on life limits – typically: 9 10% for narrowbody engines 10% for narrowbody engines 9 5% for widebody engines Some manufacturers certify ultimate lives of LLPs at the time they certify an engine model. Other manufacturers certify the lives as experience is d l h f f h l accumulated. In these scenarios, ultimate lives are reached after one or several life extensions. Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 24 Elements of Aircraft Maintenance Reserve Development 3.0 – 3 0 Maintenance Reserve Development M i R D l VI. Lessor’s Perspective: Many lessors base their costs to be reflective of costs negotiated from either a U.S. or European based MRO facility MRO facility. Consequently, their reserves rates are normally ranked as “market as market‐based to above market‐based based to above market based”. Ultimately, reserves are heavily negotiated and are g often “marketing” driven. Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 25 Elements of Aircraft Maintenance Reserve Development 4.0 – 4 0 PMA Parts PMA P I. Perspective from Aircraft Lessor: ¾ Current leases state the following: Current leases state the following: When replacing Parts in an Engine, • LESSEE will use LESSEE will use "OEM OEM Parts Parts". If LESSEE wishes to replace Parts in an Engine with parts which are not OEM: • LESSEE must obtain approval from LESSOR before such parts are installed. If given, LESSOR'S approval will generally be only for: • PMA Parts which are consumables parts such as brackets, seals, etc. The use of stationary and high energy rotating PMA Parts in the gaspath will not be approved by LESSOR. Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 26 Elements of Aircraft Maintenance Reserve Development 4.0 – 4 0 PMA Parts PMA P I. Perspective from Aircraft Lessor: Prevailing view is that PMA view is that PMA’ss can affect: can affect: ¾ Re‐marketability ¾ Residual value of the asset (primarily engine) ¾ Ability to obtain technical support from the OEMs However: Many lessors are currently allowing use of PMA on the airframe and Many lessors are currently allowing use of PMA on the airframe and in accessories/components. PMA is gaining wider acceptance by airlines, and: 9 Some are demanding that lease agreements allow use of PMAs therefore: pp 9 Some lessors have softened their approach. Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 27 Elements of Aircraft Maintenance Reserve Development A Appendix A – di A Sources of Maintenance Reserve Metrics S fM i R M i 1. Maintenance Reserve Claims – Example Performance Restoration Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 28 Elements of Aircraft Maintenance Reserve Development A Appendix A – di A Sources of Maintenance Reserve Metrics S fM i R M i 2. OEM Conferences & Publications Jackson Square Aviation 3. Commercial Publications IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 29 Elements of Aircraft Maintenance Reserve Development A Appendix B ‐ di B Maintenance Costs & Reserve Rates M i C &R R 1.0 Airframe Heavy Structural Inspection Costs & Reserve Rates ¾ Assumes full workscope (systems, structures & zonal & material) Assumes full workscope (systems, structures & zonal & material) Aircraft Check Phase Interval Costs ‐ 2010 $ Rates ($ / Mo) A320‐200 A320 200 4C / 6Y SI / 6Y SI First‐Run First Run 72 Months 72 Months $750K ‐ $850K $750K $10,400 ‐ $11,800 $10,400 A320‐200 8C / 12Y SI First‐Run 144 Months $850K ‐ $900K $5,500 ‐ $5,900 A330‐300 4C / 6Y SI First‐Run 72 Months $1.4M ‐ $1.6M $19,500 ‐ $22,200 A330‐300 8C / 12 Y SI First‐Run 144 Months $1.5M ‐ $1.7M $10,400 ‐ $11,800 B737‐800 C6‐C8 Equivalent First‐Run 120 / 144 Mo $1.3M ‐ $1.5M $9,000 ‐ $12,500 B747‐400 C4 / D‐Check Ageing 72 Months $4.0M ‐ $4.5M $55,500 ‐ $62,500 B757‐200 S4C Ageing 72 Months $1.5M ‐ $1.7M $22,200 ‐ $23,600 B767‐300ER S4C Ageing 72 Months $2.0M ‐ $2.3M $27,800 ‐ $31,900 B777‐300ER C4 / SI First‐Run 96 Months $2.5M ‐ $2.8M $26,000 ‐ $29,100 E190 C4 / SI First‐Run 96 Months $475K ‐ $575K $4,900 ‐ $5,900 HSI First Run First‐Run 96 Months 96 Months $425K $525K $425K ‐ $4 400 ‐ $5,400 $4,400 $5 400 CRJ 700 CRJ‐700 Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 30 Elements of Aircraft Maintenance Reserve Development A Appendix B ‐ di B Maintenance Costs & Reserve Rates M i C &R R 2.0 Engine Performance Restoration Costs & Reserve Rates Engine Thrust Phase Fl Leg Time On‐Wing (FC) Costs 2010 $ Rate ($ / FH) CFM56‐5B6/P 23,500 First‐Run 1.7 15,500 ‐16,500 $1.8M ‐ $2.2M $68‐ $78 CFM56‐5B4/P 27,000 First‐Run 2.0 11,000 ‐12,000 $1.8M ‐ $2.2M $86 ‐ $96 CFM56 5B3/P CFM56‐5B3/P 33 000 33,000 Fi R First‐Run 20 2.0 7 500 8,500 7,500 – 8 500 $1 8M $2.2M $1.8M ‐ $2 2M $124 ‐ $134 CFM56‐7B24/P 24,000 First‐Run 1.7 15,500 – 16,500 $1.8M ‐ $2.2M $68‐ $78 CFM56‐7B26/P 26,300 First‐Run 2.0 12,500 – 13,500 $1.8M ‐ $2.2M $78‐ $88 / CFM56‐7B27/P 27,300 , First‐Run 2.0 11,000 – , 12,000 , $1.8M ‐ $ $ $2.2M $84 ‐ $ $ $94 V2524‐A5 24,000 First‐Run 1.7 15,000 – 16,000 $1.8M ‐ $2.2M $72 ‐ $82 V2527‐A5 27,000 First‐Run 2.0 10,000‐11,000 $1.8M ‐ $2.2M $92 ‐ $102 V2533‐A5 33,000 First‐Run 2.0 6,500 – 7,500 $1.8M ‐ $2.2M $135 ‐ $145 Trent 772 71,200 First‐Run 6.0 3,500 – 4,000 $3.6M ‐ $4.0M $175 ‐ $185 PW4068 68,000 First‐Run 6.0 3,000 – 3,500 $3.2M ‐ $3.6M $180 ‐$190 CF6‐80E1A4 70,000 First‐Run 6.0 3,000 – 3,500 $3.0M ‐ $3.4M $165 ‐ $175 GE90 115B GE90‐115B 115 000 115,000 First Run First‐Run 80 8.0 2 250 2,750 2,250 – 2 750 $4 4 $4.8M $4.4 ‐ $4 8M $250 $260 $250 ‐ Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 31 Elements of Aircraft Maintenance Reserve Development A Appendix B ‐ di B Maintenance Costs & Reserve Rates M i C &R R 3.0 Landing Gear Overhaul Costs & Reserve Rates ¾ Assumes cost for exchange unit plus removal/installation labor Assumes cost for exchange unit plus removal/installation labor Aircraft Interval Costs ‐ 2010 $ Rates ($ / Mo) A320 Family 10 YR / 20,000 FC $380K ‐ $420K $3,160 ‐ $3,500 A330 Familyy 10 YR $875K ‐ $ $ $925K $7,300 $ , –$ $7,700 , B737NG Family 10 YR / 18,000 FC $320K ‐ $380K $2,650 ‐ $3,166 B757 Family 10 YR / 18,000 FC $425K ‐ $475K $3,540 ‐ $3,950 B767 Family 10 YR $550K ‐ $600K $4,580 ‐ $5,000 B747 Family 10 YR / 6,000 FC $750K ‐ $800K $6,250 ‐ $6,660 B777 Family 10 YR $1.0M ‐ $1.2M $8,333 ‐ $10,000 E190 Family 10 YR / 20,000 FC $325K ‐ $350K $2,700 ‐ $2,900 CRJ 700 Family CRJ 700 Family 10 YR / 20,000 FC YR / 20 000 FC $180K $220K $180K ‐ $1 500 $1,800 $1,500 ‐ $1 800 Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 32 Elements of Aircraft Maintenance Reserve Development A Appendix B ‐ di B Maintenance Costs & Reserve Rates M i C &R R 4.0 APU Performance Restoration Costs & Reserve Rates Aircraft Interval ‐ APU FH Costs ‐ 2010 $ Rates ($ / APU FH) A320 Family 6,000 – 7,000 $210K ‐ $240K $33 ‐ $38 A330 Familyy 6,000 – , 7,000 , $350K ‐ $ $ $375K $40 ‐ $ $ $45 B737NG Family 6,000 – 7,000 $210K ‐ $240K $33 ‐ $38 B757 Family 5,000 – 6,000 $200K ‐ $225K $37 ‐ $42 B767 Family 5,000 – 6,000 $200K ‐ $225K $37 ‐ $42 B747 Family 8,000 – 9,000 $425K ‐ $475K $48 ‐ $53 B777 Family 7,500 – 8,500 $425K ‐ $475K $50 ‐ $55 E190 Family 5,000 – 6,000 $160K ‐ $180K $31 ‐ $36 CRJ 700 Family 700 Family 4 000 5,000 4,000 – 5 000 $130K $160K $130K ‐ $30 $35 $30 ‐ Jackson Square Aviation IATA Maintenance Cost Conference, Abu Dhabi, UAE October 20th, 2010 33