Air Transport World

M&E expenditures still on the rise, but cost-cutting measures helping.

World airline maintenance and engineering expenditures are continuing to climb, Air Transport World's annual survey of this aspect of the airline business indicates. However, cost-cutting measures, particularly in the labor area, appear to be holding the rise in expenses below the increases that carriers are enjoying in traffic.

The 47 airlines who provided data on their maintenance and engineering costs spent $3.51 billion in 1984 for a 8.7% increase over their 1983 total. In 1985, they expect M&E spending to rise 7.3%.

About 70% of the carriers replying to the survey perform the majority of their maintenance in-house. The number of airlines reporting an increase over the past five years in the percentage of work contracted to others was balanced by an equal number reporting an increase in maintenance self-sufficiency.

Engines generated the most expense for 21 of the airlines, while 15 reported that airframe maintenance was their most costly item. …

Log in to your account to read this article – and millions more.