Air Transport World

Carriers expect M&E spending to increase 15% in 1986.

Carriers expect M&E spending to increase 15% in 1986

Expenditures by the world's airlines on maintenance and engineering rose at just about the same rate as traffic in 1985, Air Transport World's annual survey of this aspect of the airline business indicates.

The 58 carriers replying to the survey spent $3.7 billion on maintenance and engineering last year, an increase of 9.7% over the 1984 total, even though nine airlines reported that their M&E spending declined in 1985. The Intermational Civil Aviation Organization estimates that total tonne-kilometers (passengers and freight) flown by the world's airlines rose just under 10% last year.

The responding carriers expect their M&E spending to rise at a faster 15% clip this year. Only eight are forecasting a decline in their expenditures.

Some 75 of the carriers participating in the survey perform more than half their own maintenance. Twelve airlines reported they are doing more maintenance inhouse than they were five years ago, and an equal number said the percentage of work they contract to others has increased.

Maintenance and engineering services are offered to other airlines by 85% of the responding carriers, with only nine reporting that they do no outside work of any kind. Some 56% of the carriers relatively complete services, including overhaul, while 29% provide only line maintenance or on-call servicing.

Investments totaling $508 million will be made in new maintenance and engineering facilities and equipment in the next two years by the 50 carriers who supplied information on their plans. Anticipating the largest expenditures are Japan Air Lines, which has an $85-million hangar construction program on its agenda; Philippine Air Lines, which will spend $53 million on a test cell for CF6 engines, other new facilities, and an automated stores program; and Northwest, which will invest $46 million in a Boeing 747 check hangar and in support equipment for new aircraft types. …

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