OPINION: The Urge to Outsource

Every airline in the US is scouring their costs, looking for every penny of cost that they can squeeze out of the operation. Invariably the eyes of the financially minded are going to be drawn to one the biggest cost centers at nearly every airline...aircraft maintenance. It doesn't take these folks to long to arrive at what they believe to be the obvious answer...outsourcing. The question will be asked by those who mind the bottom line: Why should the airline have a maintenance division when there are MRO's (Maintenance & Repair Organizations) out there willing to take on that work? Why should the airline bear the cost of the facilities and inventory associated with a maintenance division? Why should the airline pay higher labor rates internally when they can get a lower rate at an MRO? No brainer...right?

Here's the reality check. Having an internal maintenance force allows the airline to control its destiny and the quality of work being performed. Controlling your destiny means being able to adjust maintenance schedules to react to operational changes. It means that when your aircraft breaks on the gate with 200 people on board that you have someone to call and that your problems are the most important thing for them. Quality of work means having a work force that is accountable to the airline, a work force that participates in continuous improvement. Control and quality translates into more reliable aircraft. Reliable aircraft mean more available flight time, fewer delays and lower costs. Unfortunately this is damn near impossible to prove up front. It normally ends up being a "post mortem", a study that happens after maintenance is outsourced.