Print

Aerospace Aftermarket Consulting

Overview

The broad scope of L.E.K.’s MRO engagements exemplifies the increasingly difficult challenge our clients face in developing strategies that lead to effective maintenance planning and cost reduction. L.E.K. has deep experience analyzing new and existing contracts to improve cost efficiency (so that clients can realize millions of dollars in savings), identify inefficiencies in internal MRO practices that stem from subscale operations, and recommend the outsourcing of MRO to capture cost reductions.

Client Issues

Management needs to address a number of pertinent questions as it looks to repair and maintain its fleet of civil and military aerospace equipment, including:

  • How can costs be reduced while quality and safety are maintained?
  • Will there be consolidation in the MRO market and what will drive it?
  • How can airlines be sure the MRO market will cope with their growing, modern fleets?
  • What has been the impact of increased military activity in Iraq and Afghanistan on helicopter and airplane maintenance, and what risks are associated with a significant reduction in activity over the next five years?

Examples of Our Work

To learn more about how we help our clients, please refer to these case examples:

  • A major Asian carrier commissioned L.E.K. to improve the efficiency of its maintenance process.  We re-engineered the airline’s internal MRO practices, which resulted in a net recovery of three aircraft in each maintenance cycle.
  • An MRO provider engaged L.E.K. to support the renegotiation of a long-term MRO service agreement for maintenance and supply to a major European government’s defense department. Working with L.E.K., the client demonstrated that its costs were competitive, and that productivity targets could be achieved within the existing contract structure. The client successfully renegotiated its contract, worth over $100 million.
  • In partnership with the world’s largest aerospace company, L.E.K. assessed the Middle East MRO marketplace and developed a business plan for support services and a joint-venture operation.
  • L.E.K. examined the structural attractiveness and competitive dynamics of the aerospace ERO sector for a U.K. aerospace/automotive client and assessed the dynamics of individual engine component repair opportunities (e.g., plasma arc welding, brazing, etc.).

View additional case examples

Please contact us at aerospacedefense@lek.com for additional information.