Understanding the Impact of Aircraft Downtime and Maximizing Value

Michael Mikolay
July 7, 2024

Business jets, often called "time machines," are extremely valuable because they boost productivity for aircraft owners and business travelers. They allow users to reach their final destination quickly and visit more places daily compared to commercial airlines. Not to mention, private aircraft offer comfort and security for productive work on the go.

However, these time-saving benefits can be compromised by unexpected aircraft downtime. That means that both the aircraft owner and operator must prioritize readiness because the financial implications can be substantial.

By understanding the factors that contribute to downtime and implementing strategies to minimize it, owners can fully realize their airplane's value. It’s all about planning, efficient maintenance, proper scheduling and communication among key stakeholders.

Here are a few things to remember when dealing with such setbacks and how to minimize their impact.

Contributing Factors to Aircraft Downtime

Understanding the various factors that can lead to aircraft downtime is important for maximizing operational efficiency. Unfortunately, not all are of these issues are in the operator’s control.

• Mechanical failures and maintenance issues.

• Poor maintenance planning for mandated inspections or desired upgrades.

• Safety regulatory and compliance requirements.

• Inefficient scheduling and/or an inadequate number of pilots.

• Unrealistic expectations of the aircraft's use.

• Geopolitical and security issues.

• Inclement weather.

Strategies to Minimize Downtime

As noted above, maintenance planning is crucial for smooth aircraft operations. Regular inspections and servicing through scheduled and preventive maintenance reduce the likelihood of issues.

One can never underestimate the knowledge and skill of a strong maintenance director or technical lead. This expert—who excels in planning, execution and recovery—will understand the nuances of each manufacturer and parts vendor. And they’ll know how to streamline processes to their advantage.

Operators who excel at minimizing downtime combine operational and maintenance planning for optimal effect. This ensures that, as soon as an aircraft lands at home base, the maintenance crew is briefed on necessary reactive and preventative maintenance. They are also prepared to address operational and human-related issues to make the aircraft available quickly.

Instilling a culture of measuring and tracking downtime helps owners and aviation department leaders understand what affects an aircraft's availability. By capturing maintenance, operational, and external factors, everyone can work to improve availability over time.

Finally, crew scheduling is crucial for streamlined operations. The department head must ensure enough crew members are available for planned missions and have a contract crew as a backup. It's also important to communicate pilot workday limits due to regulations with the aircraft owner or users.

The Financial Implications

Aircraft downtime incurs several direct and indirect costs. Direct costs include the expenses associated with repairs and maintenance and the labor costs for all involved.

Indirect costs, though less obvious, are equally significant. Schedule disruptions can cause ripple effects, impacting other users and creating operational inefficiencies. These unexpected, unplanned hiccups could lead to an owner or user’s mistrust of the aircraft or flight department.

Opportunity costs also play a critical role. In these cases, potential revenue might be lost due to a missed meeting. Or, likewise, an important opportunity to solve a critical issue might be missed because of a grounded aircraft. This could have an immediate impact on an aircraft owner’s financial health. But also on the company’s market positioning, making it crucial to minimize aircraft downtime.

Conclusion

Because business aircraft give users more time in their day, their value and efficiency depend on understanding and addressing downtime. Recognizing the financial impact will helps owners and operators appreciate the need for proactive maintenance and planning. Factors like mechanical failures and external influences must be managed with efficient scheduling and strategic planning. Fostering a culture of continuous improvement can also significantly reduce downtime. This ensures aircraft remain valuable assets that enhance productivity and offer substantial returns on investment.

This article originally appeared on GlobalAir.com. View post.

About the Author

Michael Mikolay, with 25 years in business aviation, has facilitated 950 aircraft transactions worth more than $14 billion. The founder and CEO of Mikolay Jet Group, he has held key roles in reputable aviation organizations, including serving as a senior executive at one of the top three brokerage and consulting firms in the world. An ATP-rated pilot, he holds multiple certifications and can be reached at mikolayjet.com/contact.

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Michael Mikolay
March 12, 2024
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