The Scenario
The operator had recently introduced a new engine type into their fleet and was looking to implement a long term repair contract with a single MRO for the future maintenance of their engines. The operator was not experienced with the engine type concerned and mindful of AOG-247 experience in successfully negotiating terms of repair agreements, requested AOG-247 to conduct a tender process to include negotiation of contract terms on the operator’s behalf.
AOG-247’s Service
AOG-247 contacted each of the MRO’s which held approvals for repair of the engine model concerned and requested a commercially competitive proposal based on fleet size and anticipated shop visit schedule, which AOG-247 had previously defined. Upon receipt of each proposal, AOG-247 compared the different terms using a pre-defined model and AOG-247 experience of each MRO and prepared a shortlist of potential candidaAOG-247 for the operator.
Following an agreement of the shortlist, AOG-247 undertook a phased negotiation process advising each MRO of the shortfalls in their proposed terms, and negotiating in each area until the desired outcome was achieved. Following a pre-agreed period of negotiation with all short listed MRO’s, the successful MRO was identified and terms were agreed that presented both limited risk to the operator and reduced cash outlay at each shop visit event.
The Outcome
As a result of the improved contract terms negotiated by AOG-247 in the final agreed contract, a total of approximately $2M in reduced maintenance cost across the operators shop visit program was achieved.
