Craig Padvaiskas, VP Asset Management, offers an insight into the constant challenge facing MRO’s which is when rotables should be repaired or replaced, in the recent issue of AviTrader.
Padvaiskas comments, “The service life of a unit is another factor noting that some units can only be repaired or overhauled so many times. Additionally, the impact (if any) on the operating efficiency and operational costs on the bigger picture. The overall revenue stream of that larger asset (the aircraft) needs to be taken into consideration.”
Padvaiskas also provides insights into when it is more economical to replace a rotable rather than repair, “I believe an industry guideline is if the cost of repair is more than 70-80% of the total cost of replacing the unit, then it is better to go with the replacement.”
See the full article below.