Frost & Sullivan: Data Analytics Can Attack MRO Waste

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How much could data analytics really reduce airline costs, especially MRO costs? Technical operations, or MRO, comes second with about $26 billion in waste. Flight operations, including excess fuel use, accounts for the other $12 billion in unnecessary costs.

Airlines now generate about 13 thousand petabytes of data, yet only about 1.5% of this data is currently recorded and analyzed, Papiomytis estimates. The unplanned MRO is 27% of all MRO spending, and paper record keeping adds 10.1 million man-hours of effort each year.

This includes reducing unscheduled component repairs that today cost $6.2 billion, cutting no-fault found rates, lowering unplanned line work that costs $5.3 billion today and boosting MRO productivity. Taken together, these reductions would cut unplanned maintenance from $20 to $10 billion, or from 27% to 14% of MRO costs.


Collected and summarized from the source below by Tran Thi Tan