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Pooling of spare components between airlines

Author

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  • Kilpi, Jani
  • Vepsäläinen, Ari P.J.

Abstract

The purpose of providing component availability service is to maximize aircraft utilization by keeping spare units ready to be installed whenever needed. Since the size of the fleet supported by the spare component inventory is the most important driver behind the inventory cost, inventory pooling among a number of airlines is an intuitive way of exploiting the scale economies of availability services. This study demonstrates the savings potential of balanced inventory pooling arrangements among various airlines. Managerial implications of successful cooperation are discussed.

Suggested Citation

  • Kilpi, Jani & Vepsäläinen, Ari P.J., 2004. "Pooling of spare components between airlines," Journal of Air Transport Management, Elsevier, vol. 10(2), pages 137-146.
    • Handle: RePEc:eee:jaitra:v:10:y:2004:i:2:p:137-146
    DOI: 10.1016/j.jairtraman.2003.09.001
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    References listed on IDEAS

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    1. Stephen C. Graves, 1985. "A Multi-Echelon Inventory Model for a Repairable Item with One-for-One Replenishment," Management Science, INFORMS, vol. 31(10), pages 1247-1256, October.
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    Citations

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    Cited by:

    1. Redpath, N. & O'Connell, J.F. & Warnock-Smith, D., 2017. "The strategic impact of airline group diversification: The cases of Emirates and Lufthansa," Journal of Air Transport Management, Elsevier, vol. 64(PB), pages 121-138.
    2. Thijssens, O.W.M. & Verhagen, Wim J.C., 2020. "Application of Extended Cox Regression Model to Time-On-Wing Data of Aircraft Repairables," Reliability Engineering and System Safety, Elsevier, vol. 204(C).
    3. Fritzsche, R., 2012. "Cost adjustment for single item pooling models using a dynamic failure rate: A calculation for the aircraft industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1065-1079.
    4. Godoy, David R. & Pascual, Rodrigo & Knights, Peter, 2013. "Critical spare parts ordering decisions using conditional reliability and stochastic lead time," Reliability Engineering and System Safety, Elsevier, vol. 119(C), pages 199-206.
    5. Godoy, David R. & Pascual, Rodrigo & Knights, Peter, 2014. "A decision-making framework to integrate maintenance contract conditions with critical spares management," Reliability Engineering and System Safety, Elsevier, vol. 131(C), pages 102-108.
    6. Wang, Wenbin & Yue, Shuai, 2015. "An inventory pooling model for spare units of critical systems that serve multi-companies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 76(C), pages 34-44.
    7. Mohita Gangwar Sharma & K. N. Singh, 2017. "Servitization, Coopetition, and Sustainability: An Operations Perspective in Aviation Industry," Vikalpa: The Journal for Decision Makers, , vol. 42(3), pages 145-152, September.
    8. Reményi, Christoph & Staudacher, Stephan, 2014. "Systematic simulation based approach for the identification and implementation of a scheduling rule in the aircraft engine maintenance," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 94-107.
    9. Kilpi, Jani & Töyli, Juuso & Vepsäläinen, Ari, 2009. "Cooperative strategies for the availability service of repairable aircraft components," International Journal of Production Economics, Elsevier, vol. 117(2), pages 360-370, February.

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