By Derek Costanza and Brian Prentice
This article first appeared in Forbes on April 30, 2018
Last December the International Air Transport Association (IATA) warned that the biggest challenge for airlines in 2018 would be the increasing costs of fuel and labor, which make up more than half of carriers’ operating expenses. Now, there are signs that the pressure on the bottom line won’t end there: Operators may face higher costs for maintenance as well, with both wages for aircraft technicians and the prices on aircraft parts and replacements on the rise.
Rising operational costs could put pressure on the bottom lines of airlines and maintenance companies
Executives from the maintenance, repair, and overhaul (MRO) industry told the Oliver Wyman 2018 MRO Survey they are already having to deal with higher costs for materials and labor in recent months and expect both to continue to rise for the foreseeable future. The increases are pushing up operational expenses for airlines and the maintenance businesses that service them and could eventually hurt their bottom lines … click to read more