Time & material contracts
The customer only pays for the actual costs of labor and the actual costs of materials for the defined scope of maintenance or repair work. This type of contract offers high levels of transparency, scalability and flexibility and gives customers optimum control over the costs of the individual shop visits.
The operator will usually place an order for the repair of an engine under a general agreement with fixed terms and conditions or conclude an individual contract. For each engine, the workscope is defined, and following incoming inspection, a cost estimate is drawn up. As the engine is being cycled through the shop, the customer is kept up to date on the progress of the work. Moreover, the customer is immediately notified of any additional damage detected as the engine is being torn down, and is informed of the associated costs.
One thing that is important for customers to remember is that the lowest hourly labor rate is not necessarily the best deal when they opt for a time & material contract. What is essential is to have the right work carried out within the most effective time and cost frames. An equally important consideration for sustainable cost optimization are smart material management solutions, since material costs account for around 60 to 70 percent of the overall shop visit costs. MTU Maintenance helps drive down these costs through the use of engine-run serviceable materials.
MTU Maintenance also offers fixed prices to cover a specific shop visit or workscope, as well as “not-to-exceed” prices, which ensure high levels of cost predictability for customers.
Fly-by-hour or power-by-the-hour contracts ensure high levels of planning accuracy. Customers pay MTU Maintenance a fixed amount per hour flown by the engine. In return, the maintenance shop provides support services for the engines coming in for scheduled and unscheduled shop visits. Thus, the maintenance program is like an insurance policy that covers unexpected expenses.
What makes these types of contract attractive also are options to combine them with additional services from the outset, such as, for example, engine condition monitoring and spare engine support, including comprehensive fleet management services. There are two contract variants: the conventional fly-by-hour contract, where the customer pays the agreed monthly rate from the first flight hour on, and the payment per event contract, where the flight hours since entry into service or since the last shop visit accumulated by the time of the shop visit are multiplied with the agreed flight hour rate, and the costs thus calculated are paid by the customer.
TEC® is short for Total Engine Care and adds a full-service package to the portfolio of contract types, offering an all-encompassing range of services and providing a maximum level of cost predictability. In addition to engine repair, this option includes full fleet planning and monitoring support, engine condition monitoring, spare engine support, LRU and accessory management, plus on-site and on-wing services, if and as required.
This way, airlines have a single point of contact for all of their engine services requirements. This full-service solution is an excellent option especially for smaller operators that do not have engineering departments of their own.
Europe / Africa / Middle East
South and North America