Cutting Aircraft Turnaround Time and Strengthening Working Capital Through Maintenance Operations Transformation for a Leading MRO Provider

- Industry
- Aero & Defence
- Maintenance, Repair & Overhaul
- Client
- Leading Aircraft Maintenance, Repair & Overhaul Provider
- Service
- Operations & Transformation
- Solution
- Aircraft Maintenance Operations Transformation to Improve Maintenance Turnaround Time, Spare Parts Availability, and Working Capital Cycle Efficiency
The client is a leading provider of aircraft Maintenance, Repair, and Overhaul (MRO) services, operating multiple hangars that support narrow-body and wide-body fleets for its parent airline group, as well as third-party commercial and cargo carriers across the Asia-Pacific region. Its operations span base and line maintenance, engine and component overhaul, and spare parts logistics, supporting several hundred aircraft maintenance checks annually across a multi-hangar network.
- Extended aircraft turnaround times in base maintenance checks, driven by unplanned scope escalation and sequential rather than parallel work-package execution
- Frequent spare parts stockouts and slow procurement cycles that stalled maintenance in progress and extended aircraft-on-ground (AOG) exposure
- High working capital tied up in slow-moving and duplicate inventory across hangars and warehouses, with limited visibility into stock health
- Fragmented coordination between planning, engineering, and supply chain functions, with no shared real-time view of maintenance or parts status
- Reactive procurement posture driving emergency and expedited parts sourcing at a significant cost premium
- A grounded narrow-body aircraft costs an airline an estimated $10,000–$30,000 per hour in lost revenue and disruption, rising to $80,000–$150,000+ per hour for a wide-body in active rotation (approx., IATA 2025 benchmark), making turnaround time one of the highest-leverage levers in MRO economics
- Unplanned part removals and replacements can cost 30–50% more than planned maintenance, due to the emergency logistics and expedited sourcing they require (approx., industry benchmark)
- For an MRO provider serving both group and third-party carriers, turnaround performance is a direct driver of commercial competitiveness and customer retention, not simply an internal efficiency metric
- Left unaddressed, working capital keeps building in unproductive inventory, and AOG exposure and unplanned costs continue to erode margin and crowd out capacity for growth
Maintenance & Inventory Diagnostic
Conducted turnaround-time analysis and inventory profiling across hangars to baseline current maintenance cycle times, spare parts fill rates, and working capital tied up in stock.
Maintenance Planning & Scheduling Redesign
Redesigned work-package planning to shift from sequential to parallel task execution, incorporating predictive scope estimation to reduce mid-check surprises.
Spare Parts & Inventory Optimisation
Developed a demand-driven inventory model with tiered stocking policies, consignment and pooling arrangements, and rationalised safety stock across critical rotables.
Cross-Functional Coordination Model
Established an integrated planning-engineering-supply chain operating rhythm with shared real-time visibility into maintenance status and parts availability.
Implementation Roadmap & Performance Monitoring
Defined a phased rollout with prioritised quick wins and a turnaround-time / working-capital KPI dashboard to sustain performance gains.
- Turnaround-Time Diagnostic & Baseline Report
- Parallel Work-Package Planning Methodology
- Demand-Driven Spare Parts Inventory Model
- Rotable Pooling & Consignment Framework
- Cross-Functional Planning-Engineering-Supply Chain Operating Model
- Maintenance & Inventory KPI Dashboard
- Phased Implementation Roadmap with Quick-Win Priorities
Faster Aircraft Turnaround
Parallelised work-package planning and reduced mid-check scope surprises shortened base maintenance cycle times, cutting aircraft-on-ground exposure for group and third-party customers alike.
Improved Spare Parts Availability
A demand-driven inventory model and rotable pooling reduced part-driven stoppages, keeping maintenance work moving without waiting on parts.
Stronger Working Capital Position
Rationalised safety stock and reduced duplicate, slow-moving inventory freed up working capital previously tied up across hangars and warehouses.
Integrated Planning & Execution
A shared operating rhythm across planning, engineering, and supply chain replaced siloed decision-making with coordinated, real-time execution.
- 15–20%
- Reduction in average base-maintenance turnaround time (approx.)
- 25–30%
- Reduction in parts-driven maintenance stoppages (approx.)
- 10–15%
- Reduction in inventory working capital tied up in spare parts (approx.)
- 3
- Hangars integrated under the shared planning-execution model
- 40+
- Maintenance planning processes standardised (approx.)
- 90%+
- On-time work-package completion post-implementation (approx.)
Engineering, planning, and supply chain now share one demand-driven planning discipline anchored to a common view of maintenance and parts status, extending well past a one-time gain in turnaround speed. Standardised work-package methodology, a leaner inventory base, and a live performance dashboard sustain the Provider's turnaround gains and support extending the model across additional hangars and customer programmes.
Download PDF
Get this full case study as a PDF, delivered straight to your inbox.