Choosing Optimal Maintenance Service Level Depending on Financial Model of an Airline

Abstract

Highly accurate spare part management is a prerequisite for airlines and aircraft maintenance and overhaul organizations to survive if they want to be profitable and ensure regular flights. Poor planning may result in financial resources being frozen in the form of spare parts that have been bought as well as render timely aircraft maintenance and overhaul impossible due to the lack of spare parts. Today, many airlines and aircraft maintenance and overhaul organizations have learnt how to accurately forecast the demand for spare parts in order to maximize spare parts stock service level. However, reaching the maximum of service level may require financial costs, which can eliminate all benefits from the operational efficiency of the airline's fleet. This work considers the issues of finding the optimal service level, depending on the conditions in which the airline operates.