Iberia Business Case

Cost Savings: A Quantifiable Impact on 1 part.

€22,000 saved yearly only on 1 trivial part number!

One of the most common issues faced by airlines is the frequent replacement of specific aircraft components. In one particular case, Iberia, as any leading airline was grappling with the frequent replacement of hydrolocks on economy class seats. Over a six-month period, more than 320 hydrolocks, costing €84 each, were replaced. This significant expenditure highlighted the need for a more efficient and cost-effective solution.

Our software suite, equipped with advanced data analytics capabilities, identified a pattern in the hydrolock failures (Item 100 on the Tech. figure). By analyzing the data collected from maintenance operations, the line maintenance manager discovered that tightening a specific bolt (Item 90 on the Tech. figure) could significantly extend the lifespan of the hydrolock.

Quantifying the Impact

Cost of the Tightening Campaign:

  • Labor cost per hydrolock: 3 minutes/hydrolock * (€50/hour / 60 minutes/hour) = €0.25
  • Total labor cost for the fleet: 5860 hydrolocks * €0.25/hydrolock = €1,465

Savings from Reduced Hydrolock Replacements:

  • Initial annual cost of hydrolock replacements: 320 hydrolocks/6 months * 2 * €84/hydrolock = €84,640
  • Reduced annual cost of hydrolock replacements: 320 hydrolocks/6 months * 2 * 0.72 * €84/hydrolock = €60,448
  • Annual savings from reduced replacements: €84,640 - €60,448 = €24,192

Net Annual Savings:

€24,192 (savings from reduced replacements) - €1,465 (cost of tightening campaign) = €22,727

By analyzing maintenance data, we were able to implement a small adjustment that significantly reduced these costs. This data-driven approach has been a game-changer for our maintenance operations.

Adrian Blanco Talaya

Line Maintenance

Conclusion

This significant net annual saving demonstrates the power of data-driven insights in optimizing maintenance operations and reducing costs. By leveraging our software suite, airlines can identify and address maintenance issues proactively, leading to significant cost savings and improved operational efficiency.

Project information

  • Category Part Savings
  • Client Iberia
  • Project date Second Quarter 2024