Adjustments on Bombardier spare pricing model for reduced Direct Maintenance Cost

Airlines must continuously strive to reduce operating and maintenance costs [1]. Bombardier has continuous target to meet customer expectations for maintenance cost reduction. Bombardier purchases parts from its OEM suppliers and sell parts to Bombardier customers for maintenance. However, Bombardier Commercial Aircraft (BCA) is concerned about aftermarket cost with OEM supplier in the market. At the same time, Parts Manufacturer Approval (PMA) parts, which are alternate (non-OEM) replacement parts approved by regulatory authorities such as the Civil Aviation Authority (CAA) and Federal Aviation Administration (FAA), are also allowed to be used as replacement of OEM parts [2].
This project will review Bombardier’s spare pricing model and identify pricing adjustments or alternative sourcing opportunities through data analysis. The purpose is to find opportunities which can potentially bring reduced Direct Maintenance Cost for Bombardier customers as well as better revenue for Bombardier. TO BE CONT’D

Faculty Supervisor:

Kamran Behdinan

Student:

Partner:

Bombardier Commercial Aircraft

Discipline:

Engineering

Sector:

Manufacturing; Professional, scientific and technical services; Transportation and warehousing

University:

University of Toronto

Program: