Boeing Supports Airline's Low Cost Business Model

Skymark Airlines is the most recent addition to Boeing's 737 Component Services Program (CSP), a move that Boeing says will help the airline reduce its spare parts costs, an important advantage in the low-cost carrier marketplace.  In addition to reducing costs, the program will help Skymark enhance efficiency and improve spare parts availability.

The program can help airlines save as much as 30 percent on inventory, repair and administrative costs, the company says.

"The Component Services Program will provide convenience and cost savings for Skymark Airlines," said Kimiyoshi Sakaki, director, Engineering & Maintenance Division, Skymark Airlines. "Our participation in the program will help us to meet our customers' expectations for value and reliability."

This cost-reducing materials management and supply-chain solution is a joint operation of Boeing Commercial Aviation Services and Air France Industries KLM Engineering and Maintenance. Under the new agreement, Boeing and AFI KLM E&M will manage spare parts and components inventory for the Tokyo-based airline, assuring timely delivery, while Skymark avoids warehousing and long-term inventory holding costs.

Skymark Airlines operates a fleet of 19 Boeing Next-Generation 737-800s and will be taking additional airplanes on lease during the coming months. "Keeping costs low is paramount to a low-cost carrier and Skymark Airlines is taking a significant step in controlling their materials costs by joining the 737 Component Services Program," said Dale Wilkinson, vice president of Material Services for Boeing Commercial Aviation Services.

"We are very pleased to welcome Skymark Airlines to our jointly operated 737 CSP program, which will help them to operate in a most (cost) efficient way," said Maarten Oort, vice president, Component Services, KLM Engineering and Maintenance.

The program features a customized recommended spare parts list based on customer data. The list includes dispatch-critical parts and both avionics and non-avionics line replaceable units in recommended quantities to support each airline's dispatch reliability requirements.

FMI: www.boeing.com