WorldTraveler, on 09 February 2012 - 02:25 PM, said:
except that DL has said that they do overhauls for other carriers because they must in order to get other parts of the contract which they otherwise could not obtain and which are more valuable.
The point of the AM partnership is to ship out the work that DL says doesn't make sense to do even on their own planes while keeping the engine and component work.
.
AA will figure out their own strategy but I fully expect that AA will indeed become a major player in the MRO business eventually. They have too much invested and too many capabilities not to use it in a business that can make a lot of money. DL says Tech Ops does about $500M per year in business at 10% or better margins. AA is certainly going to try to add that kind of money to its own business plan - and most of it can be obtained w/ very little additional resources.
The point of the AM partnership is to ship out the work that DL says doesn't make sense to do even on their own planes while keeping the engine and component work.
.
AA will figure out their own strategy but I fully expect that AA will indeed become a major player in the MRO business eventually. They have too much invested and too many capabilities not to use it in a business that can make a lot of money. DL says Tech Ops does about $500M per year in business at 10% or better margins. AA is certainly going to try to add that kind of money to its own business plan - and most of it can be obtained w/ very little additional resources.
The only problem to your theory is that American is essentially firing over half of their overhaul mechanics.



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