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A strategic review of the large civil aeroengine market and the paradigm shift to a service-

Published online by Cambridge University Press:  04 July 2016

C. I. V. Kerr  and
P. C. Ivey
C. I. V. Kerr
Affiliation:
School of Mechanical Engineering, Cranfield University, Cranfield, UK
P. C. Ivey
Affiliation:
School of Mechanical Engineering, Cranfield University, Cranfield, UK
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Abstract

This paper provides a concise overview of the aeroengine industry serving the large civil aircraft market together with a discussion of the key market drivers and the strategic issues within this industry. With the airlines feeling increased pressure to improve their market performance and their associated strategies for focusing more on their core businesses, the outsourcing of aeroengine overhaul and maintenance has thus provided the original equipment manufacturers (OEMs) with the opportunity to strategically align with their customers. As the OEMs therefore become service providers, effectively providing thrust for 20 years, the new core competences that must be attained are discussed. They must extend their deep product knowledge in design and manufacture to those of negotiation of the long-term service agreements for their tailored service offerings and in the lifecycle engineering of their products to ensure successful fulfilment of these contracts. In the eyes of their customers the aeroengine OEMs will be seen as risk mitigators and critical to their success will the development and utilisation of knowledge-based tools for the provision of informed decision-making. The future need for such tools and the challenges are identified within this paper so that both the airlines and OEMs can minimise their risks and cost base.

Type
Research Article
Information
The Aeronautical Journal , Volume 105 , Issue 1047 , April 2001 , pp. 287 - 293
Copyright
Copyright © Royal Aeronautical Society 2002 

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