{"id":3322,"date":"2024-09-27T21:29:48","date_gmt":"2024-09-27T21:29:48","guid":{"rendered":"https:\/\/tsunamitsolutions.com\/?p=3322"},"modified":"2024-10-30T17:50:53","modified_gmt":"2024-10-30T17:50:53","slug":"managing-risk-as-an-aircraft-operator","status":"publish","type":"post","link":"https:\/\/tsunamitsolutions.com\/index.php\/2024\/09\/27\/managing-risk-as-an-aircraft-operator\/","title":{"rendered":"Managing Risk as an Aircraft Operator"},"content":{"rendered":"\t\t
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Managing Risk as an Aircraft Operator<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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By Thomas Blomquist<\/span><\/b>\u00a0<\/span><\/p>\n

Vice President, ERP Practice, Tsunami Tsolutions<\/span><\/b>\u00a0<\/span><\/p>\n

Joe LeVasseur<\/span><\/b>\u00a0<\/span><\/p>\n

Executive Vice President, Tsunami Tsolutions<\/span><\/b>\u00a0<\/span><\/p>\n

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\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tDownload In-Depth White Paper<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Rising Revenue, Thin Margins <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Airlines and aircraft fleet operators need to guard their margins by reducing unanticipated costs and by increasing efficiencies. Liabilities for regulatory violations may be an excellent non-value-added expense to target\u00a0 because the <\/span>FAA Reauthorization Act of 2024<\/span><\/a> triples the DOT\u2019s maximum civil penalty for airline consumer violations from $25,000 to $75,000, per violation.<\/span>\u00a0<\/span><\/p>\n

Reducing unnecessary costs is<\/span>\u00a0important despite the fact that intermediate future looks bright for the airline industry, with the International Air Transport Association (IATA)\u202f<\/span>projecting 2024 airline net profits to increase<\/span><\/a> from $27.4 billion in 2023 to $30.5 billion on a record $996 billion in total revenues.<\/span>\u00a0<\/span><\/p>\n

Return on capital, however, is still a bottleneck with 5.7 return in 2024 <\/span>according to IATA<\/span><\/a>, which is 3.4 percent below the average cost of capital. And while net profits are increasing, the industry is still expected to see profit margins of only 3.1 percent. This may be an improvement over the IATA\u2019s earlier projection of 2.7% but makes margin protection a critical priority.\u00a0 Also critical will be anything airlines and fleets can do to maximize return on capital assets like aircraft.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Aviation Regulatory Help from Tsunami Tsolutions <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Over decades in aviation, Tsunami Tsolutions has seen airlines, particularly smaller ones with fewer configuration engineers and mechanics, struggle to confidently verify that aircraft are configured with the right allowable parts.\u00a0<\/span>\u00a0<\/span><\/p>\n

Mechanics, engineers and maintenance planners charged with provisioning compliant aircraft\u00a0 are often in a poor position to ascertain whether or not the current configuration is compliant. Does each part adhere to the currently allowed parts list? Failure can be expensive, in both fines and disruption of operations. Yet data from aircraft OEMs comes in various formats, most of which do not translate easily into digital systems used to support aircraft maintenance and operation.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Aircraft Configuration Management Assurance <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Despite the fact that much of this data originates from flat representations like PDF files, and tabular formats that exist do not conform to a consistent standard, Tsunami Tsolutions can, with its WAVES methodology, ingest the broad spectrum of data sources and that must be folded into configuration data\u2014including flat files like PDFs.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Tsunami Tsolutions has developed the WAVES Data Management Toolset for initial data migration into ERP, MRO and Maintenance and Engineering (M&E) software\u2014but the tooling has ongoing applicability as new allowable parts lists, service bulletins and other documents are released by aircraft original equipment manufacturers (OEMs). WAVES is short for:<\/span>\u00a0<\/span><\/p>\n