IATA's Maintenance Cost Technical Group (MCTG) - formerly known as Maintenance Cost Task Force (MCTF) - is the only airline volunteer group that gathers and analyzes maintenance cost.
IATA's Maintenance Cost Technical Group (MCTG) is a volunteer work group dedicated to supporting Technical Operations (Maintenance and Engineering) in an environment where costs are ever increasing.
Our mission is to be the focal point on commercial airline Maintenance Costs, including MRO (Maintenance, Repair, and Overhaul) cost strategies.
The MCTG is run by a Steering Committee (SC) made up of airlines, IATA, and OEMs representatives; up to 12 airlines can have seats on the Steering Committee. The SC meets twice a year, holds quarterly conference calls, and organizes the agenda for the annual Maintenance Cost Conference (MCC).
We offer a unique data collection and benchmark analysis with more than 50 airlines representing 25% of world fleet and maintenance expenses.
We also initiate industry surveys (e.g. aircraft depreciation and maintenance cost capitalization, paperless supply chain, MEL) and projects (e.g. maintenance agreement standardization, aircraft leasing and maintenance reserves) for the benefit of the airline community.
Download MCTG Flyer (pdf)
Membership to the MCTG is open to all airlines, including cargo, charter and low cost carriers.
Participants in the IATAs Strategic Partnership Program can also attend the functions of the group upon request and approval from the SC.
Annual data collection and benchmark analysis
Our goal is to provide the tools, methodology, and definitions to be able to determine how much it costs an airline to maintain its fleet and be able to use the data in cases of new fleet introduction or expansion, “make vs. buy” decisions, year-over-year trends, etc.
We collect maintenance cost data from more than 50 airlines worldwide (representing about a quarter of the world’s fleet and MRO spend) on an annual basis.
Participating airlines receive exclusive IATA Maintenance Cost Reports with benchmark data, key performance indicators and 5-year trend analysis. Check out an excerpt (pdf) of the FY2017 report.
As confidentiality is a major concern, reported data is de-identified and/or aggregated.
How to participate
Download the MCTG toolset (zip) to submit your maintenance cost data to MCTG.
Maintenance Cost Conference (MCC)
The Maintenance Cost Conference (MCC) is MCTG's annual event held over three days in the Fall, in a different location and with a different theme every year. Experts in aircraft maintenance gather to discuss hot topics and industry trends. The conference typically welcomes an average of 150 delegates.
15th Maintenance Cost Conference was held on 18-19 September 2019 in Athens, Greece.
Panama 2017 |
Who attends the conference?
Based on our past experience, the following professionals, amongst many others, attend:
|||Manager, Finance||||Manager, Technical Contracts|
|||Maintenance Cost Analyst||||Chief Engineer|
|||Manager, Cost Control||||Technical Director; Director, Engineering|
|||Director, Finance||||Head of Maintenance|
|||Engineer||||VP Maintenance and Engineering|
|||Fleet Manager, Engineering||||General Manager|
|||Manager, Supply Chain||||Executive VP Operations|
IATA/CFMI Settlement Agreement
In July 2018, IATA announced that it had entered into an agreement with CFM International (CFM) that will lead to increased competition in the market for maintenance, repair and overhaul services (MRO) on engines manufactured by CFM, a 50/50 partnership between GE and Safran Aircraft Engines.
Under the agreement, CFM has adopted a set of “Conduct Policies” that will enhance the opportunities available to third-party providers of engine parts and MRO services on the CFM56 and the new LEAP series engines. Among the many elements of the agreement, CFM has agreed to:
- License its Engine Shop Manual to an MRO facility even if it uses non-CFM parts)
- Permit the use of non-CFM parts or repairs by any licensee of the CFM Engine Shop Manual)
- Honor warranty coverage of the CFM components and repairs on a CFM engine even when the engine contains non-CFM parts or repairs)
- Grant airlines and third-party overhaul facilities the right to use the CFM Engine Shop Manual without a fee)
- Sell CFM parts and perform all parts repairs even when non-CFM parts or repairs are present in the engine)
- CFM conduct policies and implementation measures (pdf)
- Corrective plans and contractual penalties (pdf)
- IATA-CFM Agreement on Engine Maintenance: IATA’s Guide to Key Principles (pdf)
IATA Master Airframe Maintenance Agreement (AMA)
In an effort to make maintenance agreements more efficient, the Master AMA is available for industry use.
Following the best practices in aircraft operations and industry templates, the Master AMA has been developed to facilitate negotiations for heavy maintenance events, such as C-checks, D-checks, structural checks and other types of airframe maintenance.
- IATA Master Airframe Maintenance Agreement (main section, rev. 2014) (pdf).
- IATA Master Airframe Maintenance Agreement (fillable Annexes) (pdf).
The Parties of this Agreement can:
- Customize the commercial and technical details using the Part II of Annex 1 - Airframe Maintenance Agreement and other Annexes
- Modify, add, remove, validate or invalidate the Articles of this Agreement using the Part III of Annex 1 - Airframe Maintenance Agreement
IATA Master Engine Maintenance Agreement (EMA)
This document is similar to that of AMA, but it applies to the engine.
- IATA Master Engine Maintenance Agreement (main section, rev. 2016) (pdf)
- IATA Master Engine Maintenance Agreement (fillable annexes) (doc)
Best practices guide for Cabin Interior Retrofits and Entry into Service Program - 1st Edition (2019)
The Best Practices Guide for Cabin Interior Retrofits and EIS (pdf) has been created in collaboration with Engineering and Maintenance specialists. This guide aims to ensure that cabin safety operational risk is included within a cabin layout design or change program. It includes program management guidance as well as raises awareness of many of the risks involved in the introduction of a new cabin.
Aircraft Operational Availability - 1st Edition (2018)
The Aircraft Operational Availability paper (pdf) aims at defining the different types of availabilities based on a common approach developed by operators and aircraft manufacturers, the measure being done on the unavailability times. The different metrics of unavailability are based on a data collection for aircraft grounding times using the ATA Spec 2000 Out of Service record. It enables the identification of the Aircraft Unavailability drivers in two main categories: the planned and the unplanned maintenance activities to identify all possible causes that will result in an aircraft becoming unavailable.
Maintenance Costs for Aging Aircraft - 1st Edition (2018)
The Maintenance Costs for Aging Aircraft paper (pdf) defines three types of aircraft aging (technical, economic and financial), what factors can influence them, and how they can be measured. Various parameters influence maintenance costs, such as routine and non-routine maintenance, service bulletins (SB) and airworthiness directives (AD). Quantifying the evolution of maintenance costs requires the collection of data throughout the life of the airframe. Data accuracy and consistency are critical. This document proposes an approach and guidelines to produce curves based on direct maintenance costs by tail number.
Component Maintenance Cost Management - 2nd Edition (2015)
The Component Maintenance Cost Management paper (pdf) proposes a method to breakdown CMC with a short description of each category. Additionally, “best practice” examples are provided on how to deal with the most common issues regarding component maintenance.
Inventory Management - 2nd Edition (2015)
The Inventory Management (pdf) manual provides inventory managers with a set of strategies and techniques that will guide them to an optimal inventory solution for a variety of passenger airline and cargo operations.
Alternate (PMA) Parts and Approved (non-OEM) Repairs (DER) - 2nd Edition (2015)
The Alternate (PMA) Parts and Approved (non-OEM) Repairs (pdf) manual provides guidance and best practices for airlines to achieve maintenance material cost savings by use of alternate replacement parts (e.g. under Parts Manufacturer Approval – PMA) and approved (non-OEM) repairs, while remaining in compliance with regulatory requirements.
Aircraft Leases - 4th Edition (2017)
The Aircraft Leases (pdf) manual is intended for engineers working at the airline technical/engineering department as well as technical representatives from leasing companies, and offers guidance on lease-related issues during the aircraft lease life-cycle.
Labor Rate and Productivity Calculations for Aircraft Maintenance - 1st Edition (2013)
The Labor Rate and Productivity Calculations for Aircraft Maintenance (pdf) is a practitioner’s guide for people working in an airline’s technical operations finance department or an MRO organization to determine the actual labor rate as it applies to specific cases: “make vs. buy” decisions, evaluation of profitability, benchmarking purposes.
Airlines’ Accounting Policies on Aircraft Depreciation and Maintenance Capitalization - 1st Edition (2012)
The Aircraft Depreciation and Maintenance Capitalization paper (pdf) provides benchmark information and “best practices” based on an IATA survey conducted among 50 airlines worldwide. Aircraft depreciation policies varied across airlines. Depreciation period ranges from 8 to 30 years with a residual value of 0 to 20%. The majority of airlines (over two thirds) capitalized heavy maintenance and engine overhauls. About one third or less of the respondents depreciates any maintenance events for large components. Only 20% depreciate consumables.