Pooling of spare components between airlines

Jani Kilpi and Vepsäläinen, Ari P.J.

Journal of Air Transport Management, 2004, vol. 10, issue 2, 137-146

Abstract: The purpose of providing component availability service is to maximize aircraft utilization by keeping spare units ready to be installed whenever needed. Since the size of the fleet supported by the spare component inventory is the most important driver behind the inventory cost, inventory pooling among a number of airlines is an intuitive way of exploiting the scale economies of availability services. This study demonstrates the savings potential of balanced inventory pooling arrangements among various airlines. Managerial implications of successful cooperation are discussed.

Keywords: Inventory pooling; Aircraft components; Airline management (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:10:y:2004:i:2:p:137-146

DOI: 10.1016/j.jairtraman.2003.09.001

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