For those who study the airline industry, and more specifically, aircraft maintenance, it is a well-known fact that airlines are not in the aircraft maintenance business. However, the importance of quality, compliant, cost-effective maintenance cannot be overstated. Estimates for the total cost of aircraft maintenance range from 10% to 15% of an air carrier’s budget.

Economics of scale has an impact on the decision to outsource maintenance. Each individual airline must determine the point at which there is a positive return on the investment in maintenance capability. Large air carriers with hundreds of aircraft can justify the investment for a multi-level maintenance capability. However, an airline with a relatively small fleet may not have the capital, desire, or need to establish a multi-level maintenance program. This is particularly true for start-up air carriers and low-cost carriers (LCC).