The AOG Market and How AOGsmart Can Help

We all know the implications of an aircraft sitting on the ground and not making money – AOG, AOG, AOG! Those three dreaded letters means strife, pressure and pain to aircraft operators. Welcome to AOGsmart’s very first blog post – we are eager to share with you why we wanted to make the AOGsmart app, but first some facts on why we embarked on the mission to really make a difference when an AOG occurs.

AOG Facts

  • Over 27,000 aircraft in service
  • Over 40% of the serviceable aircraft are between 7-10 yrs old
  • Ave of 1-2 AOGs per month per aircraft
  • Ave cost of an AOG to an airline $10,000 but can exceed $100,000 per day
  • Ave length of delay due to an AOG is 12.5 hours
  • Cost of AOG prevention: $40bn in stock piles
  • AOGs cost an average size airline over $8m per year
  • 8% increase on AOGs expected year on year

The story told from the facts above is that AOGs are here to stay , and as air transportation takes over more far flung parts of the world, AOGs are on the rise. Before we embarked on producing a solution to handle the aviation industry’s AOG issues, we had to think outside of the box whilst maintaining a pragmatic view. We started by analysing the full impact AOGs have on airlines and MROs, and designed an application that tackles and mitigates these impacts.

Below are some of the AOG pains we analysed and helped forge a new and painless approach to managing and mitigating the loss and disruption caused by an AOG:

  1. Overspend on an AOG
  2. Reducing cost & time of AOGs and critical part requirements
  3. Maintrol Expenditure Management
  4. Level of competitive procurement across the Approved Suppliers List
  5. Competitive global and localised logistics support and procurement

The AOGsmart app is chiefly aimed at making it easier for AOG desk operatives to carry out their tasks more quickly and painlessly. A bi-product from delving deeper into understanding AOGs triggered a new way to not only manage multiple AOGs, but also to create revenue possibilities from stored parts and resources stocked ready for the inevitable AOG.  Our findings from consulting with airlines worldwide supports their interest in achieving favourable ROI on stockedpiled parts and underutilized resources.

Over the coming months, our team will be providing tips & guides on how the AOGsmart app operates and how to get the best results. Our blog posts will provide a learning plan that will help you quickly gain confidence in using the AOGsmart app, and to help you along we’ll be using examples of the various pains AOGs present to airlines so you can easily recognise and see how the app works through solutions. We will show you how the app makes your AOG desk so much easier to manage whist handling multiple AOGs.

Written by Frederick Ilouno

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