The Issue
Subsequent inspection and review of the records confirmed that the engine had been stored incorrectly. As a consequence, a shop visit was required. The engine was inducted into the shop under a ‘Not to Exceed’ (NTE) contract based on a specified workscope with the shop visit managed by TGIS Aviation. The condition of the engine necessitated further disassembly which increased the workscope outside the terms of the NTE.
The TGIS Aviation Solution
TGIS Aviation managed the shop visit with a view of maintaining the airworthiness of the engine, whilst minimising the additional work. The engine was also subject to a claim under the Lessor’s insurance. Once the shop visit was completed, TGIS Aviation carried out a full review of the invoice against the work carried out, a scrap review, the MRO NTE contract, applicable warranties, and the applicable insurance claim.
Outcome for our Client
The following savings were identified:
Warranty Claims – $267,000
Charges incorrectly invoiced as ‘over and above’ under the NTE – $359,000
Items incorrectly charged – $365,000
Insurance Claim – $526,000
TGIS Aviation’s management of the shop visit resulted in a $1,519,000 reduction in the shop visit costs to the Lessor.
