Research On The Cost Management Of The Spare Parts Of SD Airlines

With the accelerating process of globalization, the aviation industry is playing a more important role in global economical development. But the global economy is in the period of adjustment, where the development of major economies has been diverging and the international oil price has been declining. While the domestic economic development is good on the whole, the economic development is slowing down. The features of New Normal as “mid- to high-rate growth, model transformed, structure upgraded, new engines” is becoming prominent. The rapid development of high-speed railways has posed a great pressure on civil aviation industries. Under the new circumstance, domestic civil aviation industries will get a position in intense market competition only by enhancing own competitive ability, improving profitability and reducing operation costs.Spare part is an important part of an aviation company’s maintenance costs. By 10 years of fast development, from a regional small company positioning in extension operation, SD Airlines has developed into a medium-to-large aviation company that utilizes 90 aircrafts in 6 bases flying to 150 routes. But the spare parts costs management system is not sufficient enough to satisfy the need of its fast development.Using the value chain management theory, supply chain management theory and inventory management theory based on ABC classification, by analyzing management system, management process and management contents, the thesis points out the problems exists in SD Airlines’ current spare parts costs management. The thesis proposes to optimize the management system by constructing spare part costs management in corporal level, strengthening the support of maintenance system to spare part costs management and build safe management system(SMS). The thesis proposes to optimize the management process by designing complete clear business process, strengthening the control power of planning department, improving supplier management process and strengthening the construction of maintenance information system. The thesis proposes to optimize the management contents by strengthening the monitoring of important business and equipments as well as reducing business costs by using creative business model. The thesis is targeting to improve the current spare part costs control of SD Airlines.