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Copyright © 2016 Boeing. All rights reserved. Philippe Horn Regional Director, Airline Maintenance Economics The Boeing Company September 2016 Innovations in Maintenance

Copyright © 2016 Boeing. All rights reserved. 80% reduction in Techlog entries > 30% increase in fleet size Qantas 737NG Health Management 68 178 300 406 62 70 74 56 737 Fleet Size

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Copyright © 2016 Boeing. All rights reserved.

Philippe HornRegional Director, Airline Maintenance Economics

The Boeing Company September 2016

Innovations in Maintenance

Copyright © 2016 Boeing. All rights reserved.

Copyright © 2016 Boeing. All rights reserved.

• Mobility

• Analytics

• Paperless Operations

Industry Trends

Copyright © 2016 Boeing. All rights reserved.

$760B (2015 Expenses)

Fuel

Stations

Crew

Fuel

40%

Stations

15%

Aircraft

10%

G&A

10%

M&E

10%

Crew

15%

Cost Drivers Enablers

Copyright © 2016 Boeing. All rights reserved.

Trend: Mobility

Copyright © 2016 Boeing. All rights reserved.

Solution: Mobile Maintenance Applications

More than 60 airlines using Boeing

Toolbox Mobile Library for maintenance

efficiency

Trend: Mobile

Copyright © 2016 Boeing. All rights reserved. BOEING PROPRIETARY

Typical line maintenance• The goal is to eliminate or significantly reduce non-value steps

Mechanic is near

the airplane

Mechanic

investigates

problem and

needs

information

Mechanic goes to

maintenance

building

Mechanic logs into

multiple systems

Mechanic

searches, finds,

and prints

out information

Mechanic goes

back to the

airplane

Mechanic fixes

problemMechanic discovers

they need more

informationNon-value-

added

Copyright © 2016 Boeing. All rights reserved. BOEING PROPRIETARY

Leaner line maintenance• Empowering mechanics at the airplane

Mechanic investigates

problem, searches, finds, and

uses information on the spot

Mechanic

fixes

problem

Mechanic is near

the airplane

Add Mobility

to Line Maintenance

Copyright © 2016 Boeing. All rights reserved.

What airlines are saying

“Maintenance delays are at least cut in half.”

“I don’t go through a single day without using it.

“It’s a real time saver.”

“iPads are crucial for on-time performance.”

Mobility lowers costs

“Improve Dispatch reliability”

“Avoiding Schedule Interruption”

“Better Quality troubleshooting”

Copyright © 2016 Boeing. All rights reserved.

Trend: Available Airplane Data

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

1967 1982 1995 2011

Parameters

Central Fault Messages

Crew Indication

Co

un

t

737 Classic 757 777 787

Copyright © 2016 Boeing. All rights reserved.

Fault and condition data via ACARS or Gatelink to Boeing

Updated AHM information to operator via

myboeingfleet.com

Maintenance/Engineering takes action

Historical Data

Current Data

Ground-based AHM processing

Maintenance control makes

fix/defer decision –

recommended action

Solution: Health Management• How it works

AHM is deployed at 85% of all 777 operators and all but one 787 operator

Trend: Available Airplane Data

Copyright © 2016 Boeing. All rights reserved.

Virgin Atlantic uses AHM to reduce pneumatics delays

ATA 21 (Air Conditioning) Specific Efforts

• Provided early identification of ACM running in cruise and consequent reduced risk of ACM damage/failure.

• Reduced fuel burn due to fewer hours running with Pack Doors off schedule / Packs in Hi Flow.

• Reduced Pilot Report rates and maintenance burden.

27.3% reduction in number of delays compared to previous 12 months

27.4% reduction in reportable delay minutes compared to previous 12 months

ATA 36 (Pneumatic) Specific Efforts

• Removes multi-system faults.

• Removes multiple faults within single systems.

• Reduced Pilot Report rates and maintenance burden.

78.3% reduction in number of delays compared to previous 12 months

92.4% reduction in reportable delay minutes compared to previous 12 months

AHM monitoring has decreased Virgin Atlantic’s delays and delay minutes for both ATA 21 and ATA 36 on 747s as indicated.

Copyright © 2016 Boeing. All rights reserved. BOEING PROPRIETARY

Delta: using AHM prognostics to full advantage

777 IDG Prognostic IDG Degradation Alert:

Result of Alert:

• IDG removed at scheduled maintenance visit

• No delay, cancellation or ODI

• Reduced removed part transit time

• Early detection avoided a potential replacement cost of $300K

777 PRSOV Imminent Failure Alert:

Result of Alert:

• IDG removed at scheduled maintenance visit

• No delay, cancellation or ODI

• Reduced component repair costs

• Reduced removed part transit time

Copyright © 2016 Boeing. All rights reserved. BOEING PROPRIETARY

Prognostic on EAI Reduced Delay Costs• Engine Anti-Icing (EAI) Prognostic Alerts

• Previously, EAI monitored only when system active

• 777 ACIPS software release in 2015 enabled once a day Built-In Test

• Operators achieved significant reduction in delay costs by utilizing EAI prognostic alert

Copyright © 2016 Boeing. All rights reserved.

> 80% reduction in Techlog entries

> 30% increase in fleet size

Qantas 737NG Health Management

68

178

300

406

74706256

737 Fleet Size

ATA 36 (Pneumatic) Activity

2011 2012 2013 2014

Copyright © 2016 Boeing. All rights reserved. BOEING PROPRIETARY

737 MAX – “Right at First Flight”• Highest Reliability at Entry into Service – Lower Maintenance Costs

Monitor flight test fleet to detect,

analyze, and correct issues before the

aircraft enters service

- Real time fleet monitoring

- Data collection, reporting,

analysis

- Reliability and design

improvements

- Diagnostic and predictive

analytics

Copyright © 2016 Boeing. All rights reserved.

Trend: Paperless offices

Copyright © 2016 Boeing. All rights reserved.

Solution: Records Management

$10,000 annual per tail savings with

STREAM by AerData

Trend: Paperless offices

Copyright © 2016 Boeing. All rights reserved.

Complete document management

Maintenance Performance

Toolbox is:

A central document hub that covers the

entire spectrum of document management

Complementary to your existing

maintenance planning system

The best system with the best customer

support

Library support for non-Boeing airplanes

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Integration with maintenance planning systems

Tech Log Page Manager

Transition Dashboard – Simplifies your end of lease

Records module key features

Records module provides full visibility to the data you need most

Copyright © 2016 Boeing. All rights reserved.

What is your path?

How do I improve

asset utilization

and performance?

How do I use all

of this data to

drive

improvement?

Can I improve

my maintenance

processes?Help me manage

my technical

information!

Where will

integrated

operations make

the largest impact?

How can I

further optimize

flight

operations?

I need to

integrate and

collaborate more

efficiently!

How can I better

manage fuel?

Copyright © 2016 Boeing. All rights reserved.

Looking ahead

Author, 9/16/2016, Filename.ppt | 22Thank you