Having an AMT on Staff makes Financial Sense

Having an Aviation Maintenance Technician (AMT) on staff can be invaluable to a business aviation flight department. Some operators will whole-heartedly agree with this, and others may not be so sure. Lets take a look at the numbers.

Reduction in unscheduled maintenance. Prior to trips, the AMT can perform a more thorough pre-flight than the pilot can do. When the aircraft is not flying, the AMT will be doing minor tasks and cleanup items versus waiting to have them done during a scheduled check. A little TLC can help keep an aircraft reliable.

Higher rates of dispatch reliability. The response time of an in-house AMT is immediate. A flat tire or burned-out landing light can delay a trip by many hours when waiting for the local FBO to send someone over to look at the plane. Plus, they may not have the tire or bulb needed.

What is the cost of a delayed or missed trip? It isn't easy finding a last minute charter. A minimum delay needed to find, book and have a charter aircraft on hand may be four to eight hours, if you are lucky. If there are three senior executives cooling their heels in the pilot lounge, how much is their time worth? If they have a combined salary of $1 million, their worth to to corporation can be 5-10 times that. So $5 million annually could be costing you $2,500 per hour in waiting time for those executives! A four-hour delay can cost $10,000 in lost productivity of the passengers.

The cost of the charter itself is not inconsequential. Assuming $3,500 per hour for a mid-size business jet, and an 8-hour round trip, the charter cost is $28,000. You avoid the operating cost of your own aircraft. Accounting for that variable cost, assuming $2,000 per hour, still results in an increased cost for the trip of an added $12,000 (more if an overnight and waiting times are needed).

What if the trip is cancelled? What if the cancelled trip results in a delayed opening of a new factory, or a lost opportunity to land new business? There is no way to easily calculate this lost opportunity cost, but it can be huge. It was important enough to have an aircraft and schedule the trip.

It isn't too hard to see a single lost or significantly delayed trip can easily cost a company $100,000 or more. One trip saved by your in-house AMT can be the break-even point!

Other areas the AMT is well worth having around is in the ability to save money on scheduled maintenance. Turbine aircraft maintenance facilities charge around $85 to $125 per hour shop labor. The AMT typically has the tools and facilities to do much of the minor, routine checks. If that capability is outsourced to a facility an hours' flight time away, the travel time and costs are higher.

When major maintenance is being performed, the AMT can monitor the progress of the tasks and represent the aircraft owner. This "babysitting" of the aircraft can result in an on-time, on-budget completion of the maintenance task. A great service center will make every effort to get the job done right, and having your AMT on hand will enable them to do just that.

Lastly, a good AMT knows his or her aircraft better than anybody else. I've seen maintenance manuals with pages of handwritten notes in them. Those notes represent the knowledge of your AMT with respect to your aircraft and are much more valuable than the manuals themselves.

If your flight department has more than two aircraft, the decision to hire an AMT is an easy one. Even for a small, turbine flight department, the AMT can make sense from both a financial and effectiveness perspective. When considering hiring an AMT, look at the benefits and you will likely agree the cost is worthwhile.