By Lowell Oster, product marketing manager for ground support equipment, JBT AeroTech
“To stay competitive, airlines and ground handling companies are placing more emphasis on TCO as they work to reduce costs on the ramp. As a result, equipment lifetime performance has become an important aspect of their purchasing decision,” explains Chuck Durst, general manager for ground support systems at JBT AeroTech. “We have seen a number of our customers requesting more lifetime cost information in their tender process, as well as implementing comprehensive data collection systems, which provide them with a more complete view of total lifetime cost for GSE.”
Calculating TCO
Customers are gathering data from their fleets and collecting information from other companies to better evaluate the total cost of ownership of GSE equipment. These efforts are focused on gathering and analyzing expenses related to operations, maintenance, safety and reliability, as well as the equipment’s resale value.
Durst says companies see value in evaluating total cost of ownership because actual equipment purchase price accounts for only a small percentage of the overall equipment cost.
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| GSE purchase price is just the tip of the iceberg. Approximately 11 percent of an iceberg is above the water, similar to the percentage associated with the purchase price of GSE. Companies are placing more emphasis on the TCO and analyzing the "ice below the water surface" to help them make smart investments in equipment. |
GSE purchase price is just the tip of the iceberg. Approximately 11 percent of an iceberg is above the water, similar to the percentage associated with the purchase price of GSE. Companies are placing more emphasis on the TCO and analyzing the "ice below the water surface" to help them make smart investments in equipment.
“The purchase price of typical industrial equipment represents only 12 percent of the total cost of ownership. As an example, the purchase price of a commercial aircraft is only 8 percent of its TCO,” he explains. “Because approximately 80 percent to 90 percent of equipments’ true financial impact on the end user is related to lifetime operating and maintenance expenses, companies are making better GSE investment decisions by including these cost factors in their analyses.”
JBT AeroTech provides customers with GSE that improves the bottom-line success of their businesses. JBT AeroTech product development efforts are aligned with the desire of customers to continually reduce the TCO of their equipment. The company is focused on providing GSE with lower operations, maintenance and safety costs, as well as higher reliability, durability and resale values.
Operations
Airlines with deicing operations consider glycol cost a major concern, as it is estimated that more than 35 million gallons of glycol-based de/anti-icer fluids are used annually in the United States alone. The Tempest deicer with AirFirst® technology has proven to be the most cost-effective method to lower glycol expense in a wide variety of snow, frost and icing conditions. It can be used to blow loose snow off an aircraft, to remove frost, and as an air-assist in the application of deicing and anti-icing fluids.
In an effort to reduce fuel costs and engine emissions, GSE purchasers are evaluating differences in fuel efficiency of equipment, including alternative fuel vehicles. Commander loaders from JBT AeroTech use less fuel through the use of a load-sensing variable displacement pump and a hydraulic system capable of low pressure, high flow at engine idle. In addition, JBT AeroTech is leading the way in the development of electric-powered GSE, including loaders and tractors.
Maintenance
JBT AeroTech has taken steps to reduce scheduled maintenance costs for its equipment by increasing service intervals and making it easier to access equipment components.
In an effort to reduce the frequency and severity of unscheduled maintenance, GSE from JBT AeroTech includes an on-board diagnostic system (ODS), which decreases the time required to diagnose and resolve problems. The ODS includes a large, easy-to-read diagnostic screen with large text and pictograms, easy-to-understand status descriptions and multilingual capability.
Safety
The Flight Safety Foundation estimates the annual economic cost of ground accidents in aircraft damage alone at $4 billion for air carrier operators. The financial toll is exacerbated by indirect accident-related costs caused by lost revenue from ticket sales, flight cancellations and repositioning of replacement aircraft, among other factors. It estimates the indirect costs related to safety incidents are at least three times higher than the direct costs.
JBT AeroTech is focused on designing GSE with ergonomic drive and control systems, excellent visibility and redundant systems for the utmost in safety. State-of-the-art computer computer analysis and empirical testing ensures JBT AeroTech equipment exceeds load/strength requirements.
Baggage handlers’ back injuries alone cost an average airline and ground handling company $1.3 million annually according to a study conducted by the Safety Science Monitor. During the study, some airlines had more than 20 percent of their baggage-handler workforce absent due to back injuries.
The RampSnake® bulk loading system significantly decreases the amount of heavy lifting by baggage handlers. As a result, the system substantially reduces ramp worker injuries while improving efficiency.
Reliability
JBT AeroTech fully understands that equipment can benefit its customers only when it is in service. High uptime not only lowers maintenance expense and reduces operational disruptions, it also allows customers to reduce their fleet size due to high availability.
The reliability engineering group at JBT AeroTech is focused on ensuring it is using components that will provide a long useful life in the most difficult ramp environments through environmental and destructive testing of components.
In addition, the company has more than 40 years of experience supplying reliable products to the GSE industry.
Durability and resale value
Over the past five years, airlines and ground handlers have increased their attention on the useful life and resale values of their equipment as they have worked to either extend the productive life of their existing equipment or refresh their fleets. It has become clear that there are significant differences in the useful life and resale value of GSE equipment. For example, JBT AeroTech’s Commander loaders have a resale value that is double its competitors after a five-year life.
The key to purchasing ground support equipment is to partner with a supplier that not only has extensive industry experience built into its products, but one that can demonstrate proven success in lowering TCO for its customers.
®AirFirst and RampSnake are registered trademarks of JBT AeroTech. ©2008 JBT AeroTech. All rights reserved.