EASA opens airlines to €15m in savings opportunities

Recent changes in EASA regulations mean air carriers can now consolidate CAMO (Continuing Airworthiness Management Organisation) activities across an airline group and contract CAMO responsibilities to another company. Opening the industry to benefits estimated to provide at least €150m in annual savings.

Photo by Pandu Agus Wismoyo on Unsplash

Previously each air carrier legal entity, of which an airline group could contain several, needed to have a separate CAMO in order to meet EASA regulations. Resulting in a significant level of duplication and reducing the level of effective steering and oversight that could be achieved within a single airline group.

In the amendment to the regulation for continuing airworthiness management published this year ((EU) 2022/410) approval was added for airlines and to consolidate CAMO across a business group. Providing the opportunity to reduce significant levels of duplication.

The changes also allow a greater level of delegation of airworthiness responsibility to a third party. This means savings can be further increased as airlines and maintenance organisations can use aircraft and engine manufacturer performance-based contracts (like the ‘power by the hour’ service) to further increase potential economies of scale across the industry.

Performance-based contracts are also a great way for airlines to incentivise aircraft and engine manufacturers to further increase the efficiency and reliability of aircraft – potentially driving further benefits for airlines, manufacturers and maintenance organisations alike.

These changes have been in discussion and consultation for a decade and are not simply a response to the massive impact the COVID crisis has had across aviation.

The changes however are timed perfectly to be welcomed across an industry not only hit by massive financial impacts, but also from a significant loss of skills and capacity as many aerospace engineers moved into other industries in the midst of the COVID.

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Rebecca Meldrum is an EASA approved expert in continuing airworthiness and aviation management. Supporting organisations globally with by delivering consulting and workshop services for rapid innovation and sustainability. www.meldrumconsulting.ch