AOGsmart launches alternative airline AOG resource
London based AOGsmart's innovative solution has gone live, with the collaborative resource sharing platform, aogsmart.com, concluding its extensive test-phase and unveiling an enhanced tool for airlines, operators and industry supply chain worldwide.
An average airline is potentially exposed to $7 million in unpredictable costs due to Aircraft On Ground (AOG) each year, not accounting for loss of on-time performance which affects reputation and customer loyalty.
With 45 airlines including Thomson Airways, Air France and Qatar Airways already registered, alongside over 200 Tier-1 suppliers – the site is ready, live and able to process AOGs, generate revenue and build critical mass.
Free to access with no subscription fees, the superior technology within AOGsmart addresses the current shortfalls in the process and the sheer complexity involved in sourcing and transporting the correct replacement part to the aircraft in the shortest time possible. With a programme of sustained investment designed to continually upgrade the user experience and focused on providing multiple resource trading on a single platform – parts, tooling and logistics, aogsmart.com is the only facilitator in the industry that uses geographical locations and time zones to provide realistic solutions for buyers.
Importantly, because each AOG is such a complex and time-critical scenario, AOGsmart will use 'open innovation' to the airline and supplier community to jointly contribute to the continuous development of the platform into the most efficient and cost effective solution for the industry. Active involvement promotes a deeper sense of collaboration than as a simple user and ties in with the sharing economy as a whole.
AOGsmart enables suppliers around the world to reach new customers and give airlines instant access to previously inaccessible supply sources. It does this by connecting the entire global network of suppliers and airlines through their existing ‘accepted supplier’ networks. This will open up the $27 billion market of under-utilised and spare resource capacity across multiple supplier tiers whilst retaining the important relationships top tier suppliers have with their existing customers.
The goal is for AOGsmart to become the most efficient and cost-effective solution for the air transport industry in respect of AOG and critical part sourcing and procurement. Tested alongside the TUI airline group's charter operations, the tool was able to deliver up to 50% reductions in AOG downtime.
“AOGsmart is a tool designed for speed, accuracy, fairness and transparency. No more out of date uploads of parts, manipulated ‘market’ prices, enhanced ‘listings’, or adverts, will distort the true picture. Buyers, whether they are airlines, contracted support specialists providing power-by-the-hour programmes, or MROs, will know exactly where a part is, how long it will take to get it and how much it will cost. They will trade directly with suppliers, reduce AOG downtime, eliminate delays and minimise risk and exposure to flight-delay compensation” explained Frederick Ilouno – Managing Director of AOGsmart who was meeting senior managers from the industry at the Airline Purchasing & Maintenance EXPO 2017 in London today.
He summarised the reaction from airlines, MROs, suppliers and brokers: “Airlines are interested in one thing only; how they can get their aircraft back in the air as quickly and safely as possible without incurring high costs. They feel underserved by the current component trading platforms which are inventory based and primarily focused on providing routine and scheduled part support – not on reducing the cost of an AOG. The access to robust support networks which have been operationally tested in real time and proven to deliver fast, reliable and smarter solutions to reduce the costs of disruptive AOGs, has opened their eyes.
“We are working closely with Aviation Week Network - MROLinks, the long-established interactive directory where airline and MRO buyers can find commercial aviation aftermarket products, services and suppliers and connect directly with sellers. They have a comprehensive portfolio of tools and market visibility so it is logical for AOGsmart® to align our platform to this energetic and forward-looking community.”
In an industry where every second counts, and the average annual number of AOG incidents exceeds 500,000 costing the industry a colossal amount in diminished revenues, AOGsmart has used the operational and logistical expertise of its management team to hone the platform and deliver a realistic and genuine service. It charges a small fee on exercising trades – there are no other charges. The long-term objective is to build a large and growing AOG support community which operates profitably yet delivers the tangible and measurable efficiencies that airlines require.