Expertise in Aviation Investments: Technical Background, Risk Analysis, and Root Cause Management

Company: Investment Firm, Venture Capital

Situation: One of the most significant ongoing engine programs is facing severe technical issues, leading to substantial constraints on the utilization of the aircraft fleet. Over 100 planes are grounded due to these problems, causing significant financial impacts on both the airlines and the Engine Original Equipment Manufacturer (OEM) and its partners.

Objective: The goal is to understand the root cause of the problem to adapt the investment strategy for the OEMs and partner companies. Detailed technical background information is required for a thorough assessment.

Measures:

  • Providing detailed background information on the root cause of the problem.
  • Clarifying the impacts on Maintenance, Repair, and Overhaul (MRO) bottlenecks, as well as all supply chains for necessary spare parts.
  • Evaluating the influence of operational downtime and estimating penalty payments.
  • Assessing the timeline: How many engines can be repaired within what period, and when can the operation of the entire fleet be expected to resume?

Result: Since 2023, I have conducted 23 advisory sessions, 2 interviews, and 4 teleconferences on this complex topic with various participants. Backgrounds were successfully clarified, timelines were derived, and investors were able to better assess the financial impact and risks based on the information received.