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Productization of Services as a Growth Strategy for Aircraft MRO Company

In: Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)

Author

Listed:
  • Jemsly Hutabarat

    (University of Indonesia, Faculty of Administration Science)

  • B. Yuliarto Nugroho

    (University of Indonesia, Faculty of Administration Science)

  • Martani Huseini

    (University of Indonesia, Faculty of Administration Science)

Abstract

This paper is intended to contribute directly to recent business aviation undergoing enormous changes, especially with the pandemic-19 and war, as well as rapid technological changes. The purpose of this paper’s preliminary survey and review is to analyze and look for alternative strategies for aircraft MRO companies (maintenance, repair, & overhaul) to respond to changing airline demands for ‘total care aircraft’. This demand tends to increase and leads to integrated goods and services so that aircraft MRO could respond with an excellent service towards an exceptional airline’s operations and maintenance of the aircraft and components. This empirical research used preliminary research to hold companies that manage airlines, aircraft MRO, and providers of aircraft mechanics and other MRO experts. Due to limited research on MRO aircraft, especially those concerning ‘total care aircraft’, the study combined a literature review on related literature and limited face-to-face interviews. The results are obtained by developing a growth strategy that can be carried out in two ways: concentration and diversification. The MROs provide a total solution to airlines by integrating services and products through the productization of services. MROs are offering maintenance services bundled with the provision of service with products. MROs excel in the maintenance provision, particularly when the product has reached a specific cycle (matured age) work scope.

Suggested Citation

  • Jemsly Hutabarat & B. Yuliarto Nugroho & Martani Huseini, 2024. "Productization of Services as a Growth Strategy for Aircraft MRO Company," Advances in Economics, Business and Management Research, in: Ratih Hurriyati & Lili Adi Wibowo & Ade Gafar Abdullah & Sulastri & Lisnawati & Yusuf Murtadlo (ed.), Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022), pages 1735-1740, Springer.
  • Handle: RePEc:spr:advbcp:978-94-6463-234-7_182
    DOI: 10.2991/978-94-6463-234-7_182
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