US company to help Caribbean Airlines cut costs

PORT OF SPAIN, Trinidad, June 30, 2008 – Trinidad’s national carrier, Caribbean Airlines is getting help in cutting expenditure from a United States company which has promised to save the regional airline as much as 30 per cent on inventory, repair and administrative costs.

The Washington-based Boeing has included Caribbean Airlines in its Boeing 737 Component Services Programme (CSP), a materials management and supply-chain solution designed to help airlines reduce costs, enhance efficiency and improve spare parts availability.

Under the new agreement, Boeing will manage spare parts and components inventory for the airline until the parts are needed and it has guaranteed that the carrier “will have working replacements for failed parts within 24 hours without having to stock up on spares or pay long-term holding costs”.

Since it took to the skies in January 2007, Caribbean Airlines has grown to a fleet of seven Boeing Next-Generation 737-800s.

“Caribbean Airlines is taking a big step towards greater fleet efficiency and will be able to offer a better product by focusing on the passenger instead of spares provisioning,” said Dan da Silva, vice president of Sales and Marketing for Boeing Commercial Aviation Services.

Boeing said in a release that its Component Services Programme, which it offers in partnership with KLM Engineering and Maintenance, helps reduce both up-front parts provisioning and long-term inventory holding costs and guarantees service as good as or better than when the airline managed the spare parts itself.