Finnair (AY) has selected DHL Supply Chain as its partner to manage both its warehouse services as well as its spare parts handling activities. The cooperation will commence in Spring or latest in June, respectively, once DHL has taken over responsibility for the services from Finnair’s current contractual partner.
40 staff will be transferred from their former employer to DHL Supply Chain once the cooperation starts. Then, the Deutsche Post business unit will assume responsibility for the services from Finnair’s current logistics service provider. The package includes the handling, warehousing, and packaging of spare parts and maintenance materials for Finnair Technical Services. In addition, the agreement includes the management of special waste generated in aircraft maintenance and support operations connected with the service.
Adding value to AY’s business
The planned cooperation with DHL was the right decision for his company, Tony Veevo, Manager for Logistics and Support at Finnair Technical Services, stated. Verbally echoed by his appreciation following the signing of the contract: “Warehouse service performance and spare parts availability are critical in aircraft maintenance. At the same time, continuous development of operations in a changing environment is very important to us. We see DHL Supply Chain as a partner offering added value to us thanks to its strong, global logistics expertise,” the executive said.
How critical and costly it can become in the case of a carrier being forced to ground an aircraft for technical reasons (AOG), is illustrated by this A320 model calculation. Assuming that the monthly leasing rate totals US$200.000, an AOG would cost the operator $6,451 per day. On top come revenue shortfalls caused by cancelled passenger and – eventually – cargo transports, costs for downtimes and repairs, and one-off expenses for refunding travelers, among other expenditures.
For these reasons alone but, above all, in order not to tarnish the reputation of reliability, state-of-the-art management of spare parts and tools is of paramount importance for airlines.
Becoming part of AY’s success story
DHL Supply Chain’s Antti Saarinen, Area Director Finland, fully confirms this assessment: “We are proud to collaborate with a world-class company like Finnair and will provide Finnair Technical Services with the best-in-class practices and approaches of the global contract logistics industry. The focus on safety, people, quality, and sustainability is an integral part of our company culture, and will bring Finnair added value, continuous development, and reliability within our partnership. It is a great pleasure to become part of Finnair’s blue and white success story,” the manager appreciates.
We welcome and publish comments from all authenticated users.