Summary
The case presents a new business model in the jet engine industry - performance based contracting for jet engine maintenance. It explains the trade-offs, challenges and guidelines for successful implementation of these contracts, including direct and supply chain effects.
Teaching objectives
To illustrate a new business model, and highlight different contracting schemes.
Keywords
- New business models
- Performance-based contracting
- Risk-driven business model
- Contracting
- Supply Chain Management
- Aviation
- Rolls-Royce
- Maintenance
- Incentives
- Q41617
