Post-Merger Asset and Policy Integration

The Challenge

A major US based commercial airlines acquired another airline then, post merger, realized there was a significant disconnect between the operational styles, disciplines and controls of all non-aircraft related assets. Further, the project shed light on the fact that both organizations did not manage their assets properly and soon realized the valuation due diligence was not properly performed prior to the acquisition.

Project Solutions

Project Solution 1

Determined actual need versus current allocation of assets
Project Solution 2

Performed sampling inspections of assets and reviewed maintenance and data records. Determined 22% of the assets were redundant
Project Solution 3

The due diligence of one specific asset class was 43% overstated. 18% of the assets were inoperable. After disposition the asset listing was adjusted resulting in a significant property tax and airport fee reduction
Project Solution 4

A framework for a new systemwide asset management procedure was put in place to to guide all stakeholders, from both companies, towards a common goal

Project Completion 96%

Customer Satisfaction 100%

* Reduced OPEX 22%

Asset Utilization Improvement 39%

Asset Uptime Improvement 50%

Asset ROI Improvement 31%

* OPEX, as used in this graph, is limited to the assets defined within the project.