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Selected Case

published: 26 Jun 2017

  • Topic: Operations
  • Industry: Aviation
  • Region: Global

Abstract:
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.

Pedagogical 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


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