Airports worldwide spend millions annually on fixed-term maintenance contracts for their baggage handling systems (BHS), regardless of actual maintenance needs or parts consumption.
This traditional model creates misaligned incentives, where service providers have little motivation to optimise interventions or reduce parts usage. Predictive maintenance at airports, particularly through Remaining Useful Life (RUL) predictions, offers a pathway to transform these agreements into performance-based contracts that deliver value for both airports and service providers.
The Multi-Million Pound Status Quo
Most airports operate under long-term service agreements that require fixed annual payments, whether the BHS requires 50 component replacements or 500. These contracts typically include:
- Limited transparency into actual asset health or the necessity of interventions
- Parts replacement at predetermined intervals
- Maintenance based on OEM recommendations (which charge for time and materials).
This model emerged in an era before predictive maintenance technologies were widely available to accurately assess component health. Airports accepted these arrangements as necessary insurance against operational disruptions.
However, with modern predictive maintenance and RUL prediction capabilities, continuing this approach means airports are likely overpaying for maintenance while potentially over-maintaining their assets.
How Predictive Maintenance at Airports Could Enable Performance-Based Contracting
Predictive maintenance for airports powered by RUL predictions fundamentally changes the maintenance equation by providing data-driven visibility into actual component degradation. Unlike traditional time-based maintenance, this approach offers:
- Quantifiable Component Health: Instead of replacing parts on schedule, RUL models predict when components are actually likely to fail, often revealing substantial remaining life in parts that would otherwise be replaced prematurely.
- Outcome-Focused Metrics: With accurate predictive data, contracts can shift focus from activities performed to outcomes achieved – system availability, mean time between failures, and parts consumption rates.
- Shared Risk and Reward: When both parties have visibility into true asset health, contracts can include incentives for extending component life while maintaining system reliability.
Parts Consumption: The Hidden Optimisation Opportunity
One of the most significant advantages of predictive maintenance at airports with RUL predictions is the reduction in unnecessary parts replacement. Traditional maintenance schedules often prompt early replacement of components to minimise the risk of failures. However, RUL predictions reveal that many components have a substantial remaining lifespan, even at their scheduled replacement interval.
By adopting predictive maintenance with RUL capabilities, airports can:
- Reduce parts consumption by 20-30% while maintaining or improving system reliability
- Minimise waste and support environmental and sustainability initiatives
- Lower inventory carrying costs and reduce the environmental impact of manufacturing and disposing of unused or prematurely replaced parts
A New Approach for Airports to Contracting with OEMs or Maintenance Service Providers
Transitioning to performance-based contracts requires a collaborative mindset between airports and their service providers. Instead of focusing on the number of maintenance visits or parts replaced, agreements can be structured around system uptime, failure rates, and actual component health. This approach incentivises proactive maintenance planning and smarter resource allocation.
Key elements of a performance-based contract leveraging predictive maintenance could include:
- Outcome-Focused SLAs: Service Level Agreements linked to measurable system performance indicators such as availability, throughput, and mean time between failures (MTBF)
- Dynamic Maintenance Schedules: Shifting from rigid schedules to flexible, condition-based plans that respond to real-time component health insights
- Incentivised Longevity: Offering bonuses or reduced fees for exceeding performance targets or extending the useful life of components
- Collaborative Data Sharing: Establishing transparent data-sharing agreements that enable both airports and providers to access predictive insights and jointly plan interventions
Building Trust Through Transparency
A key barrier to adopting predictive maintenance and performance-based contracts is trust. Service providers may fear revenue loss if parts consumption decreases, while airports may worry about reduced oversight. However, with the transparency provided by predictive data, both sides can work from a shared understanding of asset health. By moving from assumptions to evidence, airports and their partners can align incentives and create contracts that reward true performance—not just activity.
The Future of Airport Maintenance
Embracing predictive maintenance, supported by RUL predictions, represents a significant evolution in airport asset management. For airports, it means lower costs, enhanced system reliability, and alignment with sustainability goals. For service providers, it offers an opportunity to establish long-term, trust-based partnerships focused on delivering measurable value.
AI for Airports: Intelligent Agents Monitoring Reliability of Baggage Handling Systems
The era of fixed, activity-based maintenance contracts is giving way to a smarter, more sustainable approach. Airports that adopt predictive maintenance with RUL-based insights will be better positioned to meet the challenges of today’s operational demands – and those of the future.
Ready to Embrace the Future of Predictive Maintenance at Airports?
At Amygda, we specialise in delivering an advanced platform for predictive maintenance at airports that harnesses the power of Remaining Useful Life (RUL) predictions to reduce parts consumption and cut maintenance costs. If you’re thinking of moving beyond traditional contracts and adopting a performance-based approach that maximises reliability and sustainability, we’re here to help.
If you are an OEM trying to meet an RFP requirement for predictive maintenance at airports or predictive maintenance for baggage handling systems, let’s talk!
Get in touch today (email me at [email protected]) to discover how we help with predictive maintenance at airports.
