Transforming Aviation with Power-by-the-Hour as a Service

Описание: Rolls-Royce has redefined the aviation industry by shifting from traditional jet engine sales to a service-based model with Power-by-the-Hour (PBT) and TotalCare®. Through predictive maintenance, real-time data analytics, and Outcome-based contracts, airlines can focus on flying while Rolls-Royce ensures optimal engine performance.

Why Power-by-the-Hour?
Traditional aircraft engine maintenance was expensive and unpredictable, forcing airlines to stock spare parts and manage costly repairs. Rolls-Royce revolutionized this by introducing a fixed cost per engine flight hour, eliminating unexpected expenses and enhancing operational efficiency. Benefits include:

Predictable maintenance costs
Reduced downtime & enhanced engine availability
Data-driven performance optimization
Proactive maintenance & lower operational risk
Improved cash flow management

Overcoming Challenges
Rolls-Royce’s transformation into a service-based provider required technological, financial, and operational changes:

1. Transitioning from Product Sales to Service Contracts
Rolls-Royce shifted from selling engines to providing comprehensive engine management services, including TotalCare®, which ensures ongoing maintenance and repair for the life of the engine.

2. Leveraging Digital Innovation for Predictive Maintenance
Advanced sensor technology and real-time data analytics allow Rolls-Royce to monitor engine performance continuously, enabling proactive repairs and reduced disruptions.

3. Aligning Incentives with Outcome-Based Models
By structuring agreements where Rolls-Royce profits from engine reliability rather than repairs, the company fosters a win-win relationship with airlines, ensuring longer service intervals and improved efficiency.

Impact: A New Industry Standard
With over 50% of Rolls-Royce’s revenue now derived from services, Power-by-the-Hour has reshaped the aviation industry by prioritizing outcomes over transactions. Airlines benefit from cost stability and extended asset life, while Rolls-Royce ensures engine efficiency and performance.

This model exemplifies the Machine Economy, where businesses transition from selling products to delivering integrated, high-value services. By leveraging IoT, AI, and predictive analytics, Rolls-Royce has set a new benchmark for outcome-based contracting in aviation.

Embracing the Future of Machine Economy
Klexu recognizes Rolls-Royce’s pioneering approach in aviation. If you’re exploring Machine-as-a-Service (MaaS) solutions, now is the time to integrate technology-driven, subscription-based services.

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Disclaimer: This case study is compiled from various sources for educational purposes. Readers should conduct further research before making business decisions. To learn more about the results, contact the company directly.