Washington and the unions are scrutinizing the surge in outsourcing of airlines' maintenance to overseas shopsHangar No. 1 at San Salvador's airport is hopping. Technicians employed by jet maintenance contractor Aeroman swarm over Airbus planes belonging to JetBlue Airways (JBLU), US Airways (LCC), and Ukraine's Donbassaero, checking electrical systems, replacing carpets, and examining engines and flaps for signs of corrosion or defects. Just outside, more jets from US Airways and Air Tanzania wait their turn. Why the rush to this tiny Central American country? Starting pay at Aeroman in El Salvador is around $4,500 a year, while veterans take home perhaps $15,000. In the U.S., airplane mechanics earn an average of $52,000 annually.
These days, Aeroman and companies like it have plenty of customers. As airlines scramble to cut costs, outsourced repair shops—both in the U.S. and abroad—now handle two-thirds of all maintenance for American carriers, the U.S. Transportation Dept. says, up from 30% in 1997. Airline maintenance has become a $42 billion-a-year business, with countries such as Dubai, China, Korea, and Singapore making enormous investments to attract such work. While there's some concern about the 4,181 maintenance operations in the U.S., the bigger worry is over the 700-plus foreign shops overseen by the Federal Aviation Administration. Beyond those, there are numerous other shops not certified by the FAA that offer airlines various maintenance services.
Irregular Regulation
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