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Long term service agreements (LTSAs) between gas turbine manufacturers and customers aim to maximize profitability through a partnership approach. LTSAs transfer maintenance responsibilities to manufacturers in exchange for performance guarantees. While LTSAs provide fixed maintenance costs and incentives to maximize efficiency, they also carry risks like requiring OEM parts and services. A thorough cost-benefit analysis is needed due to complex contract terms and high replacement part prices. Recent customer acceptance of LTSAs varies depending on turbine age and operational role.
Long term service agreements (LTSAs) between gas turbine manufacturers and customers aim to maximize profitability through a partnership approach. LTSAs transfer maintenance responsibilities…