A method of analysis for a two-station closed queueing network model with blocking is described. A practical application of this method is presented for an airfleet operation and maintenance system consisting of a flying base where operationally ready aircraft are stationed for training purposes and a repair depot where the aircraft are overhauled. The blocking occurs at the repair depot due to non-availability of hanger space. It is shown that because of the blocking, the availability of aircraft at the flying base is increased but the productivity remains unchanged. This is due to the fact that blocking changes the arrivals at the repair depot. The two-station closed queueing network with blocking is analysed using an equivalent two-station closed queueing network without blocking. Numerical examples illustrate the utility of this analysis.