One of the key MRO trends over the past decade has been the growing importance of Used Serviceable Material (USM) – also known as Surplus Parts. The past decade saw aircraft acquired, retired, parted-out, and their parts and engines sold to operators and MROs.
The majority of USM is sourced from retired aircraft/engines. Thinking about what types of parts are involved in USM, we should consider parts with a high price or parts with high annual spend (so meaningful savings can be made).
Pricing of USM is highly dynamic (based upon supply and demand), priced against OEM new, and the availability of new OEM material.
But why should we care about USM? Well, USM allows airlines and MROs to reduce material expenditure (e.g., 20-40% cheaper than new parts). However, USM may compete with profitable OEM provisioning rotable spare sales and repairs if USM substitutes for the repair.
OEM participation in USM allows them to gain valuable information on part pricing and availability. It also allows them to serve a price-sensitive customer segment that might not be current customers.
Since airlines are laser-focused on cash conservation, many will evaluate ways of saving money on maintenance, and USM provides one option. #NAVEO #Aerospace #aircraft naveo.com
Date: November 24 , 2020
737NG, 737 MAX, A320ceo & A320neo Family Fleet Status
The great news that the 737 MAX, grounded since March 2019, has received FAA authorization to re-enter US airline service (with other regulators to follow in due-course) provides the opportunity to look at the current...
Date: November 16 , 2020
Air Transport Aircraft Fleet Status (Mid-November 2020)
Let's take a look at the air transport fleet's current active and stored/parked status. As we reach mid-November, ~61% of the fleet is in service, and 39% parked. The regional situation continues to diverge. COVID fat...
Date: November 02 , 2020
Aircraft Retirements up to October 2020
As of the end of October 2020, approximately 540 air transport aircraft had been officially retired and withdrawn from use. That’s ~2.6% of the active fleet. These include ~100 A320ceos, 63 747-400s, 54 MD80s, 40 MD90...