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Fit for the part | Low Cost & Regional Airline Business

12 Jan 2017

Component support contracts are increasingly sought after by regional and low cost airlines. Keith Mwanalushi takes a closer look at them and the supply and repair of aircraft parts.

The global aircraft component MRO market is expected to grow at a CAGR of around 2.5% during the period 2016 to 2021, according to industry estimates. This growth is driven by the growing need for scheduled and unscheduled maintenance, increasing air traffic, integration of IT for predictive maintenance of aircraft parts, and aviation regulation to maintain safety standards.

 

Accessibility to aircraft parts is vital, especially for the turnaround demands of low cost operators and smaller regional carriers with a limited fleet.

 

The AJW Group is a world leading specialist in the supply, exchange, repair and lease of commercial aircraft spare parts, with a global fleet of over 1,000 aircraft under contract. "Our customer service teams are available 24/7 to support spares requirements for all modern Airbus and Boeing aircraft," Ian Smith, AJW Aviation's recently appointed Vice President, Commercial, tells Low Cost & Regional Airline Business. "Our tailored solutions range from ad-hoc trading in terms of component sales, loans and exchanges through to full power-by-the-hour (PBH) contracts and everything in between."

He stresses that component support contracts suit low cost carriers (LCCs) and regionals particularly well. "If you look at the reasons why airlines contact us for these contracts, PBH contracts allow them, for a fixed price per flying hour, to effectively manage cash flows and risk." He says LCCs in particular are very focused on managing risk and a PBH contract helps them do just that. "LCCs manage their overheads very closely and try to keep headcount as low as possible and this is what these kind of contracts do. You pass that function on to a component support specialist who manages that part of your business for you and it means that the airline doesn't need the asset base or internal resource themselves to manage that element," Smith explains.

 

 

Read the full article here

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