5 Apr 2019
From competition to collaboration: Forging partnerships with OEMs.
Today’s airlines operate more flights and carry more passengers than at any time in history. With the growing demand for air travel, airlines have come to expect the highest standard of repairs and the need for reliable and trustworthy component MRO solutions.
To achieve this, an airline can opt to work directly with the wide range of component OEMs needed to support any given aircraft fleet, often as part of provisioning packages agreed at the time of aircraft acquisition, or they can simplify their approach by dealing with a single, independent aftermarket provider or integrator. However, the relationship between component OEMs and aftermarket specialists needs not automatically to be a competitive one.
For the vast majority of commercial platforms, the traditional aftermarket sales environment of component OEMs selling large initial provisioning packages is dwindling due to the wider availability of used serviceable material and the tendency for airlines to outsource their aircraft parts requirements.
Traditionally, component OEM relationships lie predominately with aircraft manufacturers and, to some degree, airlines with larger fleets. If an OEM is looking to grow its share of the aftermarket, they would need to form new relationships with a diverse customer base, including airlines with smaller fleets, MROs, leasing companies and thousands of brokers worldwide.
The larger OEMs tend to be structured to cater for the needs of high
volume users of their components rather than ad hoc requests for a single part or repair. Additionally, any new airline customer is likely to require an outsourced nose-to-tail solution and be unwilling or unable to manage relationships with multiple component OEMs.
Forward-thinking component OEMs, who don’t necessarily have the right aftermarket support services to compete with aggregators or nimble trading organisations, are starting to overcome those challenges by viewing established aftermarket providers as companies to collaborate with, rather than compete against.
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