Why go through a third party rather than simply order a new part from the OEM? Certainly many operators do just that but as Sisson noted, the OEM will sell the new part at a high price and there is some lead time required, sometimes a lot of lead time. Distributors such as AirLiance not only beat the OEM's price but they can invariably deliver faster. To be fair, many OEMs are taking a harder look at this industry and making themselves somewhat more competitive.

Another service offered is distribution services. Take the client that is performing C-checks on a fleet of Boeing 737s, for example. The C check requires a number of consumable parts and rotables that will have to be either repaired or replaced. AirLiance, dealing with this on a daily basis, has the ability to look at the airline's methods and requirements then put together a kit of all the necessary materials the airline will need to complete the C-check. The customer ends up with prepackaged kits and no large inventory of consumables. "What we're doing," Sisson said "is redistributing new materials in kit form to save them stocking, inventory, assembly, and obsolescence costs."

Outsourced repairs

AirLiance, similar to most distributors, doesn't do its own repair work. Instead, AirLiance maintains a network of high quality overhaul and repair sources it knows to be dependable and then routinely audits them for quality control. Finally, AirLiance's customers also have access to the company's engineering support data library of configuration management, service bulletins, airworthiness directives, etc.

Another large distributor is Wood Dale, Illinois-based AAR Aircraft Component Services. With facilities in Amsterdam, London, Singapore, France, and New York, the company has a strong international presence in the overhaul and maintenance of components such as avionics, instruments, pneumatics, hydraulics, electronics, fuel controls, and electrical accessories. For local operators AAR can provide one-hour service; for those further away AAR guarantees next-flight-out or next-day delivery.

Lee Hall, AAR vice president of business development and strategic planning, further underscores the diverse offerings of most major distributors. "Our support packages for component maintenance include such options as traditional time and material repairs and overhauls; flight-hour agreements on components such as power-by-the-hour; rotable pooling where we maintain the necessary inventory for your aircraft; leasing; and straight-out exchange." As with most of the major distributors, AAR's clients are a list of the world's major air carriers.

"We emphasize not just our rotable repair business," Hall said, "but a complete inventory asset management program. We will manage your entire pool of engine and airframe parts." Under such a program, clients don't carry an inventory of parts at all. AAR does everything and ships "just in time," which is the industry catch phrase for "when needed." Another way of handling the situation is for the client to maintain a limited supply of critical components from which they can swap out for a bad one then swap that for a new one from AAR. For those operators that prefer to keep an inventory on location, AAR will supply personnel and procedures at the airline's location to run the parts facility. "The emphasis," Hall said "is to let the airline concentrate on doing what it does best-flying people and cargo-leaving us to do what we do best, handling parts."

Well-Established East Air

One of the grandfathers of the industry is East Air Corporation. The Hackensack, New Jersey company was first established in 1950. Currently East Air operates companies in Europe, Africa, Asia, and South America. According to Joe Cosma, vice president of quality assurance and operations, the company specializes in aircraft engine sales, lease/leaseback, management, and creative financing for outright purchase. As the supply and demand for aircraft engines constantly changes on a global basis, the company searches for opportunities where inefficiencies occur in the engine aftermarket and buys excess inventory at the lowest possible price.

In addition to engines, East Air's spare parts inventory consists of more than 65,000 line items for commercial aircraft. The company will custom-tailor contracts for spares purchasing and provisioning in whatever manner best fits the client. Cosma said that the company is extremely sensitive about AOG situations and if necessary will charter an aircraft at a customer's request to deliver to destinations not served by the airlines.

Avatar's alliance

Fairburn, Georgia-based Avatar Alliance is a joint venture of six technical, financial, and asset-management firms founded with the aim of building an aircraft parts redistribution organization around the acquisition of Delta Air Lines's surplus inventory. More than 100,000 line items and more than 17 million individual parts for 13 different aircraft models are available. Shortly after its inception, according to Ed Randall, COO, the company undertook a systematic acquisition of additional bulk inventories, the control of consigned inventories, and the acquisition of aircraft and engines for resale, lease, or teardown and conversion to spare parts. Avatar also offers a wide range of services from initial provisioning for startup airlines to assuming total responsibility for the management of an air carrier's entire inventory. Avatar also offers net access to its customers through its electronic data interchange program.

"Avatar Alliance is a business partner with most of our customers," said Randall. "They come to us for a solution. We're not in this for one-time sales; we're in it for a partner relationship, with the emphasis being on the relationship. We definitely take a long term approach."

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