Cost And Supply Chain Pressures Dictate Airline MRO Parts Strategies

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Airlines worldwide continue to move toward increasing use of used serviceable material (USM) and parts manufacturer approval (PMA) parts, an alternative to OEM parts to reduce MRO costs.

When sourcing aircraft and engine components, MROs and airlines have evolved their strategies over the past few years in the face of industry-spanning changes. These include the aftermarket supply chain becoming increasingly squeezed as OEMs increase their presence in the segment. Specific types of used serviceable material (USM) are also in high demand, a scenario brought about with the slowing of aircraft teardowns as operators take advantage of lower fuel prices by keeping their assets in service longer.

 Increasingly capturing the attention of airlines like Swiss and Southwest are parts manufacturer approval (PMA) parts, an alternative to OEM parts. The segment has been buoyed by carriers increasingly looking to streamline their costs in areas such as engine components-typically the highest-value parts. Some PMA figures illustrate the cost advantages: Delta Air Lines is reported to save around $20 million annually through PMA use, a figure amounting to nearly 1% of its MRO spending and double that of its MRO material costs.

Collected and summarized from the source below by Ta Ngoc Diep:

https://www.mro-network.com/supply-chain-logistics/cost-and-supply-chain-pressures-dictate-airline-mro-parts-strategies