Aviall appears under Boeing banner
Making its first appearance at a global aerospace exhibition since being acquired by Boeing last September, equipment and parts distributor Aviall (Hall 5 Stand A17) is promoting key elements of its range of general aviation, airline and military product lines. Exhibits here include Goodyear aircraft tires, Keddeg and PTI filtration products, Otto Instruments turbine engine wiring harnesses and batteries from Teledyne Battery Products.
Although there has been relatively little change in Aviall’s daily operations, according to Boeing, the two companies have identified “certain synergies that will be explored,” including Aviall’s managing distribution of pilot supplies on behalf of fellow Boeing subsidiary Jeppesen. Given Aviall’s “lean” operations, a Boeing spokesperson told Aviation International News it will be “very careful” to pursue opportunities only that add value to both entities without disrupting the new subsidiary’s activities.
The acquisition is seen as enhancing Boeing’s integrated materials management service, positioning the airframer for faster growth in the $25 billion aircraft parts and aviation services business, while the subsidiary will enjoy access to increased resources. Aviall gives Boeing a prime involvement in the parts supply chain as the trend in new large maintenance contracts is toward multi-year package deals that include spares support and parts management.
Boeing paid some $1.7 billion for the company, equivalent to about $48 per share. Until April 2004, Aviall was 35.3 percent owned by The Carlyle Group, which raised $42.25 million at that time by reducing its holding to 27.5 percent. After a further reduction to 26 percent, Carlyle cut its stake to 14 percent in early 2005 when it sold stock to Credit Suisse First Boston for more than $110 million. In April, Aviall acquired certain assets of U.S. aircraft brake and wheel services, parts and technical information company Sisu Services.
Last October, Spirit AeroSystems (the former Boeing Military Airplanes business in Wichita, Kansas) appointed Aviall to handle its international parts distribution outside the U.S. and Canada. Aviall will be responsible for forecasting, sales, marketing and planning support of Spirit and its customers. Spirit designs and builds assemblies and components for commercial aircraft, as well as thrust reversers and nacelles. In January, it announced its 10-year exclusive agreement to provide global aftermarket support for the Rolls-Royce (formerly Allison) Model 250 turboprop engine had been renewed almost three years earlier than scheduled, until the end of 2009.
Aviall, which operates as a wholly owned subsidiary of Boeing Commercial Aviation Services (a unit of Boeing Commercial Airplanes, part of The Boeing Company group), markets and distributes products for more than 225 manufacturers and offers approximately one million catalog items from 39 service centers in North America, Europe and Asia Pacific. The company provides maintenance for aviation batteries, wheels and brakes, and hose assembly, kitting and paint-mixing services, as well as offering supply chain and logistics services, including order processing, stocking and fulfilment, automated inventory management and reverse logistics to OEMs and customers. It recently expanded its corporate headquarters and central U.S. distribution center in Dallas, Texas.