After gold hit $1,000 an ounce last month and oil reached $110 a barrel on the same day, financial markets continued to experience the turmoil that started the year. All the doom and gloom causes one to take an introspective look at the health of the aircraft sales market. So far, the biggest angst that might be plaguing industry participants is survivor’s remorse as this sector seems to be navigating the economic malaise with aplomb.
Supply chain management
Supply Chain Asia, a 12,000-member supply chain organization promoting the development of Asia’s supply chain and logistics sector, has awarded HH Sheikh Ahmed bin Saeed Al Maktoum the Supply Chain Visionary of the Year Award.
U.S. Customs and Border Protection has awarded its highest supply chain security rating to Gulfstream Aerospace. The business jet manufacturer’s efforts to ensure its supply chain is safe and secure achieved “Tier Three” status. As a result, Gulfstream is eligible to receive the highest level of benefits available to members of the Customs-Trade Partnership Against Terrorism (C-TPAT).
The U.S. Customs and Border Protection agency has recognized Gulfstream for its efforts in ensuring the safety and security of its supply chain. The airframer was awarded “tier three” status by the agency as part of its voluntary Customs-Trade Partnership Against Terrorism (C-TPAT) initiative launched in 2002, which was designed to strengthen business supply chain and border security while facilitating legitimate trade.
Cessna announced a new satellite-based, centrally managed parts inventory system for its Citation service centers. The system allows each center easy access to inventory availability at any Cessna-owned facility; previously, each center managed its own inventory. Separately, the Wichita-based aircraft OEM conducted a two-year study of repeat orders to establish sufficient inventory requirements for the most sought-after parts.
At nearly the halfway point, this year continues to build on what has been an 18-month-long trend of lower pre-owned inventory and stabilizing prices among most models, especially late-model and current-production aircraft. In late 2002, pre-owned inventory rose above 2,050 units and has since backed off to 1,814, roughly a 12-percent decline.
“As an OEM we look at the product as a whole and not just as a collection of individual parts. We design our engines as an entire system,” Wayne Russell, manager of parts support for Pratt & Whitney Canada, told AIN. Russell said some engine parts have a high enough turnover rate that it becomes economically attractive for some companies to produce them for aftermarket installation.
The Russians are coming, the Russians are coming! The movie title of 41 years ago seems fitting to describe at least the perception of what is contributing to the current uptick in the large-cabin segment of the used aircraft market. Tales of aircraft selling to Russians at extraordinarily high prices have begun to capture the attention of the market.
Brazilian airframer Embraer has selected Menlo’s Singapore Logistics Centre as regional hub for service parts warehousing and fulfillment in Asia. The company will operate a regional logistics hub providing dedicated service parts warehousing and distribution to support the expansion of Embraer’s line of regional and business jets in the Asia-Pacific market.
Since the pre-owned market began to back off from its massive inventory figure nearly a year-and-a-half ago, much focus has been given to the movers, which for the most part have been just about every late-model current-production aircraft. In contrast, several model types have yet to experience much reduction in inventory. In fact, some are bucking the overall trend, highlighting the dichotomy among model types.