When Paul Fulchino became Aviall’s chairman, president and CEO in December 1999, annual sales for the 70-year-old Dallas parts distributor were growing at a predictable and respectable rate. Back then, end-of-year sales totaled $371.9 million, with net earnings of $9.7 million.
Supply chain management
Resembling a turbine engine, the pre-owned market in the first quarter of last year sucked wind. What a difference a year makes. All of a sudden everyone needs a corporate jet, demand that is pushing inventory levels of pre-owned stock lower and delivery dates of many new aircraft out farther. There are about 50 fewer aircraft available today than there were this time last year.
Buyers continued to roll up their sleeves and involve themselves with the used aircraft market, driving down further what has been for the last few years a vast supply inventory. The 10-percent depletion in used aircraft inventory over the last 13 months has taken a step toward assuaging the doubts of many left shell-shocked by nearly three years of market malaise.
Aviall Services (Booth No. 1437), a provider of aftermarket parts and services, reports that its Logistics and Inventory Flight Team (LIFT) program launched last fall is proving popular with customers. The goal of the LIFT program, which provides custom inventory and logistics solutions to individual helicopter operators, is to help those operators lower direct operating costs based on their individual needs.
Since diversifying into a sales dealership last year, HelicopterBuyer (Booth No. 2056) has found a new customer base that prefers to deal with a rotorcraft’s owner rather than a succession of sales brokers. President Mark Clancy said that buying aircraft into inventory pays off for both parties.
The momentum that began to build in the used jet market late last summer is rolling into this year. Overall inventory is about where it was a year ago, but after a significant month-over-month build-up through July, sales activity heightened and just as quickly reversed direction. Between August and the middle of last month, roughly 100 more aircraft departed the market than arrived.
Charles Vehlow, newly appointed president of MD Helicopters, hopes to become the strong link in a broken supply chain that has plagued the Mesa, Ariz.-based manufacturer.
IBM predicts a sea change in the aerospace industry over the next five to 10 years, one that will transform the prevailing business model from one dominated by what IBM aerospace and defense industry sector partner Michael Hackerson called vertical silos to a more egalitarian and cooperative approach.
As airlines seek to shed costs associated with expensive component repair and overhaul (R&O) activity, lucrative opportunities are emerging for companies with the wherewithal to provide such capability. U.S. engines and avionics giant Honeywell considers itself one such entity.
Dallas, Texas-based aftermarket parts and services supplier Aviall (Stand A911) has launched Operation Global Reach, a program designed to showcase the company’s best commercial practices on material and supply chain management to the world’s military market. Services include forecasting, export licensing, reverse logistics, customer kitting and other supply chain management solutions such as certification document accessibility.