OEM Strategy Seeks To Minimize PMA Parts

AINmxReports » April 1, 2009
April 1, 2009, 11:14 AM

Operators and maintenance providers have long been concerned about OEMs limiting the ability of non-factory-authorized entities to repair components or mechanics using FAA-approved parts made under Parts Manufacturer Approval (PMA) regulations. This has been a greater issue in the airline segment, where cost management is paramount; however, as financial pressure from the recession endures, business aviation operators are facing cost constraints and seeking ways to manage expenses. PMA parts and non-OEM repairs are one way of minimizing costs and might grow in popularity in the business aviation community. But OEMs do try to preserve their share of the maintenance market, and consulting firm AeroStrategy has noted the success of engine manufacturer GE’s aftermarket strategy. Using the CFM56-5B as an example, AeroStrategy noted that while this engine should be a growth platform for PMA parts, GE retains 77-percent market share for that engine’s parts. Key to GE’s share is its licensed service center aftermarket strategy, according to AeroStrategy. While AeroStrategy sees the PMA market nearly doubling by 2013 to $680 million, “engines will see less growth as a result of strong OEM defensive measures.” Pratt & Whitney recently entered the parts supply market for the CFM engine.

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