AAR is acquiring inventory and customer contracts from Sabena Technics Brussels. Responsibilities include power-by-the-hour support for 13 customers, which AAR’s Aviation Supply Chain division will handle from its new facility at Brussels Airport. “The move establishes a rotable pool operation covering the A330, A320 and 737NG for current and future customers,” said John Holmes, group vice president of supply chain for AAR. The 24/7 facility will support AOG and other parts requirements for AAR customers in Europe, the Middle East and Africa.
“Lower inventories and higher utilization suggest a recovery in new jet demand is approaching, though weak used pricing continues to weigh on the market for new jets,” J.P.Morgan North American Equity Research said in its latest business jet monthly report. According to the firm, pre-owned business jet inventory was flat last month on a sequential basis, though inventories are still “down nicely” year-over-year. Pre-owned pricing trends were also little changed.
CHC Helicopters division Heli-One (Booth No. 1804), a global provider of repair and overhaul services for helicopters, now offers overhauled aircraft components and spare parts to other helicopter operators via new customer portals on its website (www.heli-one.com).
Last year “should mark a bottom” for the business jet market, but the path of recovery is “unclear,” according to J.P.Morgan’s latest business jet monthly report. “We estimate that there were about 650 business jet deliveries last year, which would represent a 43-percent decline over five years. Deliveries in 2014 should be up–we estimate by about 10 percent–with help from new and upgraded platforms,” it noted.
Gulfstream Aerospace will break ground on a new product-support distribution center in Savannah, Ga, late this month or early next. It is scheduled to enter service early next year. The new facility, announced yesterday, will house more than 300 employees and approximately $900 million in parts and materials inventory.
Gulfstream Aerospace plans to boost its aircraft service and support organization by building a new worldwide product support distribution center near its Savannah, Ga. headquarters, the company announced today. The new building is expected to be completed early next year and will consolidate the company’s worldwide material distribution departments. When completed, it will house more than $900 million in parts and materials inventory.
Heli-One has enhanced its website so customers can go to its helicopter Exchange Parts Inventory Channel (Epic) pages. The Epic feature enables customers to do more by connecting them to two searchable databases: Heli-One’s exchange component pool database or its surplus parts inventory database of almost 1,900 items.
As the Great Recession moves into its sixth year, the market for used business aircraft remains something of a quagmire, with some models still searching for a price bottom. But there are bright spots where values have stabilized, and inventory overall is headed in the right direction.
For the first time since the used jet market began to unravel, inventory sits below the level of October 2008. Year-over-year for the past four years, more inventory has been departing the market than has been arriving onto the market and this year could prove a continuation of that trend, with inventory already below last year’s 12-month moving average as the market enters what is historically the most active quarter for aircraft sales.
“Caution” is the word when it comes to demand for new business jets, according to JPMorgan North America Equity’s latest business jet monthly report, issued today. Though most business jet manufacturers continue to see weak demand at the lighter end of the market and better prospects at the higher end, JPMorgan is concerned about Embraer’s recent comments about “incremental softness at the high end.”