If you have excess inventory sitting in your hangar, Turbine Engine Consultants (TECI) of Joplin, Mo., has a solution. The aviation parts supplier has introduced a consignment program called excess inventory management.
Embraer has introduced Tool on Time, a material solutions program that offers an inventory of more than 130 maintenance tools and ground support equipment to customers in Europe, Africa and the Middle East.
In July 1998 there were 750 used jets for sale and today there are more than 2,000. Pessimism swapped places with exuberance in early 2001 and jet values came crumbling down. This year proved to be slightly different in terms of price degeneration, which on many aircraft seemed to occur at a slower rate than last.
Through the end of the month, Raytheon Aircraft Parts Inventory and Distribution Co. (Rapid) is conducting a sale on some 46,000 part and kit numbers for Beechcraft and Hawkers in an effort to reduce $80 million in excess parts inventory, the company said. Customers can use Rapid’s Web site at raytheonaircraftparts.com to conduct a parts search by aircraft type, part number, part description or download the entire parts list.
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.
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.
“Beechcraft and Hawker owners can now find parts for their aircraft anywhere in the world with the click of a mouse,” says Raytheon Aircraft of its expanded worldwide inventory network (WIN). WIN provides access to the entire parts inventory of Raytheon Aircraft and all its distributors and service centers. Previously, only customer-support representatives could view the parts inventory under the WIN program.
Bill Brown, president of global customer support for Hawker Beechcraft, arrived at the NBAA Convention with a renewed sense of enthusiasm following the sale of the company by defense contractor Raytheon to investors Goldman Sachs and Onex Capital Partners. That type of transaction isn’t always a reason for optimism, but in case of the Wichita manufacturer, the future is looking bright.
“Today, 13 percent of all the world’s business jets are based in Europe,” said Larry Flynn, Gulfstream president for product support. “This is our largest market outside the United States. As such, we have ramped up our parts inventory to ensure our European operators as well as transient operators in Europe receive the parts they need, when they need them.”