Aventure Aviation Embarks On Strategy Changes For 737 Material Acquisitions

Aircraft disassembly specialists like Aventure Aviation are finding the availability of quality Boeing 737NG aircraft for teardown even more challenging in the current industry environment. 

Last month, U.S.-based Aventure acquired a former WestJet-operated 737-700, which is currently being dismantled in Marana, Arizona. The harvested parts will be relocated to Aventure's Atlanta headquarters.

The diminished supply of 737NG end-of-life airframes is an ongoing challenge, according to Talha Faruqi, president at Aventure Aviation. He tells Aviation Week that 737NG used serviceable material (USM) demand remains at an all-time high, reflecting the impressive passenger traffic that has occurred over the last few years.

“While the component OEM supply chain is improving, we still see long lead times for key items,” Faruqi notes. Coupled with the supposedly lower supply of retired 737NG airframes, there is not enough USM entering the surplus market to support the ongoing needs of airlines, he says.

Faruqi says narrowbody aircraft, especially on the 737NG side, that were originally slated for retirement in late 2023 and 2024 are getting their leases renewed at an unprecedented rate. “Our lessor partners tell us that these are not six-month or 12-month leases, rather three to five-year commitments as airlines have to wait for new aircraft that Boeing is tardy on," he says. “This was expected to improve later in the year, but with the new 737 MAX issues, it will only give airlines more pause before they return or retire their current aircraft,” he suggests.

According to the Aviation Week Network Fleet Discovery database there are 730 in-service 737-700s, 24 in parked or reserve status, 62 parked and only 34 in storage. In contrast, the more popular 737-800 has 4,258 in service, 330 are parked and 121 in storage.

Meanwhile, Mike Scott, senior director of sales at Ascent Aviation Services in Marina, Arizona, says 737-700 teardowns are still the most common airframe for dismantling and there is still plenty of feedstock in the market. “Several 737-700s are reaching their retirement age in the next couple of years and will be replaced by the 737 MAX or [Airbus] A320neo aircraft, so we will continue to see many of the -700 teardowns for at least the next five years,” he says.

Scott thinks major airlines in the U.S. will continue with their retirement of older 737-700s over the next couple years, so he anticipates that some will end up in teardown at Ascent. “737-700 aircraft are not as desirable for freighter conversion as the 737-800 due to the overall capacity and economics, plus the recent slowdown in the cargo market due to some overcapacity with more freighters coming online in the past few years, contributes to the retirement rate of the -700s,” he adds.

At Aventure Aviation, 737NG support will remain the key focus. “We are now sourcing aircraft at an earlier point of origination and expanding our acquisition to aircraft still on lease, which is a major step for us,” Faruqi continues.

Typically, Aventure has only purchased aircraft that were deemed ready for retirement, so this marks a shift in its acquisition strategy. “Our customers depend on us for our 737NG stock. Additionally, we have also purchased our fourth [Embraer] E190 at the beginning of the year, which will bolster our already strong support for E-jets,” Faruqi states.