AvAir Takes On Hefty Lufthansa Technik Spares Overstock
Aftermarket inventory specialist AvAir has acquired the majority of Lufthansa Technik’s (LHT) overstock of rotable spares inventory through new long-term aftermarket sales agreement. The agreement adds 9,000 line items valued at $100 million to AvAir’s inventory, which it says will give it “one of the most desirable inventories in the aviation aftermarket.”
“Over the past months we have been able to increase the efficiency of our supply chain with an improved allocation of our rotable spares inventory,” explains Georg Fanta, vice president aircraft component services, LHT. “This has enabled us to release the material into this sales program with AvAir.”
The agreement has been in the works since Q4 2019, with AvAir’s team in Chandler, Arizona working with LHT’s Component Division in Miami, Florida on planning and development of the relationship. Fanta says the companies are now looking to similar opportunities in the future to “utilize AvAir’s trade expertise and worldwide customer network.”
The line items, which include components such as integrated drive generators, full authority digital engine controls and starters, come from the Lufthansa Airline Group and other LHT customer fleets. The inventory includes material from a wide range of commercial and regional aircraft, including the Airbus A320 and A320neo/A330/A340/A380, Boeing 737 NG and MAX/747/757/767/777/787, Bombardier CRJ, de Havilland DHC 8-400, Embraer ERJ and MD-11.
The companies say all parts are in serviceable or better condition and come with dual or triple release certification from FAA, EASA and/or CAAC, as well as a 12-month warranty from LHT. AvAir will be making the inventory available for exchange and outright sales, and under a profit share agreement LHT will receive a share of proceeds from the resold components.
LHT will deliver the first components immediately from its facilities in Germany to AvAir facilities in Chandler, Arizona and Dublin, Ireland—where it expanded earlier this year with a new 25,000 ft.2 warehouse facility. The complete transfer is expected to be finalized within the next three months.
AvAir changed ownership in February 2019 under a management-led buyout with equity partner Corrum Capital. At the time of the management change, newly appointed CEO Mike Bianco said AvAir intended to work closely with Corrum Capital to fuel growth and expand the company’s global reach.