Securing A Parts Pipeline

Aviation Week interviewed Tommy Hughes, CEO Of VAS Aero Services to discuss why airlines and MROs need to move beyond opportunistic purchases to guarantee availability of crucial parts when they need them.

What impact have new aircraft delivery delays and engine-related aircraft groundings had on demand for used serviceable material (USM)?

For maintenance operations, the ability to source high-quality USM quickly has become a strategic advantage amid persistent supply chain disruptions. This increased  competition for USM inventory is impacting pricing  towards premium rates. Given these challenges, it’s essential for USM suppliers to identify and evaluate airline surplus, have a consignment infrastructure in place, and  have the program management skills to mesh the two.

As a result, VAS is being approached more often by MROs looking to collaborate with organizations that possess strong teardown and parts harvesting capabilities. We also are having more frequent discussions with airlines seeking longer-term, more robust USM supply chain partnerships.

And what about the impact of new parts price inflation on USM demand?

Escalating new parts price inflation is directly driving the accelerated increase in USM demand across the aviation maintenance landscape, as airlines and MROs seek to preserve margins and control maintenance expenses. This is particularly evident in high-cost components such as engine, avionics, and structural equipment, where price-sensitive operators are prioritizing USM to reduce total cost of ownership without compromising reliability.

The financial pressure has also prompted a shift in sourcing strategies, with greater emphasis on teardowns, parts reclamation, and long-term USM supply agreements. In addition, proactive purchasing and exchange pool programs provide a creative means for operators to lock in both prices and availability.

How challenging is it to source USM given recent aircraft retirement trends?

The expected return of retirement volumes has not materialized in the last few years, as many operators opted to extend aircraft service lives to maintain capacity amid new aircraft delivery delays. Recognizing where the market was headed, VAS invested heavily in aircraft assets over the past two years.  We acquired 26 Airbus A320 aircraft, 7 A330s and 8 A380s. So, for some years to come, VAS will have access to a greater supply of quality, certified used parts for distribution across our global aftermarket customer base.

Ultimately, securing USM in today’s environment requires moving from opportunistic buying to a more integrated supply chain strategy that involves close cooperation with parts suppliers and service vendors. This approach should include mutual data sharing, proactive parts prioritizing, and balancing availability, cost, and aircraft maintenance schedules to ensure fleet readiness.

How important is it to have a materials management program and how does it integrate with fleet planning?

A materials management program is essential for ensuring operational efficiency and controlling costs. A structured approach to tracking inventory and forecasting parts demand will reduce downtime caused by unavailability of critical components. Ideally, the MRO or operator will have a direct interface with the supplier’s inventory systems, offering a daily overview of component capabilities, pricing and availability. Also, integration with fleet planning is vital, as it ensures that materials procurement, maintenance scheduling, and part replacement timelines align with fleet utilization and renewal strategies.

What’s the best way to source out-of-production and other scarce parts?

Hard-to-find, non-repairable, or out-of-production parts represent a significant challenge for fleet and maintenance managers, especially in aging fleets. The best way to source them is through a multi-pronged approach, establishing relationships with USM suppliers, teardown facilities, and OEM-authorized distributors who specialize in legacy inventory. Online marketplaces, such as our eVAS online parts outlet, and the Satair Marketplace can also be valuable for locating unique components. Additionally, investing in parts interchangeability knowledge can help identify compatible alternatives.

Given the realities of today’s aviation supply chain, how should airlines plan aircraft phase-outs and retirements to ensure optimal lifecycle and capacity management?

To effectively navigate fleet retirements as new aircraft are delivered, operators must have a strategy that accounts for both end-of-life aircraft removals and support for the remaining fleet during the long transition period. Extending the service life of select aircraft – supported by USM and maintenance schedules – can help bridge gaps without compromising reliability. Planning should also consider the residual value of components, enabling parts harvesting to support active fleet operations on a priority basis for the aircraft owner, while also generating surplus parts revenue downstream. Ultimately, successful lifecycle management in today’s environment requires an aftermarket partner such as VAS, who is well-versed in aircraft transition management and USM parts inventory control.