AvAir Snaps Up Aerolíneas Argentinas' Surplus Inventory
U.S.-based aftermarket inventory specialist AvAir has acquired surplus Airbus and Boeing parts stock emanating from Argentinian flag carrier Aerolíneas Argentinas’ retired fleet.
The transaction will see Chandler, Arizona-headquartered AvAir take on 45,000 line items of rotable and consumable material from the airline that has retired its Airbus A340 aircraft fleet.
Mike Bianco, CEO of AvAir, says this type of transaction helps companies looking to sell assets due to the negative effects of COVID-19. “The coronavirus pandemic disrupted the airline industry and has given us an opportunity to provide companies liquidity when they need it most,” he said.
Like most airlines operating worldwide, Aerolíneas Argentinas has felt the impact of the novel coronavirus and has explored ways to improve its balance sheet.
In the wake of COVID-19, the airline saw a 97% decrease in income, and throughout the summer, has been linked with a multi-million-dollar cash injection from Argentina’s government, which already holds a majority stake in the carrier.
Pablo Cichinelli, supply chain manager at the carrier, said the offloading of surplus stock to AvAir will allow it to monetize unused assets while providing additional liquidity for its operation.
AvAir’s latest acquisition of surplus assets follows the addition of around 9,000 line items from Lufthansa Technik earlier this year. The agreement was comprised of overstock from the German MRO’s rotable spares inventory. In total, the items were valued at around $100 million.
As of September 2020, AvAir estimates it has an inventory of around 26 million rotable and consumable components available to buy, sell, exchange, loan, lease and consign. Pre-COVID-19, the company expanded its operations by opening a new 25,000 ft.2 warehouse at Dublin Airport in Ireland.