Bii Acquires German Lessor’s Boeing Spares Inventory
A large inventory of aircraft surplus spares is changing hands yet again as the aftermarket continues to seek streamlined supply chains. Aircraft parts and services provider Bii.aero has acquired what it says is a significant inventory of Boeing spare parts from lessor Aircraft Finance Germany (AFG).
According to Bii, the material includes high ticket rotable components, and many of the spares are interchangeable between 747-8, 767 and 777 aircraft types.
Bii CEO Francis Cradock says the company is constantly looking to add Airbus and Boeing parts to its stock, so the inventory from AFG “fits our purchasing criteria perfectly.”
“Many airlines are re-evaluating how best to manage their MRO requirements so we’ve been working with a number of partners to strategically locate consignment stock and supplement that with repair management expertise,” says Cradock. “Airlines can then concentrate on rebuilding their route networks and outsource the ongoing maintenance and repair of all spares to us.”
Prior to this deal, Bii already provided AFG with support programs for rotable and consumable materials, as well as aircraft repair management services.
The aftermarket has seen a growing number of surplus spares inventory agreements over the last two years as companies seek to streamline their operations. AvAir recently acquired 9,000 surplus components from Lufthansa Technik, doubling the 9,000 line items it acquired from the MRO in 2020. AvAir also acquired more than 20,000 surplus line items from IAI Aviation Group in summer 2021. Meanwhile, in January Embraer gave AVIAN Inventory Management exclusive purchasing, marketing and distribution rights to its surplus commercial and business jet aircraft parts in a move aimed at creating a leaner parts strategy.
Several factors are driving these deals. Among them: many aftermarket stakeholders have reported significant supply chain issues with material lead time and parts availability—much of which is being exacerbated by labor shortages. Changing fleet plans are rendering some spares pools—particularly for widebodies—more valuable in some regions than others.
Airlines are looking to improve their balance sheets and generate cash. Turning spare inventories into cash is one way to get this done.