Following the AOG Technics scandal, airlines and MRO providers have been more vigilant about the provenance and traceability of used parts.
“Full back-to-birth documentation, supplier audits and proper due diligence on new counterparties are now standard expectations,” APOC Aviation's Vice President of Engines Darren Naughton tells Aviation Week in an interview for Inside MRO.
Naughton adds that this is to the benefit of established parts companies like APOC, which already met those standards prior to the scandal.
Danish parts company Corax notes that traceability concerns had been increasing even before the scandal.
“Airlines and MROs are selecting much more carefully which part providers and suppliers to use, even on a single component basis [and], ultimately, which approved repair shops they accept a component tagged by,” says Corax COO Morten Espenhein.
Last week, parts and teardown provider EirTrade Aviation highlighted a new accreditation from the Aircraft Fleet Recycling Association (AFRA). “At the [AFRA] Diamond standard, data is gathered for each asset, so it doesn't matter if it is one engine or 20 aircraft—the level of detail and monitoring is the same,” said Steven Trowell, senior vice president of maintenance and disassembly at EirTrade, in a statement.
This follows news that the Civil Aviation Administration of China (CAAC) has recognized the AFRA Disassembly Accreditation for overseas part-out companies seeking to supply used serviceable material (USM) for use by the country's airlines.
China represents a huge opportunity for the used parts market as USM acceptance.
“China is opening; however, I would be careful about declaring that the market has fully arrived,” says Abdol Moabery, president of GA Telesis. “Historically, acceptance of USM in China has lagged [behind] North America and Europe. That is changing as operators become increasingly focused on cost, availability and aircraft utilization.”
For a full analysis of the parts trading market, see the next issue of Inside MRO.
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