MRO Supply Chain Disruption Drives Shift In Procurement Strategies

AMSTERDAM—Longer repair lead times, supplier instability and persistent disruption are forcing airlines and aftermarket providers to rethink procurement, inventory and logistics strategies.

Aircraft component repair lead times have stretched from 30-40 days to as much as 60-70 days since the COVID-19 crisis, increasing inventory requirements and putting further pressure on airline cash flow, according to industry panelists here at MRO Europe.

Ismail Kiyar, component services and vendor management senior vice president at Turkish Technic, said operators must now hold more stock despite maintaining fleets of the same size, tying up working capital as repair turnaround times lengthen.

“Today, airlines need to know when the component will be available,” Kiyar said, highlighting the need for suppliers to provide more reliable delivery commitments and earlier warnings of potential disruption.

He added that procurement teams must look beyond price and delivery times when agreeing to longer-term contracts, assessing suppliers’ technician numbers, backlogs and access to materials and consumables. Closer communication is also needed before problems escalate, giving airlines time to adjust maintenance plans and operations.

Martin Mayer, CSM aviation and corporate procurement vice president at DHL, said supply chain disruption had become a persistent feature of the market rather than a temporary consequence of the pandemic.

“We have had these problems since COVID, they have never gone away,” he said, pointing to continued volatility, rising costs and uncertainty. Mayer also noted that some original equipment manufacturers (OEMs) had introduced surcharges during the disruption, making it harder for customers to understand the underlying cost of parts.

For Rick Polhamus, aftermarket programs director at BAE Systems, the loss of smaller suppliers during the pandemic has created another challenge. Some had offered more responsive and cost-effective support, but replacing them requires time to qualify new sources, establish relationships and complete testing.

Panelists called for closer cooperation between procurement, engineering, maintenance planning and logistics. Polhamus called for engineering and procurement teams to work together on fleet requirements and maintenance campaigns over a three-to-five-year horizon, helping customers and suppliers develop more economical long-term agreements.

Indy Obhi, industrial vertical global vice president at DP World, said logistics had become more central to procurement decisions as businesses adapted to recurring disruption. Alternative routes and transport modes can help maintain supply but may add time and cost. Critical components may therefore need to be positioned closer to where they are required, while less time-sensitive materials can be sourced through wider global networks.

Binoj Sabastian, commercials and development for technical fleet management senior director at Lufthansa, said airlines also needed better visibility beyond their direct suppliers to identify constraints further down the supply chain.

“We fight for every flight. So, every departure needs to be secured,” he said, describing the operational consequences of missing parts, engines and repair capacity.

For aging fleets, used serviceable material (USM), parts manufacturer approval (PMA) parts and alternative repairs were seen as important ways to relieve supply bottlenecks, particularly when original parts are no longer available. Lufthansa’s Sabastian said operators with older aircraft increasingly depend on these options, adding that sourcing or harvesting parts can also bring sustainability benefits by reducing the need to manufacture replacements.

Meanwhile, Kiyar noted the use of PMA parts depends on customer agreements, but supply constraints have pushed some airlines to accept them to keep operations running.

Polhamus from BAE Systems offered a more cautious OEM perspective, noting that PMAs can help maintain availability of mechanical parts, while certification presents a greater hurdle for electronic components. He argued that airlines considering alternatives should engage OEMs early to assess the options and ensure the resulting solutions remain reliable and commercially viable.

Looking ahead, panelists expected volatility to persist over the next 12 months, reinforcing the need for longer-term supplier relationships, better planning and greater cost visibility. Artificial intelligence tools could also help integrate activities, although implementation and testing remain ahead.