VSE Aviation has announced six new aftermarket distributions agreements and plans to open a facility in Hamburg, Germany during the first quarter of next year. The agreements involve several manufacturers with contract terms ranging from 1-15 years. The deals are worth around $750 million in value.
The most notable agreement is with Pratt & Whitney Canada to support the European, Middle East, and Africa (EMEA) markets. VSE Aviation plans to provide engine line maintenance, spare parts and engine accessory exchange support to engine operators, customers and maintenance providers. This now boosts VSE’s geographical expansion following previously awarded distribution agreements covering North America and Asia in 2021 and 2022, respectively.
VSE Aviation will also expand a current sole distributor agreement for Honeywell’s JetWave tail-mounted antenna systems in the EMEA and India. The agreement represents an expansion of the previously awarded distribution agreement from October 2022 covering fuselage-mounted antenna systems.
Under another agreement with an unspecified tire supplier, VSE will distribute re-treaded tires for the regional airline sector. This partnership leverages VSE’s recent acquisition of Desser Aerospace and broadens the solutions that VSE Aviation provides. The acquisition will also support VSE’s distribution of lead-acid batteries to the business and general aviation sectors under an expended agreement with a manufacturer of ground power batteries.
The tip-to tail strategy will get a further boost to cover distribution of airframe interior plastic components including tray tables, seat shrouds, plastic wall and ceiling panels, flooring and lavatory shrouds, according to VSE.
The agreements are expected to begin in the first quarter of 2024.
The new 45,000 ft.2 distribution facility in Hamburg will also support operators in the EMEA region and VSE believes the investment will position it to expand global coverage and support for its commercial and business and general aviation distribution aftermarket product lines, including the tire, tube and battery product lines associated with the Desser Aerospace acquisition.
VSE expects the new agreements to generate $25-30 million in new revenue in 2024, rising to $50 million in 2025.
