Poll: How Are Mergers & Acquisitions Impacting The Aftermarket?

In many ways, MRO mergers and acquisitions constitute their own form of industry-predictive maintenance and how it affects the health of the sector. An intelligent deal involves gathering data and looking at what might happen, not only for MRO providers but for aviation as a whole.

In the words of former Apple CEO John Sculley: “The best way to predict the future is to invent it.”

Read more about why the MRO mergers and acquisitions market is like a game of poker here. 

Boeing will begin phasing out the Aviall name this month in an effort to further unify its broader distribution services. The move should not come as a surprise as Boeing continues to integrate and leverage Aviall and the former KLX Aerospace, which Boeing purchased in October 2018 for $4.25 billion.

That acquisition, its largest since buying McDonnell Douglas in 1997 for $13.3 billion, was complimentary to Aviall—with few overlaps—and Boeing saw it as a way to expand its distribution capabilities and become more nimble.

 

Parts distribution and integrated supply chain solutions comprise a significant portion of Boeing Global Services’ revenues, the total of which was $18.5 billion, an 8% increase over 2018.

“Transitioning to a unified Boeing offering for the wide range of distribution services and retiring the Aviall brand will streamline our presence along with our processes and operations,” says a Boeing representative. “We are confident that this One Boeing approach will prove especially valuable in a highly fragmented, global and competitive marketplace.”

Read more about Boeing’s acquisition here. 

To share your views on other areas of the aftermarket, take a look at the previous weekly MRO polls here.