Airlines, repair shops in N. America eye used, generic parts to keep aircraft flying

 Airlines and aircraft repair shops in North America are increasingly relying on used and generic parts to keep jets flying, a symptom of the rising costs and supply-chain shortages plaguing the aerospace industry.

These alternatives to new parts made by the original manufacturer must be certified and deemed safe. While they account for a fraction of the estimated $35 billion spent annually on components for repairs, sales are growing, analysts and executives say.

Driving demand is the struggle aerospace suppliers face to fill new orders as air traffic soars and the supply chain for aircraft parts recovers from the COVID-19 pandemic, when labor shortages and lockdowns slowed production.

Higher costs and a shortage of available new parts are also delaying aircraft repairs, which risk pushing up air fares.

That has spurred demand from airlines and repair shops for alternatives that cost roughly 20% to 40% less than new parts, analysts and executives said. Some makers of brand-name parts like General Electric Co stand to benefit because they also sell used parts, known as used serviceable material.

Some planemakers are also benefitting. Business jet maker Bombardier Inc uses a teardown venture to gain parts for its growing "aftermarket" business that provides maintenance and repairs for planes.

The venture has helped the company source parts for older aircraft models that are harder to find in the current market, or are no longer being produced, a spokesman said.

American Airlines, meanwhile, says it has helped develop certified parts that were not made by the original manufacturer to mitigate "increased costs and other supply chain constraints."

Companies spent $35 billion in 2019 on materials for aviation repairs and overhauls, including $5 billion on used parts and $725 million on generic components, aerospace specialist Naveo Consultancy estimates.

It declined to disclose figures for the following years, but analysts at Naveo and others say demand for alternatives to new parts is rising.

https://finance.yahoo.com/news/airlines-repair-shops-n-america-100854899.html