News

In the June issue of AviTrader MRO360°, Valentina Pilshchikova, Engines & Parts Trading Sales Manager at Vallair, shares with David Dundas the various aspects of end-of-life management for commercial aircraft.

“The choice to part out, store or sell an aircraft as a whole is fundamentally an economic analysis.

Deciding to part out is simple: do it if the value of the parts is higher than the value of the aircraft as a complete asset. It is straightforward when you consider that the market value for an engine, for example, can be twice its base value due to supply chain disruptions and technical issues. For instance, Vallair has observed that GTF engines on A320neo aircraft can command higher lease values than the value of an entire aircraft. We are seeing that relatively young aircraft with strong engines are being down because of this.

“Storage becomes the preferred option when current demand is weak or when the market makes it difficult to sell. Owners may wish to store an aircraft and depreciate the asset slowly, rather than sell it at a low price and realise the loss immediately. Then, when the market improves they can resume operation of the aircraft or sell it a more favourable price.

“Lastly, sale of whole assets may be the best choice for lessors who are faced with costly transitions for mature aircraft, in which case they may prefer to monetise their assets quickly.

“When deciding the fate of an end-of-life aircraft, the main driving factor is which option provides the fastest or best commercial return.”

To read the full article, click here.

Article courtesy of AviTrader.

In the latest issue of InsideMRO, Pascal Parant, Chief Commercial & Marketing Officer at Vallair, shared industry insights on how OEM choices are affecting the aftermarket and inhibiting sustainable practices of repair and refurbishment.

Speaking to Keith Mwanalushi, Parant cites a growing monopoly dynamic and the shrinking number of indepedent sources for subcomponent materials as major obstacles to effective repairs.

“I fully understand that OEMs invest heavily in research and development and certification, and that they have to recover these costs through the aftermarket. But a combination of single-source parts, licensing constraints, royalties and other barriers is reducing the number of capable repair providers, even as customer costs continue to rise.

“The consequence of this environment is that the choice to repair or scrap a component is primarily driven by cost and ends up having little to do with sustainability. Although there is very tangible sustainability benefit in USM, when Jet A-1 prices are high and LLP costs are climbing roughly 10% year over year, prioritising sustainability easily becomes expensive and feels more like a luxury rather than a necessity.”

To read the full article on the InsideMRO website, click here.

In the March issue of Freighter Trends, Pascal Parant, Chief Commercial & Marketing Officer, and Valentina Pilshchikova, Engines and Parts Sales Trading Manager at Vallair, discuss the expanding teardown market amid supply chain constraints.

Ongoing supply chain disruptions and long OEM lead times are driving strong demand for aircraft teardown, making USM a critical source of parts for airlines and MROs, Pascal shares.

“USM is recognised as one of the only viable alternatives to supply chain disruptions, price increases, and value generation through teardown activity. However, the lack of suitable aircraft for disassembly is constraining the market.”

Competition for mid-life aircraft is intensifying, Valentina adds, as companies seek teardown assets, with limited supply boosting prices.

“Competition is increasing for mid-life narrowbody aircraft suitable for teardown. Aircraft such as the Boeing 737-800 and Airbus A320-200 are being operated longer, keeping demand for teardown-derived parts strong.”

To read the full article, click here.

Article courtesy of Freighter Trends

In the March issue of MRO Management, Valentina Pilshchikova, Engines and Parts Sales Trading Manager at Vallair, discusses supply chain and workforce pressures facing the teardown sector.

Pilshchikova shares that workforce shortages remain a major challenge, pushing the industry towards automation, while highlighting the continued importance of human experience and knowledge transfer.

“Workforce shortages push us to transform the way we work, to move away from manual and adopt more automated processes. However, when it comes to spotting tricky issues or making the final decision – human expertise remains pre-eminent.”

“Vallair is investing heavily in internal training initiatives. Our highly skilled senior teams in the aerostructures and engine shops are committed not only to delivering efficient turnaround times, but also sharing their extensive experience with the next generation.”

To read the full article, click here.

Article courtesy of MRO Management.

In the March issue of AviTrader MRO360°, Sergey Starkov, Technical Director at Vallair, offered advice on managing aircraft lease transitions.

The operative word is organisation. “Transitions require significant teamwork between commercial, legal, technical and financial departments. Additionally, in recent years, transition records requirements have increased. Preparation is therefore paramount.

Lessors favour back-to-back leases and will often match redelivery requirements at the end of one lease to the delivery conditions of the next one. So, it is prudent for operators to produce high-quality documentation which has the correct data and is formatted correctly. This increases the chances that the lessor will accept redelivery quickly, which prevents airlines from having to continue to pay for the aircraft in the event of a delay.”

Operators must also factor in the time and work needed should there be any planned or unforeseen MRO requirements.

Whether operators manage transitions themselves or subcontract to experienced third-parties, Starkov’s instructions are clear: “Start everything as soon as possible.”

To read the full article, click here.

Article courtesy of AviTrader.

In the February edition of AviTrader MRO360°, Chief Commercial & Marketing Officer at Vallair, Pascal Parant, speaks to David Dundas about recent structural changes in global air cargo demand that have made passenger-to-freighter conversions more attractive.

Parant shares that while demand driven by e-commerce and long-haul international cargo remains solid, wide body freighters are not readily available on the market and prices are high.

“There are simply not enough new-build freighters being produced to meet demand, and lease rates are extremely high. So converted freighters will continue to play a major role for many years. Conversion allows full utilisation of an aircraft’s economic life.”

To read the full article, click here.

Article courtesy of AviTrader.