maintenance

Moves by a number of leading airlines to permanently retire significant parts of their fleet as a result of COVID 19 are a mixed blessing for spare parts sector with future demand likely to be non-existent for certain types of aircraft, according to Mike Bianco, chief executive of US firm, AvAir.

Last week American Airlines announced the permeant retirement of 100 aircraft from its fleet, including A330-300a, B757-200s and B767-300s, as well as Embraer and Bombardier jets. Likewise, Air Canada announced its was ending the working life of 79 of its aircraft as part of a trend for carriers either to bring forward planned retirements, or simply axing part of their fleets in response to lower passenger demand due to COVID 19.

In theory this should be a boon for a spare parts provider like AvAir in terms of feedstock availability, but Bianco says that not all planes that are being retired will have a value, even as low oil prices change the economics of using older aircraft .

“It’s a mixed bag with decisions like American’s to retire its 757s. That’s been a dead bird for a while in my opinion, we don’t even trade in that aircraft. Conversely, there’s a lot of 767 retirements at the moment and there is still a strong demand for material and engines for that aircraft. Obviously, this demand will change as the market becomes saturated, but it’s a good sign that you’ve got firms such as Amazon Prime Air flying 767s.”

AvAir has traditionally focussed on the narrowbody part of the market with Bianco estimating widebody activity accounts for around 25% of the firm’s business. Despite this, and the current bearish sentiment on widebody aircraft in general, the chief executive says the future market for larger planes could hold up.

“It’s probably too early to call the outlook on the widebody plane. International travel has just got clobbered but it could be a lot better for the widebodies than people are saying. It depends on how quickly the market responds to making people feel safe flying long haul, with a bunch of people crowded around them.”

AvAir recently signed a deal to purchase the majority of Lufthansa Technik’s overstock of rotable spares inventory, which saw the Arizona-based company acquire 9,000 line items, including IDGs, FADECs, and starters. Bianco says the firm is looking to making further acquisitions either inventory deals like the one with Lufthansa Technik, buying into contracts, or purchasing companies outright.

Last year Bianco became chief executive of AvAir in a management buyout, backed by Corrum Capital Partners, when founder Robert Ellis sold his business. In 2018 Corrum closed a $250 million aviation fund at the time Jason Cipriani, co-managing partner at the private debt fund, said it would enable the firm to “significantly” expand its aircraft holdings and part of these funds are available to back deals by AvAir.

Bianco declines to give exact details of the cash at his disposal but says that access to a portion of the fund manager’s aviation dry powder means AvAir is looking to make acquisitions that fit within the firm’s main business of aircraft inventory supplies.

“All the experts are saying that the after-market is going to be different, but we are still talking about a multi-billion dollar space, there is just going to be fewer players in it. Our partnership with Corrum Capital Partners means AvAir is well capitalised and is looking to buy businesses that fit our core competencies.”

AvAir was in advanced discussions with one party which were broken off in March as the impact of COVID 19 made deal-making impossible, but Bianco says that once the market starts to rebound the firm is going on the acquisition trail.

“There’s two acquisitions that we are pretty serious on, and our talks on these are now probably going to resume in late summer.”

crew

CHANDLER, Ariz. — AvAir, an industry leading inventory solutions provider for the aviation aftermarket, and Lufthansa Technik Component Solutions (LTCS) have signed a long-term aftermarket sales agreement. The Arizona-based company acquired the complete rotable spares pool inventory that includes 9,000 line items valued at $100 million. The first components will be delivered immediately from Lufthansa Technik facilities in Germany to AvAir facilities in Ireland and the United States. The complete transfer will be finalized within the next three months.

All parts are serviceable and come from the Lufthansa Airline Group and other Lufthansa Technik customer fleets. The majority of the parts was maintained by Lufthansa Technik’s component MRO (maintenance, repair and overhaul) organization.

“We are extremely excited for this agreement, which not only solidifies the relationship built between AvAir and Lufthansa Technik over the past 20 years, but also allows us to greatly address the inventory needs of our customers worldwide,” said Mike Bianco, CEO of AvAir.

With this transaction, AvAir has added a wide range of commercial and regional aircraft material to its inventory. Commercial assets include A320, A320-NE0, A330, A340, A350, A380, MD-11, B737-NG, B737-MAX, B747, B757, B767, B777, and B787. Regional assets include CRJ, ERJ and Q400. All material will come with fresh dual release certification (FAA/EASA) from Lufthansa Technik and come with a 12-month warranty.

“Over the past few months, we have been able to increase the efficiency of our supply chain with an improved allocation of our rotable spare parts inventory,” said Georg Fanta, vice president of Lufthansa Technik. “This has enabled us to release the material into this sales program with AvAir. The teams of AvAir in Chandler and Lufthansa Technik’s Component Division in Miami started working on this initiative at the end of 2019 and are now moving forward to utilize AvAir’s trade expertise and worldwide customer network for similar opportunities in the future.”

AvAir, now in its 20th year in business, offers customized solutions for customers and suppliers to buy, sell, exchange, loan, lease, or consign more than 26 million in-stock aircraft parts. AvAir will make the acquired inventory available for both exchanges and outright sales from AvAir’s facilities in Chandler, Arizona and Dublin, Ireland, where the company expanded earlier this year.

About AvAir

Founded in 2000, Arizona-based AvAir is a global leader in the aviation aftermarket, providing customized inventory solutions for airlines, OEMs, and MROs. AvAir, offers customized solutions for customers and suppliers to buy, sell, exchange, loan, lease, or consign more than 26 million in-stock aircraft parts.For more about AvAir, visit AvAir.aero.

About Lufthansa Technik

With some 35 subsidiaries and affiliates, the Lufthansa Technik Group is one of the leading providers of technical aircraft services in the world. Certified internationally as maintenance, production and design organization, the company has a workforce of more than 25,000 employees. Lufthansa Technik’s portfolio covers the entire range of services for commercial and VIP/special mission aircraft, engines, components and landing gear in the areas of digital fleet support, maintenance, repair, overhaul, modification, completion and conversion as well as the manufacture of innovative cabin products.

hero-image

Nearly half of Arizona’s private workforce is employed by small business owners, and one East Valley CEO is helping his employees do their part to support those companies in their communities.

Mike Bianco, CEO of Chandler-based AvAir, a global leader in the aftermarket aviation industry, has given each of his employees worldwide $500 and encouraged them to spend that money at small and local businesses in their communities.

A majority of AvAir’s employees have fully transitioned to working from home to prevent the spread of COVID-19, and to keep the team connected it is hosting four virtual trainer-led workout classes for staff on a weekly basis as well as semi-regular webinars about healthy habits and weekly guided meditations via Zoom.

AvAir’s warehouse staff and 24/7 AOG team are still supplying emergency parts for aircraft around the clock, and the company is seeking opportunities to grow its inventory and its team. AvAir is currently hiring at its Arizona headquarters and its employees in Dublin, Ireland. Available positions include roles in the warehouse, sales and administration. To apply, email Nina.Boyd@avair.aero or visit www.AvAir.Aero.

Dublin-2020

PHOENIX — AvAir, a global supplier of aftermarket aviation parts, announced it will open a 25,000-square-foot warehouse facility at the Dublin Airport.

The United States based company’s expanded presence in Europe comes as at the start of its 20th year and as part of a new strategic vision for AvAir, which offers customized solutions for customers and suppliers to buy, sell, exchange, loan, lease, or consign more than 26 million in-stock aviation parts.

“The new Dublin location will allow us to provide better service to our customers in Europe, Asia, and the Middle East,” said CEO Mike Bianco. “With this new facility, we are removing nearly 5,000 miles from the total distance much of our inventory would need to travel allowing us to be more responsive to our customers, while saving time and money.”

To lead the Dublin office, Fjalar Scott has been promoted to vice president of sales in Europe. Scott has led the European business development for the company with a focus on expanding its footprint to better serve international clients for the last four years.

The company is hiring sales, administrative and support staff to work out of its new facility. Interested applicants can learn more about available roles by emailing nina.boyd@avair.aero.

AvAir’s Dublin facility is located in the Horizon Logistics Park, Unit D6, Swords Co Dublin. For more information about AvAir, visit AvAir.aero.

AvAir

Founded in 2000, Arizona-based AvAir is a global leader in the aviation aftermarket, providing customized inventory solutions for airlines, OEMs, and MROs. For more about AvAir, visit AvAir.aero.

matt

Matt joins us with over 20 years of experience in the Aviation Industry specializing in Powerplant Asset Management, Engine Teardown, Engine and Component Repair management and has overseen the introduction of start-up Engine Shops and component repair shops from cradle to grave.

Matt is well traveled and currently resides in Luxembourg with his Fiancée and 2 sons, Jake and Noah.

Outside of work Matt has a passion for music (described as not for the feint hearted!!) and also enjoys playing music and video games.

Want to connect with Matt and the rest of our team? Shoot Matt a note at Matt.Eales@avair.aero.

young-Business-Leaders

We have all read about — or talked about (mostly behind their backs) — the stereotypes that have been assigned to the younger members of today’s workforce (think age 40 and younger). Too many people view today’s young business leaders as a generation of cornhole-in-the-office-playing, craft-beer-drinking, selfie-stick wielding narcissists who are way too self-involved because they grew up in an era when everyone goes home with a trophy.

Think again.

Mike Bianco CEO, AvAir

Source of pride: “AvAir’s culture and reputation as a global leader in the aviation aftermarket with small company values are what makes me proud to be its newly appointed CEO. I joined AvAir just after high school as its first official employee. Since those early days in the warehouse, I’ve learned what it takes to maintain a business with minimal employee or client turnover in a quickly evolving industry.”

Watching in 2020: “Sustainability is one of the most important global issues, and companies in the aviation industry have been finding ways to reduce their carbon footprints for years. Those initiatives include finding partners whose operations are environmentally conscious. AvAir’s headquarters runs entirely on solar energy, and I expect to see more companies following suit.”

Read the rest of the article here.

whippany

PHOENIX — AvAir, a global supplier of aftermarket aviation parts, has entered into an exclusive partnership with Whippany Actuation Systems, a New Jersey-based aerospace and aviation design and manufacturing company.

AvAir’s strong global customer base of airline and maintenance, repair and operations customers will help facilitate sales for Whippany Actuation Systems, which manufactures aircraft parts that are in high demand among AvAir’s 2,400 clients worldwide.

“Our clients expect the best access to material, and this partnership with Whippany Actuation Systems expands our capabilities,” said Steven Solomon, vice president of sales at AvAir. “Our company values always come first, and we’re fortunate to have found a partner that also places stock in customer service, consumer trust, corporate responsibility and fair pricing.”

The partnership between AvAir and Whippany Actuation Systems includes aftermarket sale of overhaul and shop visit materials, a joint exchange pool and special rate discounting on overhaul and repairs.

“Whippany Actuation Systems is pleased to announce a new strategic aftermarket partnership with AvAir,” said Erik Schwind, commercial business unit manager at Whippany. “AvAir’s global AOG service provides Whippany with an opportunity to support operators’ urgent needs with reliable OEM tagged units to keep fleets flying safely and longer across the globe.”

For more information about AvAir, visit AvAir.aero. For more information about Whippany Actuation Systems, visit WhipActSys.com.

anthony

Before discovering a passion for sales, Anthony Barker was a student athlete and local baseball state champion (Desert Vista high school, 2001). He continued to play in college after earning a scholarship to Henderson State in Arkansas. His competitive spirit led him to an eight year career at Cintas, where he was a two-time presidents club award winner. He’s excited for this new chapter at AvAir.

Outside of work, Anthony enjoys cooking, hunting and fishing. He lives in the Chandler area with his wife Sy and two sons, Mason and Miles.

Want to connect with Justin and the rest of our team? Shoot Austin a note at Anthony.Barker@avair.aero.