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.”


We would welcome the opportunity to connect with you in person at MRO Americas 2019 set for April 9 – 11 in Atlanta. We’re happy to schedule appointments ahead of time for your convenience.

AvAir team members who will be in attendance include:

✈️ Mike Bianco, CEO –

✈️ Younes El-Khatib, Vice President – Business Development –

✈️ Kevin Lenz, Vice President – Sales –

✈️ Steven Solomon, AOG Manager –

✈️ Zachary Hall, Account Executive –

✈️ Max Masterson, Account Executive –

✈️ Atheer Mustafa, Account Executive –

✈️ Nina Boyd, Executive Assistant –

Want to link up? Shoot any of our team members an email ahead of the conference to secure an appointment. See you there!

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The AvAir team is on the move again, and this time they’re headed to London for MRO Europe. Come connect with us in October, we welcome the opportunity to meet with you in person at MRO Europe, and we’re happy to schedule appointments ahead of time for your convenience. AvAir team members who will be in attendance include:

Younes El-Khatib, Vice President of Business Development – Younes.EK@AvAir.Aero

Fjalar Scott, Director of Business Development, Europe – Fjalar.Scott@AvAir.Aero

Rosa Gudmannsdottir, Account Manager, Europe – Rosa.Gudmaan@AvAir.Aero

Steven Solomon, Aircraft on the Ground Manager –

Graham Carson, Director of Business Development – Graham.Carson@AvAir.Aero

Max Masterson, Account Executive – Max.Masterson@AvAir.Aero

Atheer Mustafa, Account Executive – Attheer.Mustafa@AvAir.Aero

Want to link up? Shoot any of our team members an email ahead of next month’s show to secure an appointment, or stop by Booth 1621 and say hello during the exhibition. See you there!


AvAir has reached an agreement with Sky Airline Chile to manage the carrier’s surplus inventory. The contract consists of 16,000 line items of 737 and A320.

This significant addition to AvAir’s inventory of more than five million in-stock rotable and consumable components for Boeing, Airbus and regional aircraft will help the company meet the growing needs of its rapidly expanding customer base. The arrangement also enables Sky Airline Chile to recapture capital from its excess assets.

Do you have surplus inventory you could monetize? AvAir encourages operators to contact them to learn more about the benefits of their asset management services.